Saregama India (SAREGAMA) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue was INR 2,068 Mn (₹20,677 lakhs), up 1% year-over-year but down 14% sequentially, with PBT at INR 510 Mn (₹5,105 lakhs) and PAT at INR 365 Mn (₹3,651 lakhs), impacted by delayed movie releases and exceptional items.

• Music segment grew 12% year-over-year, driven by strong regional releases and digital expansion, with the NAV Records acquisition adding 6,500 tracks and 24 million YouTube subscribers.

• Artist management expanded to 230+ exclusive artists, reaching a 200 million social media follower base.

• Carvaan retail strategy shifted to e-commerce and modern trade, improving margins despite lower volumes.

• Maintains a diversified IP portfolio across music, films, digital series, TV, and short-format content, with a strong digital presence of 400 million+ followers/subscribers.

Financial highlights

• Adjusted EBITDA margin for Q1 FY26 was 32%, with PAT margin at 18% and diluted EPS at 1.90.

• Content investment for the year projected at INR 350-380 crore, with major releases scheduled for Q3 and Q4.

• Working capital increased by INR 210 crore due to inventory buildup and receivables from upcoming projects; normalization expected in Q2/Q3.

• Return on Equity (ROE) for FY25 was 13%, with a debt-to-equity ratio of NIL.

• Total expenses for Q1 FY26 were ₹16,995 lakhs, up 1.9% year-over-year.

Outlook and guidance

• Music business expected to grow at 14%-23% CAGR in the medium term; video business at 24%-25%.

• Influencer marketing industry in India forecasted to grow at 24% CAGR, reaching INR 33,750 Mn by 2026.

• Continued investment in new content, with projected spend of ~INR 10,000 Mn by FY27.

• Five-year payback period remains a strict criterion for content acquisition.

• No plans to increase new content market share beyond 30% after reaching INR 700 crore investment.