Saregama India (SAREGAMA) Q2 2025 earnings summary

Executive summary

• Q2 FY25 operating revenue reached INR 2,418 million (₹24,183 lakhs), up 40% year-over-year, driven by music licensing, artist management, and digital content expansion.

• Adjusted EBITDA margin was 35%, with EBITDA up 17% YoY; PAT stood at INR 449 million, down 6% YoY.

• Net profit for Q2 FY25 was ₹4,495 lakhs, slightly down from ₹4,799 lakhs in Q2 FY24, due to higher operational costs.

• The company expanded its IP portfolio, digital footprint, and influencer management, with strategic investments in data analytics and AI.

• Significant investment in new content and digital expansion is expected to yield long-term benefits.

Financial highlights

• Q2 FY25 revenue: INR 2,418 million (₹24,183 lakhs), up 40% YoY; H1 revenue: INR 4,470 million (₹44,700 lakhs).

• Adjusted EBITDA margin at 35%; EBITDA up 17% YoY; PAT margin at 19%.

• Diluted EPS for Q2 FY25 was INR 2.33.

• Cash and cash equivalents rose to INR 4,546 million (₹45,455 lakhs) as of September 2024.

• Operational costs increased to ₹8,712 lakhs in Q2 FY25 from ₹4,060 lakhs in Q2 FY24.

Outlook and guidance

• Confident in meeting full-year guidance; maintain 30% revenue growth and 32%-33% adjusted EBITDA margin for FY25.

• PBT expected to show modest growth for FY25, with profitability growth accelerating after five quarters.

• Plan to invest over INR 1,000 crore in new music content over three years.

• Revenue (excluding Carvaan) expected to grow at 30% CAGR; PBT to double in 3-4 years.

• Continued growth expected in music, video, and influencer marketing, leveraging digital adoption.