Saregama India (SAREGAMA) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue from operations reached INR 287 crore, up 19% YoY, with adjusted EBITDA at INR 133 crore (+31% YoY) and operational PBT at INR 105 crore (+37% YoY).

• FY26 music segment revenue grew 17% to INR 814 crore, with annual EBITDA up 22% and net margin up 28% YoY, driven by licensing and artiste management.

• PAT for FY26 stood at INR 2,062 Mn, with a PAT margin of 21% and diluted EPS of 10.73.

• Growth rebounded in H2 FY26 (26% YoY) after content release delays and platform exits impacted H1 (7% YoY).

• Strategic investment in Bhansali Productions secures marquee Hindi film music for the next 24-30 months.

Financial highlights

• Q4 FY26: Revenue INR 287 crore (+19% YoY), adjusted EBITDA INR 133 crore (+31% YoY), operational PBT INR 105 crore (+37% YoY).

• FY26 music vertical: Revenue INR 814 crore (+17% YoY), EBITDA INR 517 crore (+22% YoY), net margin INR 377 crore (+27% YoY).

• Adjusted EBITDA margin improved to 41% in FY26 from 30% in FY25.

• Live events revenue at INR 62 crore, lower YoY due to a one-off event in FY25; underlying growth excluding one-offs.

• Video vertical declined 43% YoY to INR 108 crore, reflecting a strategic wind-down of in-house film production.

Outlook and guidance

• Medium-term guidance for music vertical: 21%-23% revenue growth, 20%-23% CAGR, and annual EBITDA margin of 60%-65%.

• Content investment for FY27 expected at INR 300-350 crore, with future increases to be linear and inflation-linked.

• Net margin for music expected to improve by 300-500 bps over 3-5 years, driven by digital scale and marketing efficiencies.

• Focus on digital user growth, higher content consumption, and increased advertising share.

• Live events IP (UN40) expected to break even by FY28; further expansion in live and diaspora-focused events planned.