Tips Music (TIPSMUSIC) Q2 25/26 earnings summary

Executive summary

• Revenue for Q2 FY26 grew 11% year-over-year to ₹89.22 Cr, with H1 FY26 revenue up 15% to ₹177.3 Cr compared to H1 FY25, despite industry challenges.

• Operating EBITDA margin improved to 76% in Q2 FY26 from 73.8% in Q2 FY25.

• PAT for Q2 FY26 increased 10% year-over-year to ₹53.2 Cr, with H1 FY26 PAT up 8% to ₹99.4 Cr.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved and reviewed with an unmodified conclusion by statutory auditors.

• Board declared a second interim dividend of ₹4 per share for FY26.

Financial highlights

• Q2 FY26 revenue: ₹89.22 Cr, up 11% year-over-year; H1 FY26 revenue: ₹177.3 Cr, up 15%.

• Q2 operating EBITDA: ₹67.9 Cr, up 14% year-over-year; EBITDA margin at 76%.

• Q2 PAT: ₹53.2 Cr, up 10% year-over-year; H1 PAT: ₹99.4 Cr, up 8%.

• Earnings per share for the quarter were ₹4.16, compared to ₹3.77 in the same quarter last year.

• Revenue for the last 10 quarters totaled ₹729.6 Cr, with cumulative PAT of ₹392.3 Cr.

Outlook and guidance

• FY26 guidance reaffirmed at 20% top-line and bottom-line growth.

• Growth to be driven by non-film music releases, selective film releases, and subscriber expansion.

• Industry subscription revenue is growing at 40-50% CAGR, with paid subscribers expected to more than double in three years.

• Management expects industry pressure from OTT consolidation to be temporary, with subscription growth anticipated to boost revenues.

• Interim dividend to be paid on or before November 12, 2025, reflecting confidence in ongoing performance.