Tips Music (TIPSMUSIC) Q3 25/26 earnings summary

Executive summary

• Strong content usage momentum across platforms supports 20% revenue growth guidance and an upward revision of PAT growth guidance to 25% for FY26, up from 20% previously.

• Board approved a dividend of INR 5 per share, totaling INR 63.91 crore for the quarter and INR 166.18 crore for the year, fulfilling the commitment to return 100% of last year's PAT to shareholders.

• Operates a large music catalogue in over 25 languages, distributed globally across digital platforms, with 145.3 million YouTube subscribers and a focus on the Indian subcontinent and diaspora.

• Maintains a debt-free balance sheet with ₹303 crore in cash and investments as of Q3FY26.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed with an unmodified conclusion by statutory auditors.

Financial highlights

• Q3 FY26 revenue was INR 94.29 crore, up 21% year-over-year from INR 77.7 crore in Q3 FY25; nine-month FY26 revenue reached INR 271 crore, a 17% increase from INR 232 crore in the prior year period.

• Operating EBITDA grew 34% to INR 74.5 crore, with margins improving to 79% from 72% year-over-year.

• PAT for Q3 FY26 was INR 58.7 crore, up 33% from INR 44.2 crore in Q3 FY25; nine-month PAT was INR 137.5 crore, up 16%.

• EPS for Q3FY26 at ₹4.6, up from ₹3.5 in Q3FY25.

• Employee expenses included a one-time impact of INR 96.7 lakhs due to new labor code implementation.

Outlook and guidance

• Revenue growth guidance for FY26 maintained at 20%, with PAT growth guidance revised upward to 25%.

• Content cost for FY26 expected to be around 18% of revenue, lower than the initial 25% guidance due to film release shifts; FY27 content cost expected to rise to 25-28%.

• FY27 targets include 20% revenue growth and 20% PAT growth, contingent on timely content releases.

• Interim dividend declaration signals confidence in ongoing cash flows and profitability.

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