Saregama India has announced its financial results for the second quarter of FY27, reporting a 37% year-on-year increase in revenue from operations to INR 3,143 million. Adjusted EBITDA saw a 39% rise to INR 1,180 million. The company highlighted strong performance in its music vertical, projecting a 20%-23% CAGR for the segment. Saregama also discussed its content investment strategy, AI initiatives, and growth plans for its artist management and live events verticals.
Saregama India Q2 FY27 Earnings Highlights
Saregama India Limited has announced its financial results for the second quarter ended September 30, 2026. The company reported robust growth across key metrics, driven primarily by its music vertical.
Financial Performance
For the second quarter of FY27, Saregama’s revenue from operations stood at INR 3,143 million, marking a significant 37% year-on-year growth. The company’s adjusted EBITDA increased by 39% year-on-year to INR 1,180 million. Operational PBT also showed strong momentum, growing by 43% year-on-year to INR 858 million.
Music Vertical Performance
The music vertical, encompassing licensing, artist management, and retail, recorded revenue of INR 2,513 million, a 35% year-on-year increase. Quarterly EBITDA for this segment was INR 1,540 million with a 37% year-on-year growth. Saregama reiterated its guidance of a 20% to 23% CAGR for the music vertical revenue over the short to medium term. The company noted that content acquired in earlier years is now contributing positively to margins.
Content Strategy and Investments
Saregama plans to spend between INR 300 crore and INR 350 crore on new content in the current financial year. Looking ahead, content budgets are projected to grow at a nominal pace of 10% per annum. The company anticipates new content spends of approximately INR 1,200 crore over the three financial years from FY28 to FY30. Saregama continues to focus on a 5-year payback period for new music acquisitions, with returns expected over 55 to 75 years.
AI and Digital Initiatives
The company is actively exploring Artificial Intelligence, focusing on licensed innovation and fighting unlicensed exploitation. Saregama has formed two AI-dedicated teams to optimize processes and create content like podcasts and new-age music videos using GenAI tools. They anticipate releasing around 100 hours of podcast content in Q3.
Artist Management and Live Events
The artist management vertical, which includes live events and brand partnerships, is a growing contributor. Saregama currently represents 340 artists with a combined follower base of over 450 million. The live events segment saw expansion with Carvaan Live concerts and the Ilaiyaraaja US tour. The company is increasing its focus on Intellectual Property (IP)-based events to gain pricing power.
Video Vertical
Revenue from the video vertical declined by 16% to INR 183 million, a result of the company’s decision to wind down the film business and invest in Bhansali Productions. Future investments will focus on GenZ-centric short-format content.
Outlook
Saregama India anticipates steady growth driven by rising digital consumption. The company’s strategy focuses on building engaged communities and leveraging its unique position as a music label with direct customer relationships, hardware ownership (Carvaan), and live event capabilities. The company maintains a long-term vision, aiming to be future-proofed for the next 20 years.
Source: BSE
