Saregama India reported operating revenue of INR 230 crores and PBT of INR 60 crores for Q2 FY26. While most business segments grew, the Video segment experienced a cyclical degrowth. The Music segment saw successful releases, and the company is focusing on leveraging Generative AI for video creation. Saregama maintains its guidance for music revenue growth at 19% to 20% and adjusted EBITDA margins of 32% to 33%.
Financial Performance
Saregama India announced its earnings for Q2 FY26, reporting operating revenue of INR 230 crores and a Profit Before Tax (PBT) of INR 60 crores. The company highlighted growth across most of its business segments.
Music Segment Highlights
The Music segment saw the release of a successful Tamil album, Idli Kadai, a Bengali album, Dhumketu, and a Malayalam film album, Sahasam. Non-film successes included Badshah’s song Kokaina and Honey Singh’s Mashooqa. Saregama released over 1,500 originals and premium recreations across various languages. The company anticipates spending between INR 320 crores to INR 330 crores on new music content this year. The upcoming releases include Ranveer Singh’s Dhurandhar and Dharma’s film with Kartik Aaryan.
Video Segment Update
The video segment saw a decline during the quarter, which the company attributes to the timing of releases. Saregama released one small Malayalam movie called Mirage, and two new series, Bakaiti and Ye Saali Naukri.
Strategic Initiatives
Saregama is using Generative AI tools to create music videos for older songs, reducing production time to 2-3 days. The company is also experimenting with mixing real active shots with AI-generated backgrounds. Saregama continues to focus on B2B revenue generation through licensing its content and is building a direct-to-customer vertical. The company has created a new brand partnership vertical to consolidate the selling of its business segments.
Guidance and Outlook
The company maintains its guidance for music revenue growth at 19% to 20% and annual adjusted EBITDA margins of 32% to 33%. Saregama projects a consolidated revenue growth rate of 30% (excluding Carvaan) between financial year ’24 and financial year ’27.
Source: BSE
