Tips Music Limited’s investor presentation for Q3 FY26 showcases strong financial performance. The company reports significant revenue growth, with a focus on digital platforms. They highlight their extensive music catalog in over 25 languages and a debt-free status with substantial cash reserves. The presentation details strategies for capital allocation and increasing market share, along with key growth drivers and industry opportunities.
Company Overview and Key Highlights
Tips Music Limited boasts a catalog of music in over 25 languages, available across multiple platforms. The company is debt-free, holding ₹303 cr in cash and investments. As of Q3 FY26, they have 104 employees and report that 75% of their revenue comes through digital platforms. The company’s YouTube channel has a strong reach with 145.3 million subscribers.
Capital Allocation and Shareholder Returns
Tips Music has consistently rewarded shareholders through buybacks and dividends. Total payout to shareholders in 9MFY26 reached Rs 166.18 Cr. The company also declared an interim dividend of Rs 5 per share for Q3FY26 amounting to Rs 63.91 Cr.
Revenue Growth and Market Position
The company has seen a substantial increase in revenue, with revenues surging 1.8x in the last 2 years. Music sector revenue is estimated to be 5,834 Crs in CY27E. The company emphasized their focus on optimizing capital allocation and sustaining their increasing market share.
Growth Drivers and Industry Opportunities
Key growth drivers for Tips Music include the growth in industry subscription revenue, expected to grow by approximately 40-50% CAGR, and monetization of shorts. The company is also focusing on Public Performance Rights and Royalty from AI as potential revenue streams.
Financial Performance
The presentation included a summary of the last 10 quarters, highlighting consistent revenue and profit growth. Cumulative revenue for the last 10 quarters is 771.3, with a profit after tax of 424.2. Revenue for Q3FY26 was 94.3 compared to 77.7 in Q3FY25 showing +21% growth.
Op. EBITDA Margins (%) also increased from 71.6 to 79.0 (740 bps). 9MFY26 revenue clocked in at 271.6 showing a +17% increase YoY.
Source: BSE
