Saregama reported INR 260 crores in operating revenue and INR 76.5 crores in operating PBT for Q3 FY26, noting a one-time non-cash charge of INR 7 crores. Music grew 29% YoY, driven by new content, partially offsetting the Airtel Wynk revenue removal. The company is maintaining its long-term music growth guidance of 21% to 23% and an Adjusted EBITDA guidance of 32% to 33%.
Q3 FY26 Financial Snapshot
Saregama India Limited announced its performance for the quarter ended December 31, 2025. Operating revenue for the quarter stood at INR 260 crores, with an operating PBT of INR 76.5 crores. Management noted that the reported profit, after removing a one-time exceptional non-cash charge of INR 7 crores related to the new Labour Code, was INR 69.5 crores.
Management emphasized evaluating performance on a rolling 12-month basis. The current Adjusted EBITDA percentage was strong, but the company is maintaining its guidance of 32% to 33% for the mid-to-long term.
Music Segment Performance and Strategy
The music vertical demonstrated significant acceleration, growing 29% year-on-year in the quarter. This growth was attributed to new Hindi and regional content releases, including the successful film Dhurandhar, whose songs dominated Spotify charts. This growth partially negated the denominator effect from the cessation of Airtel Wynk revenues (which ended mid-November ’24).
For the first nine months, music segment growth reached 18% YoY. Management expects to return to the medium-to-long-term guidance of 21% to 23% annual growth starting next year. Content spend for the year is estimated between INR 275 crores to INR 300 crores, a downward revision due to film release pushes (e.g., Bhansali’s Love & War and Nani’s Paradise).
Strategic Content Investments
A key strategic move was the strategic minority investment in Bhansali Productions, which secures Saregama pre-agreed access to marquee Hindi film music, helping control long-term cost structures. This deal closed on January 30, ’26.
The company is leveraging Generative AI (GenAI) video tools to refresh its older music catalog, drastically reducing video creation time from 10–15 days to less than 3 days. The guidance for new content acquisition remains a 5-year payback period.
Expansion into Artist Management and Live Events
The Artist Management vertical added 60 new artists this quarter, bringing the total to 270-odd artists managed, boasting over 300 million followers across social platforms. Management views this vertical as crucial, as their digital marketing muscle aids the music business by generating significant hit rates.
The Live Events business showed lumpy but positive results, hosting shows with Diljit Dosanjh and Himesh Reshammiya this quarter, leading to an odd profit of INR 57 million in the segment. The long-term goal for the events business’s margin is a high single-digit percentage, achievable over 2 to 3 years, focusing on high IRR opportunities rather than high-risk blockbusters.
Business Mix Evolution
Management plans to wind down the in-house movie business over 12 to 15 months, focusing instead on short-to-medium-length video content targeting Gen Z via platforms like Instagram and YouTube Shorts.
Regarding the mix, FY ’25 revenue was split: 56% from music released in the 21st century and 44% from the older 20th-century catalog. While the older catalog continues steady growth (estimated 6% to 8% industry baseline), the bulk of Saregama’s growth is fueled by newer content investments.
Management confirmed that the high Q3 consolidated EBITDA margin of 46% was an aberration, and the 32% to 33% consolidated guidance remains for the medium to long term until the revenue mix stabilizes.
Source: BSE
