Saregama’s Profit Down by 2% in June Quarter

Mumbai, 31 July 2025: Saregama India Ltd (NSE: SAREGAMA, BSE: 532163) reported a profit after tax (PAT) of ₹365 crore in Q1FY26, reflecting a 2% decline year-on-year (YoY) from ₹371 crore in Q1FY25. Revenue from operations was largely unchanged at ₹2,068 crore, while profit dropped sharply 39% quarter-on-quarter (QoQ) due to reduced video monetisation and higher content amortisation costs.

Revenue Holds at ₹2,068 Cr, While Profit Declines 39% QoQ Amid Rising Content Costs

In Q1FY26, Saregama recorded ₹2,068 crore in revenue from operations, marking a modest 1% YoY growth compared to ₹2,053 crore in Q1FY25, but a significant 14% QoQ drop from ₹2,408 crore in Q4FY25. Adjusted EBITDA stood at ₹664 crore, slightly lower than ₹680 crore last year, and down from ₹1,016 crore in the previous quarter.

EBITDA margin narrowed to 32%, compared to 33% in Q1FY25 and 42% in Q4FY25.

Profit before tax (PBT) rose marginally by 1% YoY to ₹510 crore, but fell 38% QoQ from ₹817 crore. PAT margin remained steady YoY at 18%, though it dropped from 25% sequentially.

Music Segment Grows 12% YoY to ₹1,490 Cr, While Video Revenue Falls 23%

The music segment (licensing and artist management) reported ₹1,490 crore in revenue, up 12% YoY but down 13% QoQ. Retail revenue came in at ₹170 crore, declining 31% YoY, though it grew 10% QoQ, supported by stronger e-commerce sales.

Video revenue declined 23% YoY to ₹357 crore and fell 28% QoQ, primarily due to weak monetisation. The events business delivered ₹51 crore, up a sharp 410% YoY and 6% QoQ, driven by new concert launches.

NAV Records Acquisition Adds 6,500+ Tracks, Boosting Regional IP Strength

During the quarter, Saregama expanded its content portfolio by acquiring NAV Records Pvt. Ltd., securing access to the largest Haryanvi music catalogue of over 6,500 tracks and 24 million YouTube subscribers.

Iconic IPs acquired include:

• “Coco Cola” – Over 900 million views
• “Parvati Boli Shankar Se” – Over 500 million views

New Content and Artist Signings Strengthen YouTube Presence to 284 Billion Views

The company released over 1,000 new tracks across more than 15 languages, and added over 25 influencers and artists, including Dr. Kumar Vishwas, bringing the total roster to 230+ artists with a combined follower base of 200 million. Engagement soared on YouTube, with views spiking to 284 billion, largely due to changes in YouTube Shorts methodology, while subscriber count rose to 160 million.

Strong Performance from “Thug Life” and “Hit 3” Enhances Digital Revenue Streams

Key content launches this quarter included:

• “Thug Life” (Tamil) – Collected over ₹95 crore at the box office
• “Hit 3” (Telugu) – Grossed more than ₹120 crore
• “Hai Junoon”, a digital Hindi series starring Jacqueline Fernandez
  Live events included the launch of the CAP-MANIA Tour 2025 featuring Himesh Reshammiya, and new shows of “That’s So Viraj” in Mumbai and Gujarat.

Carvaan Sales Rise QoQ to 87,000 Units as Retail Focus Shifts to High-Margin Channels

Sales of Carvaan saw an uptick to 87,000 units, aided by a strategic transition toward modern trade and e-commerce platforms. This move is aligned with Saregama’s broader focus on higher-margin retail channels, as the traditional retail model saw declining volumes.

Share Price Moves in Narrow Range Post Earnings, Closes Flat at ₹483

On 31 July 2025, Saregama’s share price closed at ₹483.00, showing a marginal decline of ₹0.10 (-0.021%). The stock opened at ₹481.00 and touched an intraday high of ₹498.00 before hitting a low of ₹471.00. At 3:30 PM IST, the market capitalisation stood at ₹9,280 crore. The stock trades at a P/E ratio of 45.52 and offers a dividend yield of 1.14%. It remains 28% below its 52-week high of ₹688.90 and 16% above its 52-week low of ₹417.40.

Saregama Key Metrics Reflect Mixed Performance with Strong Margins but Weak YoY Growth

As of Q1FY26, Saregama’s market capitalisation was ₹9,318.5 crore. The PE (TTM) ratio stands at 45.7, among the highest in the industry, indicating investor confidence.

However, revenue growth YoY is low at 0.7%, and net profit YoY growth stands at -0.7%, reflecting some near-term pressure. Operating profit margins remain healthy, with 26.7% for the quarter and 23.9% on a TTM basis.

The company maintains a Piotroski Score of 7, suggesting strong underlying financials.

Institutional holding increased to 21.91%, signalling growing interest. While ROE at 12.9% trails industry average, ROA is robust at 9.7%. Relative returns for the quarter were -15.5% vs Nifty50 and -18.3% vs sector.

Balance Sheet Shows Growth in Assets and Net Worth Despite Dip in Cash Reserves

As of 30 June 2025, total assets increased to ₹21,332 crore from ₹20,951 crore on 31 March 2025. Net worth improved to ₹16,165 crore, up from ₹15,834 crore.

Cash and cash equivalents reduced to ₹232 crore, from ₹694 crore in the previous quarter.

The company reported borrowings of ₹531 crore, having had no debt in the previous quarter.

Company Maintains Investment Focus With ₹10,000 Cr Content Plan by FY27

In her statement, Avarna Jain, Vice Chairperson, noted that the company has delivered consistent topline and bottom-line performance despite industry challenges.

She reaffirmed Saregama’s balanced approach to growth and profitability.

The firm aims to invest ₹10,000 crore in content creation by FY27, prioritising monetisation through music licensing, OTT platforms, short videos, and live events.

Saregama India Ltd: India’s Oldest Music Label with 1.75 Lakh Songs and 10,000+ Hours of TV Content

Saregama India Ltd, a part of the RP-Sanjiv Goenka Group, is India’s oldest and largest music label and entertainment IP company. It operates across segments including music, films, TV content, digital series, and influencer management. Listed on BSE and NSE, the company holds a catalogue of over 1.75 lakh songs and 10,000+ hours of television content, offering one of the richest content libraries in the country.

REF:https://nsearchives.nseindia.com/corporate/SAREGAMA_31072025124627_pressreleaseQ1signed.pdf

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