Saregama India Ltd., a part of the RPSG Group, stands as a prominent entertainment intellectual property (IP) company in India, with a rich legacy dating back to 1902. The company has strategically positioned itself as an integrated content powerhouse, operating across three core segments: Content Creation, Music, and Artiste Management. Its diverse portfolio is extensive, featuring over 180,000 songs, more than 70 films, 55+ digital series, and over 10,000 hours of television content. This vast IP library is monetized through three primary streams: licensing to platforms and third parties, direct-to-customer retail (such as Carvaan), and brand partnerships.

Saregama maintains a growing presence in all leading Indian languages, continually expanding its IP library to cater to a broad audience. The company leverages data analytics and artificial intelligence for content acquisition and IP protection, demonstrating a forward-looking approach to managing its assets. Financially, Saregama has a strong track record of revenue growth, margin expansion, and cash flow generation. This is complemented by an experienced management team and a significant digital footprint, with over 550 million subscribers and followers across major social media platforms.

Official Website: http://www.saregama.com/

• Q3 FY26 Performance: The company reported Revenue from Operations of Rs. 2,604 Mn for the quarter. The reported Profit After Tax (PAT) stood at Rs. 512 Mn, marking a 17% growth. The Operational Profit Before Tax (PBT), excluding exceptional items, was Rs. 765 Mn, a growth of 27%. The reported PBT of Rs. 695 Mn includes an exceptional non-cash charge of Rs. 70 Mn due to labor code implementation.

• Segmental Revenue Breakdown (Q3 FY26):

• Music (Licensing + Artiste Management): Rs. 2,038 Mn, showing a strong 23% QoQ and 29% YoY growth. This remains the core driver of the business.

• Retail: Rs. 157 Mn, a decline of 24% QoQ and 30% YoY, reflecting a strategic shift in the sales channel.

• Video: Rs. 187 Mn, down 14% QoQ and 23% YoY.

• Events: Rs. 222 Mn. The YoY comparison for total revenue is skewed due to a large events business in Q3 FY25 (Rs. 2,789 Mn).

• Ex-Events Growth: When excluding the highly variable revenue from Live Events, the company's performance shows robust underlying growth. Revenue from Operations (ex-Events) grew 16% YoY to Rs. 2,382 Mn, and Adjusted EBITDA (ex-Events) rose an impressive 43% YoY to Rs. 1,153 Mn.

• Balance Sheet (as of 31st Dec 2025): The company maintains a strong balance sheet with a Net Worth of Rs. 16,173 Mn. A significant portion of assets is in Intangible Assets (Rs. 7,753 Mn) and Inventories (Rs. 2,526 Mn), which represent the company's content IP. The company holds a healthy cash and investments position, with Cash and Equivalents at Rs. 1,356 Mn, Bank Balances at Rs. 1,941 Mn, and Investments at Rs. 2,241 Mn. Borrowings of Rs. 761 Mn represent temporary use of working capital limits.

• Cash Flow (9M FY26): Net cash generated from Operating Activities was Rs. 1,300 Mn. The primary use of cash was for investment in new content, with Rs. 2,277 Mn spent during the nine months, underscoring the company's focus on IP acquisition.

The company's core music business is driving strong, profitable growth, while a strategic shift in the retail segment and the lumpy nature of the events business impact the consolidated top-line figures.

• Integrated IP Powerhouse: Saregama is uniquely positioned as an entertainment company with IP offerings that span across music, films, digital series, TV serials, and short-format content. This diversification allows it to monetize content across various media channels and delivery platforms.

• Vast and Historic IP Portfolio: The company's library of over 180,000 songs, built over a century, is a significant competitive advantage. This catalogue provides a stable and recurring revenue stream through licensing.

• Multi-Pronged Monetization Model: Saregama operates across three distinct business models: licensing to streaming platforms and broadcasters, advertising revenue from brands, and direct-to-customer retail. This diversified approach reduces dependency on any single revenue stream.

• Data and AI Integration: The company actively uses data analytics and artificial intelligence for content acquisition strategies and for protecting its vast IP portfolio from infringement, indicating a modern approach to managing a legacy business.

• Strong Financial Discipline: The company has demonstrated a consistent track record of revenue growth, margin expansion, and positive cash flow generation, which provides the financial strength to invest in new content and strategic initiatives.

Saregama's distinctiveness lies in its massive, multi-format IP portfolio combined with a diversified monetization strategy and a disciplined, data-driven approach to growth.

• Global Music Industry: The global recorded music industry continues its growth trajectory, reaching USD 29.6 billion in 2024, a 4.8% increase. This growth is predominantly driven by the streaming segment.

• Indian Media & Entertainment (M&E) Sector: The overall Indian M&E sector is projected to grow at a 7% compound annual rate. The biggest driver within this is Digital Advertising, which grew by 17% to reach INR 700 Bn, fueled by content consumption on digital platforms.

• Key Verticals Outlook (India):

• Music: The industry was sized at INR 32,000 Mn in 2024 and is projected to grow at ~14% over the next three years, driven by smartphone penetration (750 Mn users), cheap data, and a shift towards paid streaming.

• Live Events: A large INR 1,00,000 Mn industry in 2024, expected to grow at 18% over the next three years due to rising disposable income and a lack of other entertainment options.

• Artiste Management: A rapidly growing segment, sized at INR 22,000 Mn in 2024 with a projected 2-year growth rate of 24%, as brands increasingly focus on influencer-led marketing.

• Film: The industry was sized at INR 187,000 Mn in 2024, with a more modest projected 3-year growth rate of 4.4%.

The industry backdrop is favorable, with strong tailwinds in digital content consumption, streaming, and live events, all of which are core areas of focus for Saregama.

• Long-Term Financial Growth (FY17-FY25): The company has demonstrated impressive long-term growth with a 23% CAGR in Revenue, a 40% CAGR in PBT, and a 43% CAGR in Adjusted EBITDA over this period.

• Core Business Growth: The Music Licensing and Artiste Management segment is the primary growth engine, with revenues reaching Rs. 2,038 Mn in Q3 FY26, a 29% YoY increase. The revenue from this segment has consistently grown from Rs. 4,420 Mn in FY21 to Rs. 11,713 Mn in FY25.

• Content Investment Growth: The company's investment in new content is accelerating significantly. After investing Rs. 1,949 Mn in FY24 and Rs. 3,160 Mn in FY25, the company plans to invest approximately Rs. 10,000 Mn in FY27, indicating a strong focus on future IP creation.

• Digital Footprint Expansion: The company's digital reach continues to expand. YouTube subscribers grew from 137 Mn in Q3 FY25 to 202 Mn in Q3 FY26. The total digital footprint across key social media platforms has reached 550 Mn followers and subscribers.

Saregama's growth is being driven by the consistent and accelerating performance of its core music business, fueled by aggressive investments in new content and an expanding digital audience.

• Untapped Subscription Market in India: India's music subscription penetration stands at just 1%, which is exceptionally low compared to developed markets like the USA (42%) and Sweden (50%), and even emerging markets like Brazil (13%). This presents a massive headroom for growth as digital payments, affordable data, and premium content adoption increase.

• Generative AI in Content Creation: The company is leveraging generative AI to transform video content creation. This technology offers the potential for enhanced efficiency, with stated benefits of approximately 70% cost savings and up to 80% faster execution, which could significantly improve margins in the video segment.

• Scaling Live Events: With a projected industry growth of 18%, Saregama is expanding its live events portfolio beyond music to include comedy, devotional, and storytelling genres. The successful tours with major artists and the upcoming multi-day festival indicate a significant opportunity to scale this vertical.

The company is well-positioned to capitalize on the nascent digital subscription market in India and leverage new technologies like AI to improve operational efficiency and content output.

• Aggressive Content Acquisition: The company's primary future plan is to significantly ramp up its investment in new music and video content. The planned investment is set to more than triple from FY25 to FY27, aiming to build a robust IP library for tomorrow.

• Strategic Partnerships for IP Pipeline: The strategic investment in Bhansali Productions is a key initiative to secure a predictable pipeline of high-quality, marquee Hindi film music. This arrangement provides exclusive access at a predictable cost based on a predefined formula, de-risking content acquisition.

• Portfolio Diversification in Live Events: Saregama plans to expand its live events business by diversifying its portfolio. This includes building out verticals in comedy, devotional, and storytelling, culminating in larger-scale events like the planned UN-40 festival.

• Focus on Quality-Led Film Production: In the film segment, the future outlook is to focus on quality-led production through strategic partnerships. This strategy aims to create predictable content acquisition costs and improve margin stability.

Saregama's future strategy is centered on aggressively investing in its IP pipeline through direct acquisition and strategic partnerships, while simultaneously diversifying its presence in high-growth adjacent verticals like live events.

• Adjusted EBITDA Margin: The company's Adjusted EBITDA margin has shown significant improvement, reaching 46% in Q3 FY26. This is a substantial increase from 37% in the prior quarter (Q2 FY26) and 21% in the same quarter last year (Q3 FY25).

• Core Business Margin: When excluding the events business, the Adjusted EBITDA margin for the core operations was even stronger at 48% in Q3 FY26, up from 35% in Q3 FY25. This highlights the increasing profitability of the music and content licensing business.

• PAT Margin: The Profit After Tax (PAT) margin for Q3 FY26 stood at a healthy 20%. For the full year FY25, the PAT margin was 18%.

• Historical Margin Profile: The company has maintained a strong Adjusted EBITDA margin profile, consistently staying between 33% and 38% from FY21 to FY25 (excluding events for FY25).

The company is demonstrating strong operational leverage, with both Adjusted EBITDA and PAT margins expanding, particularly in its core business segments.

• Strategic Investment in Bhansali Productions: Saregama made a significant strategic move by acquiring a minority ownership in Bhansali Productions. This gives them exclusive access to marquee Hindi film music at a predictable cost, securing a high-quality content pipeline while allowing creative control to remain with Sanjay Leela Bhansali.

• Major Content Releases: The quarter saw the release of the blockbuster Hindi film album "Dhurandhar," starring Ranveer Singh, which achieved a historic first for a Bollywood album by having all 11 tracks chart on Spotify India's Top 200. Over 1,100 film and non-film tracks were released in 9M FY26 across various languages.

• Artiste Management Growth: The company added 60 new artists during the quarter, bringing its total roster to over 270 artists. This portfolio, expanded through the acquisition of Finnet by its subsidiary Pocket Aces, has an aggregate digital reach of over 300 million.

• Live Events Scaling: The events business successfully executed music tours for major artists like Diljit Dosanjh and Himesh Reshammiya. It is also gaining traction in the comedy vertical with shows featuring popular internet personalities.

• Brand Partnerships: The company continues to leverage its IP for high-impact campaigns with marquee brands such as Hero, Open AI, Fogg, Carat Lane, and Gujarat Tourism, demonstrating strong brand engagement capabilities.

Key operational developments, including a landmark strategic partnership and successful content releases, are strengthening the company's IP pipeline and monetization capabilities across its business verticals.