Saregama India Q2 FY27 results: net profit up 46.4% to ₹64.17 crore, revenue up 36.6%

How did Saregama India perform in Q2 FY27?

Saregama India reported consolidated revenue of ₹314.30 crore in Q2 FY27, up 36.6% from ₹230.03 crore in Q2 FY26 and up 19.2% from ₹263.60 crore in Q1 FY27. EBITDA was ₹101.97 crore, against ₹68.77 crore a year earlier and ₹93.32 crore in the previous quarter, with the margin at 32.4% versus 29.9% and 35.4% respectively. The net profit margin was 20.4%, up 1.3 percentage points from the year-ago quarter.

Profit before tax was ₹81.78 crore in Q2 FY27, up from ₹60.10 crore in Q2 FY26 and ₹71.72 crore in Q1 FY27. Tax was ₹21.60 crore, and net profit was ₹64.17 crore, up 46.4% from ₹43.83 crore and up 23.7% from ₹51.88 crore. Profit attributable to owners was ₹64.60 crore, and basic EPS was ₹3.37 against ₹2.28 a year earlier and ₹2.69 in the previous quarter.

On the standalone basis, revenue was ₹257.69 crore and profit after tax was ₹62.31 crore, against ₹47.65 crore a year earlier. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, along with the limited review report of the statutory auditors.

What changed in Saregama India's costs and profit?

Total expenses were ₹237.69 crore in Q2 FY27, up 31.0% from ₹181.40 crore in Q2 FY26 and up 21.2% from ₹196.09 crore in Q1 FY27. Other expenses were the largest line at ₹178.66 crore, up 35.7% from ₹131.68 crore a year earlier. Employee cost rose 13.8% to ₹33.67 crore from ₹29.58 crore, and depreciation was up 26.5% to ₹24.04 crore from ₹19.01 crore.

Finance costs were ₹1.32 crore, up ₹0.19 crore from ₹1.13 crore in Q2 FY26 but down ₹0.85 crore from ₹2.17 crore in Q1 FY27. Other income was ₹5.17 crore, down ₹6.30 crore from ₹11.47 crore a year earlier and up ₹0.96 crore from ₹4.21 crore in the previous quarter. There was no exceptional item in the quarter.

Tax was ₹21.60 crore, up ₹5.33 crore from ₹16.27 crore in Q2 FY26 and up ₹2.97 crore from ₹18.63 crore in Q1 FY27. The filings do not state a reason for the changes in the cost lines or other income, so the figures show only the direction of movement. Net profit margin was 20.4% against 19.1% a year earlier and 19.7% in the previous quarter.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹577.9 crore, up 32.3% from ₹436.8 crore in H1 FY26, while total income rose 27.0% to ₹587.28 crore from ₹462.5 crore. Profit before tax was ₹153.5 crore, up 38.1% from ₹111.15 crore.

Net profit for H1 FY27 was ₹116.05 crore, up 44.4% from ₹80.34 crore in H1 FY26, and EPS was ₹6.05 against ₹4.18. The standalone results for the quarter showed revenue of ₹257.69 crore and profit after tax of ₹62.31 crore.

What do the balance sheet and cash flow show?

Total assets rose to ₹2,441.29 crore as of 30 September 2026 from ₹2,321.96 crore as of 31 March 2026, and total equity increased to ₹1,823.07 crore from ₹1,695.21 crore. Inventories were ₹244.42 crore against ₹243.43 crore, trade receivables ₹202.77 crore against ₹176.92 crore, and trade payables ₹168.47 crore against ₹157.58 crore.

Borrowings fell to ₹8.75 crore as of 30 September 2026 from ₹70.38 crore at the previous balance sheet date, while cash rose to ₹43.59 crore from ₹28.17 crore. For the half year, operating cash flow was ₹226.72 crore against ₹26.25 crore a year earlier, investing cash flow was negative ₹147.14 crore against negative ₹66.34 crore, and financing cash flow was negative ₹65.1 crore against negative ₹4.46 crore. Capital expenditure was ₹127.41 crore, compared with ₹122.39 crore in H1 FY26.

How has Saregama India done over the last 8 quarters?

Revenue and profit both rose year on year in each of the last three quarters. In the latest run, revenue reached ₹314.30 crore in Q2 FY27 from ₹263.60 crore in Q1 FY27, and net profit was ₹64.17 crore against ₹51.88 crore. Revenue for the quarter was the highest in the series shown, while profit was below the ₹74.14 crore recorded in Q4 FY26.

The EBITDA margin reached a peak of 42.1% in Q4 FY26 and was 32.4% in Q2 FY27, down 3.0 percentage points from 35.4% in Q1 FY27 and up 2.5 percentage points from 29.9% a year earlier. On the trend shown, revenue bottomed at ₹206.77 crore in Q1 FY26 and net profit bottomed at ₹36.51 crore in the same quarter.

Which businesses drove the quarter?

Music revenue was ₹200.7 crore in Q2 FY27, up 25.3% from ₹160.12 crore in Q2 FY26, with segment EBIT of ₹111.21 crore against ₹77.52 crore. The segment's EBIT margin was 55.4%.

Artist Management revenue was ₹50.55 crore, up 95.3% from ₹25.88 crore, with EBIT of ₹5.3 crore against ₹2.24 crore and an EBIT margin of 10.5%. Events revenue was ₹44.72 crore, up 101.3% from ₹22.22 crore, with an EBIT loss of ₹2.84 crore against a loss of ₹1.52 crore and an EBIT margin of negative 6.4%.

Video revenue was ₹18.33 crore, down 16.0% from ₹21.81 crore, and the segment reported an EBIT loss of ₹3.2 crore against EBIT of ₹1.37 crore, with an EBIT margin of negative 17.5%. The company said it continues to pursue a calibrated approach to the video business, focusing on selective content investments and monetisation opportunities as it pivots away from own film production to investment in Bhansali Productions.

What else did the company announce?

At its meeting on 4 November 2026, the board approved the closure, liquidation, dissolution or deregistration of Saregama FZE, Dubai, a wholly owned subsidiary, under the applicable requirements of the Jebel Ali Free Zone Authority and other authorities in the United Arab Emirates, subject to regulatory, tax and statutory formalities.

The board also approved a proposal to initiate the voluntary liquidation of Kolkata Metro Networks Limited, a wholly owned subsidiary, under Section 59 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016, subject to shareholder approval of KMNL and completion of statutory and regulatory requirements. The same-day filings also included a press release on earnings and a quarterly investor presentation; no dividend or fund raise was announced.

What did Saregama India's management say?

Management said paid subscriptions are growing much faster than advertising and that pricing could add a second engine in two to three years. It said live events are shifting toward owned IP, though initial IP launches carry higher upfront costs, and noted new content initially dilutes margin because revenue and content charge-offs rise together before payback. The company also said video revenue may decline further as the film business winds down, and that unlicensed AI covers and remakes can dilute rights and create fraud risk.

Managing Director Vikram Mehra said: "On a short to medium-term basis, we maintain our guidance of twenty to twenty three percent CAGR for the music vertical revenue." He added: "Our spend on new content this year will be between three hundred to three hundred fifty crore." On rights, he said: "But while we support licensed innovation, we at Saregama will constantly fight against unlicensed exploitation." Management deferred Carvaan app metrics and declined to quantify the digital revenue mix, and expects further Carvaan operating details after four to six months or by year-end.

How did Saregama India shares react?

Saregama India rose 4.4% in the first five minutes after the filing appeared, 3.8% after 15 minutes and 3.5% after 30 minutes. On the reaction day, the stock closed 14.4% above its previous close of ₹562.50, at a price of ₹578.0. By the next day's close, the stock was up 12.0% from its pre-results close, while the Media & Entertainment sector's median move over the same close was 0.0%.

How did other Media & Entertainment companies do?

Five other Media & Entertainment companies have filed results for this quarter, with a median revenue growth of 8.2% as of 6 November 2026. All five grew slower than Saregama India, and none grew faster than the company, whose revenue rose 36.6%.

Of the six peers compared on profit, four reported higher profit. Saregama India's net profit of ₹64.17 crore in Q2 FY27 compares with the peer set's median revenue growth of 8.2%, while its own revenue growth was well above that level.