Tips Music Q2 FY27 results: net profit up 23.6% to ₹65.74 crore, revenue up 34.6%

How did Tips Music perform in Q2 FY27?

Tips Music Limited reported standalone revenue of ₹120.06 crore for Q2 FY27, the July–September 2026 quarter, against ₹89.22 crore in Q2 FY26, a rise of ₹30.84 crore or 34.6%. Total income was ₹124.52 crore, up ₹30.79 crore or 32.8%. Other income was ₹4.45 crore against ₹4.51 crore a year earlier.

EBITDA was ₹84.65 crore at a 70.5% margin, up ₹16.81 crore or 24.8% from ₹67.84 crore and 76.0% in Q2 FY26. The margin was 5.5 percentage points lower than a year earlier. Profit before tax was ₹88.04 crore, up ₹16.37 crore, and net profit was ₹65.74 crore, up ₹12.55 crore or 23.6%, with basic EPS of ₹5.15 against ₹4.16.

Against Q1 FY27, revenue rose ₹13.55 crore or 12.7% from ₹106.51 crore, while EBITDA rose ₹31.10 crore or 58.1% from ₹53.55 crore. The EBITDA margin was 20.2 percentage points higher than the 50.3% reported in Q1 FY27. Net profit was ₹22.04 crore higher than the ₹43.70 crore of Q1 FY27, and basic EPS rose ₹1.73 to ₹5.15. The results are on a standalone basis.

What changed in Tips Music's costs and profit?

Total expenses were ₹36.48 crore in Q2 FY27 against ₹22.06 crore in Q2 FY26, a rise of ₹14.42 crore or 65.4%. Other expenses accounted for most of the increase, at ₹31.82 crore against ₹17.99 crore, up ₹13.83 crore or 76.9%. Employee cost rose ₹0.20 crore to ₹3.59 crore, depreciation rose ₹0.35 crore to ₹0.97 crore, and finance costs rose ₹0.05 crore to ₹0.10 crore. There was no exceptional item in either quarter.

Other income was ₹4.45 crore, down ₹0.06 crore or 1.3% from ₹4.51 crore. Tax was ₹22.30 crore against ₹18.48 crore, up ₹3.82 crore or 20.7%. Despite the higher expense base, profit before tax rose ₹16.37 crore to ₹88.04 crore, and the net profit margin was 54.8%, 4.8 percentage points below the year-ago quarter.

Sequentially, total expenses fell ₹17.55 crore or 32.5% from ₹54.03 crore in Q1 FY27, with other expenses down ₹17.11 crore and employee cost down ₹0.45 crore. Other income fell ₹1.37 crore to ₹4.45 crore and tax rose ₹7.70 crore to ₹22.30 crore. Management said the quarter's growth was driven by both new releases and catalogue, with contributions from digital and non-digital platforms, and that promotional activity continued on releases that came out towards the middle of June.

How did the first half of FY27 go?

For H1 FY27, Tips Music reported standalone revenue of ₹226.58 crore against ₹177.29 crore in H1 FY26, a rise of ₹49.29 crore or 27.8%. Total income was ₹236.85 crore, up ₹49.36 crore or 26.3% from ₹187.49 crore.

Profit before tax for the first half was ₹146.34 crore against ₹133.2 crore, up ₹13.14 crore or 9.9%. Net profit was ₹109.44 crore against ₹99.03 crore, up ₹10.41 crore or 10.5%, and basic EPS was ₹8.56 against ₹7.75.

What do the balance sheet and cash flow show?

On the standalone balance sheet at 30 September 2026, total assets were ₹410.1 crore against ₹362.03 crore at 31 March 2026, and total equity was ₹324.23 crore against ₹259.95 crore. Borrowings stood at ₹0 crore on both dates, while cash was ₹8.55 crore against ₹7.18 crore.

Trade receivables were ₹48.22 crore against ₹34.34 crore at the previous balance sheet date, and trade payables were ₹23.25 crore against ₹13.2 crore. For H1 FY27, operating cash flow was ₹82.6 crore against ₹46.31 crore a year earlier, while investing cash flow was ₹-34.86 crore against ₹-24.14 crore and financing cash flow was ₹-46.37 crore against ₹-51.96 crore. Capital expenditure was ₹-0.04 crore against ₹0.89 crore.

How has Tips Music done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, according to the trend data. Revenue reached its highest level of the series in Q2 FY27 at ₹120.06 crore, against a low of ₹77.67 crore in Q3 FY25. The previous quarter, Q1 FY27, had revenue of ₹106.51 crore.

Net profit was ₹65.74 crore in Q2 FY27, above the ₹43.7 crore of Q1 FY27 and the ₹53.19 crore of Q2 FY26. The EBITDA margin was 70.5%, below the series peak of 79.0% in Q3 FY26 but well above the low of 47.5% in Q4 FY25. In Q1 FY27, the margin had dropped to 50.3%.

What else did the company announce?

The board approved the unaudited financial results and limited review report for the quarter and half year ended 30 September 2026 at its meeting on 15 October 2026. The board also declared the first interim dividend for financial year 2026-2027 of Rs. 6.50 per equity share, or 650%, on fully paid-up shares of face value Re. 1 each, with 22 October 2026 fixed as the record date and payment due on or before 12 November 2026.

The results filing also recorded the completion of the buyback of 6,71,946 shares, equal to 0.53% of paid-up equity share capital, with a total cash outflow of INR lakhs 4,514.50 including transaction costs. The buyback had opened on 3 September 2026 and closed on 30 September 2026. The company also filed an investor presentation with the results.

What did Tips Music's management say?

Management maintained content cost guidance for FY27 at ₹90–100 crore, noting that ₹71 crore was spent in the first half and that the second half would be lighter. The CFO said the first half's content cost was front-loaded and that new releases would continue to support growth in H2, with smaller films and non-film music planned rather than bigger names. Management said the YouTube Shorts monetisation deal was still under negotiation and the Warner partnership continued as expected.

Management did not upgrade formal guidance of 20% revenue and profit after tax growth for FY27, even though the first half ran at 28%. Kumar Taurani, Chairman and Managing Director, said: "Don't worry, we are on the job, very focused... we want to speak less and do more. It doesn't mean that if we have said 20%, we will focus on 20%. If it is 30%, then we will do 30%." Management also guided digital revenue to 70–75% of revenue and stated its industry market share at 8–10%.

On risks, management pointed to intense competition on film music rights pushing content acquisition costs higher, and noted that the Warner renewal is due in FY28. Management said the CEO search is ongoing with no timeline. Taurani said: "TIPS is the only company which writes off their entire content cost in the same year... We simply don't have any such exposure. We are absolutely clean, everything gets switched off."

How did Tips Music shares react?

The filing appeared in market hours. From the price when the results were published, the stock was down 2.2% after five minutes, down 1.0% after 15 minutes and down 1.7% after 30 minutes. On the reaction day it closed down 4.2% from the previous close of ₹715.4, against a median move of down 0.5% for the industry's other stocks, an excess move of 3.8 percentage points below the sector.

Earlier results-day moves were mixed: the stock fell 12.3% on 22 July 2026 and 5.4% on 15 October 2025, while it rose 9.0% on 23 April 2026 and 5.0% on 22 January 2025 fell, with earlier declines also recorded on 19 January 2026, 30 July 2025, 23 April 2025 and 16 October 2024.

How did other Media & Entertainment companies do?

Five Media & Entertainment companies that have filed this quarter were compared with Tips Music, and their median revenue growth was 8.2%. Four of them grew revenue more slowly than Tips Music and one grew faster, as of 4 November 2026.

Of the peers whose profit was compared, four reported higher profit, with six companies compared on that measure.