Saregama India Ltd
(NSE:SAREGAMA)
₹
527.3
-4.35 (-0.82%)
Market Cap: 101.16 Bil
Enterprise Value: 98.60 Bil
PE Ratio: 45.83
PB Ratio: 5.98
GF Score: 94/100 
Q1 2027 Saregama India Ltd Earnings Call Transcript
Aug 04, 2026 / 09:30AM GMT
Release Date Price:
₹542.55
(+5.51%)
Key Points
Positve
- Revenue from operations grew 27% YoY to INR263.6 crore, with adjusted EBITDA up 69% YoY to INR112.4 crore.
- Music vertical revenue grew 39% YoY to INR230.6 crore, with EBITDA up 36% YoY and net margin up 30% YoY.
- 60% of music revenue now comes from post-2000 releases, positioning Saregama India Ltd (BOM:532163) as a new-age IP company with long-term growth potential.
- Artist management vertical is scaling rapidly, representing 309 artists with over 440 million followers, creating a unique flywheel with content and live events.
- Live events business is diversifying into multiple formats (Karwa Live, devotional shows, stand-up acts) and expanding internationally, including US tours with Ilya Raja and Arjun Dillam.
- AI initiatives are being deployed to create low-cost music videos and podcasts, potentially unlocking value from the legacy catalog at minimal incremental cost.
- Pocket Aces reached breakeven in FY26 and is expected to contribute to profitability, enhancing the company's Gen Z marketing capabilities.
- Brand partnerships vertical is gaining traction, with deals with major brands like Nilsan Lever, Godrej, and Lux, adding a high-margin revenue stream.
- Management maintains a bullish outlook on subscription growth, citing India's low 3% paid streaming penetration versus global benchmarks, with potential to reach 100 million subscribers.
- Content investments (INR300-350 crore) are expected to yield positive margins as albums from FY24-25 begin contributing, with a five-year payback period followed by 55-75 years of returns.
Negative
- Video vertical revenue declined 53% YoY to INR17 crore, though this is by design as the company winds down its films business.
- Other income declined sharply due to cash being diverted to investments like Bansali Productions, impacting overall profitability.
- Artist management business has lower margins (around 10%), and its rapid growth is expected to temper down, potentially affecting overall music segment margins.
- Quarterly performance is volatile, and management cautions against evaluating on a quarterly basis, making it difficult for investors to track short-term trends.
- The company faces intense competition in the music industry, and its growth is dependent on the success of new content releases, which carry inherent risks.
- The wind-down of the films business will continue to drag on video segment performance for the next 3-4 quarters, with no immediate turnaround expected.
- AI initiatives are still in early experimental stages, with no clear timeline for meaningful revenue contribution, and the company has not provided specific investment figures.
- The company's guidance of 20-23% music revenue growth is maintained, but management refrains from giving quarterly guidance, leaving investors with limited visibility.
- The live events business faces margin pressure, and management acknowledges the challenge of improving profitability while scaling artist-based shows.
- The company's reliance on the Indian market, which is still under-penetrated, means growth is subject to regulatory and market development risks, including the pace of subscription adoption.
Operator
Ladies and Gentlemen, Good day and welcome to the Saregama India Limited Q1 FY27 Earnings. Conference Call hosted by MK Global Financial Services Limited.
(Operator Instructions).
I now hand the conference over to Mr. Aryan Tripathi from MK Global Financial Services Limited.
Thank you and over to you sir.
Aryan Tripathi
MK Global Financial Services Limited - Co-ordinator
Good afternoon everyone. I would like to welcome the management and thank them for this opportunity.
We have with us today Vikram Mehra, Managing Director, Abhishek Kapoor, CFO and Pankaj Kedia, Executive Director, Investor Relations.
I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.
Vikram Mehra
Saregama India Limited - Managing Director, Executive Director
Thank you and a very good afternoon to all of you. Let me start the call by introducing our new CFO, Abhishek Kapoor.
Abhishek brings in over 25 years of hardcore finance experience
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