Saregama India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Saregama India Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Saregama reported Q4 FY26 revenue of Rs 287 crore, up 19% YoY, with adjusted EBITDA of Rs 133 crore, up 31% YoY, and operational PBT of Rs 105 crore, up 37% YoY. Management attributed the growth acceleration to the phasing out of the Airtel Wynk revenue base effect and the success of the Dhurandhar album, while the full-year music vertical (licensing, artist management and retail combined) grew 17% YoY to Rs 814 crore. The company also discussed its strategic investment in Bhansali Productions, the launch of its UN40 music festival, and continued content spending plans for FY27.
Numbers mentioned
Revenue from operations: INR 287 crores (Q4 FY26)
p. 3
“Quarter 4 of the financial year saw revenue from operations at INR 287 crores with a YoY growth of 19%.”
Vikram Mehra, page 3 of the filed PDF · View the filing
Adjusted EBITDA: INR 133 crores (Q4 FY26)
p. 3
“Our highest ever adjusted EBITDA at INR 133 crores with YoY growth of 31% and operational PBT at INR 105 crores, which is a YoY growth of 37%.”
Vikram Mehra, page 3 of the filed PDF · View the filing
Music vertical revenue: INR 814 crores (FY26)
p. 3
“Together, it recorded revenue of INR 814 crores, which was 17% YoY growth and annual EBITDA stood at INR 517 crores with a 22% YoY growth and an annual net margin of INR 377 crores, which was a 28% YoY growth.”
Vikram Mehra, page 3 of the filed PDF · View the filing
New music content spend: INR 235 crores (FY26)
p. 4
“Our spends this year on new music content was close to INR 235 crores and another INR 105 crores was spent on doing inorganic purchases of various small and midsized catalogues.”
Vikram Mehra, page 4 of the filed PDF · View the filing
Live events vertical revenue: INR 62 crores (FY26)
p. 7
“Overall, live events vertical during the year saw a revenue of INR 62 crores.”
Vikram Mehra, page 7 of the filed PDF · View the filing
Video vertical revenue: INR 108 crores (FY26)
p. 7
“On an annual basis, the video vertical has declined by 44% to INR 108 crores.”
Vikram Mehra, page 7 of the filed PDF · View the filing
UN40 festival footfalls: 12,000 footfalls with 8 sponsor brands (FY26)
p. 7
“We generated 12,000 footfalls along with 8 sponsor brands coming on board.”
Vikram Mehra, page 7 of the filed PDF · View the filing
Artists managed: 300+ (FY26)
p. 6
“During the quarter, we added another 30-odd artist, taking the total artist managed by the company to 300+.”
Vikram Mehra, page 6 of the filed PDF · View the filing
ROE: 13.3% (FY26)
p. 23
“Are we happy with the 13.3% ROE? We are not, sir.”
Vikram Mehra, page 23 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Music vertical revenue CAGR — 20-23% CAGR · medium-term
stated firmly by Vikram Mehra
p. 8
“For the music vertical, which is licensed music, artist management and retail, all combined, we continue with our medium-term guidance of 20-23% CAGR in terms of revenue with our annual EBITDA guidance for this vertical being anything between 60-65%.”
Vikram Mehra, page 8 of the filed PDF · View the filing
New content investment budget — INR 300-350 crores · FY27
stated firmly by Vikram Mehra
p. 9
“It's also part of the presentation that we are expecting our new content budget to be anything between INR 300-350 crores this year.”
Vikram Mehra, page 9 of the filed PDF · View the filing
New content investment growth pace — very high single digit to low double-digit percentage YoY increase · from FY28
stated as an aspiration by Vikram Mehra
p. 18
“So, as you go forward, you can look at anything in terms of very high single digit to a very low double-digit percentage increase on a YoY basis.”
Vikram Mehra, page 18 of the filed PDF · View the filing
UN40 festival breakeven — breakeven · FY28
stated as an aspiration by Vikram Mehra
p. 7
“We expect this IP to break even by FY28.”
Vikram Mehra, page 7 of the filed PDF · View the filing
Music net margin improvement — 300-500 basis points · 3-5 years
stated as an aspiration by Vikram Mehra
p. 16
“Yes, over the next 3-5 years, you should have 300-500 bps increase coming on our music business, everything else remaining as it is.”
Vikram Mehra, page 16 of the filed PDF · View the filing
Punjabi music strategy results — next 2-3 quarters
stated conditionally by Vikram Mehra
p. 5
“We are confident we have something good coming our way now. And hopefully, the results will start showing within the next 2-3 quarters.”
Vikram Mehra, page 5 of the filed PDF · View the filing
Video vertical capital allocation — mid-single digits of total capital deployed
stated firmly by Vikram Mehra
p. 14
“That number is going to go down dramatically, will be in the mid-single digits now.”
Vikram Mehra, page 14 of the filed PDF · View the filing
Payback period on content acquisition — 5-year payback period, followed by 55-75 years of returns
stated firmly by Vikram Mehra
p. 5
“Overall, we continue with our guidance of a 5-year payback period, followed by anything between 55-75 years of returns.”
Vikram Mehra, page 5 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said prior attempts failed and they are now working on a combined recorded music plus live events model with artists.
Answered by Vikram Mehra
Asked by Abneesh Roy: Why has the Punjabi music segment been weak and how much allocation is planned there?
p. 9
“Now we have been able to crack a model whereby we are working with more and more artists in a fashion that we do a combined deal with them, both for the recorded music as well as doing live events with the same artists.”
Vikram Mehra, page 9 of the filed PDF · View the filing
Management explained it relates to royalty provisions being adjusted once actual consumption data comes in, and sits in cost, not revenue.
Answered by Vikram Mehra
Asked by Kavish Parekh: What does the INR 99 million provision write-back pertain to and where is the impact reflected?
p. 10
“It's all sitting part on cost structure only.”
Vikram Mehra, page 10 of the filed PDF · View the filing
Management said the base effect from shut-down free platforms is now over, giving confidence in sustained growth guidance.
Answered by Vikram Mehra
Asked by Avnish Sharma: Should the recent revenue growth trend continue going forward?
p. 12
“That effect is completely over, which is the reason that it gives us the confidence to give you a guidance of 20-23% growth coming as overall music vertical, which is licensing, artist management and also including the Carvaan business in this.”
Vikram Mehra, page 12 of the filed PDF · View the filing
Management attributed the loss to the newly launched UN40 festival, saying festival IPs typically take years to break even.
Answered by Vikram Mehra
Asked by Prateek Poddar: Why did the events business report a loss this quarter?
p. 13
“That loss is all primarily because of UN40. I expect this trend to continue. Only in FY '28, do we expect the festival to do a breakeven.”
Vikram Mehra, page 13 of the filed PDF · View the filing
Management said the heavy content charge-off from FY25 releases is now yielding revenue benefits in FY26 without matching new charge-offs.
Answered by Vikram Mehra
Asked by Yash Bajaj: What explains the 600 bps improvement in music net margin from FY25 to FY26?
p. 15
“This year onwards, while the content investment is there, but the benefit of FY'24 and FY'25 is also coming to FY'26.”
Vikram Mehra, page 15 of the filed PDF · View the filing
Management explained the increase is largely due to a decline in interest income being netted off against unallocable expenses as QIP funds get deployed.
Answered by Kuldeep Kothari
Asked by Govindarajan Chellappa: What is driving the sharp rise in unallocable expenditure from FY23 to FY26?
p. 17
“The unallocable expense is net of other income which is the income we do in investment in mutual funds and FD.”
Kuldeep Kothari, page 17 of the filed PDF · View the filing
Management explained seasonality tied to movie release patterns and year-end settlement of royalty payments from societies.
Answered by Vikram Mehra
Asked by Rohan Nagpal: What drives the increasing licensing revenue trend from Q1 to Q4 each year?
p. 18
“So, you typically in our country have bigger releases coming in Q3, Q4.”
Vikram Mehra, page 18 of the filed PDF · View the filing
Management said they guide 20-23% CAGR currently but subscription growth could accelerate sharply if platforms cut free access.
Answered by Vikram Mehra
Asked by Akshay Jogani: Will growth rates now mirror platform subscription push, and could it accelerate into a hockey stick?
p. 23
“We are projecting a 20-23% CAGR over the next 3-5 years.”
Vikram Mehra, page 23 of the filed PDF · View the filing
Risks flagged
Punjabi music market entry has previously failed for the company and remains an expensive market
p. 8
“And I'll be honest and confess that our strategy never worked out.”
Vikram Mehra, page 8 of the filed PDF · View the filing
Delayed movie releases pushed content spend below plan
p. 4
“Our spend of INR 235 crores on new content was lower than what we had planned, and this specifically happened because some of the bigger movies that we had planned to release in Q4 actually got pushed.”
Vikram Mehra, page 4 of the filed PDF · View the filing
Free audio streaming revenue remaining flat
p. 16
“But the fact of life is that the money that we are making from the free side of audio streaming platforms are flattish, and I'm acknowledging it.”
Vikram Mehra, page 16 of the filed PDF · View the filing
Short-format content licensing remains fixed-fee annual deals rather than usage-based
p. 16
“This is one of the areas which bothers us. Short format content in all our deals are one-year deals and the renewal typically happens basis the usage of our content during the year.”
Vikram Mehra, page 16 of the filed PDF · View the filing
UN40 festival expected to continue generating losses before reaching breakeven
p. 13
“Typically, festival IPs take anything between 3-4 years to do a breakeven.”
Vikram Mehra, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.