Company Overview

Saregama India Limited reported mixed financial results for FY26, achieving record profitability metrics while experiencing revenue headwinds due to one-off prior year comparisons. The company demonstrated strategic growth through significant investments and maintained shareholder returns through dividend distributions.

Financial Performance

Consolidated Results

  • Revenue from Operations: ₹98,461.55 Lakhs (16% decrease YoY from ₹117,135.76 Lakhs)
  • Adjusted EBITDA: ₹4,047 Mn (13% increase YoY) - highest ever achieved
  • Adjusted EBITDA Margin: 41% (~1,100 bps expansion)
  • PAT: ₹2,062 Mn (21% margin)
  • Diluted EPS: ₹10.73

Standalone Performance

  • Net Profit: ₹215.05 crore (5.8% YoY growth from ₹203.30 crore)
  • Revenue: ₹820.64 crore (down from ₹1,009.21 crore in FY25)
  • Basic EPS: ₹11.19 (₹10.57 in FY25)

Strategic Investments & Acquisitions

Bhansali Productions Investment

  • Completed on 30th January 2026 for ₹325 crore (₹32,516.33 Lakhs)
  • Acquired 9,960 Compulsory Convertible Preference Shares (CCPS)
  • Expected stake between 28-49.9% on fully diluted basis after conversion by 31st October 2028
  • Secures exclusive pipeline for premium Hindi film music (30-40% of future acquisitions)

Other Strategic Moves

  • NAV Records Acquisition: Strengthened Haryanvi music portfolio
  • Finnet Media: Acquired by subsidiary Pocket Aces for ₹895.18 Lakhs (19th November 2025)
  • UAE Subsidiary: Saregama Performing Arts & Music Festivals L.L.C S.O.C incorporated (20th February 2026)
  • Increased stake in Pocket Aces Pictures from 90.37% to 90.93%

Capital Structure & Financing

Dividend Distribution

  • Interim Dividend: ₹4.50 per share (450%) declared 5th November 2025
  • Total Payout: ₹86.76 crore (₹8,676.43 Lakhs) paid on 26th November 2025
  • Final Dividend: No final dividend recommended for FY26

Borrowings & Debt

  • New Borrowings: ₹703.78 lakhs secured during FY26
  • Long-term Loan: ₹94.50 lakhs from Aditya Birla Capital (10.50% p.a., repayable by FY2034-35)
  • Working Capital: ₹250.00 lakhs from ICICI Bank (7.50% p.a.)
  • Cash Credit: ₹297.23 lakhs utilized (8.60%-8.75% p.a.)
  • Net Debt to Equity: 0.02 (Net Debt: ₹422.13 lakhs, Equity: ₹16,952.10 lakhs)

Operational Segments

Music Segment (83% of revenue)

  • Revenue: ₹8,144 Mn (17% growth)
  • Licensing: 60% of revenue from songs released after 2000
  • Artiste Management: 300+ artistes with 410 Mn+ digital footprint
  • Retail: Carvaan unit sales rationalized to 252,000 units from 689,000

Other Segments

  • Live Events (6% of revenue): ₹618 Mn (78% decrease due to high base effect)
  • Video (11% of revenue): ₹1,084 Mn (deliberate scaling down of film production)

Content & Intellectual Property

  • Music Catalogue: 1,80,000+ songs across 14+ languages
  • YouTube: 1,123 Bn+ views, 200 Mn+ subscribers
  • Content Investment: Committed ₹10,000 Mn between FY25-FY27
  • Target: 25-30% share of all new Indian music content

Exceptional Items & Labour Impact

  • Exceptional Items: ₹852.60 lakhs recognized
  • Additional Gratuity Provision: ₹556.16 lakhs due to Labour Code changes
  • Additional Leave Provision: ₹296.44 lakhs due to Labour Code changes
  • Implementation of new Labour Codes effective 21st November 2025

Governance & Compliance

Board Composition & Changes

  • 8 Directors total (4 Independent, 3 Non-Executive Non-Independent, 1 Managing Director)
  • New Appointments: Mr. Pratip Chaudhuri and Mr. Vinod Kumar as Independent Directors (31st July 2025)
  • Key Management Changes:
  • Mr. Nayan Kumar Misra appointed as Company Secretary & Compliance Officer (5th September 2025)
  • Ms. Priyanka Motwani resigned as Company Secretary (14th August 2025)
  • Mr. Pankaj Chaturvedi resigned as CFO (31st March 2026)

AGM Details

  • 79th Annual General Meeting held on 15th September 2026 via video conference
  • Cut-off Date: 8th September 2026 for voting eligibility

Risk Factors & Contingencies

Tax Disputes

  • Income Tax Matters: ₹287.63 crore under dispute
  • Indirect Tax Matters: ₹992.30 crore in demands (GST, excise, customs, service tax)

Other Contingencies

  • SAFEMA Penalty: Reduced from ₹10,00,000 to ₹2,00,000 for delayed APR filings
  • Customs Matter: Differential duty demand of ₹232.90 lakhs pending adjudication

Forward-looking Strategy

  • Focus on entertainment flywheel strategy integrating music, artist management, video and live events
  • Continued investment in content IP with 5-year payback discipline
  • Expansion into international markets through UAE subsidiary
  • Leveraging AI and data analytics for content discovery and monetization
  • Target 25-30% market share of all new Indian music content