Saregama India Q2 FY27 Results (NSE: SAREGAMA)
Signal: Margin expansion
The read
The trajectory remains music-led: revenue growth accelerated to 37% YoY and PAT to 47%, while adjusted EBITDA margin stayed at 38% after seven consecutive quarters of YoY margin expansion; the key watchpoint is whether the 500bps QoQ margin decline reflects live-events mix rather than a reversal in music economics.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹314.3 Cr | 37% | 19% |
| Net profit | ₹64.2 Cr | 47% | |
| EPS | ₹3.36 | 47% | |
| EBIT margin | 38% |
P&L walk
Consolidated revenue increased 37% YoY to ₹3,143 Mn, led by music revenue of ₹2,513 Mn and live events revenue of ₹447 Mn; adjusted EBITDA rose 39% to ₹1,180 Mn, while the 38% margin was 100bps higher YoY but 500bps lower QoQ as live events scaled up.
Segments
Music remained the core driver at ₹2,513 Mn revenue, +35% YoY, while live events accelerated to ₹447 Mn, +101% YoY; video dragged with revenue down 16% YoY to ₹183 Mn.
Key positives
- Revenue rose 37% YoY to ₹3,143 Mn, with music revenue up 35% to ₹2,513 Mn and live events up 101% to ₹447 Mn.
- Music EBITDA margin remained 61% on ₹1,540 Mn of music EBITDA, demonstrating continued monetisation strength in the core IP business.
- PAT increased 47% YoY to ₹642 Mn and diluted EPS rose 47% to ₹3.36, with the PAT-to-EPS relationship remaining aligned.
- Operating cash flow was positive at ₹2,857 Mn in H1FY27, while PPE increased from ₹2,220 Mn to ₹2,342 Mn.
Key concerns
- Adjusted EBITDA margin declined 500bps QoQ from 43% to 38%, requiring monitoring as live events, which grew 101% YoY, are described as lumpy.
- Video revenue declined 16% YoY to ₹183 Mn as the company adopted a calibrated investment approach and pivoted away from own film production.
- Content charging cost increased 15% YoY to ₹375 Mn, keeping returns dependent on sustained monetisation of newly acquired music IP.
Research and educational content only. Not investment advice.