Saregama Shifts Events to Owned Formats Despite Losses

Saregama India Limited reported Rs 45 crore of live-events revenue in Q2 FY27 while accepting initial losses from investment in owned event intellectual property, or IP, formats. Saregama said it is expensing most early development costs for Carvaan Live, UN40, HaHaKaar and Krishna to reduce reliance on artist-led concerts and seek pricing control over time.

Why did Saregama make a loss on live events in Q2 FY27?

Saregama made a loss on live events in Q2 FY27 because it is charging the initial investment in owned formats to the profit and loss account rather than capitalising it. Responding to an investor question, Managing Director Vikram Mehra said the majority of spending on IP-based concepts is expensed in their initial run, affecting results despite Rs 45 crore of quarterly events revenue.

Management drew a distinction between the early economics of artist-led shows and its intended long-term model. Mehra said artist-based concerts can look more profitable in the near term, but they leave Saregama with less control over its future. The company is therefore accepting higher initial costs for formats that it owns, with the stated aim of gaining pricing power over time.

An analyst said live-events revenue was Rs 61 crore in H1 FY27, compared with Rs 62 crore in all of FY26. H1 FY27 is not directly comparable with the full prior financial year, but the figures show that the Rs 45 crore reported for Q2 accounted for most of first-half events revenue.

The live-events loss is separate from the discussion of unallocable expenditure, which reached Rs 27 crore versus Rs 18 crore a year earlier. Chief Financial Officer Abhishek Kapoor said that line includes other income, which declined 55% year on year; excluding that effect, he said unallocable costs were flat against the prior year.

Which owned event formats is Saregama developing?

Saregama is developing four named owned formats: UN40, a music festival; HaHaKaar, a stand-up comedy festival; Krishna, a devotional concert format; and Carvaan Live, a premium concert series. Mehra identified each as company-owned IP and said early investment in these concepts is being charged off, rather than recorded as an asset.

Carvaan Live is aimed at middle-aged and older audiences seeking seated, premium music-listening experiences. Saregama produced 54 Carvaan Live shows in Q2 FY27, serving around 10,000 people. The format extends the Carvaan brand beyond hardware sales into ticketed events built around curated music and a defined customer group.

Saregama also held 17 devotional shows featuring Manoj Muntashir's Krishna, Backstage Siblings and Jaya Kishori. Management connected its live-events strategy with super-fan spending, citing Luminate research that super fans spend more than 100% more than an average listener and that 73% buy physical merchandise. It said Carvaan Live and diaspora tours target this customer segment in India.

The owned formats also diversify the live business across music, comedy and devotional programming. This expansion began in FY27 and operates alongside Saregama's artist-management roster of 340 artists, with a combined follower base of more than 450 million on Instagram and YouTube at the end of the quarter. That roster supports artist bookings, weddings and brand endorsements, while owned formats can create recurring event identities.

How is Saregama balancing artist concerts and owned IP?

Saregama is retaining artist-led concerts while placing greater emphasis on owned IP because management regards artist shows as safer and owned formats as a route to long-term pricing power. Mehra said the company will continue this balancing approach rather than exit artist concerts, which remain part of the live-events calendar.

The company cited its Ilaiyaraaja US tour as an example of the artist-concert side of the business. The 11-city tour served 20,000 audience members in Q2 FY27. Management said the tour provided a positive contribution from artist-based events while it continued spending on Carvaan Live, UN40, HaHaKaar and Krishna.

For H2 FY27, management said Saregama will not work with Diljit Dosanjh for the India season because the financials did not work out. Mehra said the pipeline includes a Guru Randhawa show, UN40, HaHaKaar and an unannounced tour by an artist larger than a mid-level act. He described the calendar as full but did not disclose dates, ticket-sales targets, revenue or margin expectations.

Saregama lists events on BookMyShow and District by Zomato. Mehra said the platforms charge a nominal fee for ticketing backend operations, while the balance of each event's profit and loss remains with Saregama. He said commercial structures vary by event type and did not disclose the percentage paid to either platform.

How does Carvaan support Saregama's events strategy?

Carvaan supports Saregama's events strategy by linking hardware customers, the testing-phase Carvaan app, Carvaan Club and Carvaan Live around middle-aged and older consumers. Management said the objective is to build direct consumer relationships through music and entertainment, rather than use Carvaan only as a hardware-sales channel.

The Carvaan app remains in testing during FY27 with a small group of Carvaan hardware owners. Mehra said Saregama has no plan to create a conventional music-streaming app and intends to use the financial year to test content and customer response. Management said it expects to provide more details after another four to six months of experimentation.

Carvaan Club is intended to connect customers through the app and in-person events, with Carvaan Live operating in Mumbai, Delhi and Bengaluru. Management described a potential journey in which a customer attends one event, buys hardware, attends another event and may later use the app. It said the company is proceeding gradually and does not want to spend cash unnecessarily during testing.

The Carvaan proposition is separate from Saregama's younger-audience activity under FilterCopy and the Saregama brand. Carvaan targets older consumers, while the 54 Carvaan Live shows staged in Q2 FY27 provide the event component. Management's stated aim is to build an engaged community rather than immediately drive more hardware-unit sales.

Conclusion

Saregama's Rs 45 crore Q2 FY27 live-events revenue and reported segment loss reflect a deliberate operating trade-off. Artist-led shows can offer safer near-term economics, while company-owned formats require upfront expenditure that Saregama is charging to profit and loss. The 54 Carvaan Live shows, 17 devotional shows and development of UN40 and HaHaKaar show how the company is broadening the business beyond individual artist tours.

The next point to watch is the H2 FY27 live-events calendar, which management said includes Guru Randhawa, UN40, HaHaKaar and an unannounced artist tour, but excludes Diljit Dosanjh for the India season. Management also plans to complete further Carvaan app testing over the next four to six months before providing additional details on the product and community strategy.