Saregama Q4 FY26: Revenue up 19%, record EBITDA

Key takeaways from the March 2026 quarter

Saregama India Ltd (NSE: SAREGAMA) reported a strong March quarter (Q4 FY26) with faster growth in operating profit than in revenue. Revenue from operations rose to ₹287.44 crore, up 19.36% year-on-year. Consolidated net profit increased 25.38% to ₹75.39 crore. Profit before tax (PBT) jumped 36.15% to ₹104.37 crore. The company also reported adjusted EBITDA of ₹132.7 crore for the quarter, up 31% year-on-year.

What management highlighted in the earnings call

In its earnings call remarks, the company said Q4 FY26 delivered revenue from operations of about ₹287 crore with 19% year-on-year growth. It also flagged its “highest ever” adjusted EBITDA of about ₹133 crore, up 31% year-on-year, and operational PBT of about ₹105 crore, up 37% year-on-year. Management framed the quarter’s performance in the context of the evolving music market and a rebound in the company’s music vertical growth trajectory in the second half.

Music vertical performance and H2 rebound

Management stated that for FY26 it is combining music licensing, artist management, and the retail business under one “music vertical” for simplicity. For FY26, this combined music vertical recorded revenue of ₹814 crore, up 17% year-on-year. Annual EBITDA for the music vertical stood at ₹517 crore, up 22% year-on-year. The company also reported an annual net margin of ₹377 crore, up 27% year-on-year.

The call also pointed to a sharper second-half improvement: H1 growth was 7% year-on-year, while H2 growth was 26% year-on-year. Management attributed part of the Q4 growth rate to the impact of moving out of “Winks” revenue from the denominator, indicating it is now out of the cycle of free platform shutdown effects that had earlier distorted comparisons.

Segment-level indicators: music, licensing, artist management

In Q4 FY26, revenue from the music segment rose 29.96% year-on-year to ₹242.9 crore. In the same quarter, licensing revenues were reported at ₹184 crore, up 20.7% year-on-year. Artist Management revenues were reported at ₹42 crore, up 125% year-on-year. The TV and Films segment revenues were reported at ₹32 crore, down 34.4% year-on-year.

Alongside segment growth, the company’s margins remained a key data point for investors. One market report noted an EBITDA margin of 68% in Q4 FY26, steady compared with the corresponding quarter last year. The quarter also drew attention due to the sharp divergence between digital-led music and slower moving hardware-led lines.

Carvaan volumes and live events update

Carvaan sales volumes declined in Q4 FY26, with volumes reported at 55,000 units compared with 73,000 units in Q4 FY25, a fall of 24.66% year-on-year. For the live events vertical, management disclosed FY26 revenue of ₹62 crore. The call commentary suggested volatility in live events comparisons, while the numbers underline how the company’s growth narrative is currently more anchored in music licensing and artist management than in events.

Content investments and catalogue acquisitions

Management said its spend in FY26 on new music content was close to ₹235 crore. It also spent another ₹104 crore on inorganic purchases of various small and mid-size catalogues. The company noted that the ₹235 crore spend on new content was lower than planned because some bigger movie releases expected in Q4 were pushed out. Management also said the net result was an improvement in Saregama’s revenue despite revenue from “free” remaining flat, based on its call commentary.

Financial snapshot table

Market impact: share price move and what drove attention

Following the results, Saregama’s stock reaction was sharply positive in reported market updates. One update said the stock “soared” 15.63% to ₹387.35 after the Q4 numbers, while another data point in the provided material pegged the stock at ₹435, up 13.12% as of 12:49 IST on the NSE. While these figures reflect different snapshots, both indicate strong immediate interest after the earnings release.

The market focus stayed on the combination of double-digit revenue growth and faster profit growth, supported by music segment outperformance. Investors also tracked the company’s commentary on being “out of the cycle” of free platform shutdown effects, since this changes the base for year-on-year comparisons.

Guidance and industry context from management

Management said India is at an early stage of the global streaming curve, and described growth drivers as subscriber expansion, ARPU expansion, and format diversification. It also referenced a global recorded music market size of close to $12 billion in 2025 (as cited in the call). For the combined music vertical, management reiterated medium-term guidance of 21% to 23% revenue growth.

The call also mentioned an “annual AIDA” guidance for the music vertical of anything between 60% to 65% (as stated). Management added that it will continue investing in new music content over the next few years, positioning this as central to sustaining growth.

Analysis: why these numbers matter for Saregama’s model

The Q4 FY26 print reinforced a familiar pattern for music-led IP businesses: the music segment and licensing-oriented revenue streams can expand quickly, while hardware-linked volumes like Carvaan can remain more cyclical. The disclosed content spending and catalogue acquisition figures (₹235 crore in new content and ₹104 crore in inorganic purchases) also matter because they indicate continued reinvestment into the library that underpins future monetisation.

Operationally, the H2 acceleration (26% growth vs 7% in H1, as stated) suggests timing of releases and platform cycles can materially affect half-year performance. Management’s emphasis on being out of the “free platform shutting down” cycle addresses a key investor concern around volatility and base effects.

Conclusion

Saregama’s Q4 FY26 results showed revenue growth of about 19% alongside record adjusted EBITDA growth of about 31%, with music segment momentum remaining the key driver. FY26 music vertical revenue was reported at ₹814 crore with 17% growth, and management reiterated 21% to 23% medium-term revenue growth guidance for the combined music vertical. The next set of updates investors will watch are the pace of content releases after Q4 delays and how the company tracks against its stated medium-term growth guidance.