Saregama India reported record Adjusted EBITDA of INR 4,047 Mn for FY26, up 13% with margins expanding by 1,100 bps. Revenue dipped 16% due to a high base from a one-off tour, but core profitability and strategic content acquisitions show strength.
Saregama India Reports Record FY26 Adjusted EBITDA of INR 4,047 Mn
Record Adjusted EBITDA of INR 4,047 Mn and PAT of INR 2,062 Mn. Reader Takeaway: Strong margin expansion driven by 'Entertainment Flywheel' strategy; revenue impacted by one-off event normalization. ## What just happened Saregama India has announced its Integrated Annual Report for FY 2025-26, highlighting a record Adjusted EBITDA of INR 4,047 Mn, a 13% year-on-year increase. This surge was accompanied by a significant expansion in EBITDA margins by approximately 1,100 basis points. Consolidated Revenue from Operations for the fiscal year stood at INR 9,846 Mn, showing a 16% moderation compared to the previous year. This decrease is primarily attributed to the high base effect from a one-off Diljit Dosanjh tour in FY 2024-25. ## Why this matters The company's 'Entertainment Flywheel' strategy appears to be driving profitability, with record EBITDA and substantial margin expansion indicating operational efficiencies and successful content monetization. Despite the revenue dip, the resilience in core profitability and strategic acquisitions like Bhansali Productions and NAV Records signal a focus on sustainable, high-margin intellectual property (IP). ## The backstory Saregama's business model has been evolving, with a strategic shift towards an asset-light, risk-mitigated approach. The previous fiscal year's revenue was boosted by a significant one-off event, making the current year's comparison appear weaker on the top line. However, the underlying growth in segments like music and a normalized live events business, along with strategic investments, points to a long-term vision. ## What changes now The company is reinforcing its commitment to monetizing its extensive music catalogue and expanding its presence in regional music ecosystems. Investments in Bhansali Productions and NAV Records are expected to provide exclusive access to premium film music and strengthen its hold in the Haryanvi music market. The shift away from capital-intensive film production towards asset-light models in the video segment is a key operational change. ## Risks to watch Investors need to closely monitor the impact of revenue normalization due to the absence of large one-off events. The strategic shift in film production, while aimed at better returns, will initially affect top-line figures. Tracking the successful integration of new partnerships and the growth of the music and normalized live events segments will be crucial. ## Peer comparison While specific peer comparisons were not detailed in the filing, Saregama's focus on leveraging its vast music IP and expanding into regional markets positions it uniquely. Competitors in the music streaming space and film production houses operate with different models. Saregama's blended approach, focusing on catalogue monetization and strategic content partnerships, sets it apart. ## Context metrics (time-bound) - **FY26 Adjusted EBITDA:** INR 4,047 Mn (+13% YoY) - **FY26 Revenue:** INR 9,846 Mn (-16% YoY) - **FY26 Music Segment Revenue:** INR 8,144 Mn (+17% YoY) - **FY26 Live Events Revenue (excl. one-off):** INR 618 Mn (+43% underlying growth) - **FY26 Video Segment Revenue:** INR 1,084 Mn - **Bhansali Productions Stake:** 28%-49.9% for INR 3,250 Mn ## What to track next Investors should keep an eye on the performance of the music segment, the integration and revenue generation from Bhansali Productions, and the growth trajectory of the video and live events businesses under their new asset-light strategies. The company's adherence to its strict content acquisition payback period and its progress in capturing new music releases will also be key indicators.
