Saregama India Q2 FY26: Profit Dips Marginally, But Operating Performance Improves With Higher Margins

Media and Entertainment

Updated on 05 Nov 2025, 08:55 am

Reviewed By

Simar Singh | Whalesbook News Team

Short Description:

Saregama India Ltd reported a slight decrease in net profit to ₹43.8 crore for the second quarter of FY26, down 2.7% from the previous year. Revenue also saw a 5% drop to ₹230 crore. However, the company's operational performance strengthened, with EBITDA increasing by 13% to ₹68.7 crore and EBITDA margin expanding to 29.9% due to better cost efficiency. The Board has declared an interim dividend of ₹4.50 per share.

Saregama India Q2 FY26: Profit Dips Marginally, But Operating Performance Improves With Higher Margins

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Stocks Mentioned:

Saregama India Ltd

Detailed Coverage:

Saregama India Ltd, a part of the RP-Sanjiv Goenka Group, has announced its financial results for the second quarter ending September 2025 (Q2 FY26). The company posted a net profit of ₹43.8 crore, a marginal decline of 2.7% compared to ₹45 crore in the same period last year. Revenue also fell by 5% to ₹230 crore from ₹241.8 crore year-on-year.

Despite the dip in profit and revenue, Saregama India demonstrated robust operational performance. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 13% to ₹68.7 crore, up from ₹61 crore in the prior year's quarter. Crucially, the EBITDA margin improved significantly to 29.9%, up from 25.1% a year ago. This expansion in margins is attributed to enhanced cost efficiencies and a favorable business mix.

The Board of Directors has approved an interim dividend of ₹4.50 per equity share, representing 450% on a face value of ₹1. This dividend will be paid to eligible shareholders on record as of November 11, 2025.

Avarna Jain, Vice Chairperson of Saregama India, expressed optimism, stating that the first half of FY26 remained steady and the outlook for the second half is strong, with several key projects and partnerships planned. She highlighted the company's strong position due to its investment strategy and diversified business segments.

Impact: This news shows mixed results for Saregama India. While profit and revenue declined, the improvement in operating efficiency (EBITDA and margins) and the declaration of a dividend are positive signals for investors. The company's confidence in future growth suggests potential upside. The dividend payout adds immediate value for shareholders. Impact Rating: 5/10

Difficult terms used: EBITDA: An acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance and profitability. EBITDA Margin: Calculated by dividing EBITDA by revenue and multiplying by 100, it indicates how much profit a company makes from its core business operations relative to its revenue.