Pocket Aces, the digital entertainment subsidiary of Saregama India, has achieved EBITDA breakeven in FY26. This milestone marks a turning point for Saregama’s strategy to dominate the creator-led content and influencer market. Investors are now monitoring how this operational stability impacts future growth as the firm prepares for a leadership transition later this year.
Pocket Aces, the digital-first entertainment company, has achieved EBITDA breakeven during the 2025-26 fiscal year, marking a significant step for its parent firm, Saregama India. This milestone indicates that the digital content unit is now effectively covering its operational costs, validating Saregama’s strategy to diversify beyond its traditional music business into the modern creator economy.
Saregama, part of the RPSG Group, acquired a controlling interest in Pocket Aces in 2023 to capture a larger share of the digital media space. The subsidiary operates popular digital brands like Dice Media and Clout, which focus on short-format content and influencer management. As of July 2026, Saregama has increased its ownership in Pocket Aces to approximately 95.76 per cent, further cementing the unit's central role in the group’s long-term digital growth strategy.
The company's annual report for the past fiscal year suggests that reaching this breakeven point will support healthier growth for Saregama’s short-format and digital series portfolio. By integrating Pocket Aces’ expansive network, which reaches millions of viewers, Saregama aims to link content creation directly with its music and entertainment ecosystem.
Strategic Expansion and Leadership Changes
To further strengthen its market position, Saregama recently acquired Finnet Media, an influencer and creator management firm. This move is designed to broaden the group’s influence and revenue streams in the digital space. Additionally, Saregama entered a major strategic partnership with Bhansali Productions, with an initial investment of ₹325 crore. This deal is intended to secure an exclusive pipeline of film music for the company, helping it avoid competitive bidding wars and maintain predictable acquisition costs for its music library.
However, the company is entering a period of management transition. Effective October 1, 2026, Pocket Aces will see a leadership change, with Vinay Pillai taking over as CEO from Aditi Shrivastava. Investors will likely monitor how this new leadership manages the integration of recently acquired entities and sustains the company's financial momentum.
Market Context and Execution Risks
While the breakeven milestone is a positive development, the digital entertainment sector remains highly competitive. The company’s success will depend on its ability to maintain viewer engagement across various OTT platforms and social media channels. Sustained growth requires continuous investment in high-quality content and efficient management of its multiple business units, including the recently merged Finnet Media. The company’s ability to convert this operational breakeven into consistent profitability and manage the complexities of its expanded portfolio will be the primary monitorable for investors in the coming quarters.