Triple-Digit ROCE Music Company to Consider Share Buyback on Aug 5; Management Maintains 20% FY27 Growth Outlook
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Tips Music will consider a share buyback proposal at its board meeting on August 5, while management reaffirmed its FY27 growth outlook and commitment to return last year's profit to shareholders through dividends and buybacks.
✨ Key Takeaways
On Tuesday, Indian equity benchmark indices traded higher, with the benchmark Nifty 50 index rising 238.20 points, or 0.99 per cent, to 24,223.55. Amid the positive market sentiment, Tips Music share price was trading marginally lower, declining 0.14 per cent to Rs 691.00.
Tips Music Board to Consider Share Buyback
Tips Music informed the exchanges that its Board of Directors will meet on August 5, 2026, to consider and approve a proposal for the buyback of fully paid-up equity shares of the company. The proposal will be considered in accordance with applicable SEBI regulations.
During the earnings conference call, Chairman and Managing Director Kumar Taurani said the company remains committed to returning last year's Profit After Tax (PAT) of Rs 217 crore to shareholders through a combination of Dividends and buybacks. Management also stated that the board will evaluate both the open market and tender offer routes before finalising the buyback structure.
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Download Service BrochureManagement Outlook
Management reiterated its FY27 guidance of 20 per cent revenue growth and 20 per cent PAT growth, backed by a robust content pipeline and growing digital consumption.
The company expects content acquisition costs to remain in the range of Rs 90 crore to Rs 100 crore during FY27 while maintaining annual EBITDA margins of 65–70 per cent. Management indicated that upcoming releases from Balaji Telefilms, Tips Films, along with regional and non-film music, are expected to support growth during the remainder of the year.
Management also highlighted that paid music subscriptions in India continue to grow rapidly and expects subscription revenue to become a larger contributor over the next three to five years. Negotiations for the YouTube Shorts monetisation agreement are ongoing, with an update expected by the end of Q2 FY27.
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About Tips Music
Tips Music Limited is one of India's leading music and entertainment companies, owning a vast catalogue of Bollywood, regional and independent music. The company monetises its content across digital streaming platforms, television, radio and other media channels while continuously expanding its library through film and non-film music acquisitions. The company has consistently maintained strong profitability, with a Return on Capital Employed (ROCE) of 122 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.