Saregama Share Price Hits Nearly 2-Year High After Q2 FY27 Results; Artist Management Revenue Nearly Doubles

Music remains Saregama India’s principal intellectual property engine, while its newer creator-management and live-events businesses are being developed as additional monetisation channels. The entertainment company reported consolidated revenue from operations of Rs 314.30 crore for the quarter ended September 30, 2026, up 36.6 per cent YoY and 19.2 per cent QoQ.

Consolidated profit for the period rose 46.4 per cent YoY to Rs 64.17 crore, compared with Rs 43.83 crore a year earlier. It was also higher than Rs 51.88 crore in the June 2026 quarter. Profit before Tax increased to Rs 85.77 crore from Rs 60.10 crore in the corresponding quarter last year, while total income reached Rs 319.47 crore.

Music delivered the largest contribution, with quarterly revenue of Rs 200.70 crore, up from Rs 160.12 crore a year earlier. Segment result rose to Rs 111.21 crore from Rs 77.52 crore, underscoring the earnings importance of catalogue licensing and newer music releases. Saregama owns a catalogue of more than 1,80,000 songs and monetises it across streaming platforms, television, brands, films and physical formats.

Artist Management revenue nearly doubled YoY to Rs 50.55 crore, while its segment result increased to Rs 5.30 crore. The comparison is influenced by Pocket Aces Pictures’ acquisition of Finnet Media in November 2025, whose creator and influencer-management operations are now consolidated in this segment. Events revenue more than doubled to Rs 44.72 crore, though the segment reported a loss of Rs 2.84 crore as the business continues to invest in live entertainment formats.

Video remained a drag, reporting a loss of Rs 3.20 crore despite revenue improving sequentially to Rs 18.33 crore. Saregama has been winding down its legacy films business after building a strategic association with Bhansali Productions. During the quarter, it also acquired additional Pocket Aces shares for Rs 20.05 crore, increasing its holding to 95.76 per cent. Separately, the board approved the closure of inactive Dubai subsidiary Saregama FZE by March 31, 2027.

For the first half ended September 30, 2026, revenue from operations rose to Rs 577.90 crore from Rs 436.80 crore, while profit for the period increased to Rs 116.05 crore from Rs 80.34 crore. Operating cash generation strengthened sharply to Rs 226.73 crore, although investing outflows increased to Rs 147.14 crore amid content and business investments.

As of 12:32 pm on November 4, 2026, Saregama shares were trading at Rs 591.00. The stock was up 5.12 per cent from the previous close of Rs 562.20. Over one year, the shares have gained 23.36 per cent, compared with a 5.73 per cent decline in the BSE 500, indicating relative outperformance of about 29 percentage points. The company’s market capitalisation stood at Rs 10,839.80 crore.

What This Means for Investors

The quarter supports Saregama’s effort to broaden its entertainment ecosystem without diluting the central role of music. Music segment profit expanded faster than segment revenue, while artist management added meaningful scale following the Finnet acquisition. Stronger operating cash flow is also constructive after weaker cash conversion in FY2025-26. However, the revenue mix is becoming more complex, as creator management has a different margin profile from catalogue licensing and events remain loss-making during their expansion phase.

The result is potentially supportive for the investment case because it demonstrates growth across the core music business and newer monetisation channels. The key execution test will be whether artist management and events can become sustainably profitable while content investment remains disciplined. Video losses and the planned runoff of legacy film operations may continue to weigh on reported segment optics in the near term. At a trailing price-to-earnings multiple of 48.94 times, the market appears to place significant value on sustained music growth, cash conversion and successful scaling of the broader content platform.

Disclaimer: The article is for informational purposes only and not investment advice.