Saregama reports steady Q1 FY26 revenue; 40% drop in ad expenses

Saregama India Ltd, a part of the RPSG Group, has announced its financial results for the first quarter of FY26, reporting a steady operational performance driven by gains in music licensing and prudent cost management.

For the quarter ended June 30, 2025, Saregama reported revenue from operations at Rs 206.8 crore, reflecting a modest 1% year-on-year increase from Rs 205.3 crore in Q1 FY25. The company’s total income rose to Rs 221 crore, up 1.6% compared to Rs 217.4 crore in the same quarter last year.

A key driver of growth was the music licensing and artist management segment, which saw revenue rise 12% to Rs 149 crore, compared to Rs 133 crore in the corresponding quarter last year. This reflects the continued demand for Saregama’s extensive content catalogue and growing monetisation across platforms. 

A significant development this quarter was the sharp reduction in advertising and sales promotion expenditure, which dropped by nearly 40% to Rs 14.6 crore, compared to Rs 24.2 crore in the same period last year. This indicates a strategic shift in marketing allocation, possibly leveraging organic growth from its digital presence.

Saregama reported total expenses of Rs 140.4 crore in Q1 FY26, a 2% rise from Rs 137.3 crore in Q1 FY25. Notably, finance costs declined slightly by 2%, from Rs 37.1 crore to Rs 36.5 crore. Meanwhile, content charges—which include amortisation of royalty-based and outright content deals—reduced by 3% to Rs 26.3 crore, reflecting efficient content investment.

The company maintained a strong profitability profile with Adjusted EBITDA at Rs 66.4 crore and EBITDA margins standing at 32%. Profit Before Tax (PBT) for the quarter came in at Rs 51.1 crore, and Profit After Tax (PAT) stood at Rs 36.5 crore, despite ongoing investments in new content and platform distribution, it said.

Saregama said that it continued to deepen its digital footprint, with its owned and controlled channels across YouTube, Instagram, and Facebook reaching a combined 400 million followers and subscribers. This expansive reach not only strengthens the company’s brand presence but also enhances monetisation opportunities through direct-to-consumer content distribution.

Commenting on the performance, Avarna Jain, Vice Chairperson, Saregama India Ltd, said:

“The company stands in a strong position with its balanced outlook towards investment and profitability. Consistent delivery of topline and bottom line amidst some headwinds facing the industry is a testament to the company’s sharp focus in scaling the business segments with profitability at its core.”