Saregama India (SAREGAMA) Q4 2025 earnings summary

Executive summary

• FY25 consolidated revenue reached INR 11,713 crore, up 46% year-over-year, with EBITDA at INR 3,566 crore (+18%) and PBT at INR 2,760 crore (+2%).

• PAT increased 3% to INR 2,043 crore, and diluted EPS was 10.61; digital footprint expanded to 350 million across platforms.

• Aggressive investment in new content (INR 316 crore, +62% YoY) aligns with strategy to diversify IP across music, video, and live events.

• The group expanded its stake in Pocket Aces Pictures Private Limited (PAPPL) to 90.37% during the year.

• IP portfolio now exceeds 170K songs, 70+ films, and 45+ digital series.

Financial highlights

• Q4 FY25 revenue was INR 2,408 crore, down 8% YoY due to event seasonality; Q4 PBT was INR 81.6 crore.

• Adjusted EBITDA margin for FY25 was 38%, with PAT margin at 25% in Q4 FY25.

• Content investment for the year was INR 316 crore, with 22 small music labels acquired for INR 17 crore.

• Return on Equity (ROE) for FY25 was 13%, and the company maintained a debt-free balance sheet.

• Exceptional gain of INR 4.9 crore from Pocket Aces acquisition, with a net P&L impact of INR 0.8 crore after accounting adjustments.

Outlook and guidance

• Music licensing and artist management expected to grow at 22%-23% CAGR; video vertical at 25% CAGR over the medium term.

• PBT projected to double in 3-4 years; annual adjusted EBITDA guidance maintained at 32%-33%.

• Paid subscription seen as the next major growth driver, with inflection expected in 4-5 quarters.

• Focus remains on content investment, catalogue acquisition, and unlocking value from existing IP.

• Five-year payback period for new content investments reaffirmed.