1. Opening Hook
Saregama just found its new DJ —Generative AI.🎧 While most companies are still figuring out PowerPoint animations, Saregama’s busy resurrecting old Lata hits with AI-generated videos. Somewhere in the heavens, R.D. Burman probably just whispered, “Remix responsibly.”
But don’t let the nostalgia fool you — this quarter wasn’t all melody. The video business hit a flat note, while the music side hummed along nicely with a few Dhanush and Arijit chartbusters. The company’s calling it “a quiet quarter.” We call it the calm before their GenAI-powered content storm. Read on — things get cinematic.
2. At a Glance
- Revenue ₹230 Cr– Downbeat, but not off-key.
- PBT ₹60 Cr– Profits still singing in tune.
- Music revenue up 12% YoY– Arijit and Badshah carried the playlist.
- Video revenue down 39%– Too few releases; the popcorn stayed cold.
- Music spend ₹320–330 Cr FY26E– Because hit songs aren’t born, they’re budgeted.
- EBITDA margin guided 32–33%– CFO still dancing to the “steady” beat.
- 400 Mn+ digital footprint– Basically, every third Indian scrolls past a Saregama song.
3. Management’s Key Commentary
Vikram Mehra (MD):“Evaluate us on a rolling 12-month basis.”(Translation: This quarter’s flop is next quarter’s comeback.)😏
“We’ve begun using Generative AI to create videos for our old songs.”(Because hiring actors costs more than teaching AI to lip-sync.)
“Creating a video used to take 10–12 days; now it takes 2–3.”(Somewhere, editors cried in Adobe Premiere.)
“We’ll mix AI backgrounds with real actors.”(Bollywood meets Black Mirror — season 1 edition.)
“Our NAV Haryanvi partnership is doing great.”(Proof that desi beats sell better than diesel engines.)
“We maintain our 5-year payback on new music.”(The accountant’s version of a punchline.)
“YouTube and Spotify revenues are growing as expected.”(The two apps that keep Saregama in tune and in profit.)
“We plan our first music festival in Bangalore next March.”(Expect Arijit, nostalgia, and overpriced water bottles.)
“Subscription platforms are finally waking up.”(Translation: Spotify discovered India still hates paying for things.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Comment |
|---|---|---|---|
| Revenue | ₹230 Cr | -5% | Lull before the release storm. |
| PBT | ₹60 Cr | +2% | Margin maestro. |
| Music Licensing + Artist Mgmt | ₹190 Cr | +12% | Streaming royalties hit the right note. |
| Video & OTT | ₹40 Cr | -39% | No new blockbusters = no cash chorus. |
| Content Spend FY26 | ₹320–330 Cr | ↓ | Postponed albums = postponed expenses. |
| EBITDA Margin | 32–33% | Stable | CFO’s safe zone. |
| Artists Managed | 230 | +18 this quarter | Insta-famous = Saregama-famous. |
| Digital Reach | 400 Mn+ | — | Their true currency. |
Old songs still fund new hits; GenAI is the latest unpaid intern.
5. Analyst Questions
Q:“Why is video revenue down 39%?”A:“It’s cyclical; fewer releases.”(Translation: Netflix ghosted us this quarter.)
Q:“When will paid music subscriptions take off in India?”A:“Soon. Maybe 1, 2, or 4 quarters. Who knows.”(Optimism — now available on Spotify Premium.)
Q:“Your catalogue revenue’s flat. Why?”A:“Because 3–4 platforms died. Not us.”(When in doubt, blame market mortality.)
Q:“Carvaan impact still visible?”A:“Very small now.”(Alexa ate Carvaan for breakfast.)
Q:“AI videos for old songs — legal safe?”A:“All licensed tools.”(Translation: No copyright ghosts, only vintage ones.)
6. Guidance & Outlook
Saregama reaffirmed its mid-term vision:
- Music
