1. At a Glance
Ladies and gentlemen, please welcome India’s musical dinosaur that somehow learned Instagram reels — Saregama India. Market cap sits at ₹6,318 Cr, stock price around ₹328, and the share has politely destroyed investor portfolios with a ~40% fall over the last year and ~27.6% drop in just 3 months. Imagine buying a music company and getting a heartbreak album for free.
Latest Q3 FY26 results show Revenue ₹2,604 mn, PAT ₹512 mn, and EPS ₹2.66. Meanwhile, the company trades at a recalculated P/E of ~36, almost matching the industry median of ~36.1 — which means the market is basically saying: “We believe you… but not fully.”
Return ratios?
ROCE: 17.2%
ROE: 12.5%
Debt? Practically zero — only ₹3.08 Cr. This company owes less money than your average Mumbai wedding.
But here’s the real masala — despite owning roughly 50% of all music ever recorded in India, the stock has been acting like a forgotten cassette tape.
So the big question:
Is Saregama quietly building the Spotify-era empire… or just remixing old songs while competitors drop chartbusters?
Let’s press play.
2. Introduction
Saregama is not just old — it is 1902 old. When this company started, people were probably arguing whether electricity was a fad.
Formerly known as Gramophone Company of India and later HMV, the firm has reinvented itself multiple times — from vinyl to cassette to CDs to streaming to YouTube monetization.
And unlike many legacy companies that retired gracefully into dividend-paying grandpas, Saregama decided to become a pure-play content company.
Translation:
Instead of selling devices, they want to own the songs, films, and IP that everyone consumes.
Smart move.
Because in entertainment, content is not king — it is the entire kingdom.
Since 2017, the company has tried to become cool again with:
- Carvaan — a retro audio player that millennials buy for their parents and secretly enjoy.
- Yoodlee Films — content production.
- Aggressive digital expansion.
- Acquisition strategy targeting young audiences.
Yet the market hasn’t exactly showered them with confetti recently.
Why?
Because growth slowed, stock corrected, and expectations rose faster than a Bollywood climax.
But here’s where things get interesting…
The company is doubling down on new music investments (~₹1,000 Cr over 3 years) and expanding video IP.
Now ask yourself:
Is this the calm before the next growth concert… or just background elevator music?
3. Business Model — WTF Do They Even Do?
Imagine owning songs from Kishore Kumar to Arijit Singh.
That’s basically Saregama.
The company operates across three main verticals:
🎵 Music (Primary Money Machine — ~77%)
This includes licensing and artist management.
They own 150,000+ songs across 23+ languages and partner with:
- 65+ licensing platforms
- 30+ streaming platforms
- 20+ broadcasting platforms
- 8+ social media platforms
Basically, wherever music plays — Saregama collects rent.
In FY24 alone, they added:
- 1,200+ originals
- 8,600+ derivatives
And here’s a subtle but important shift:
👉 52% of licensing revenue now comes from 21st-century songs.
Meaning they are not just milking old classics — they are building future royalties.
Smart.
Very smart.
🎤 Artist Management
150+ influencers/artists with 100 Mn+
