01 — At a Glance
The Old-Songs-Go-Viral Machine Printing 34% P/E Money
- 52-Week High / Low₹718 / ₹483
- Q3 FY26 Revenue₹94.3 Cr
- Q3 FY26 PAT₹58.7 Cr
- Q3 FY26 EPS (₹)4.59
- Annualised EPS (Q3×4)₹18.36
- Book Value₹20.1
- Price to Book25.1x
- Dividend Yield2.59%
- Debt / Equity0.01x
- Full Year FY25 EPS₹13.03
Auditor’s Opening Note: Tips Music closed Q3 FY26 with ₹94.3 crore revenue (+21% YoY), ₹58.7 crore PAT (+33% YoY), 62% PAT margin, and a 109% ROCE. The stock is at ₹505, trading at 34.3x earnings — which is 2.5x the median media peer. Meanwhile, the CEO resigned, the GST department showed up for a “friendly audit,” and management is confidently guiding 25% profit growth for FY26. This is not a boring stock. This is a stock where *everything* is happening at once.
02 — Introduction
How Your Mom’s Favourite Bollywood Songs Became Your Nephew’s TikTok Flex
Once upon a time, Tips Industries was a music company. Then the internet happened. Then YouTube. Then Instagram. Then TikTok. Then someone discovered that a 30-year-old Bollywood song could be remixed, overlaid with a trending sound, and turned into a 15-second reel that makes 7 billion people weep. Suddenly, the company holding 34,000 songs in a vault became a content goldmine that Gen Z didn’t even know it wanted.
Tips Music has 145.3 million YouTube subscribers. That’s more than the population of Russia. The company makes 79% operating margins — higher than Microsoft, Google, or your local Maruti dealership. It has ₹303 crore in cash sitting around. It’s paid back all its debt since 2014 (₹187 crore total including interest), and it’s been returning ₹100% of PAT to shareholders for the last two years while still growing the business. This is not a company in existential crisis. This is a company in existential *confidence*.
But here’s where it gets interesting: the stock trades at 34.3x P/E. That’s expensive by any standard, even for a media compa. The founder’s son just resigned as CEO. The GST department conducted a “routine inspection” in February 2026. And management is somehow doubling down on growth guidance. There’s a lot happening in the world’s oldest music library — which also happens to be the world’s youngest viral hit factory. Let’s dig in.
Concall Insight (Jan 2026): When asked about margins, management said: “We write-off the entire content cost in the same quarter. So we will earn the profits for the next 100 years.” Translation: they’re structurally conservative on accounting, which means every quarter is a clean slate. It’s either genius or deeply suspicious. Possibly both.
03 — Business Model: WTF Do They Even Do?
They Own 34,000 Songs. Gen Z Keeps Proving This Was a Gold Mine.
Tips Industries was founded by the Taurani brothers in the 1980s. For 30 years, they were a music and film production company — a guy with a cassette player, a distributor network, and an aggressive goal to reach every street corner in India. They released music albums. They produced Hindi and Punjabi films. They collected rights. They distributed physical media through 1.5 lakh retail touchpoints. Very Doordarshan-era operations.
Then the streaming era happened, and suddenly a company built on *distribution density* discovered it had an even more valuable asset: *a library*. That library is worth billions because of YouTube licensing deals (75% of revenue now comes from digital platforms, with 45–50% from YouTube alone). That library went from generating rent to generating viral moments. Every old Bollywood classic is now remixable, trend-able, and monetizable via YouTube Shorts, Instagram Reels, Spotify, Apple Music, and anything else with a play button.
The business model is stupidly simple: license catalog → collect fees → pass through 85% of revenue from legacy songs → wait for Gen Z to turn them into trends → watch operating leverage expand. 85% of FY26 revenue is from existing catalog. Only 15% is from new releases. This is a royalty-and-licensing play, not a hit-making machine. The hit-making already happened in 1995. They’re just cashing cheques now.
YouTube Revenue45-50%Of Total Revenue
Digital Platforms75%Of Total Revenue
Legacy Catalog85%Of Revenue
YouTube Subs145.3MGlobally Distributed
The Taurani Family Show: Promoters own 64.15% of the company. Kumar S. Taurani (15.8%), Ramesh S. Taurani (15.76%), and eight other family members together control two-thirds of the business. It’s not a founder-CEOship anymore — it’s a family office that happens to hold India’s most-streamed music catalog. Keying into this: CEO Hari Nair just resigned on March 10, 2026. Girish Taurani and Sushant Dalmia are now sharing the CEO responsibilities. Translation: founder’s family is taking direct control again.
💬 If you had to buy *one* old Hindi song’s royalties for the next 20 years, which one would it be? Comment below. (Asking for a venture capitalist friend.)
04 — Financials Overview
Q3 FY26: The Profit Margins That Make Finance Professors Weep
