Tips Music Ltd Q1 FY26 – 30,000 Songs, 64% Margins, and 109% ROCE: The Bollywood Playlist That Became a Balance Sheet
1. At a Glance
Tips Music is living proof that nostalgia pays better than new ideas. With over 30,000 songs in its library, 82 million YouTube subscribers, and ₹7,657 Cr market cap, the company basically monetises your college heartbreak playlist on loop. Operating margins at 64%, ROCE at 109%, and ROE at 83% look sexier than a Karan Johar wedding invite. But at 45x P/E and 37x book value, the market is already pricing in that every “Dil Cheez Badi Hai Mast Mast” stream will go straight to EPS heaven.
2. Introduction
Once upon a time, Tips was known for cassettes, CDs, and those neon-lit music shops your elder cousin would haunt on Saturdays. Fast-forward to 2025, and now Tips is less about Bollywood launches and more about licensing its giant library to digital platforms that never sleep.
It’s a simple, lazy, but profitable model: sign a licensing deal with YouTube, Spotify, or TikTok, dump 30,000 songs into their servers, and collect royalty checks every time someone plays “Baar Baar Dekho” while making reels about cutting onions. In FY23, the company released 896 new songs, clocked 1 billion+ streams for top 5 albums, and booked ₹187 Cr revenue—a 38% jump.
But don’t be fooled. This is not “music + tech = startup valuation.” Tips is still a family-run catalogue monetiser. The risk? Copyright piracy, stream ripping, and the fact that one day, people might prefer silent yoga over Bollywood background tracks.
So, the big question: Is Tips a durable digital royalty machine, or just a glorified jukebox milking nostalgia until AI starts spitting out hits?
3. Business Model – WTF Do They Even Do?
Tips’ revenue split is hilariously simple:
Digital Licensing (75% of revenue): 45–50% from YouTube, 25–30% from Spotify, JioSaavn, iTunes, etc. Every “Choli Ke Peeche” remix you hate but can’t avoid adds pennies to Tips’ cash flow.
TV & Public Performance (25%): Rights sold to broadcasters like Zee, Star, Sony, Viacom18. Even gym playlists owe Tips royalties.
Films: They still make Punjabi films, but it’s a side hustle now.
Geography: ~73% of revenue comes from international markets (diaspora loves Bollywood more than actual India does), while 27% is domestic.
Their moat? One of the largest Indian music libraries (30,000 songs), licensing partnerships with all global platforms, and deals with Netflix, Hotstar, Dharma, Maddock, and Excel. Also, zero debt and fat free cash flow—basically a desi Saregama with extra Bollywood masala.
Question: Would you rather back a company making one new viral track a year, or one milking 30,000 old tracks forever?
4. Financials Overview
Quarterly Snapshot (₹ Cr):
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
88.1
74.0
78.0
19.1%
12.9%
EBITDA
57.0
54.0
37.0
5.6%
54.1%
PAT
45.8
44.0
31.0
4.1%
47.7%
EPS (₹)
3.59
3.41
2.39
5.3%
50.2%
Comment: EPS annualised ~₹14.4, which at CMP ₹599 = P/E ~42x. High, but investors seem
