Saregama India Shares Surge 13.82% in a Day After FY26 Adjusted EBITDA Rises 13% to ₹4,047 Million

Saregama India reported its strongest-ever quarterly Adjusted EBITDA performance during Q4 FY26, driven by rapid expansion in its music licensing business, improving digital monetisation, and aggressive investments in content ownership. The stock rallied 13.82% in a single session after the company posted a 31% jump in quarterly Adjusted EBITDA and significant margin expansion.

Although annual revenue declined because of a high base effect in the Live Events division, the core music segment continued delivering strong profitability growth. Investors are increasingly viewing Saregama as a scalable digital intellectual property platform benefiting from India’s fast-growing streaming and creator economy.

Saregama Delivers Record Quarterly EBITDA Performance

Saregama India announced its audited financial results for the quarter and financial year ended March 31, 2026, reporting record quarterly operational profitability supported by strong momentum across its music and digital businesses.

Revenue from Operations for Q4 FY26 stood at ₹2,874 million, reflecting 19% year-on-year growth, while Adjusted** EBITDA** surged 31% to ₹1,327 million. EBITDA margin improved sharply to 46% compared to 42% in the same quarter last year, highlighting stronger monetisation efficiency and operating leverage.

Profit After Tax for the quarter rose to ₹741 million from ₹599 million a year earlier, while Operational Profit Before Tax climbed 37% to ₹1,050 million. Diluted EPS improved to ₹3.86 from ₹3.11 during the corresponding period last year.

Management attributed the performance to aggressive investments in music acquisition, artiste partnerships, and expanding monetisation opportunities across digital platforms.

Q4 FY26 Financial Performance

Metric	Q4 FY26	Q4 FY25	YoY Change
Revenue from Operations	₹2,874 Mn	₹2,408 Mn	+19%
Adjusted EBITDA	₹1,327 Mn	₹1,016 Mn	+31%
EBITDA Margin	46%	42%	+4 ppts
Operational PBT	₹1,050 Mn	₹767 Mn	+37%
PAT	₹741 Mn	₹599 Mn	+24%
Diluted EPS	₹3.86	₹3.11	+24%

The quarterly performance indicates that Saregama’s business model is increasingly benefiting from recurring digital revenues and scalable music monetisation rather than depending solely on traditional entertainment formats.

Full-Year Earnings Highlight Strong Margin Expansion

For the full financial year FY26, the company reported Revenue from Operations of ₹9,846 million compared to ₹11,713 million in FY25. The decline was mainly due to the absence of revenue contribution from Diljit Dosanjh’s India tour, which had significantly boosted the previous year’s Live Events business.

Despite lower annual revenue, profitability improved meaningfully. Adjusted EBITDA rose 13% to ₹4,047 million, while EBITDA margin expanded to 41% from 30% in FY25. PAT stood at ₹2,062 million compared to ₹2,043 million a year earlier.

FY26 Financial Performance

Metric	FY26	FY25	YoY Change
Revenue from Operations	₹9,846 Mn	₹11,713 Mn	-16%
Adjusted EBITDA	₹4,047 Mn	₹3,566 Mn	+13%
EBITDA Margin	41%	30%	+11 ppts
Operational PBT	₹2,926 Mn	₹2,711 Mn	+8%
PAT	₹2,062 Mn	₹2,043 Mn	+1%
Diluted EPS	₹10.73	₹10.61	+1%

The sharp improvement in margins despite revenue pressure reflects the company’s increasing focus on high-margin licensing income, music ownership, and digital monetisation streams.

Music Segment Continues to Lead Business Growth

The Music segment remained the primary earnings driver during FY26. Revenue from Licensing, Artiste Management, and Retail reached ₹8,144 million, recording 17% annual growth.

Music EBITDA increased 22% year-on-year to ₹5,167 million, while annual Net Margin rose 28% to ₹3,768 million.

The company also made its largest-ever annual investment in music assets, spending ₹2,354 million on new music acquisition and ₹1,047 million on catalogue purchases.

Music Business Performance

Parameter	FY26
Music Segment Revenue	₹8,144 Mn
Music EBITDA	₹5,167 Mn
Net Margin	₹3,768 Mn
Investment in New Music	₹2,354 Mn
Catalogue Acquisition	₹1,047 Mn

The strategy reflects the growing importance of intellectual property ownership in the entertainment industry, where music labels continue generating recurring royalty income across streaming platforms, short-video applications, social media, films, advertisements, and creator ecosystems.

Generative AI Becoming a Key Operational Driver

One of the most important strategic developments during FY26 was Saregama’s increasing use of Generative AI in video content production.

Management stated that AI-led workflows have the potential to reduce production costs by nearly 70% while improving execution speed by approximately 80%.

Artificial intelligence is rapidly transforming the media and entertainment industry globally, particularly in areas such as video creation, digital editing, content localisation, automated marketing, and audience engagement analytics.

For Saregama, integrating AI into content production could improve scalability and profitability while allowing faster execution across regional and multilingual content formats.

Digital Ecosystem Expansion Strengthens Audience Reach

Saregama continued expanding its digital footprint aggressively during FY26. The company added 33 artistes during the quarter, taking its total roster to more than 300 artistes with a combined digital reach exceeding 410 million.

Its owned and controlled social media ecosystem crossed 650 million followers and subscribers across YouTube, Instagram, and Facebook platforms.

The company released more than 1,200 tracks across Hindi, Tamil, Telugu, Punjabi, Bhojpuri, Malayalam, Kannada, and other regional languages during the year.

Digital and Artist Expansion

Parameter	FY26
Total Artist Roster	300+
Combined Digital Reach	410 Mn+
Social Media Followers/Subscribers	650 Mn+
Tracks Released	1,200+

The expansion across regional languages is particularly important because regional music consumption continues growing rapidly across India’s digital streaming market.

Live Events Business Sees Revenue Normalisation

The Live Events segment reported annual revenue of ₹618 million, declining 78% year-on-year because FY25 included significant contribution from Diljit Dosanjh’s India tour.

However, Saregama continued strengthening its live entertainment presence through multiple event formats including:

• CAP-MANIA Tour by Himesh Reshammiya
• Aura Tour by Diljit Dosanjh
• UN40 Music Festival in Bengaluru

The company’s first proprietary music festival IP, UN40, attracted more than 12,000 attendees and featured over 25 artists, highlighting management’s long-term focus on building scalable entertainment brands.

Balance Sheet Position Remains Stable

Parameter	Mar-26	Mar-25
Net Worth	₹16,927 Mn	₹15,834 Mn
Total Assets	₹23,220 Mn	₹20,952 Mn
Cash & Cash Equivalents	₹282 Mn	₹694 Mn
Trade Receivables	₹1,769 Mn	₹1,432 Mn

The company generated ₹806 million in operating cash flow during FY26 while continuing to invest heavily in music rights, acquisitions, and digital expansion initiatives.

Stock Performance Analysis

Period	Return
1 Day	+13.82%
5 Days	+8.01%
1 Month	+14.59%
6 Months	-4.47%
1 Year	-30.35%
5 Years	+104.35%

The sharp post-results rally reflects improving investor confidence around Saregama’s long-term monetisation strategy, particularly its focus on music ownership, digital distribution, and AI-led operational efficiency.

Investor Perspective

Saregama’s FY26 performance highlights a broader transformation underway in India’s entertainment sector, where digital content ownership and recurring licensing revenue are becoming more valuable than traditional one-time monetisation models.

The company’s strong margin profile, expanding digital audience, and aggressive investment in music intellectual property position it well to benefit from the continued rise of streaming platforms, creator-led content ecosystems, and regional entertainment consumption.

Future growth will likely depend on sustained expansion in digital music usage, stronger monetisation of artiste partnerships, deeper regional market penetration, and successful integration of AI-driven production systems.

Final Take

Saregama India delivered a strong operational performance during FY26 with record quarterly EBITDA, expanding margins, and continued growth in its core music business.

While annual revenue was impacted by a high base in the Live Events segment, the company’s focus on music catalogue expansion, digital monetisation, and scalable content ownership continues strengthening long-term profitability potential.

For investors, the bigger story lies in Saregama’s evolution into a digital intellectual property platform positioned to benefit from India’s rapidly growing streaming economy and rising consumption of regional entertainment content.

What was Saregama India’s FY26 Adjusted EBITDA?

The company reported FY26 Adjusted EBITDA of ₹4,047 million, up 13% year-on-year.

Why did Saregama India shares rise sharply?

The stock surged after the company reported record quarterly EBITDA and improving operating margins.

Which segment contributed the most to growth?

The Music segment remained the largest contributor to revenue and profitability growth.

How much did Saregama invest in music acquisition?

The company invested ₹2,354 million in new music and ₹1,047 million in catalogue acquisitions during FY26.

How is Saregama using AI?

The company is using Generative AI in content production to reduce costs and improve execution speed.