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    Tips Music Q2 FY26 earnings call

    TIPSMUSIC
    Media, Entertainment & Publication·15 Oct 2025
    Management Summary

    Tips Music Limited reported a robust Q2 FY26 with revenue growing 11% YoY to INR 89.22 crores and PAT increasing 11% YoY to INR 53 crores, maintaining a strong Operating EBITDA margin of 76%. The company released 133 songs, including 76 film songs, and saw its YouTube subscriber base reach 134 million. Despite a challenging industry environment and a revised growth target of 20% for FY26, management remains confident in achieving this through a disciplined content acquisition strategy and expected improvements in monetization from digital platforms.

    Highlights

    6

    • Q2 FY26 Revenue grew 11% YoY to INR 89.22 crores.

    • Q2 FY26 Operating EBITDA increased 14% YoY to INR 67.9 crores, maintaining a strong 76% margin.

    • Q2 FY26 PAT rose 11% YoY to INR 53 crores.

    • H1 FY26 Revenue grew 15% YoY to INR 177.3 crores, with PAT up 8% to INR 98 crores.

    • YouTube subscriber base reached 134 million collectively, indicating strong digital engagement.

    • Declared a second interim dividend of INR 4 per share for FY26, reflecting confidence in financial health.

    Concerns

    3

    • Earlier aspiration of 30% top-line growth revised down to 20% for FY26 due to industry changes and OTT consolidation.

    • Short-format content platforms are currently on lump-sum deals, not revenue sharing, limiting monetization potential.

    • Temporary pressure on yields from OTT platforms pushing for paid subscriptions, expected to last 6-12 months.

    What Changed2

    vs Q3 FY26

    Guidance items10 → 6 (-4)Risks discussed2 → 4 (+2)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    2
    • H1 FY26 Revenue
      ₹177.3 Cr
      YoY+15%
    • H1 FY26 PAT
      ₹98 Cr
      YoY+8%

    Q2 FY26

    4
    • Revenue
      ₹89.22 Cr
      YoY+11%
    • Operating EBITDA
      ₹67.9 Cr
      YoY+14.0%
    • Operating EBITDA Margin
      76%
    • PAT
      ₹53 Cr
      YoY+11%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Dividend

    ₹4/share (interim)

    M&A

    Studio Radha's culture music legacy

    acquisition · announced

    Liquidity

    Liquidity disclosed

    Company has a lot of spare money and sufficient cash, allowing for selective content acquisition and dividend payouts.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue Growth
    Top Line Growth
    20%
    		High
    Content Investment
    Content Investment Percentage
    23% or 25%
    		High
    YouTube Shorts Monetization
    Deal Structure
    Revenue-sharing model
    		Medium
    Public Performance Business
    Industry Size
    INR 2,000 crores
    		Medium
    Overall Industry Size
    Industry Size
    INR 10,000 crores to INR 12,000 crores
    		Medium
    Company Revenue Target
    Revenue
    INR 7,000 crores to INR 8,000 crores
    		Medium

    What to watch in Q3 FY26

    5

    YouTube Shorts Deal Renegotiation

    Next quarter (updates on strategy/negotiations)
    CurrentFixed fee deal, expires June next year.
    TargetProgress towards a revenue-sharing model.

    Why it matters

    A shift to revenue sharing could significantly boost monetization from a major short-form content platform.

    Yes. It will come to an end in June. We will definitely try and our vision is that we should have a sharing basis.

    Risks & concerns

    4
    RiskSeverity

    Challenging Industry Environment

    The company's revenue grew by 15% in H1 FY26 despite a challenging industry environment. — Management acknowledged

    medium

    OTT Consolidation and Shift to Paid Subscriptions

    Overall pressure on music players due to OTT platforms pushing for paid subscriptions, expected to be a temporary phase of 6-12 months. — Management acknowledged

    medium

    Short-Format Content Monetization Structure

    Short-format content platforms are currently on lump-sum deals, not revenue sharing, which limits monetization. — Analyst acknowledged

    medium

    Content Acquisition Cost as % of Revenue

    Content cost as a percent of top line was slightly higher in Q1 FY26, but management states costs are stable due to selective strategy. — Analyst downplayed

    low

    Q&A highlights

    8

    “We are sticking to that 20% growth, what we have projected and told all of you. So we are sticking to that, we will grow by 20% this year, 20% top line, 20% bottom line. And we have signed many non-film artists, and we are releasing many songs.”

    Clarifies the revised growth target for FY26 and the strategy to achieve it, primarily through non-film music releases.

    asked by Kavish Parekh

    2 min read5 chapters

    Detailed Narrative

    01

    Q2 and H1 FY26 Financial Performance

    Tips Music Limited reported a 11% year-on-year revenue growth in Q2 FY26, reaching INR 89.22 crores. Operating EBITDA for the quarter stood at INR 67.9 crores, marking a 14% YoY increase, with an Operating EBITDA margin of 76%. Net profit for Q2 FY26 was INR 53 crores, growing 11% YoY. For the first half of FY26, revenue increased by 15% to INR 177.3 crores, and PAT grew 8% to INR 98 crores.

    02

    Content Strategy and Releases

    The company released 133 songs in Q2 FY26, comprising 76 film songs and 57 non-film songs. Notable releases included 'Vibe Undi' from the film 'Mirai', which garnered over 69 million views, and 'Raaj Karega Maalik' from 'Maalik' with over 25 million YouTube views. The YouTube subscriber base collectively reached 134 million. Management emphasized a disciplined and selective content acquisition strategy, focusing on quality over quantity, and expects 23-25% of revenue to be invested in content this year.

    03

    Digital Platform Monetization and Industry Dynamics

    While the company's catalog performance on Meta is strong, with songs like 'Tere Aane Se' achieving 1.5 billion views, short-format content platforms are currently on lump-sum deals, not revenue sharing. Management anticipates a shift to revenue-sharing models for YouTube Shorts after its current fixed-fee deal expires in June next year. The industry is experiencing pressure from OTT platforms pushing for paid subscriptions, which is seen as a temporary phase expected to last 6-12 months.

    04

    Capital Allocation and Shareholder Returns

    The Board of Directors declared a second interim dividend of INR 4 per share for FY26. Management clarified that dividend payouts are not at the expense of content acquisition, stating the company has 'a lot of spare money' and 'sufficient cash' while being selective about content investments. The company also acquired Studio Radha's Gujarati and Kutchi song catalog, comprising 4,000 songs, which is currently being digitized.

    05

    Growth Outlook and Long-term Vision

    Tips Music is maintaining its FY26 revenue growth guidance at 20%, a revision from an earlier aspiration of 30% due to industry changes. Management expressed confidence in achieving this target through new non-film music releases and expected improvements in YouTube performance and Spotify's recent price increases. Over the next five years, the industry is projected to grow to INR 10,000-12,000 crores, with the public performance segment alone potentially reaching INR 2,000 crores from its current INR 350 crores. The company aims for a 7-8% market share, targeting INR 7,000-8,000 crores in revenue in the long term.

    This is an AI-generated summary of a publicly available earnings call transcript.