Saregama posts 35.40% margin as new-music margin outlook reaches 90%
The consolidated quarter also included scaled-up devotional and stand-up comedy events, while premium vinyl remains a stated growth initiative.
Filed 04 Aug 2026, 17:37 IST · after market close · Saregama India Ltd (SAREGAMA)
Key takeaways
- Saregama reported a consolidated operating margin of 35.40%, 22.29 percentage points above the 13.11% median for 74 Consumer Discretionary peers.
- Consolidated net profit was Rs 51.88 cr after depreciation of Rs 23.64 cr and a 26.42% tax rate.
- Management said steady-state margins on new music could rise to approximately 90%.
Price around the results
Depreciation was the main drag below operating profit
Saregama's consolidated operating profit of Rs 93.32 cr reduced to profit before tax of Rs 70.51 cr after depreciation of Rs 23.64 cr and interest of Rs 2.17 cr. Other income of Rs 3 cr was modest relative to pre-tax profit, so reported earnings were driven mainly by operations. The 26.42% tax rate further lowered profit to Rs 51.88 cr.
Margin remains far above the Consumer Discretionary peer median
The 35.40% consolidated operating margin was 22.29 percentage points above the 13.11% median among 74 sector peers that had reported the quarter. With no sequential or year-on-year comparison available, the quarter's margin direction and the revenue-versus-cost drivers cannot be assessed from this release alone.
Management is widening the monetisation base
Management said the integrated ecosystem positions Saregama for sustainable long-term growth and that new music can reach approximately 90% margins at steady state. The company said its Live Events business scaled devotional and stand-up comedy formats, while it is using its catalogue to expand premium vinyl offerings. It also reported integrated campaigns with Visa, HUL, Myntra, Godrej and Bharat Matrimony using its intellectual properties.
Results were filed after market close
Saregama filed the consolidated results after market close on 4 August 2026. The immediate post-results market response is therefore not part of this quarter's read.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹264 cr |
| Other income | ₹3 cr |
| Expenses | ₹170 cr |
| Operating profit | ₹93 cr |
| Operating margin (%) | 35.40% |
| Interest | ₹2 cr |
| Depreciation | ₹24 cr |
| Profit before tax | ₹71 cr |
| Tax | ₹19 cr |
| Net profit | ₹52 cr |
| EPS (₹) | ₹2.69 |
Operating margin of 35.40% compares with a Consumer Discretionary sector median of 13.11% across 74 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The Live Events business scaled up devotional and stand-up comedy formats with shows by renowned artistes.
Guidance & outlook
- Saregama expects steady-state margins on new music to rise to approximately 90%.
- Saregama said its integrated ecosystem positions it for sustainable long-term growth.
New products
- Upcoming releases listed include BadhuAlright Che and Vishwambhara in Telugu.
New initiatives
- Saregama is scaling premium vinyl offerings using its catalogue.
- Saregama collaborated with Visa, HUL, Myntra, Godrej and Bharat Matrimony on integrated campaigns using its IPs.
What to watch
- Whether consolidated operating margin holds around 35.40% in the next reported quarter.
- Evidence of progress toward management's stated approximately 90% steady-state margin on new music.
- Whether revenue moves beyond Rs 263.6 cr as premium vinyl and Live Events initiatives scale.