Revenue growth came with a 2.96-point margin squeeze
Consolidated revenue rose +19.23% QoQ, but faster expense growth was partly offset by lower tax and interest costs, lifting net profit +23.69%.
Filed 04 Nov 2026, 18:10 IST · after market close · Saregama India Ltd (SAREGAMA)
Key takeaways
- Consolidated revenue rose +19.23% QoQ to Rs 314.3 cr, but expenses grew +24.69%, narrowing operating margin by 2.96 percentage points.
- Net profit increased +23.69% QoQ to Rs 64.17 cr as the tax rate fell by 1.24 percentage points and interest expense declined -39.17%.
- Other income contributed 10.68% of profit before tax, making it a material part of the quarter's earnings mix.
Price around the results
Revenue accelerated, but cost growth was faster
Saregama's consolidated revenue increased +19.23% QoQ to Rs 314.3 cr, while expenses grew +24.69% to Rs 212.33 cr. The resulting cost mismatch reduced operating margin from 35.40% to 32.44%, a decline of 2.96 percentage points. Profit before tax still rose +21.64% as interest expense fell -39.17%.
Lower tax and other income supported reported profit
The tax rate declined by 1.24 percentage points to 25.18%, helping net profit grow faster than operating profit at +23.69% QoQ. Other income was Rs 9.16 cr and represented 10.68% of profit before tax, so part of the earnings increase came from non-operating income. This makes the operating margin compression more important than the headline net-profit growth.
Margin remains above the Consumer Discretionary median
Among 206 Consumer Discretionary companies that had reported the same quarter, Saregama's 32.44% operating margin was 20.5 percentage points above the sector median. The sequential margin decline is the key change in direction visible this quarter, after 35.40% in Q1FY27. Management said it remains focused on monetising its intellectual property while maintaining financial discipline and investing for long-term growth.
IP expansion remains central to the company narrative
Management said its data-driven acquisition approach is producing hits across languages at industry scale. The presentation also says Saregama is scaling premium vinyl offerings for collectors and superfans, and that its managed artistes and owned or controlled channels exceeded 700 Mn+ followers and subscribers. It said the company launched the Tamil show Siragugal on Sun TV in July 2026 and collaborated with brands including Google, Cadbury, Apple, Tanishq and Reliance.
Results were filed after market close
Saregama filed these consolidated results at 18:10 IST on 4 November 2026, after market close. The filing therefore does not include a post-results stock reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹314 cr | ₹264 cr | +19.23% |
| Other income | ₹9 cr | ₹3 cr | +205.33% |
| Expenses | ₹212 cr | ₹170 cr | +24.69% |
| Operating profit | ₹102 cr | ₹93 cr | +9.27% |
| Operating margin (%) | 32.44% | 35.40% | — |
| Interest | ₹1 cr | ₹2 cr | -39.17% |
| Depreciation | ₹24 cr | ₹24 cr | +1.69% |
| Profit before tax | ₹86 cr | ₹71 cr | +21.64% |
| Tax | ₹22 cr | ₹19 cr | +15.94% |
| Net profit | ₹64 cr | ₹52 cr | +23.69% |
| EPS (₹) | ₹3.37 | ₹2.69 | +25.28% |
Operating margin of 32.44% compares with a Consumer Discretionary sector median of 11.94% across 206 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Saregama launched the Tamil show Siragugal on Sun TV in July 2026.
- Saregama’s managed artistes, owned channels and controlled channels exceeded 700 million followers and subscribers.
Guidance & outlook
- Saregama says it will continue maximising IP monetisation while maintaining financial discipline and investing for sustainable long-term growth.
New products
- Saregama is building premium vinyl offerings for music collectors and superfans.
New initiatives
- Saregama says its data-driven acquisition approach is producing hits across languages at industry scale.
- Saregama collaborated with Google, Cadbury, Apple, Tanishq and Reliance on integrated campaigns using its IPs.
- Saregama is scaling premium vinyl offerings using its catalogue to address the vinyl revival.
What to watch
- Whether consolidated operating margin holds above 32.44%.
- Whether expense growth remains below the +24.69% QoQ pace recorded this quarter.
- Whether other income's share of profit before tax stays below 10.68%.