Tips Music posts 70.50% standalone operating margin in Q2FY27
The margin was 60.15 percentage points above the nine-peer median, while management highlighted subscription growth and a possible shift in Shorts monetisation.
Filed 15 Oct 2026, 13:48 IST · Tips Music Ltd (TIPSMUSIC)
Key takeaways
- Standalone operating margin was 70.50%, 60.15 percentage points above the Consumer Discretionary peer median.
- Tips Music added 73 releases in Q2FY27, while standalone net profit reached Rs 65.74 cr.
- Management said industry subscription revenue is growing at approximately 40–50% CAGR and Shorts monetisation is expected to move towards advertising revenue sharing.
Price around the results
Margin stayed far above the reported peer set
Tips Music reported a standalone operating margin of 70.50% in Q2FY27. This was 60.15 percentage points above the median operating margin of the nine Consumer Discretionary peers that had reported the quarter. The company ranked above all nine peers in this comparison.
Operating earnings remained the main profit source
Operating profit of Rs 84.65 cr was the main earnings base, with other income adding Rs 4.45 cr; interest and depreciation were limited to Rs 0.10 cr and Rs 0.97 cr respectively. The standalone tax rate was 25.33%, with tax of Rs 22.30 cr reducing profit before tax of Rs 88.04 cr to net profit of Rs 65.74 cr. Other income supplemented earnings but was not the main source of reported profit.
73 releases and a changing digital monetisation mix
The company added 73 new releases during Q2FY27. Management said industry subscription revenue is growing at approximately 40–50% CAGR and cited Spotify's expectation that paid subscribers in India could reach 150 million. Management also said the current fixed-price Shorts model is expected to migrate towards advertising revenue sharing, which it believes can increase monetisation.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹120 cr |
| Other income | ₹4 cr |
| Expenses | ₹35 cr |
| Operating profit | ₹85 cr |
| Operating margin (%) | 70.50% |
| Interest | ₹0 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹88 cr |
| Tax | ₹22 cr |
| Net profit | ₹66 cr |
| EPS (₹) | ₹5.15 |
Operating margin of 70.50% compares with a Consumer Discretionary sector median of 10.35% across 9 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
- The company added 73 new releases in Q2FY27.
Guidance & outlook
- Industry subscription revenue is growing by approximately 40–50% CAGR.
- Spotify expects paid subscribers in India to reach 150 million.
- Shorts monetization can significantly increase revenues as the pricing model shifts to advertising revenue sharing.
- The current fixed-price Shorts model is expected to migrate to advertising revenue sharing.
Competition
- The company describes itself as the only listed player.
What to watch
- Whether standalone operating margin holds near 70.50%.
- Whether the quarterly release count remains close to 73.
- Whether Shorts monetisation progresses from the fixed-price model towards advertising revenue sharing, as management described.