Q1 2027 Saregama India Ltd Earnings Call

Speaker #1: Ladies and gentlemen, good day and welcome to the Saregama India Limited Q1 FY27 earnings conference call, hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Aryan Tripathi from MK Global Financial Services Limited. Thank you, and over to you, sir.

Speaker #2: Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Vikram Mehra, Managing Director; Abhishek Kapoor, CFO; and Pankaj Khedia, Executive Director of Investor Relations.

Aryan Tripathi: Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Vikram Mehra, Managing Director, Abhishek Kapoor, CFO, and Pankaj Kedia, Executive Director, Investor Relations. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

Speaker #2: I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

Speaker #3: Thank you, and a very, very good afternoon to all of you. Let me start the call by introducing our new CFO, Abhishek Kapoor. Abhishek brings in over 25 years of extensive finance experience.

Vikram Mehra: Thank you. A very good afternoon to all of you. Let me start the call by introducing our new CFO, Abhishek Kapoor. Abhishek brings in over 25 years of hardcore finance experience across Sulabh, Vinayaka, PepsiCo, HT Media, et cetera. Our earlier CFO, Pankaj, did a fabulous job, and we heartily thank him for that. I'm very sure that Abhishek will take the thoroughness and the transparency of our financial processes and accounting to the next level. Q1 FY27 saw revenue from operations at INR 263.6 crore, with year-on-year growth of 27%, our adjusted EBITDA of INR 112.4 crore, with year-on-year growth of 69%, and operational PBT at INR 70 crore with year-on-year growth of 38%.

Speaker #3: Across Solar Vineyard, PepsiCo, HD Media, etc. Her earlier CFO, Pankaj, did a fabulous job, and we heartfully thank him for that. And I'm very, very sure that Abhishek will take the thoroughness and the transparency of her financial processes and accounting to the next level.

Speaker #3: Quarter one, financial year 2027, saw revenue from operations at ₹263.6 crore, with year-on-year growth of 27%. Our adjusted EBITDA was ₹112.4 crore, reflecting year-on-year growth of 69%, and operational PBT stood at ₹70 crore, with year-on-year growth of 38%.

Speaker #3: The numbers of the quarter look healthy. But I would again reiterate or I would reiterate like I've been doing right now for over 60 quarters, please evaluate our performance on a rolling 12-month basis whether it's a good quarter or a bad quarter.

Vikram Mehra: The numbers of the quarter look healthy, I would again reiterate, I would reiterate, like I've been doing right now for over 60 quarters, please evaluate our performance on a rolling 12-month basis. Whether it's a good quarter or a bad quarter, don't judge us only on the basis of one quarter. In our industry, the stability comes in only on a rolling 12-month basis. In 2025, the global recorded music at US $31.7 billion saw new heights, India got only 1% of that, in spite of housing 18% of the world population. We today are operating in the most under-penetrated large music market on Earth, our entire strategy at Saregama is built around harnessing this 20-year opportunity in front of us. Let me jump onto the music vertical first.

Speaker #3: Don't judge us only on the basis of one quarter. In our industry, stability comes in only on a rolling 12-month basis. In 2025, global recorded music at $31.7 billion saw new heights, but India got only a percent of that.

Speaker #3: In spite of housing 18% of the world’s population, we today are operating in the most underpenetrated large music market on earth. And our entire strategy at Saregama is built around harnessing this 20-year opportunity in front of us.

Speaker #3: Let me jump onto the music vertical first. On a quarterly basis, the overall music vertical, comprising our licensing, artist management, and retail, recorded revenue of ₹230.6 crore.

Vikram Mehra: On a quarterly basis, the overall music vertical comprising of licensing, artist management, and retail, recorded revenue of INR 230.6 crore, which was a 39% year-on-year growth. A quarterly EBITDA of INR 139.8 crore, which was a 36% year-on-year growth, and a quarterly net margin of INR 99.6 crore, which was a 30% year-on-year growth for us. Music vertical had a low base in Q1 last year, which has also helped us in posting such a strong growth number this year. If I have to look at on a full year basis, we maintain our guidance of the music vertical growing between 20% to 23% year-on-year. On the profitability front, we had stated in FY24 that it would take us two to three years before the growth in EBITDA and profit began to follow the revenue growth trajectory.

Speaker #3: Which was a 39% year-on-year growth. Our quarterly EBITDA was ₹139.8 crore, which was a 36% year-on-year growth. And a quarterly net margin of ₹99.6 crore, which was a 30% year-on-year growth for us.

Speaker #3: The music vertical had a low base in Q1 last year, which has also helped us in posting such a strong growth number this year. If I have to look at it on a full-year basis, we maintain a guidance of the music vertical growing between 20% to 23% year-on-year.

Speaker #3: On the profitability front, we had stated in FY24 that it would take us two to three years before the growth in EBITDA and profit began to follow the revenue growth trajectory.

Speaker #3: We are entering that cycle now. We are seeing content bought two to three years ago has started to contribute towards positive margins. Albums like F32, Amran, Rocky Rani Ki Prem Kahani, Code, Sarkaru Wari Pata, etc.

Vikram Mehra: We are entering that cycle now, where content bought two to three years ago has started to contribute towards positive margins. Albums like "Stree 2," "Amaran," "Rocky Aur Rani Kii Prem Kahaani," "Kode," "Sarkaru Vaari Paata," et cetera, are hit albums which are now contributing positive margins. There's another data point which is worth sharing. In FY26, 60% of all music revenue at Saregama came from music released post-2000. I'm repeating, 60% of the revenue in last financial year came from music of the 21st century. While at Saregama we proudly steward the musical heritage of India, we take care of it, we cherish it, we try to monetize it, but the fact is that we are now a new age IP company with a large part of our revenue coming from brand-new IP, which has 60 to 80 years of life left in front of it.

Speaker #3: ...are hit albums, which are now contributing positive margins. There's another data point which is worth sharing: in financial year ’26, 60% of all music revenue at Saregama came from music released post-2000.

Speaker #3: I'm repeating: 60% of the revenue in the last financial year came from music of the 21st century. So, while at Saregama we proudly steward the musical heritage of India—we take care of it, we cherish it, we try to monetize it—the fact is that we are now a new-age IP company, with a large part of our revenue coming from brand new IP, which has 60 to 80 years of life left in front of it.

Speaker #3: Overall, the company released 750-odd originals and premium recreationals across Hindi, Bhojpuri, Punjabi, Tamil, Telugu, Marathi, Bengali, and Haryanavi songs. Albums like Krishna Aftaram, which was a Hindi album, or the Marathi song Ved Labla, were able to hit top music charts during the quarter.

Vikram Mehra: Overall, the company released 750 odd originals and premium recreations across Hindi, Bhojpuri, Punjabi, Tamil, Telugu, Marathi, Bengali, and Haryanvi songs. Albums like "Krishnavataram," which was a Hindi album, or a Marathi song, "Ved Lavla," these were able to hit top charts, music charts, during the quarter. Our spend on new music content this year is expected to be anything between INR 300 to 350 crore. Most of that is already committed. Big albums lined up include "Love and War," which is coming out in January; Rajinikanth's "Dharman," which is a Kamal's company's production; Telugu cinema's most awaited film, "The Paradise"; Bhansali's film with Kartik Aaryan called "Naagzilla"; and another Bhansali production film with Tiger Shroff are some of the albums which are expected to release in this financial year. We have also entered into a multi-language, multi-year deal with a partner for Indian pop content.

Speaker #3: Our spend on new music content this year is expected to be anywhere between ₹300 to ₹350 crore. Most of that is already committed. Big albums lined up include Love and War, which is coming out in January.

Speaker #3: Rajinikanth's Dharman, which is a Kamal Haasan company production; Telugu cinema's most awaited film, Paradise; Dharma's film with Kartik Aaryan called Nagzilla; and another Banchali production film with Tiger Shroff are some of the albums which are expected to release in this financial year.

Speaker #3: We have also entered into a multi-language, multi-year deal with a partner for Indian pop content. This includes Hindi, Tamil, and Malayalam languages. We are successfully holding onto a leadership position in Haryanavi in partnership with the erstwhile NAV promoters.

Vikram Mehra: This is across Hindi, Tamil, and Malayalam languages. We are successfully holding onto a leadership position in Haryanvi in partnerships with the erstwhile NAV promoters. This quarter finally saw us release new Punjabi songs after a long gap. We want to follow this up with a very big Arjan Dhillon album later this quarter, that is Q2. We continue with our guidance of a five-year payback period, followed by 55 to 75 years of returns. Music catalog globally is increasingly treated as an infrastructure-like inflation-linked asset class, which is why institutional capital is now flowing into this space through either JVs or direct catalog purchases. A 180,000 odd song catalog growing at close to 5,000 to 6,000 new releases every year is exactly the kind of asset that compounds value over decades.

Speaker #3: This quarter, finally, saw us release new Punjabi songs after a long gap. And we want to follow this up with a very big, urgent deal and album later this quarter.

Speaker #3: That is Q2. We continue with our guidance of a five-year payback period, followed by 55 to 75 years of returns. Music catalog globally is increasingly treated as an infrastructure-like, inflation-linked asset class.

Speaker #3: Which is why institutional capital is now flowing into this space through either JVs or direct catalog purchases. Our 180,000-odd song catalog, growing by close to 5,000 to 6,000 new releases every year, is exactly the kind of asset that compounds value over decades.

Speaker #3: We push from digital platforms like Spotify, YouTube, JioSaavn, and Amazon to build paid subscription revenue that continues in the country, with more and more labels working proactively along with the platforms to accelerate this process.

Vikram Mehra: The push from digital platforms like Spotify, YouTube, JioSaavn, Amazon to build paid subscription revenue continues in the country, with more and more labels working proactively along with the platforms to accelerate this process. A recent Indian consumer study done by EY and the apex music body called IMI, states that 64% of free music customers in India are ready to shift to a reasonably priced paid service if the free content stops. It just tells us what we always knew, be this the success of the video streaming apps in the country or the paid television services like digital cable and DTH, that Indian customer is ready to pay, can afford to pay, and is ready to pay, provided they see value in it. One of the biggest way of showing value is stop supply of free content.

Speaker #3: A recent Indian consumer study done by EY and the apex music body called IMI stated that 64% of free music customers in India are ready to shift to a reasonably priced paid service if the free content stops.

Speaker #3: It just tells us what we always knew paces the success of the video streaming apps in the country, or the paid television services like digital cable and DTH—that the Indian customer is ready to pay, can afford to pay, and is ready to pay provided they see value in it. And one of the biggest ways of showing value is to stop the supply of free content.

Speaker #3: At Saregama, we maintain a bullish position on subscription growth happening in the country. Just to put things in perspective, paid streaming penetration is 67% in Sweden, 57% in the US, and even Brazil and China are closer to 18%.

Vikram Mehra: At Saregama, we maintain a bullish position on subscription growth happening in the country. Just to put the things in perspective, paid streaming penetration is 67% in Sweden, or 57% in US, even Brazil and China are closer to 18%, while we are just 3%. It's a percentage of the total internet users in a market. This is Goldman Sachs estimates. Every percentage point of penetration is growing over 10 million paying subscribers. We believe Indian market, if the subscription is priced correctly, which means closer to INR 100, and if the supply of free somewhere curtail, we should not have a problem touching 100 million paid subscription mark pretty soon. This is a consensus that majority of the labels actually hold. Let me talk about AI.

Speaker #3: While we are just at 3%. When I say percent, it means percentage of the total internet users in a market. This is based on Goldman Sachs estimates.

Speaker #3: Every percentage point of penetration is growing over 10 million paying subscribers. We believe the Indian market, if the subscription is priced correctly—which means closer to 100 bucks—and if the supply of free is curtailed somewhere, we should not have a problem touching the 100 million paid subscription mark pretty soon.

Speaker #3: And this is a consensus that the majority of the labels actually hold. Let me talk about AI. Saregama's position on AI-based music remains that we support licensed innovation, but will continue to fight against unlicensed exploitation of our music.

Vikram Mehra: Saregama's position on AI-based music remains that we support licensed innovation, but will continue our fight against unlicensed exploitation of our music. All our new digital licensing agreements are building protection against dilution of our rights and any potential frauds. Also, as shared earlier, we have created two AI-dedicated teams in Saregama to optimize both cost and speed of delivery. The first is a content team that's using third party GenAI tools to create neighboring audio content like podcast using Saregama songs, and also building new age music videos around our older songs. The second team is looking at every process within the company with the objective to optimize the process using AI tools. We should be in a position to see the impact of these initiatives by the end of the year.

Speaker #3: All our new digital licensing agreements are building protection against dilution of our rights and any potential frauds. Also, as shared earlier, we have created two AI-dedicated teams in Saregama to optimize both cost and speed of delivery.

Speaker #3: The first is a content team that's using third-party Gen AI tools to create neighboring audio content, like podcasts using Saregama's songs, and also building new-age music videos around our older songs.

Speaker #3: The second team is looking at every process within the company, with the objective to optimize the process using AI tools. We should be in a position to see the impact of these initiatives by the end of the year.

Speaker #3: While the global music majors are now talking about expanding the artist branch beyond streaming, we have been doing our part quietly over the last few years in this space.

Vikram Mehra: While the global music majors are now talking about expanding the artist branch beyond streaming, we have been doing our part quietly over the last few years in this space. Today it's already becoming a meaningful revenue contributor through our work done on artist management side, live event side, and the brand partnership vertical. Artist management, the newest vertical under music, works by making the music-based artists popular through their content releases and then monetizing them via bookings for live events, weddings, and brand endorsements, from which Saregama earns a share. At the end of this quarter, we represent 309 artists with more than 440 million follower and subscriber base for these artists on Instagram and YouTube combined. As our investment in new audio and video content grows, these artists are going to become bigger.

Speaker #3: And today, it's already becoming a meaningful revenue contributor through our work done on the artist management partnership vertical. Artist management, the newest vertical under music, works by making the music-based artist popular through their content releases, and then monetizing them via bookings for live events, weddings, and brand endorsements.

Speaker #3: From which Saregama wants to share. At the end of this quarter, we represent 309 artists with more than 440 million followers and subscriber base for these artists on Instagram and YouTube combined.

Speaker #3: As our investment in new audio and video content grows, these artists are going to become bigger. And with digital advertising growing at 15% per annum, we believe artists in this influential economy can be big beneficiaries, adding further to both our top line and bottom line.

Vikram Mehra: With digital advertising growing at 15% per annum, we believe artists and this influencer economy can be a big beneficiary, adding further to both our top line and bottom line. Let me talk about video. This quarter saw the video vertical revenue declining by 53% to around INR 17 crore. Ladies and gentlemen, please keep in mind, this is by design and not by chance. We have shared with you, after our Bhansali acquisition, that we are taking a conscious call to wind down our films business and make all our investments through the Bhansali Productions channel. The film segment revenue is eventually going to come down. We continue to grow our Gen Z targeted short form and comp content, under FilterCopy, as well as keep on focusing on TV and web shows. Live events.

Speaker #3: Let me talk about video. This quarter saw the video vertical revenue declining by 53% to around ₹17 crore. Ladies and gentlemen, please keep in mind this is by design and not by chance.

Speaker #3: We have shared with you after our Bansali acquisition that we are taking a conscious call to wind down our films business and make all our investments through the Bansali production channel.

Speaker #3: Which means the film segment revenue is eventually going to come down. But we continue to grow our Gen Z-targeted short-form content under FilterCopy, as well as keep on focusing on TV and web shows.

Speaker #3: Live events: FY27 started with expanding a live vertical into multiple formats, helping us diversify our risk. We extended the Karwa brand into smaller concerts under the Karwa Live banner.

Vikram Mehra: FY27 started with us expanding our live vertical into multiple formats, helping us diversify our risk. We extended the Carvaan brand into smaller concerts under the Carvaan Live banner, targeting middle age and older audiences that enjoy a sit-down premium music listening experience. 23 such shows were produced in Q1. We further built up our devotional format with 22 shows featuring Manoj Muntashir, Backstage Siblings, and Jaya Kishori during the quarter. We also staged 48 stand-up acts during this quarter. This year, we are increasing our focus on the American market. Our US tour with South's "Maestro" Ilaiyaraaja is currently underway, and in September, we plan to tour with the Punjabi superstar, Arjan Dhillon. With whom we are also releasing an album. It's a combined deal that we have done with Arjan. Globally, music labels are increasingly focused on monetizing super fans.

Speaker #3: Targeting middle-aged and older audiences that enjoy a sit-down, premium music listening experience, 23 such shows were produced in Q1. We further built up our devotional format with 22 shows featuring Manoj Muntashir, Backstage Siblings, and Jaya Kishori during the quarter.

Speaker #3: We also staged 48 stand-up acts during this quarter. This year, we are increasing our focus on the American market. Our US tour with South Mastro Ilya Raja is currently underway, and in September, we plan to tour with the Punjabi superstar Arjun Dhillon, by the way, with whom we are also releasing an album.

Speaker #3: So if it combined deals that we have done with Arjun. Globally, music labels are increasingly focused on monetizing super fans. Illuminate Research shows super fans spend 100% more than the average listener.

Vikram Mehra: Luminate research shows super fans spend 100% more than the average listener, and 73% of them end up buying physical merchandise. Carvaan Live and our diaspora tours target exactly this segment in the Indian context. Older, financially comfortable, willing to pay a premium for curated experience, connected to the artists that they grew up listening to. All this is going to help us further cement our position, both in terms of being the revenue leader and help us improve our profitability. Our long-term belief in the potential of live events keeps getting reinforced every quarter, and we continue increasing our investment here. As mentioned last time, we have put in place a new vertical around brand partnerships, building an additional high-margin revenue stream alongside our licensing business by maximizing revenue from brands across music, live events, and short format video.

Speaker #3: And 73% of them end up buying physical merchandise. Karwa Live and the diaspora tours target exactly this segment in the Indian context—older, financially comfortable, willing to pay a premium for a curated experience with a connection to the artists that they grew up listening to.

Speaker #3: All this is going to help us further cement our position, both in terms of being the revenue leader and helping us improve our profitability.

Speaker #3: Our long-term belief in the potential of live events keeps getting reinforced every quarter, and we continue increasing our investment here. As mentioned last time, we have put in place a new vertical around brand partnerships.

Speaker #3: Building an additional high-margin revenue stream alongside our licensing business by maximizing revenue from brands across music, live events, and short-format video. This quarter, we partnered with leading brands such as Hindustan Lever, Godrej, Lux, etc.

Vikram Mehra: This quarter, we partnered with leading brands such as Hindustan Unilever, Godrej, Lakmé, et cetera. Regarding our partner companies, Pocket Aces reached breakeven in financial year 2026 and moves towards profitability. This year, we should be seeing further building on the profitability of Pocket Aces. Bhansali Productions had no releases during the quarter. The next set of releases are planned in Q4 of this financial year. Over the next few years, we will continue investing in new music content. This will contribute not only to our immediate growth, but also set the company on a long-term growth path. For the music vertical, we maintain a medium-term guidance of 20% to 23% revenue growth and an annual music EBITDA margin guidance of 60% to 65%. That will be our opening statement, ladies and gentlemen. We'll be very happy to take your questions now.

Speaker #3: Regarding our partner companies, Pocket Aces reached break-even and financially at 26 and is now moving towards profit. And moved towards profitability. This year, we should be seeing further building on the profitability of Pocket Aces.

Speaker #3: Bansali Productions had no releases during the quarter. The next set of releases are planned in quarter four of this financial year. Over the next few years, we will continue investing in new music content. This will contribute not only to our immediate growth but also set the company on a long-term growth path.

Speaker #3: For the music vertical, we maintain a medium-term guidance of 20% to 23% revenue growth and an annual music EBITDA margin guidance of 60% to 65%.

Speaker #3: That will be our opening statement, ladies and gentlemen. We'll be very happy to take your questions now.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Abneesh Roy from Nuvama. Please proceed with your question.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Avnish Roy from Nuvama.

Speaker #1: Please proceed with your question.

Speaker #2: Yeah, congrats. Two questions. First is on slide number 11. So here, you have given the YouTube views. For four quarters, your YouTube views were fairly stable, around 280 billion views.

Abneesh Roy: Yeah, congrats. Two questions. First is on slide number 11. Here you have given the YouTube views. For four quarters, that YouTube views was fairly stable around 280 billion views. Suddenly quarter-on-quarter in Q1, we have seen a very sharp scale-up. Any one-off here, which is driving this? Related question on this slide is, almost I think 19% comes from brand tie-ups, and very strong brands, frankly speaking. You have given the names also. I just wanted to understand, is this a systemic improvement wherein brands are taking your legacy songs and that is giving you a lot of revenue? If you could tell us on the team size, which is targeting these kind of tie-ups with the brands, and what is the outlook on this?

Speaker #2: But suddenly, quarter-on-quarter in Q1, we have seen a very sharp scale-up. Is there any one-off here that is driving this? And a related question on this slide: it seems almost 14% of revenue comes from brands and 19% comes from brand tie-ups.

Speaker #2: And very strong brand, frankly speaking—you have given the names also. So I just wanted to understand, is this a systemic improvement wherein brands are taking your legacy songs, and that is giving you a lot of revenue?

Speaker #2: So, if you could tell us about the team size that is targeting these kinds of tie-ups with the brands, and what is the outlook on this?

Speaker #3: You know, I'm happy to share and give you some answers, though they may not be that specific. I can't put all our competitive advantages out in the public domain.

Vikram Mehra: I am happy to give you answers, which are not that specific. I can't put all our competitive advantages out in the public domain. Yes, in building up the brand vertical is a very conscious call that has been taken within the company. In fact, both three parts, the brand vertical as well as direct from customer vertical. Traditionally, Saregama used to be only dependent on licensing from platforms. We are now, if you see our corporate presentation, I think we have put it in our quarterly also. We are now building these two verticals in a significant enough fashion. On the brand side, the earlier way we people used to function in Saregama, brands were always there. The way we approached brands was very different. Each of the verticals was managing revenue from brand within the vertical.

Speaker #3: Yes, in building up the brand vertical, it is a very conscious call that has been taken within the company. In fact, both were pursued: the brand vertical as well as the direct-from-customer vertical.

Speaker #3: Traditionally, Saregama used to be only dependent on licensing from platforms. Now, if you see our corporate presentation—and I think we have put it in a quarterly also...

Speaker #3: We are now building these two verticals in a significant enough fashion. On the brand side, the earlier way people used to function in Saregama, that was always there.

Speaker #3: But the way we approached brands was very, very different. Each of the verticals was managing revenue from brands within the verticals. So, live events was managing its own show, music was managing its own show, FilterCopy was completely separate.

Vikram Mehra: Live events were managing its own show, music was managing its own show. FilterCopy was completely separate. All that we have done is now built it as a joint team, which is managing all brand related selling within the company. This is an independent team with a network across the country. When they go to a brand, they're able to fulfill majority of the requirements of the brand, especially if they want to go back and talk to Gen Z. You were talking about catalog. Again, I am reiterating. Please remember, 60% of Saregama's revenue comes from brand new music, of which 45% actually comes from music released after 2020. Some of the biggest hits that have happened right now in the recent times all belong to Saregama, and that music is also very much in demand as far the brands are concerned.

Speaker #3: All that we have done is now built it as a joint team which is managing all brand-related selling within the company. So, this is an independent team with a network across the country.

Speaker #3: When they go to a brand, they are able to fulfill the majority of the requirements of the brand, especially if they want to go back and talk to Gen Z.

Speaker #3: You were talking about catalog. Again, I'm reiterating, please remember 60% of Saregama's revenue comes from brand new music, of which 45% actually comes from music released after 2020.

Speaker #3: So, some of the biggest hits that have happened right now in recent times all belong to Saregama. And that music is also very much in demand as far as the brands are concerned.

Speaker #2: You had a question on YouTube. Listen, those kinds of fluctuations do keep on happening depending on which album is doing well at any particular time.

Vikram Mehra: You had a question on YouTube. Listen, those kind of fluctuations do keep on happening depending on which album is doing well at any particular time. When you're looking at this data right now, please once again, look at it on a 12-month rolling basis. When the numbers go up, we don't get very excited about it in a quarter. When the numbers go down a bit, we don't get very depressed about it. What we are seeing right now internally is on a 12-month rolling basis. Both the streams on audio platforms and the views on the video platforms should keep on going steadily up, and thankfully that's happening.

Speaker #2: When you're looking at this data right now, please, once again, look at it on a 12-month rolling basis. When the numbers go up, we don't get very excited about it in a quarter.

Speaker #2: When the numbers go down a bit, we don't get very depressed about it. What we are seeing right now internally is that on a 12-month rolling basis, both the streams on audio platforms and the views on the video platforms should keep on going steadily up.

Speaker #2: And thankfully, that's happening.

Speaker #4: Sure. Last question. Firstly, over the last three quarters, we have seen very good growth coming back for the company. Congratulations on that, and on the consistent strong numbers.

Abneesh Roy: Sure. Last question. Firstly, last three quarters, we have seen very good growth coming back for the company, and congrats on that, and good consistency, strong numbers. Q2 also, again, music revenue, the base is soft. One is, are you expecting good growth continuing Q2? More important question is what happens from Q3? Generally your music revenue base becomes higher because of the last three quarters of strong numbers. If you could tell us, in terms of growth numbers, how you would expect from Q3. You have given out the specific content library, et cetera, but more from a numbers perspective.

Speaker #4: Q2 also, again, music revenue—the base is soft. So, one is: Are you expecting good growth to continue in Q2? But the more important question is, what happens from Q3 onward? Because then, generally, your music revenue base becomes higher, due to the last three quarters of strong numbers.

Speaker #4: If you could tell us, in terms of growth numbers, what you would expect from Q3. You have given out the specific content library, etc.

Speaker #4: But more from a numbers perspective, Q3, yeah.

Vikram Mehra: It's a little wrong on our part to give guidance on a quarterly basis. We hold on to our short to medium-term guidance that the music vertical comprising our licensing, artist management, and retail is going to grow between 20% to 23% year on year.

Speaker #3: I feel it would be wrong on our part to give guidance on a quarterly basis. We hold on to our short- to medium-term guidance that the music vertical—which includes licensing, artist management, and retail—is going to grow between 20 to 23% year on year.

Speaker #2: Okay, so thanks. That's all from me. Thank you.

Abneesh Roy: Okay. Thanks. That's all from me. Thank you.

Speaker #3: Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thank you, sir. The next question is from the line of Kavish Parikh from 361 Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Kavish Parekh from 361 Capital. Please proceed with your question.

Speaker #4: Hi team, thanks for the opportunity, and congratulations on a solid set of numbers. Vikram, you highlighted a few AI-led initiatives, such as podcasts and video creation.

Kavish Parekh: Hi, team. Thanks for the opportunity and congratulations on a solid set of numbers. Vikram, you highlighted a few AI-led initiatives such as podcasts and video creation. Could you also elaborate on the strategy behind these initiatives? What is the monetization roadmap? How should we think about the revenue model? What is the potential scale? What is the timeline to probably get to a stage where this becomes a meaningful contribution?

Speaker #4: Could you also elaborate on the strategy behind these initiatives? What is the monetization roadmap? How should we think about the revenue model? What is the potential scale?

Speaker #4: What is the timeline to probably get to a stage where this becomes a meaningful contribution?

Speaker #3: So, see, hopefully another couple of quarters later, we'll be in a better position to answer this question. Right now, we are all experimenting with the AI technology to see if we can create really good quality content at a very, very low incremental cost and at a speed that makes sense.

Vikram Mehra: See, hopefully, another couple of quarters later, we'll be in a better position to answer this question. Right now, we are all experimenting with the AI technology to see that can we create really good quality content at a very, very low incremental cost and at a speed that makes sense. To give you a flavor of what we are trying to do, one, on the music video side, as you may be aware, that the older catalog that Saregama owns, we own all the rights connected to the song except the right of the original music video.

Speaker #3: I'm to give you a flavor of what we are trying to do, one, on the music video side. As you may be aware, in the older catalog that Saregama owns, we own all rights connected to the song except the right to the original music video.

Speaker #2: Right.

Kavish Parekh: Right.

Speaker #3: If you look at the movies of the 60s and 70s, at that time, original music videos were not sold to the music labels because there was no market for it.

Vikram Mehra: If it was a movie of '60s and '70s, at that time, original music videos were not sold to the music labels because there was no market for it. They were contractually not part of the deal that happened with the labels, and hence they remain as a part of the movie negative and is controlled by whomever is controlling the movie negative. That's one of the weaknesses, if I may say, we have in the older catalog. If you want to do a recreation, if you want to sing, all those rights are sitting with Saregama, but not the original music video. We try to create brand-new music videos, but the incremental cost of actually shooting a music video is not making sense.

Speaker #3: They were not contractually part of the deal that happened with the labels, and hence they remain as a part of the movie negative.

Speaker #3: And this is controlled by whosoever is controlling the movie negative. So that's one of the weaknesses, if I may say, we have in the older catalog.

Speaker #3: So if you want to do a recreation, if you want to sing, all those rights are sitting with Saregama, but not the original music video.

Speaker #3: So we have been, and we try to create brand new music videos, but the incremental cost of actually shooting a music video will not make sense.

Speaker #3: With AI, we are now reaching a position that a very true to real kind of a videos can now be created at a very, very low cost which may start making financial sense if that experiment works, you literally can do both the things.

Vikram Mehra: With AI, we are now reaching a position that a very true-to-real kind of a videos can now be created at a very, very low cost, which may start making financial sense. If that experiment works, you literally can do both these things: create brand-new videos with the original audio to talk to Gen X, giving them more contemporary-looking videos, and then you can also modify the audio a bit to make it sound more modern. That may change in the instrumentation while you're maintaining the composition, and attach brand-new videos to talk to Gen Z. Suddenly, we may have been a very, very strong position, taking care of the weakness that we only uniquely had. Nobody else has this kind of weakness. Because everybody else is the more modern time music label. We literally have all the music of three yesterday years sitting only uniquely with Saregama.

Speaker #3: Create brand new videos with the original audio to talk to Gen X, giving them more contemporary-looking videos. Then you can also modify the audio a bit to make it sound more modern.

Speaker #3: That may change in the instrumentation while you are maintaining the composition, and attach brand new videos to talk to Gen Z. So, suddenly, we may have been in a very, very strong position, taking care of the weakness that we only uniquely had.

Speaker #3: Nobody else has this kind of weakness. Because everybody else is the more modern time music label we are the we literally have all the music of yesterday we are sitting only uniquely with Saregama.

Speaker #3: On the podcasting part, we are realizing that there are models that we have seen across the market, which gives us the confidence that the market is building up this traction for spoken word.

Vikram Mehra: On the podcasting part, we are realizing that there are models that we are seeing across in the market, which gives us the confidence that the market is building up this traction for spoken word. Our attempt is that how do we do spoken word in a unique fashion? By unique, I mean, we need to attach some of the biggest songs that we people own to this podcasting content, something nobody else can go back and do. If you are talking of a story of a 50-year-old man or a woman who's thinking of days gone by, while you are reminiscing those days, can I, in your story, also build in some of the biggest music connected to romance or separation or friendship into those podcasts and make it uniquely Saregama's, and then work out models right now licensing it to third-party podcast companies, too.

Speaker #3: Our attempt is to find out how we can do spoken word in a unique fashion. And by unique, I mean we need to attach some of the biggest songs that we own to this podcasting content.

Speaker #3: Something nobody else can go back and do. So, if you are talking of a story of a 50-year-old man or a woman who's thinking of days gone by, can I, while you are reminiscing those days, can I in your story also build in some of the biggest music connected to romance or separation or friendship into those podcasts and make it uniquely Saregama's, and then work out models, right now licensing it to third-party podcast companies too?

Speaker #3: In the early stages, we are experimenting a lot at Saregama. I think one of the clear directions we have from our Board is to do a lot of experiments.

Vikram Mehra: Early stages, we are experimenting a lot at Saregama. I think one of the clear directions we have from our board is do lot of experiments, do them small, fail fast, learn from it, and then only go back and scale it. That's how we have attacked every product launch till now. That's how we are attacking our initiative right now on AI-based ancillary content.

Speaker #3: Do them small, fail fast, learn from it, and then only go back and scale it. That's how we have attacked every product launch till now.

Speaker #3: That's how we are approaching our initiative right now on AI-based ancillary content.

Speaker #4: Pretty interesting. Would you want to call out the kind of investments that you would be making here? Where would it sit? Would it be a first-off capitalized?

Kavish Parekh: Pretty interesting. Would you want to call out the kind of investments that you would be making here? Where would it sit? Will it be expensed or capitalized? I think you've been also highlighting the use of AI in content acquisition processes. It's been a while since we have been doing that, I believe. Any notable changes that you've seen in your content acquisition processes that you would like to call out?

Speaker #4: And I think we've also been highlighting the use of AI in content acquisition processes. It's been a while since we have been doing that, I believe.

Speaker #4: Are there any notable changes that you've seen in your content acquisition processes that you would like to call out?

Speaker #3: Oh, see, that's a predictive AI part of it, which we people have been doing. Now four years have gone by. So the real game changer in the room right now is generative AI.

Vikram Mehra: See, that's a predictive AI part of it, which we people have been doing now 4 years have gone by. The real game changer in the room right now is generative AI. Predictive AI has been there for some time in the system. All I can say on predictive AI, our hit-to-flop ratio is better than any competitor in the market, and I don't think we give credit to anybody but our predictive AI models for that.

Speaker #3: Predictive AI has been there for some time in the system. All I can say on predictive AI is that it hits the flaw pressure better than any competitor in the market.

Speaker #3: And I don't think we give credit to anybody but the predictive AI models for that.

Speaker #2: Is there any quantum of investments that you would like to call out?

Kavish Parekh: Any quantum of investments that you would like to call out?

Vikram Mehra: These investments are whatever we people are going to be doing, if it's audio or if it's related to music, will be within this INR 300 to 350 crore. There's no additional investment one is asking for. To be honest here, the investment numbers that are needed out here are far, far, far, far small. They're that small right now that at this juncture, there's no point even talking about it. The cost of a music video, if it's done through AI, can be INR 70,000 also. The numbers are that small at this moment. We want to test it out and see at scale what kind of a music work, in which languages do AI, there's a higher adoption going in. We operate in 11 different languages. We have catalog sitting right now of 18 different languages.

Speaker #3: These investments are whatever you people are going to be doing—if it's audio, if it's related to music—will be within this ₹300 to ₹350 crore. So there's no additional investment one is asking for. But to be honest here, the investments, the numbers that are needed out here, are far, far, far, far smaller.

Speaker #3: They're that small right now that at this juncture there's no point even talking about it. The cost of a music video, if it's done through AI, can be ₹70,000 also.

Speaker #3: So the numbers are that small at this moment. We want to test it out and see at scale what kind of music works, and in which languages AI plays, there's a higher adoption going on.

Speaker #3: We operate in 11 different languages. We have a catalog sitting right now of 18 different languages. We are experimenting across both pop music, filmy music, as well as devotional music.

Vikram Mehra: We're experimenting across both pop music, filmy music, as well as devotional music. As the results start coming out and gives us more confidence to scale it up in a very big fashion, that's the time I'll be happy to call out stated.

Speaker #3: You will start seeing results start coming out, and it gives us more confidence to scale it up in a very big fashion. That's the time when we would be happy to call out the expense needed.

Speaker #2: Fair enough. Secondly, on the live events piece, could you walk us through the event pipeline for the rest of the year? I was under the impression that Diljit's North America tour was scheduled for this quarter. Is there anything on that, and what more is created for next year? And lastly, one question on accounting: what explains the sharp decline in other income this quarter?

Kavish Parekh: Fair enough. Secondly, on the live events piece, could you walk us through the event pipeline for the rest of the year? I was under the impression that Diljit's North America tour was scheduled this quarter. Anything on that? What more is slated for next year? Lastly, one question on accounting. What explains the sharp decline in other income this quarter?

Speaker #3: So Abhishek would be in a better position to answer this, but the fact of life is that the investments—the cash that we people had right now—has been diverted.

Vikram Mehra: Abhishek could be in a better position to answer this, but the fact of life is that the investments, the cash that we people have right now has been diverted towards specific investments of ours, namely Bhansali Productions. That's why you see a reduction in the other income. You are asking about the pipeline of the events that are happening here. What I can tell you is completely, which is things that are there in public domain. We have a big Krishna show going on with Manoj Muntashir. We plan to do some 25 to 30 more of those. These are currently happening right now in Bombay, Delhi. We are moving into Indore. We have done successfully in Lucknow, Ahmedabad, Surat. We want to expand it. We also want to take it to US.

Speaker #3: …towards specific investments of ours, namely Bhansali Productions. And that's why you see a reduction in the other income. You were asking me about the pipeline of the events that are happening here.

Speaker #3: What I can tell you is completely what is available in the public domain. We have a big Krishna show going on with Manoj Muntashir.

Speaker #3: We plan to do some 25 to 30 more of those. These are currently happening right now in Bombay and Delhi, and we are moving into Indore.

Speaker #3: We have done successfully in Lucknow, Ahmedabad, Surat. We want to expand it. We also want to take it to the US. Currently, as we talk to you, we have just completed the first three shows of the Ilaiyaraaja tour in the US.

Vikram Mehra: We are currently, as we talk to you, we have just completed the first three shows of Ilaiyaraaja tour in US. We have already announced an Arjan Dhillon tour that we people will be doing later in September. The Carvaan Live is a large enough property, which does in every city that we are in, we are doing minimum of four shows every month. Bombay itself is going to be seeing 48 such shows on a calendar year basis. The next season of UN40, a music festival, has already been announced and is being done on 13 February and 14 February in Bangalore. Some of the larger artist-based shows, the moment we people form it up and with artists, we have a confirmation that we can announce it. That's the time we'll make an announcement in the press.

Speaker #3: We have already announced an urgent Dhillonka tour that we people will be doing later in September. The Karva Live is a large enough property which does, in every city that we are in, we are doing a minimum of four shows every month.

Speaker #3: So our Bombay itself is going to be seeing 48 such shows on a calendar basis. The next season of the UN40 Music Festival has already been announced and is being held on the 13th and 14th of February.

Speaker #3: In Bangalore, some of the larger artist-based shows, the moment we firm it up and we are with the artists, we have a confirmation that we can announce it.

Speaker #3: That's the time we'll make an announcement in the press.

Speaker #2: Understood. So, the Diljit tour didn't happen this quarter, is it?

Kavish Parekh: Understood. Diljit tour didn't happen this quarter, is it?

Speaker #3: No. So Diljit India tour is planned sometime in Q3. It's still tentative. We were involved with Diljit in the America tour also, in a limited fashion.

Vikram Mehra: No. Diljit India tour is planned sometime in Q3. It's still tentative. We were involved with Diljit in the America tour also in a limited enough fashion. That's all I can mention. The US tour was all under Saregama Live.

Speaker #3: That's all I can mention. But the US tour was all under Saregama Live.

Speaker #2: Understood. Maybe I'll take this up offline in more detail.

Kavish Parekh: Understood. Maybe I'll take this up offline in more detail.

Speaker #3: Yeah.

Speaker #2: Thank you so much. All the very best.

Vikram Mehra: Yeah.

Kavish Parekh: Thank you so much. All the very best.

Speaker #3: Thank you. Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thank you, sir. The next question is from the line of Disha from Trinetra Asset Managers. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Disha from Trinetra Asset Managers. Please proceed with your question.

Speaker #5: Good afternoon. So, am I audible?

[Analyst] (Trinetra Asset Managers): Good afternoon, sir. Am I audible?

Speaker #3: Yes ma'am.

Vikram Mehra: Yes, ma'am.

Speaker #5: Yes, sir. My question was, could you provide an update on the integration of Pocket SS? Have you—what is the revenue contribution and cost synergy that we have already seen on the consolidated earnings? And over the next two to three years, how is this going to turn out?

[Analyst] (Trinetra Asset Managers): Yes, sir. My question was, could you provide an update on the integration of Pocket Aces and what is your revenue contribution and cost synergies that we have already seen on the consolidated earnings? Over the next two to three years, how is this going to pan out?

Speaker #3: So, Pocket SS, we have already been very, very clear. We made this acquisition of Pocket SS because we believe that in the days to come, the biggest differentiator we can get as a music label is to build a reputation as the most efficient marketing machine to talk to Gen Z.

Vikram Mehra: Pocket Aces, we have always been very, very clear. We made this acquisition of Pocket Aces because we believe that in the days to come, the biggest differentiator we can get as a music label is to build a reputation as the most efficient marketing machine to talk to Gen Z. Biggest consumer of music is Gen Z. When a film producer or a big artist has to decide whether they should work with Saregama or somebody else, the real decision doesn't happen only in terms of money. The bigger decision happens is that the producer wants the album to become hit so that his film becomes hit, and every artist wants his album to become hit so that they can sing more and more in the live events or the wedding circuit.

Speaker #3: The biggest consumer of music is Gen Z. When a film producer or a big artist has to decide whether they should work with Saregama or somebody else, the real decision doesn't happen only in terms of money.

Speaker #3: The bigger decision happens is that the producer wants the album to become a hit so that the film becomes a hit, and every artist wants an album to become a hit.

Speaker #3: So that they can sing more and more at live events or on the wedding circuit. So for them, the marketing ability of a label is very, very important.

Vikram Mehra: For them, the marketing ability of a label is very, very important, and what Pocket Aces brings to the table for us is a unique thing. They are the biggest brand today among Gen Z in the country. Between the entire social media presence are controlling through anything between 400 to 450 million follower and subscriber footprint across Instagram, Facebook, and YouTube. Now, that's something that none of our competitors, at this juncture, are able to compete on, which places us quite uniquely across languages in the country. That does not mean that Pocket Aces are ever going to become a loss leader. Pocket Aces were able to achieve breakeven last year, and this year we people are fairly confident right now that we will start seeing some amount of profit coming out of Pocket Aces.

Speaker #3: And what Pocket SS brings to the table for us is something unique. They are the biggest brand today among Gen Z in the country.

Speaker #3: They, between their entire social media presence, are controlling a footprint of anything between 400 to 450 million followers and subscribers across Instagram, Facebook, and YouTube.

Speaker #3: Now that's something that none of our competitors can, at this juncture, are able to compete on, which places us quite uniquely across languages in the country.

Speaker #3: But that does not mean that Pocket SS is ever going to become a loss leader. Pocket SS was able to achieve break even last year.

Speaker #3: And this year, we people are fairly confident right now that we will start seeing some amount of profit coming out of Pocket SS.

[Analyst] (Trinetra Asset Managers): Got it, sir. My another question was, your company owns one of the Indian largest and beyond this traditional , where do you see the greatest untapped possibility lies?

Speaker #5: Got it, sir. And my another question was, like other company owners, what are the largest Indian music libraries, and beyond traditional streaming, where do you see the greatest untapped opportunity lies?

Operator: Disha ma'am, there is a lot of background noise. Can you please use your handset?

Speaker #1: Disha ma'am, there is a lot of background noise. Can you please use your handset?

[Analyst] (Trinetra Asset Managers): Sure. Just a second, ma'am. Is it better, ma'am?

Speaker #5: Sure, just a second, ma'am. Is it better, ma'am?

Speaker #1: Yeah please proceed.

Operator: Yeah. Please proceed.

Speaker #5: Yes, sir. So, a company like Saregama owns one of India's largest music libraries, correct? And beyond these traditional streaming platforms, where do you see the greatest untapped opportunity lies?

[Analyst] (Trinetra Asset Managers): Yes, sir. The company, like our Saregama company, owns India's largest music library, correct? Beyond this traditional streaming, where do you see the greatest untapped opportunity lies? I mean, in the sense of international licensing or AI-generated licensing that you said, and gaming or short-form content. Where do you see the monetization opportunity?

Speaker #5: I mean in the sense of international licensing or AI-related licensing that you mentioned. And with gaming or short-form content, where do you see the monetization opportunity?

Speaker #3: Ma'am, I'm not able to understand anything. I'm—I'm so sorry. Disha, is it just me, or are you able to hear it?

Vikram Mehra: Ma'am, I'm not able to understand anything. I'm so sorry. Disha, is it me only, or are you able to hear it?

Speaker #1: Sir, I can hear her. Disha ma'am, can you please use your handset? I guess you are on speaker, that's why. Yeah, please proceed.

Operator: Sir, I can hear her. Disha ma'am, can you please use your handset? I guess you are on speaker. That's why.

[Analyst] (Trinetra Asset Managers): May I request.

Vikram Mehra: Is that sounding better?

Operator: Yeah. Please proceed.

[Analyst] (Trinetra Asset Managers): Okay. Yes, sir. I wanted to understand, beyond the traditional streaming, where is the greatest untapped opportunity for Saregama company lie, in the sense, is it international licensing that you said that you wanted to tap into international businesses or AI-related licenses and gaming or short-form content that you see could be monetization opportunity for us?

Speaker #5: Yes sir. So I wanted to understand beyond the traditional streaming where is the greatest untapped opportunity for Saregama company like in the sense they is it international licensing that you said that you wanted to tap into international businesses or AI related licenses and gaming or short form content that you see could be monetization opportunity for us.

Speaker #3: So ma'am, the biggest revenue max increase opportunities that we people see in front of us within music streaming is going to be—streaming is going to be the biggest one.

Vikram Mehra: Ma'am, the biggest revenue increase opportunities that we people see in front of us within music, paid streaming is going to be the biggest one. If you look at some of our competing international labels, they end up getting anything between 50% to 70% of their revenues coming from paid subscription. India is just at the beginning of the start of that cycle. Just imagine the amount of headroom that all of us have in the industry. Saregama, in a leadership position in India, should be able to capitalize on it, hopefully better than anybody else in the market today. We also see a great revenue maximization opportunity sitting in the short format content.

Speaker #3: If you look at some of our competing international labels, they end up getting anywhere between 50% to 70% of their revenues coming from paid subscriptions.

Speaker #3: India is just at the beginning of the start of that cycle. Just imagine the amount of headroom that all of us have in the industry, and Saregama, in a leadership position in India, should be able to capitalize on it, hopefully better than anybody else in the market today.

Speaker #3: Then we also see a great revenue maximization opportunity sitting in the short format content. Today, most of the short format apps are on a fixed fee model with the music labels.

Vikram Mehra: Today, most of the short format apps are on a fixed fee model with the music labels, with an assurance that with time, they're going to move on to a share of advertising opportunity, which means their revenue can really go up in the days to come. Third are models like video streaming companies like YouTube. If the GDP of the country keeps on steadily growing at the rate that it's growing, more advertising is going to flow in, we people end up getting a straight share of the advertising revenue that these platforms end up making. These are some of the biggest levers that we people have on the music side. There's one more on the music side, is public performance. It is a relatively untapped opportunity in India.

Speaker #3: With an assurance that, with time, they're going to move on to a share of advertising opportunity, which means revenue can really go up in the days to come.

Speaker #3: Third models, like video streaming companies such as YouTube, if the GDP of the country keeps on steadily growing at the rate that it's growing, more advertising is going to flow in, and we people end up getting a straight share of the advertising revenue that these platforms end up making.

Speaker #3: These are some of the biggest levers that we people have on the music side. There's one more on the music side, which is public performance.

Speaker #3: It is an relatively untapped opportunity in India. By public performance I mean whenever music is played in in a at a commercial place the the the entity needs to go out there and take a separate license and that license money is distributed amongst the people whose music is played.

Vikram Mehra: By public performance, I mean, whenever music is played in a commercial place, the entity needs to go out there and take a separate license, and that license money is distributed amongst the people whose music is played. We believe that is a large opportunity which is not fully tapped in the market. That is also going to open up. In developed countries, this is a big enough revenue line. We believe that should be able to give us another very big kick. The moment you go out of music, short format on its own, what we people are doing is FilterCopy. I think that should become even larger. In the days to come, for any brand to talk to Gen Z, it is going to become increasingly difficult because Gen Z is not reading that much of newspaper or is listening to radio or is going on a conventional television.

Speaker #3: We believe that's a large opportunity which is not fully tapped in the market. That is also going to open up in developed countries. This is a big enough revenue line.

Speaker #3: We believe that should be able to give us another very, very big kick. The moment I go out of music short format on its own, what we people are doing is filter copy.

Speaker #3: I think that should become even larger. In the days to come, for any brand to talk to Gen Z, it's going to become increasingly difficult because Gen Z is not reading that much—your newspaper, or is listening to radio, or is going on conventional television.

Speaker #3: The video content that they're watching is all through paid subscriptions where no ads are being shown. So if you want to talk to Gen Z, chances are you will have to catch these guys more and more on the short format apps.

Vikram Mehra: The video content that they are watching are all through paid subscriptions where no ads are being thrown. If you want to talk to Gen Z, chances are you will have to catch these guys more and more on the short format apps. What Pocket Aces is uniquely bringing as strength to us is this footprint on the short format app, either directly controlled by us or by some of the artists that we people are managing today. That also has the potential to become very big. The third part of our business, which is live events part of our business. As a society, more and more we are glued onto our mobile phones.

Speaker #3: And what Pocket SS is uniquely bringing as friends to us is this footprint on the short format app, either directly controlled by us or by some of the artists that we people are managing today.

Speaker #3: That should, and also has the potential to become very, very big. And the third part of our business, which is the live events part of our business.

Speaker #3: As as a society more and more we are glued onto a mobile phones more we get start getting disconnected with people around. Greater is the need for an affluent middle class or upper middle class to go out and spend some time enjoying themselves with other like-minded people which makes live events as a huge opportunity in front of us.

Vikram Mehra: More we start getting disconnected with people around, greater is the need for an affluent middle class or upper middle class to go out and spend some time enjoying themselves with other like-minded people, which makes live events as a huge opportunity in front of us. With all the right moves being made by the central and the state governments, who are also looking at live events in a very aggressive enough fashion, we believe in the days to come, infrastructure is going to improve a lot, and live events will become a substantial opportunity the way it is there in other parts of the world. I hope I have answered your question.

Speaker #3: With all the right moves being made by the central and the state government, who are also looking at live events in a very aggressive fashion, we believe in the days to come, infrastructure is going to improve a lot and live events will become a substantial opportunity, the way it is in other parts of the world.

Speaker #3: I hope I’ve answered your question.

[Analyst] (Trinetra Asset Managers): Yes, sir. I have totally understood you. Thank you so much.

Speaker #5: Yes, sir. I have totally understood you. Thank you so much.

Speaker #3: Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thank you, ma'am. The next question is from the line of Akshay Ayy Kalukir, from Dalal and Broacha. Please proceed with your question.

Operator: Thank you, ma'am. The next question is from the line of Akshay Kalukire from Dalal & Broacha. Please proceed with your question.

Speaker #6: Thank you for taking my question. I have only one question. My question is: when I analyze your segment...

Akshay Kalukire: Thank you for taking my question. I have only one question. The question is, when I analyze your-

Operator: Sorry to interrupt, Akshay sir. Can you speak little louder?

Speaker #1: Sorry to interrupt, Akshay sir. Can you speak a little louder?

Speaker #6: Okay. So now I now it's audible? Okay. So so when I analyze your segment wise revenue so the 32% year on year. So which is appear to be a highest growth in the last eight quarters.

Akshay Kalukire: Okay. Now it's audible? Okay.

Operator: Yes, sir.

Akshay Kalukire: When I analyze your segment-wise revenue, the core music segment has grown by around 32% year-on-year, which appears to be the highest growth in the last eight quarters. At the same time, your peers have reported only 21% growth. Could you just help us to understand what is the key driver behind this outperformance in the core music segment?

Speaker #6: At the same time, your peers have reported only 21% growth. So, could you help us understand what the key driver is behind this outperformance?

Speaker #6: In a core music segment.

Speaker #3: You know, so all I can see, when you're looking at the core music, please keep in mind the way we report our music is: licensing plus artist management plus retail.

Vikram Mehra: For all I can say, when you're looking at the core music, please keep in mind, the way we report our music is licensing plus artist management plus retail. I started my opening statement by saying that our numbers are pretty healthy, but please judge us only on a rolling 12-month basis. As I go forward, and if I have to make a projection for the entire financial year or for the next few years, I maintain that the music will grow between 20% to 23% only.

Speaker #3: I started my opening statements by saying that our numbers are pretty healthy, but please judge us only on a rolling 12-month basis. As I look forward, and if I have to make a projection for the entire financial year or for the next few years, I maintain that the music will grow between 20% to 23% only.

Speaker #6: Okay, I understand. Yeah, that's it.

Akshay Kalukire: Okay, understood. Yeah, that's it.

Speaker #1: Thank you, sir. The next question is from the line of Lokesh from Vallam Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Lokesh from Vallum Capital. Please proceed with your question.

[Analyst] (Vallum Capital): Yeah, hi, good afternoon, Vikram.

Speaker #7: Yeah. Hi, good afternoon, Vikram. Am I audible?

Vikram Mehra: Hi.

[Analyst] (Vallum Capital): Am I audible?

Speaker #3: Yes, it's a little muffled. I can hear you.

Vikram Mehra: Yes. It's a little muffled. I can hear you.

Speaker #7: Okay. Okay. Is it better now?

[Analyst] (Vallum Capital): Okay. Is it better now?

Speaker #3: Yes please go ahead.

Vikram Mehra: Yes, please go ahead.

Speaker #7: Yeah, yeah. Great. Vikram, my question was just continuing on the AI piece—in terms of how it is helping us, you know, get the whole catalog into the video format.

[Analyst] (Vallum Capital): Yeah. Vikram, my question was just continuing on the AI piece, in terms of how it is helping us get the whole catalog on the video format. If I look at the revenue from songs pre-2020 annually, the last three years have been subdued. Do you see this AI initiative of yours getting those growth rates back at least to the industry or beating the industry levels, once you are completed with your experiment out there?

Speaker #7: Now, if I look at the revenue from songs pre-2020, annually, the last three years have been subdued. So, do you see this AI initiative of yours getting those growth rates back, at least to the industry level, or beating the industry levels once you are completed with your experiment out there?

Speaker #3: So I'm sorry I'm I will disagreement on your analysis and what you are what you derived from it. Catalog revenue on an Apple to Apple basis every year has been growing at very high single digits or very low double digits.

Vikram Mehra: I'm sorry, I have a disagreement on your analysis and what you derived from it. Catalog revenue, on an apple-to-apple basis, every year has been growing at very high single digits or very low double digits. When you percentages, what it hides is, the share of new content has gone up because new content is growing at a substantial pace. Catalog cannot compete with the performance of a Rocky Aur Rani Kii Prem Kahaani or a Shershaah 2 or a Dhurandhar. On its own, catalog is constantly growing. The only issue we people had faced, which was an industry-level issue we had all faced is, that in financially at 2025 onwards, a lot of platforms in the country had shut down. The platforms continue to be there right now. That's why I'm saying apple-to-apple.

Speaker #3: When you separate percentages, what it hides is that the share of new content has gone up because new content is growing at a substantial pace.

Speaker #3: You cannot catalogue—cannot compete with the performance of a Rocky Aur Rani Ki Prem Kahani or an S32 or a Durinder. But on its own, the catalogue is constantly growing.

Speaker #3: The only issue we people had faced, which was an industry-level issue we had all faced, is that financially, at '25 onwards, a lot of platforms in the country had shut down.

Speaker #3: So, but the platform continues to be there right now. That's what I'm saying—apple to apple. So, the platforms that were there, whether it was Spotify or a Gaana or YouTube or a Saavn, if I look at catalog content, it's steadily been growing year after year. We have never seen a—a catalog side.

Vikram Mehra: The platforms that were there, whether it was a Spotify or a Gaana or a YouTube or a JioSaavn, if I look at catalog content, it's steadily been growing year after year. We have never seen a the catalog side. The bigger question that you had asked, will this ? That's the entire attempt. Can we grow our catalog at an even faster pace? We are realizing in India and globally, there is this complete resurgence of anything which is connected to nostalgia. If you talk about the Western music also, many of the artists who were very big in '60s and '70s or '80s are making a very big comeback. Something similar is happening here. If you see the number of older songs that end up being on Instagram, it surprises us also.

Speaker #3: But the biggest question that you had asked will this re that's the entire attempt that can we grow our catalog at at a even faster pace we are realizing in India and globally there is this complete resurgence of of anything which is connected to nostalgia.

Speaker #3: If you check out Western music also, many of the artists who were very big in the '60s, '70s, or '80s are making very big comebacks.

Speaker #3: Something similar is happening here. If you see the number of older songs that end up on Instagram, it surprises us also. So there is constant work happening both in terms of marketing as well as in terms of creating newer derivatives of the older content.

Vikram Mehra: There is a constant work happening both in terms of marketing as well as in terms of creating newer derivatives of the older content. The end objective being, can we further improve the amount of money that we can make from these assets that have been fully charged off?

Speaker #3: The end objective being, can we further improve the amount of money that we can make from the raffage that has been fully charged off?

Speaker #7: Understood. Understood. My second question was, you know, in this time's presentation you have given a breakup of revenue from different distribution networks, which is, you know, the platform revenue, the brands, and the direct-to-customer.

[Analyst] (Vallum Capital): Understood. My second question was, in this time's presentation, you have given a breakup of revenue from different distribution networks, which is the platform revenue, the brands, and the direct-to-customer. For brands and direct-to-customer, can you share year-on-year growth rates? Can you call that out if possible? Just to get a sense how they are doing.

Speaker #7: So for brands and direct to customer can you share year on year growth rates can you call that out if possible just to get a sense how yeah how they're growing.

Vikram Mehra: Look, sharing this data right now and we'll be updating it on an annual basis. I think the whole objective of sharing this data was that as a company, we are conscious of the fact that at no juncture should we ever become over-dependent on any one way of making money or one technology or one partner. We are very well-diversified. If for whatever reason, there is a short-term hiccup that happens in any new technology or a business model, I'm sure it will affect us also, but it will affect us far lower than any of our competitors. That's our whole objective. We have been trying to move the company in a more balanced portfolio approach over the last few years, and we thought we are now in a position that we are somewhere comfortable.

Speaker #3: So, sharing the data right now, we'll be updating it on an annual basis. Just to give—I think the whole objective of sharing this data was that as a company, we are pretty conscious of the fact that, at no juncture should we ever become over-dependent on any one way of making money, or one technology, or one partner.

Speaker #3: So we are very well diversified if for whatever reason there is a short term hiccup that happens in any new technology or a business model it will I'm sure it will affect us also but it will affect us far lower than any of our competitors that's a whole objective we have been trying to move the company in a more balanced portfolio approach over the last few years and we thought we are now in a position that we are somewhere comfortable we want to further improve our numbers that are coming which are from brands and direct to customer without at all compromising on the numbers that we're doing from platforms because that's a core business.

Vikram Mehra: We want to further improve our numbers that are coming, which are from brands and direct to customer, without at all compromising on the numbers that we're doing from platforms, because that's our core business. You will see this data getting updated on an annual basis. That should give you some comfort.

Speaker #3: You will see this data getting updated on an annual basis that will should give you some comfort. And other partners remember if I have to if I have to grow my revenue between 20 to 23% you cannot have any verticals lagging down.

[Analyst] (Vallum Capital): Very good.

Vikram Mehra: The other part is, just remember, if I have to grow my revenue between 20% to 23%, you cannot have any of these verticals lagging down.

Speaker #7: Correct, correct, correct. Get a sense of, yeah, how the revenue from different distribution networks is moving.

[Analyst] (Vallum Capital): Correct.

Vikram Mehra: They have to-

[Analyst] (Vallum Capital): Just to get a sense of how the revenue from different distribution networks are doing.

Speaker #1: Thank you, sir. The next question is from the line of Yash Bajaj from Lucky Investments. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Yash Bajaj from Lucky Investments. Please proceed with your question.

Speaker #5: Yes, good afternoon, sir, and thanks for the opportunity. Congratulations on a great set of numbers. My first question is, sir, regarding the music EBITDA for this quarter—it has come off by 1% on a year-on-year basis.

Yash Bajaj: Yes, good afternoon, sir, and thanks for the opportunity, and congratulations on a great set of numbers.

Vikram Mehra: Thank you.

Yash Bajaj: My first question is, on the music EBITDA for this quarter, it has come off by 1% on a year-on-year basis. It is a small number, but I just want to understand the factors behind the music EBITDA, taking into consideration that music as a segment has grown 40%, 43% on a year-on-year basis. That is my first question.

Speaker #5: I understand it's a small number but I just want to understand the factors behind the music EBITDA taking into consideration that the music as a segment has grown 40 43% on a year on year basis.

Speaker #5: That's my first question.

Speaker #3: Now, so when you are looking at the year-on-year, also please just see the mix of the music segment. If you see the segmental results that you people have declared, you will see the artist management piece is also growing, and artist management is always a lower margin.

Vikram Mehra: When you are looking at year-on-year, also please just see the mix of the music segment. If you see the segmental results that you people have declared, you will see artist management piece is also growing. Artist management is always a lower margin. It takes zero investments. Artist management part of the revenue is always the lower margin part. It is just as a mix change that is happening. On the core music licensing business, we do not see any change happening right now at the EBITDA level. Obviously, as a margin level, there will be impacts on the short runs coming in as we people keep on increasing our content investment. There also, let me give you the comfort that the FY2025, 2026, 2027, we had announced an INR 1,000 crore investment on the newer music.

Speaker #3: It takes zero investments, but the artist management part of the revenue is always a lower margin part. So, it just has a mixed change that is happening.

Speaker #3: On the core music licensing business, we don't see any change happening right now at the EBITDA level. Obviously, at the margin level, there will be impacts in the short run coming in as we keep on increasing our content investment.

Speaker #3: But there also, let me give you the comfort that for FY25, 26, and 27, we had announced a ₹1,000 crore investment on the newer music.

Speaker #3: We were doing a step function increase in the amount of investments that we are making. Say, from '28 onwards, you will see us now tempering the rate of growth in terms of the music investment.

Vikram Mehra: We were doing a step function increase in the amount of investments that we are making. Say from 2028 onwards, you will see us now tempering the rate of growth in terms of the music investment. We will still fight for a 25% to 30% market share. We have almost reached there, and we are comfortable holding on to that position for some time. In the long run, you will see the EBITDA growth and the bottom line growth starting to catch up with the revenue growth that you are seeing on the music segment.

Speaker #3: We will still fight for a 25% to 30% market share, but we have almost reached there, and we are comfortable holding on to that position for some time.

Speaker #3: So, in the long run, you will see the EBITDA growth and the bottom line growth starting to catch up with the revenue growth that you're seeing in the music segment.

Speaker #5: Understood. And my second question is specifically again on the music set margins, again from the point of view that the segment has grown at a much higher clip versus if you would have compared Q1 '26 numbers.

Yash Bajaj: Understood. My second question is specifically again on the music net margins. Again, from the point of view of that the segment has grown at a much higher clip versus if you would have compared Q1 2026 numbers. Is the content charge slightly more aggressive this quarter compared to Q1 2026?

Speaker #5: So, is the content charge slightly more aggressive this quarter compared to Q1 '26?

Vikram Mehra: I've told you, please evaluate us on a 12-month basis. We are trying to find trends in quarterly; they are unsteady. All depends which release got pushed to which particular quarter. That's why, please go back and evaluate us on a 12-month basis. When our numbers look good also, I tell you 12 months. When our numbers are not looking good, also I tell you 12 months.

Speaker #3: I've told you, please evaluate us on a 12-month basis. Quarterly, we are trying to find trends, and quarterly, they vary; it all depends on which release got pushed to which particular quarter. So that's why, please go back and evaluate us on a 12-month basis. When our numbers look good, I tell you 12 months; when our numbers are not looking good, then also I tell you 12 months.

Speaker #5: Oh, understood, sir. Okay, I'll just rephrase my question. So, if we had to compare FY26 net margins of the music business and if we kind of extrapolate that for FY27, would it be fair to assume that we will incrementally be better in FY27 in terms of net margins versus FY26, even though we are spending ₹300–350 crores this year on marketing and new content?

Yash Bajaj: Understood, sir. Okay, I'll just rephrase my question. If we had to compare FY2026 net margins of the music business, and if we kind of extrapolate that for FY2027, will it be fair to assume that we will incrementally be better in FY2027 in terms of net margins versus FY2026, even though we are spending INR 300 to 350 crores this year on marketing and new content?

Speaker #3: See, I think we have already gone out there and shared with you. I'm not going to—yes, I'm not answering your question directly.

Vikram Mehra: I think we have already gone out there and shared with you. I'm not answering your question directly. We have shared with you that our annual music EBITDA guidance is 60% to 65%. I'm holding on to that.

Speaker #3: We have shared with you that our annual music EBITDA guidance is 60% to 65%, and I'm holding on to that.

Speaker #5: Okay sir. Okay.

Yash Bajaj: Okay, sir. Okay.

Speaker #1: Thank you sir.

Operator: Thank you, sir.

Yash Bajaj: That's all from my side. Thank you.

Speaker #5: From my side. Thank you.

Speaker #3: Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thanks. Thank you, sir. The next question is from the line of Sanya Jain from Care EMS. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Saania Jain from Care PMS. Please proceed with your question.

Speaker #6: Hi. Thank you for the opportunity, and congratulations on a good set of numbers. I just had one question regarding the artist management business. For the past three quarters, you have followed a revenue generation of ₹40 crore per quarter.

Saania Jain: Hi. Thank you for the opportunity, and congratulations on the good set of numbers. I just had one question regarding the artist management business. For the past three quarters, we have followed the revenue run rate of INR 40 crores per quarter. Could you please help me understand what would be the key growth drivers for this business and how do we see the revenue going forward for this? Regarding the EBITDA margins on this business, it is currently at 10%. Is there a scope for expansion in these margins?

Speaker #6: Could you please help me understand what would be the key growth drivers for this business, and how do we see the revenue going forward for this?

Speaker #6: And so, regarding the EBITDA margins on this business, it is currently at 10%. Is there a scope for expansion in these margins?

Speaker #3: So the growth rate that you're seeing in artist management—because we were at the stage of still building this entire vertical up—has been very, very rapid over the last few quarters.

Vikram Mehra: The growth rate that you're seeing in artist management, because we were at the stage of still building this entire vertical up, has been very, very rapid over the last few quarters. This is going to temper down. Though I'm maintaining my bigger number, music vertical, which is licensing plus artist management plus retail, will grow between 20% to 23%. We are not changing that guidance of ours at all on a short to medium-term basis. That's the overall vertical part. Since you asked something specific on artist management, because the jumps have been more rapid because the vertical was getting built, it's reaching that kind of a stage where there'll be some stability that will be coming in as we move to another couple of quarters.

Speaker #3: This is going to temper down. Though I'm maintaining my bigger number, music vertical—which is licensing, plus artist management, plus retail—will grow between 20 to 23%.

Speaker #3: I'm we are not changing that guidance of ours at all. On a short to medium term basis that's the overall vertical part. Since you asked on specific on artist management that the jumps have been more rapid because the vertical was getting built it's reaching that kind of a stage where there will be some stability that will be coming in as we move to another couple of quarters.

Speaker #3: Artist management margins—yes, there is a lot of work happening there to see how we can go back and improve the margin percentages out here even further. Remember, what often happens here is that you go back and create a lot of content for the artist. The revenue that you're making from the content from the artist is sitting out there in the respective, say, music vertical. While, since you're investing that much on the artist, you also tell the artist that whatever revenue, Mr. Artist, you make through brand endorsements or anything else, the revenue will flow through us and we will keep our margins through that.

Vikram Mehra: Artist management margins, yes, there is a lot of work happening there to see how can we go back and improve the margin percentages out here even further. Remember, what often happens here is that you go back and create lot of content for the artist. The revenue that you're making from the content from the artist is sitting out there in the respective music vertical. While since you're investing that much on the artist, you also tell the artist that whatever revenue Mr. Artist you make through brand endorsements or anything else, that revenue will flow through us and we will keep our margins through that. That's the artist management business vertical as such. We are now trying various ways in which we can help the artist even further to become bigger and stronger and charge greater amount of money from the market.

Speaker #3: That's the artist management business vertical as such. We are now trying various ways in which we can help the artist even more, to become bigger and stronger, and charge a greater amount of money from the market. As that happens, we should be able to go back and improve—that improves our negotiation position also—and we should be able to improve by another few percent.

Vikram Mehra: As that happens, we should be able to go back and improve. That improves our negotiation position also, and we should be able to improve by another few percent. At this juncture, I'm not giving any guidance on what percentage will we be able to go back and improve it. Currently, the focus is just get the full juice out of the artist management vertical, in terms of it firing in its full capacity.

Speaker #3: At this juncture, I'm not giving any guidance on what percentage we'll be able to go back and improve it. Currently, the focus is just to get the full juice out of the artist management vertical in terms of it firing at its full capacity.

Speaker #6: Okay, and just one question. Could you please spell out what the revenue contribution is in the music licensing segment for the subscription part?

Saania Jain: Okay. Just one question. Could you please spell out what would be the revenue contribution in the music licensing segment for the subscription part?

Speaker #3: Ma'am, we don't share that specific data. It's competition-sensitive data.

Vikram Mehra: Ma'am, we don't share that specific data. It's competition-sensitive data.

Speaker #6: Okay. Thank you.

Saania Jain: Okay. Thank you.

Speaker #1: Thank you, ma'am. The next question is from Pallavi of Samiksha Capital. Please proceed with your question.

Operator: Thank you, ma'am. The next question is on the line of Pallavi from Sameeksha Capital. Please proceed with your question.

[Company Representative] (Sameeksha Capital): Yes, sir. Thank you for taking my question. Just wanted to get back on this revenue growth, 43%. Would that include the Haryanvi catalog? That's an acquisition growth, what would be the organic number there? If any there.

Speaker #6: Yes, sir. Thank you for taking my question. I just wanted to get back on this revenue growth—43%. Would that include the Haryanvi catalog?

Speaker #6: So that's acquisition growth, and so what would be the organic number there, if any?

Speaker #3: Ma'am, obviously we are investing in both organic—picking up newer organic content—as well as picking up the inorganic catalogs. So both the numbers are combined in this.

Vikram Mehra: Ma'am, obviously, we are investing also in both organic, picking up newer organic content as well as picking up the inorganic catalogs. Both the numbers are combined in this. We are not declaring the numbers separately. That's a conscious call. At any particular time, when the team has got INR 100 to go out there and spend, they make a conscious call to decide whether it should be spent on a very strong catalog or should that be spent right now on organic opportunities in terms of newer content. Both these things are evaluated, and we take a call. When we report the numbers also, we evaluate ourselves also, and our board also evaluates us, it's all on the basis of the total amount of money spent. Doesn't matter whether it's on organic or on catalog.

Speaker #3: We are not declaring the numbers separately. But yeah, that's a conscious call. At any particular time when the team has got $100 to go out there and spend, they make a conscious call to decide whether it should be spent on a very strong catalog or should that be spent right now on organic opportunities in terms of newer content.

Speaker #3: Both the things are evaluated and we take a call. So, when we report the numbers also, and we evaluate ourselves also, and our board also evaluates us, it's all on the basis of the total amount of money spent. Doesn't matter whether it's organic or on catalog.

Speaker #6: Right. But the organic has still gone to it, right? It's already been listened to. And, yeah. My second question. Yeah.

[Company Representative] (Sameeksha Capital): Right. The organic has this tailwind to it, right? It's already been listened to and

Vikram Mehra: Of course.

[Company Representative] (Sameeksha Capital): My second question.

Vikram Mehra: Yeah.

Speaker #3: Yeah. Please.

[Company Representative] (Sameeksha Capital): My second question would be this, the video segment. It's still running the losses, when do we see a wind down of that segment completely?

Speaker #6: My second question would be: this is the video segment, right? It's still running the losses. So, when do we see a wind-down of that segment completely?

Speaker #3: So we had announced it in February and then again in May that it's a conscious call taken by the company that we will go ahead and start winding down our films business.

Vikram Mehra: We had announced it in February and then again in May, that it's a conscious call taken by the company that we will go ahead and start winding down our films business. Whatever films which are there in the pipeline, they're all going to get cleared up. Going forward, we were in films business primarily to acquire the music of those films. That requirement of ours is going to be met through our investment in Bhansali Productions. You will see the numbers are going to remain in this space only. You will see over the year, video business will completely come. Releasing all the films that are sitting right now on our balance sheet, maybe over the next three to four quarters.

Speaker #3: Whatever films are there in the pipeline, they are all going to get cleared up. Going forward, we were in the films business primarily to acquire the music of those films.

Speaker #3: That requirement of ours is going to be met through our investment in Banchali Studios, so you will see the numbers are going to remain in this space only.

Speaker #3: You will see over the year, we will be completely releasing all the films that are sitting right now on our balance sheet, maybe over the next three to four quarters.

Speaker #6: Okay. And lastly would be it could be on the content cost. I know you've given us a guidance of 65 to 65% on the EBITDA margin but anything that you can share with us on content cost a directionally is it going up to here or?

[Company Representative] (Sameeksha Capital): Lastly would be, it could be on the content cost. I know you've given us a guidance of 65% on the EBITDA margin, anything that you can share with us on content cost directionally, is it going up this year?

Speaker #3: No. So, I have told you the amount of money that we'll be spending on new music content—it will be between ₹300 to ₹350 crore.

Vikram Mehra: I have told you the amount of monies that we'll be spending on new music content, it will be between INR 300 to 350 crores.

Speaker #6: Right, got that. Thank you so much.

[Company Representative] (Sameeksha Capital): Right. Got that. Thank you so much.

Speaker #3: Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thank you, ma'am. The next question is from the line of Rohan Nagpal from Helios Capital. Please proceed with your question.

Operator: Thank you, ma'am. The next question is on the line of Rohan Nagpal from Helios Capital. Please proceed with your question.

Speaker #7: Hi. Thanks for taking my question. So, on the cash flow statement that you've published, the Q4 presentation has a content spend of ₹186 crores, and the Q1—the latest presentation—has a content spend of ₹265 crores.

Rohan Nagpal: Hi. Thanks for taking my question. On the cash flow statement that you've published, Q4 presentation has a content spend of INR 186 crores, and the Q1, the latest presentation has a content spend of INR 265 crores. Could you just help me reconcile the difference in the two numbers?

Speaker #7: Could you just help me reconcile the difference between the two numbers?

Vikram Mehra: I'll request Abhishek or Kuldeep to please take this.

Speaker #3: I request Abhishek or Kuldeep to please take this.

Speaker #7: Rohan, can you repeat your query once? So, the presentation published this quarter has, in the cash flow statement, a ₹265 crore line item on the spend on new content.

Kuldeep Kothari: Rohan, can you repeat your query one?

Rohan Nagpal: The presentation published this quarter, in the cash flow statement, has a INR 265 crore line item under brand new content. The Q4 FY26 presentation, the cash flow statement has a content spend line item of INR 186 crore. Why is there a difference between those two?

Speaker #7: In the Q4 fiscal '26 presentation, the cash flow statement has a content spend line item of 186 crores. Why is there a difference between those two?

Speaker #5: Q4.

Vikram Mehra: Q4. Are you talking about Q4?

Speaker #3: Are you talking about Q4?

Speaker #7: Yeah, Q4. Q4 '26 and Q1 '26.

Rohan Nagpal: Yeah, Q4. Q4 FY26 and Q1 FY27.

Speaker #3: So, this Rs 265 crore is for the full year of last year, which we have made payment for the content acquisition.

Vikram Mehra: This INR 265 crore is for full year of last year, which we have made payments for the content acquisition.

Speaker #7: Right. So the same — I mean the same line item in FY26 in the Q4 presentation has a ₹186 crore charge against it, right?

Rohan Nagpal: Right. The same line item in FY26 in the Q4 presentation has INR 186 crore charge against it, right?

Speaker #5: Rohan, I don't have the presentation readily available with me. We'll take this offline.

Kuldeep Kothari: Rohan, I don't have the presentation ready available with me. We'll take this offline.

Speaker #7: Sure. Thank you.

Rohan Nagpal: Sure. Thank you.

Speaker #1: Thank you, sir. The next question is from the line of Ravi Naredi from Naredi Investments. Please go ahead.

Operator: Thank you, sir. The next question is from the line of Ravi Naredi from Naredi Investments. Please proceed with your question.

Ravi Kumar Naredi: Vikramji, good afternoon.

Speaker #8: Sir, we can—we can. Good afternoon.

Speaker #3: Short answer. कैसे हैं आप?

Vikram Mehra: Sir.

Ravi Kumar Naredi: How are you?

Speaker #8: दो आपकी सर.

Vikram Mehra: I'm fine, sir.

Speaker #3: Sir, could you please tell us how much of your earnings come from old songs and how much from new songs? Can you provide the revenue bifurcation between old and new songs?

Ravi Kumar Naredi: Sir, you too. How much are you bifurcation old and new songs revenue, can you tell us? How much revenue from new songs? How much revenue from old songs?

Vikram Mehra: Right. If you see the part in our corporate presentation, I think we released it around a week ago. We have given by decade, our composition, how many songs have been released in each decade, out of 180,000 songs, which decade those songs belong to, and what revenue they contribute. The rough numbers are 60% of all the revenue that we made in music side came from the content released after 2000, of which 45% was after 2020. Your favorite catalog company is also becoming the biggest new age IP company.

Speaker #8: Right. भैया अगर if you see the the the part 6 in our corporate presentation I think we released it around a week ago. We people have given by decade हमारा composition हर decades के अंदर की कितने गाने रिलीज हुए हैं of the on 180,000 songs.

Speaker #8: कौन से गाने, कितने गाने, किस decade पे believe करते हैं और वो क्या revenue contribute करते हैं। So, the rough numbers are: 60% of all the revenue that we made on the music side came from content released after 2000, of which 45% was after 2020.

Speaker #8: So, आपकी चहेती catalog company is also becoming the biggest new-age IP company.

Speaker #3: Okay, okay. And sir, in between—this quarter—how many advertisement songs have we sold and what revenue was earned?

Ravi Kumar Naredi: Okay. Sir, this quarter, how much advertisement songs we have sold and revenue earned?

Speaker #8: Sir, we don't get into those specifics. It's all very, very competition-sensitive information. All of us compete in the same market and go to similar brands.

Vikram Mehra: Sir, we don't get into those specifics. These are all very competition-sensitive information. All of us compete in the same market, go to similar brands. All I can say is, today, first, we are the only company which has got a full flywheel going on. We have a music business, we have an artist management business, we have a live events business also going on at the same time, and we have a short format content business. When we go to the brands, we tell them, If you want to talk to people of 25 to 30 years, we can give you a song license, we can make songs for you, we can make short format content for you, which will go on Instagram.

Speaker #8: But all I can say is, we are the only company today—first, we're the only company which has got a full flywheel going on.

Speaker #8: We have a music business. We have an artist management business. We have a live events business also going on at the same time. And we have a short-format content business.

Speaker #8: So when we go to the brands, we tell them कि अगर आपको 25 से 30 साल के लोगों से बात करनी है, हम आपको गाने का license भी दे सकते हैं, हम आपके लिए गाने बना सकते हैं, हम आपके लिए short format content जो Instagram पे जाएगा, वो कर सकते हैं. अगर आपको हमारे जो Gen V से connected जितने भी events हो रहे हैं, चाहे वो Unforty हो, चाहे वो Backstage Sibling की concert हो रही हो, उसके अंदर sponsorship भी दे सकते हैं, which places are very, very uniquely for any brand in the market that wants to talk to the younger people.

Vikram Mehra: If you want, we can also give sponsorship to the events that are happening connected to January, whether it is UN40 or Backstage Siblings concert. Which places us very uniquely for any brand in the market that wants to talk to the younger people.

Speaker #3: Right. Right. Right. And sir, when this free song is on top, how much subscription can we raise in our company according to your view?

Ravi Kumar Naredi: Sir, when this free song is stopped, how much subscription we can raise in our company according to your view?

Speaker #8: Sir, this is a personal view of mine. I believe the Indian market can easily get to 100 million subscribers at 100 rupees per month if the free supply is done.

Vikram Mehra: Sir, this is a personal view of mine. I believe Indian market can easily turn into 100 million subscribers at INR 100 per month if the free supply is done, and this can happen in a period of 12 to 18 months. We had got this study done in Saregama some time ago, that do the younger people, are they comfortable with the idea of not listening to music? We got a very solid feedback that people below 30 years of age cannot live without music. EY and IMI together have done research on 15,000 people. It's available in public domain if you go back and search it. Under which, 64% odd people have gone back and said, Sir, if you stop music for free, then we will go out there and pay. I think there's a large opportunity sitting here.

Speaker #8: And this can happen in a period of 12 to 18 months. हम लोगों ने Saregama में ये study कराई थी कुछ हद पहले तक कि do the younger people—are they comfortable with the idea of not listening to music?

Speaker #8: And we got very solid feedback कि ये 30 के नीचे की जो जनता है, ये music के बिना रह नहीं सकती. Now, ENY and IMI ने मिलकर 15,000 लोगों की research कराई हुई है, which is available in the public domain if you go back and search it.

Speaker #8: जिसके अंदर 60-64% odd people have gone back and said, 'सर, अगर आप music free बंद कर दोगे, then we will go out there and pay.'

Speaker #8: So I think this is a large opportunity sitting in. Video companies ने हमें सिखाया है that Indian consumer अब वैसा नहीं है कि वो कंजूसी करेंगे.

Vikram Mehra: Video companies have taught us that Indian consumer is not like that they will do stinginess. If you give value to the Indian consumer, then Indian consumer is ready to pay. We believe now all the right moves are happening, all the big international labels are also talking about this. The streaming platforms are talking about this because for everybody, India is now the last peak market, which is yet to be tapped.

Speaker #8: If you give value to the Indian consumer, the Indian consumer is ready to pay. And we believe that now all the right moves are happening. All the big international labels are also talking about this.

Speaker #8: The streaming platforms are talking about this because, for everybody, India is now the last peak market which is yet to be tapped.

Speaker #3: Right. Right. And you are saying, wrong sir, that people below 30 cannot live without songs. I mean, even at 60, I cannot live without music.

Ravi Kumar Naredi: You are saying wrong, sir, that people below 30 years of age cannot live without songs. I am in 60, I cannot live without music. If you cut it off, only 30 will work during the day. Thank you very much, sir.

Speaker #8: Aap aap hatoge, dil se peeche ho to chalta hai. Thank you, sir.

Vikram Mehra: Thank you, sir.

Speaker #1: Thank you, sir. The next question is from the line of Kumar Saurabh from Scientific Investing. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Kumar Saurabh from Scientific Investing. Please proceed with your question.

Speaker #7: Congressman, good side of the number, sir. My question is on the event and artist map. Like in the subscription business, you mentioned 3% penetration, and you have data to compare globally.

Kumar Saurabh: Congrats on good set of numbers, sir. My question is on the event and artist management. Like in the subscription business, you told 3% penetration and you have a data to compare globally. In it, do you have any analysis, sir, how big this industry can be? That is my one question. The second question is, we are managing so many artists, and some of them can really become very big. From a business model strength perspective, what is it which will hook these artists to us so that they don't go to competition or they don't grow on their own? These are the two questions I have.

Speaker #7: Do you have any analysis, sir, on how big this industry can be? That is my one question. And the second question is, we are managing so many artists, and some of them can really become very, very big.

Speaker #7: But from a business model strength perspective, what is it which will hook these artists to us so that they don't go to the competition or they don't do it on their own?

Speaker #7: These are the two questions I have.

Speaker #3: That is a very solid and fair question. इसी लिए मैं artist management को कभी भी अलग करके नहीं बोलता हूँ. Artist management is connected to the content business that we are in.

Vikram Mehra: Your question is a very solid and a fair question. That's why I never talk about artist management in isolation. Artist management is connected to the content business that we are in. All the competing artist management agencies, if you keep on seeing in the country, all of them are standalone artist management companies. Their job is to represent the artist, get them some work, whatever money comes in, they keep a percentage. We are uniquely placed as the only company that also is investing in its own content.

Speaker #3: So अगर आप मेरी जितनी भी competing artist management agency if you keep on seeing in the country all of them are stand alone artist management companies.

Speaker #3: Their job is to represent the artist, get them some work. Whatever money comes in, they keep a percentage. We are uniquely placed as the only company that is also investing in its own content. Hence, every artist that we are managing, we are also ensuring they get a chance to either appear in a music video or sing new songs—right now for some of our brand new songs—or even appear in the music videos of FilterCopy.

Vikram Mehra: Every artist that we are managing, we are also ensuring they get a chance to either appear in our music videos or sing new songs right now for some of our brand new songs, or even appear in the music videos of FilterCopy, which ensures that we not only help artists make more money, but we are also helping artists become bigger. If you see the churn, which is happening from our catalog, and I am not declaring the names of these artists, but you will find the names of big artists in public, that we have with us. You are not going to find churn because we are uniquely helping artists to become that much bigger. I'll give you an example. I have one artist, Viraj Gilani.

Speaker #3: Which ensures that we not only help artists make more money, but we are also helping artists become bigger. That's why, if you see the churn which is happening from our catalog—and I am not declaring the names of these artists, but you will find big artists' names in the public domain—you will see who all are with us.

Speaker #3: We are not going to find churn because we are uniquely helping artists to become that much bigger. अभी मैं आपको example देता हूँ, मेरे पास एक artist है Viraj Gilani. Now, Viraj के साथ हम music भी कर रहे हैं, Viraj के सारे stand up comedy के live events भी हम लोग करते हैं. Viraj के साथ last year हम लोगों ने एक movie भी करी हुई है, और Viraj को artist manage भी हम ही करते हैं.

Vikram Mehra: We are doing music with Viraj, we also do all the live events of Viraj's stand-up comedy. We have also made a movie with Viraj last year, we also manage Viraj as an artist. We have a young artist called Maahi. Maahi sings songs for us. Maahi appears in our music videos. Maahi also appears in the FilterCopy series, we are also managing Maahi's live events. When there is a big concert, like Mahesh Kale ji's concert, the opening was done by Maahi. This is a unique flywheel ecosystem that we are able to offer to the artist, which in the country, honestly, nobody else has been in a position to do it. We consider artist management as not a separate vertical, but an integral part of our core content business.

Speaker #3: हमारे पास एक यंग आर्टिस्ट है, जिसका नाम माही है। हमारे गाने हमारे लिए गाते हैं, माही हमारे म्यूजिक वीडियोज़ में भी अपीयर होते हैं। माही फिल्टर कॉपी की सीरीज़ में भी अपीयर होते हैं और माही के लाइव इवेंट्स भी हम लोग मैनेज कर रहे हैं। और जब कोई बड़ी कॉन्सर्ट होती है, जैसे हिमेश रेशमिया जी की कॉन्सर्ट में, ओपनिंग माही ने की हुई थी।

Speaker #3: So, this is a unique flywheel ecosystem that we are able to offer to the artist, which, in the country, honestly, nobody else has been in a position to do.

Speaker #3: Hence, we consider artist management not as a separate vertical, but as an integral part of our core content business.

Speaker #7: Very interesting, sir. Glad to hear. The other question was on the opportunity size—if you can give any color on how big this opportunity can be, and where India stands, and where we are standing.

Kumar Saurabh: Very interesting, sir. Glad to hear. The other question was on the opportunity size. If you can give any color on how big this opportunity can be, where is India and where are we standing?

Speaker #8: So, the artist management piece—the extent to which we are managing it—is bigger, but artist management is a normal part for the majority of our international players also.

Vikram Mehra: Artist management piece is, the extent to which we are managing it is bigger, artist management is a normal part of majority of our international peers also. The bigger our music industry gets, the bigger our artist management industry will get. Artist management, actually, the real money comes in right now from singing in weddings or performing in weddings. Weddings, corporate, brands. This is a large enough space. The bigger those markets become, the bigger is the fees these artists can charge. Through our content, we keep giving artists more opportunities so that they continue to grow. The bigger they become, the more they will charge, the more they charge, the higher our percentage increases. As far as live events is concerned, it's still an industry, which for all practical purposes, has opened up in India only post-COVID.

Speaker #8: तो जितनी बड़ी हमारी music industry होती जाएगी, उतनी बड़ी artist management industry होती जाएगी. Artist management का actually the real पैसा comes in right now from singing and weddings.

Speaker #8: Or performing at weddings. That's weddings, corporate events, and then brands. This is a large enough space. The bigger those markets become, the higher the fees these artists can charge.

Speaker #8: हम अपने content के through एक artist को और opportunity देते रहते हैं कि वो और बड़े होते चले जाएं। जितना वो बड़ा होगा, उतना वो charge करेगा।

Speaker #8: जितना वो charge करेंगे, उसकी उतनी हमारी percentage बढ़ती चली जाती है. As far as live events are concerned, see, it's still an industry which, for all practical purposes, has opened up in India only post-COVID.

Vikram Mehra: During the pre-COVID time, there wasn't much focus on live events in our country. Now, with Gen Z and the millennials, with this very clear cut spirit that they want to spend less on product, more on experiences, FOMO is becoming a very important part. People want to be seen at the right places and put the photographs of their presence in those places on various social media. All that is driving the live events space in a very, very substantial fashion. Jury's still out on how big this can get, but we believe live events may be the fastest growing vertical. The real challenge in the live events business is going to be, as we go forward, not growing the top line, but improving the margin profile of the live events business.

Speaker #8: Pre-COVID time के अंदर live पे इतना focus हमारे देश में नहीं होता था. Now, with Gen Z and the millennials, with this very clear-cut spirit that they want to spend less on product and more on experiences, FOMO is becoming a very important part.

Speaker #8: People want to be seen at the right places and put their photographs of their presence in those places on various social media. All that is driving the live event space in a very, very substantial fashion.

Speaker #8: Jury's still out कि ये कितनी बड़ी हो सकती है, but we believe live events may be the fastest-growing vertical. The real challenge in the live events business, as we go forward, is not growing the top line but improving the margin profile of the live events business.

Speaker #8: That's why at Saregama, we are keeping a tight balancing act between working with artists on artist-based concerts—they drive revenue, but they are relatively lower margin products. We balance it with our own IPs. The people are generating IPs. In the short run, IPs have pressure on the bottom line, because you have to establish them. In the short run, there will be losses, but in the long run, they become very high margin products. That's why the launch of a music festival called Unforti, the launch of this show called Krishna with Manoj Muntashir, the launch of the Carvaan Live property—in all these places, artists become incidental. It's the show and the concept which are the primary things that allow us to go back and improve our margins.

Vikram Mehra: That's why at Saregama, we are keeping a tight balancing act between working with artists on artist-based concerts. They drive revenue, but they are relatively lower margin products. We balance it with our own IPs that we people are generating. IPs in the short run have a pressure on the bottom line because you have to establish the IPs, and in the short run, there will be losses. But in the long run, they become very heavy margin products. That's why launch of a music festival, UN40, launch of this show called Krishna with Manoj Muntashir, launch of Carvaan Live property. In all these places, artist becomes incidental. It's the show and the concept, which is the primary thing, which allows us to go back and improve our margins. Have I answered your question, sir?

Speaker #8: Have I answered your question, sir?

Kumar Saurabh: Got it, sir. Yes, sir. Surely. Sir, last question is on the demographics of the audience, which pays the subscription fee. I know we don't directly connect Spotify and all, but do you get this kind of demographic data in terms of age band? Because you are stressing on Gen Z and the EY survey and all.

Speaker #7: बहुत अच्छे से. सर, last. Yes sir. Yes sir. Surely. सर, last question is on the demographics of the audience which pays the subscription fee.

Speaker #7: I know we don't directly connect—it's Spotify and all—but do you get this kind of demographic data in terms of age bands? Because you are stressing on Gen Z and the EY survey and all. Because if it is a Gen Z audience, then the chances it will get converted are very, very soon. So do you have any demographics break-up?

Vikram Mehra: Right.

Kumar Saurabh: If you took the Gen Z audience, then there's chances that you get converted very, very soon. Do you have any demographics breakup?

Speaker #3: But I'll tell you right now, we don't get the data, but because we were getting the research done, we all see the research data coming in. It's not that Spotify is sharing the data with us.

Vikram Mehra: I'll tell you right now, we don't get the data, because we were getting the research done, we all seen the research data coming in. It's not that Spotify is sharing the data with us. From the research data that's coming out, it's very distinctly clear, that people my age, those above 50 years, nobody pays. This entire generation has grown up on the idea that digital is free for us. The entire growth is coming from Gen Z and millennials. That generation is born with knowing that digital has to be paid for. The older people always found digital to be the free way of consuming stuff. Changing them is going to take much longer. The younger generation is very comfortable to pay, as long it's making financial sense, it's affordable.

Speaker #3: From the research data, it is coming out very, very distinctly clear कि ये मेरे जितने लोग हैं ना, जो 50 साल के ऊपर वाले हैं, वो कोई pay नहीं करता है.

Speaker #3: Because ये पूरी generation इस बात पे grow करी है हम सबकी कि हम लोग के लिए digital free होता है. The entire growth is coming from Gen Z and Millennials.

Speaker #3: That generation is born knowing that digital has to be paid for. Older people always found digital to be the free way of consuming things.

Speaker #3: Changing them is going to take much longer. The younger generation is very comfortable to pay as long as it makes financial sense and is affordable.

Speaker #7: A great thanks, sir. That's all I have, and it's very admirable to see how you are building each of the new business pieces. My best wishes, sir.

Kumar Saurabh: Great. Thanks, sir. That's all I have, and it's very admiring to see how you are building each of the new business pieces. My best wishes, sir. Thank you.

Speaker #7: Thank you.

Speaker #3: Thank you, sir. Thank you, sir. Very kind of you.

Vikram Mehra: Thank you, sir. Very kind of you.

Speaker #1: Thank you, sir. The next question is from the line of Kavish Parikh from 361 Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Kavish Parekh from 361 Capital. Please proceed with your question.

Speaker #6: Hi Dean, thanks for the follow-up. The scale-up in the artist management business has been impressive, as was evident from the kind of discussions we had on the call earlier today.

Kavish Parekh: Hi, Dean. Thanks for the follow-up. With them, the scale-up and artist management business has been impressive, also evident by the kind of discussions we've had in the call earlier today, with the segment today contributing about 17% revenue this quarter. Now, as we look ahead, of course, from a growth rate point of view, you've mentioned that broadly music, retail, licensing, and artists will grow at 20% to 23% figure. We have a few levers to drive this growth. We onboard more artists, that's of course happening. Two more levers where you could give some more color, which is increase in monetization or wallet share from the existing roster or by underlying growth in the artists' earnings. How can we think about these two drivers?

Speaker #6: With the segment today contributing about 17 percent of revenues this quarter. Now, as we look ahead, of course, from a growth rate point of view, you have mentioned that, broadly, music retail, licensing, and artist will grow at a 20 to 23 percent figure.

Speaker #6: But we have a few levers to drive this growth. We onboard more artists—that's of course happening. But there are two more levers where you could give some more color, which are increasing monetization and wallet share.

Speaker #6: From the existing roster or by underlying growth in the artist's earnings. How can we think about these two drivers? And you also highlighted that, at some point—of course, till now, growth was pretty strong due to a low base as the segment was being set up.

Kavish Parekh: You also highlighted that at some point, of course, till now, growth was pretty strong due to a low base as the segment was being set up. At what scale, what level do we see the segment sort of saturating?

Speaker #6: But at what scale, what level do you see the segment sort of saturating?

Speaker #8: Yeah, so again, I don't see the wedding and the corporate market saturating. If you have—I'm sure many of you guys are also tracking the size of the wedding market.

Vikram Mehra: Again, I don't see the wedding and the corporate market saturating. I'm sure many of you guys are also tracking the size of the wedding market, and one of the biggest things that happen in each of these weddings in India is that artists are called out there to go out there and perform. Earlier, that used to happen for one function. Now, it's typically happening in two to three functions. I see a very long road ahead. Please, Kavish, I will repeat again, when you look at artist management vertical, see it as a byproduct of the main content business that we people are in. If we were not into content business, we wouldn't have been there in artist management vertical on its own.

Speaker #8: And one of the biggest things that happens in each of these weddings in India is that artists are called out there to go and perform.

Speaker #8: Earlier, that used to happen for one function; now it's typically happening in two to three functions. So I see a very long road ahead. But please, Kavish, I will repeat—when you look at artist management verticals, see it as a byproduct of the main content business that people are in.

Speaker #8: If we were not in the content business, we wouldn't have been in the artist management vertical on its own. It does not make sense because there is no clear moat that we have in artist management if we are a stand-alone company.

Vikram Mehra: It does not make sense because there is no clear moat that we have in artist management if we are a standalone company. If single factors, we are able to give opportunities to these artists to become big by appearing in our music or videos or live events. That's what is drawing some of the biggest artists to go back and work with us. Yes, we have taken a conscious call that we're going to stay completely away from Bollywood. We are very comfortable working with non-filmy actor part because we are not into films. We are not going to add any value to their life. That's why we are staying away from it. Everywhere else, we add serious value to their lives, which is going to ensure a lower churn and in the long run, improvement in margin.

Speaker #8: Our moat is single-factor. We are able to give opportunities to these artists to become big by appearing in music, videos, or live events.

Speaker #8: That's what is drawing some of the biggest artists to go back and work with us. Yes, we have taken a conscious call that we are going to stay completely away from Bollywood.

Speaker #8: We are very comfortable working with non-filmy actors because we are not into films. We are not going to add any value to their life.

Speaker #8: That's why we are staying away from it. Everywhere else, we add serious value to their lives, which is going to ensure a lower churn and, in the long run, improvement in margin.

Speaker #6: Understood. And any comments of course we have to look at this in tandem together. Any comments on these two drivers that I spoke about increasing wallet share from existing artist artists and or underlying growth in artist earnings.

Kavish Parekh: Understood. Any comments, of course, we have to look at this in tandem together. Any comments on these two drivers that I spoke about, increasing wallet share from existing artists and/or underlying growth in artist earnings. Lastly, on the competition bit, my understanding is that this space remains highly fragmented with several emerging companies sort of competing for the same pool of talent. Beyond these emerging or relatively small-scale players, do you also see competition from any larger player?

Speaker #6: And lastly, on the competition bit, my understanding is that this space remains highly fragmented, with several emerging companies sort of competing for the same pool of talent.

Speaker #6: Beyond these emerging or relatively small-scale players, do you also see competition from any larger players?

Speaker #3: No, actually there isn't any. There is serious competition which is sitting there—people representing film actors—but that's a space we are very, very clear we are not getting ourselves into.

Vikram Mehra: No, actually, there isn't any. There is serious competition, which is sitting there, people representing film actors, that's a space we are very clear we are not getting ourselves into. Anything where we don't have a moat, we will not get into. Films, we don't make films, so why should we go back and represent artists there? We will not be able to help them become big. Answer to your first question, I thought I gave. The more we will be in a position to help artists to become bigger, better will become a negotiation power from the artist to take a higher percentage of his commissions. At the end of the day, unless the artist grows, I don't think we have the moral right also to go back and ask for more money.

Speaker #3: Because anything where we don't have a moat, we will not get into. Films, we don't make films, so why should we go back and represent artists there?

Speaker #3: We will not be able to help them become big. To answer your question—the first question—I thought I gave: the more we are, the more we will be in a position to help artists to become bigger. Better, we will become a negotiation power from the artist to take a higher percentage of his commissions.

Speaker #3: At the end of the day, unless the artist grows, I don't think we have the moral right, also, to go back and ask for more money.

Speaker #3: We are our philosophy. In the company, it is the artist first—help artists become bigger, then you can go out there and charge a higher commission.

Vikram Mehra: Our philosophy in the company is, it's the artist first, help artists become bigger, then you can go out there and charge a higher commission. In that case, it's not going out of his earnings. He's also making more money, he or she will be very willing to go back and share a larger commission with us.

Speaker #3: Because in that case, the artist is not paying, it's not going out of his earnings. He is also making more money, and he or she will be very willing to go back and share a larger commission with us.

Speaker #6: Got it. Very helpful. Thanks a ton.

Kavish Parekh: Got it. Very helpful. Thanks a ton.

Speaker #3: Thank you.

Vikram Mehra: Thank you.

Speaker #1: Thank you, sir. The next question is from the line of Pallavi from Samiksha Capital. Please proceed with your question. Ms. Pallavi, your line has been unmuted.

Operator: Thank you, sir. The next question is on the line of Pallavi from Sameeksha Capital. Please proceed with your question. Ms. Pallavi, your line has been unmuted. Please proceed with your question. Ms. Pallavi? As there is no response, ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.

Speaker #1: Please proceed with your question. Ms. Pallavi? As there is no response, ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.

Speaker #3: Thank you. Thank you for your faith and confidence in the Board and the management team of Saregama. Saregama's growth narrative will remain steady over the medium to long term, driven by rising digital consumption—both new customers entering the market and existing customers consuming more.

Vikram Mehra: Thank you. Thank you for your faith and confidence in the board and the management team of Saregama. Saregama's growth narrative will remain steady over the medium to long term, driven by rising digital consumption, both new customers entering the market and existing customers consuming more. With over 680 million internet footprint in India, our cash reserves, our professional managerial depth, and access to the soundtracks of the best films, we can drive earnings not just for next two to three years, but for next 20 to 30. India is at an early stage of global streaming curve, which is fortunately a feature and not a bug. It means our growth is going to be driven for a very long term. We are not at the end of it like the Western market. Our growth is going to be driven by subscriber expansion as well as ARPU expansion.

Speaker #3: With over 680 million internet users in India, our internet footprint in India, our cash reserves, our professional managerial depth, and access to the soundtracks of the best films, we can drive earnings not just for the next two to three years but for the next 20 to 30.

Speaker #3: India is at an early stage of the global streaming curve, which is fortunately a feature and not a bug. It means our growth is going to be driven for a very, very long term. We are not at the end of it like the Western market.

Speaker #3: Our growth is going to be driven by subscriber expansion as well as our expansion, and more importantly, the format diversification will also start happening.

Vikram Mehra: More importantly, the format diversification will also start happening. We are seeing in the more developed markets, there is a saturation in terms of subscriber expansion. There is limited upside available on ARPU expansion. They are working more on format diversification. We have all three opportunities open in front of us. To summarize, we operate in world's most under-penetrated large music market with a high margin structure and own IP catalog growing at 4,000 to 5,000 releases a year, an unmatched in-house entertainment flywheel, an extremely supportive and forward-looking promoter, and a strong balance sheet. Every global trend, subscription growth, ARPU expansion, super fan monetization, catalog M&A, and beyond streaming diversification, has a long runway in India than anywhere else in the world. Saregama is the cleanest way to own these trends in the country. We look forward to your continued support. Thank you, and good evening.

Speaker #3: We are seeing, in the more developed markets, there is a saturation in terms of subscriber expansion. There's limited upside available on our expansion. They are working more on format diversification. We have all three opportunities open in front of us.

Speaker #3: To summarize, we operate in the world’s most underpenetrated large music market, with a high-margin structure and an own-IP catalog growing at four to five thousand releases a year.

Speaker #3: An unmatched in-house entertainment flywheel, an extremely supportive and forward-looking promoter, and a strong balance sheet. Every global trend—subscription growth, app expansion, superfan monetization, catalog M&A, and beyond streaming diversification—has a longer runway in India than anywhere else in the world.

Speaker #3: And Saregama is the cleanest way to own these trends in the country. We look forward to your continued support. Thank you, and good evening.

Speaker #1: Thank you, sir. On behalf of MK Global Financial Services Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.

Operator: Thank you, sir. On behalf of Emkay Global Financial Services Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line. Thank you.

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