Q1 2027 Saregama India Ltd Earnings Call

August 4, 2026

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.

Operator 2: Ladies and gentlemen, good day. Welcome to the Saregama India Limited Q1 FY27 Earnings Conference call hosted by Emkay 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. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Tripathi from Emkay Global Financial Services Limited. Thank you. Over to you, sir.

Operator: Ladies and gentlemen, good day. Welcome to the Saregama India Limited Q1 FY27 Earnings Conference call hosted by Emkay 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. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Tripathi from Emkay Global Financial Services Limited. Thank you. Over to you, sir.

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, Investor Relations.

Aryan Tripathi: Good afternoon, everyone. I would like to welcome the management. 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 hardcore finance experience, across Solar Vineyard, PepsiCo, and HD Media.

Vikram Mehra: Thank you. 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 hardcore finance experience across Sula Vineyards, PepsiCo, HT Media, et cetera. Our earlier CFO, Pankaj, did a fabulous job, and we heartfeltly thank him for that. I am very, 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: Et cetera. 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 '27, saw revenue from operations at ₹263.6 crore, with year-on-year growth of 27%. Adjusted EBITDA was ₹112.4 crore, showing year-on-year growth of 69%, and operational PBT was ₹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, 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 $31.7 billion saw new heights, India got only a percent 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, the stability comes in only on a rolling 12-month basis. In 2025, the global recorded music at US dollar 31.7 billion, for 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, which was a 39% year-on-year growth.

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% and 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: Our quarterly EBITDA was ₹139.8 crore, which was a 36% year-on-year growth, and our quarterly net margin was ₹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 our 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 growth in EBITDA and profit began to follow the revenue growth trajectory.

Speaker #3: We are entering that cycle now. We have content bought two to three years ago that has started to contribute to its positive margins. Albums like F32, Amran, Rocky Aur Rani Ki Prem Kahani, Code, Sarkaru Vaari Paata, etc., are hit albums that are now contributing positive margins.

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 "Ishq Vishk Rebound," "Amaran," "Rocky Aur Rani Kii Prem Kahaani," "Kode Nagu," "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 and heritage of India. We take care of it. We cherish it. We try to monetize it.

Speaker #3: 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. I'm repeating, 60% of the revenue in the last financial year came from music of the 21st century.

Speaker #3: So while at Saregama we proudly steward the musical and 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.

Vikram Mehra: 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. Overall, the company released 750 odd originals and premium recreations across Hindi, Bhojpuri, Punjabi, Tamil, Telugu, Marathi, Bengali, and Haryanvi songs. Albums like "Krishna Avataram," which was a Hindi album, or a Marathi song, "Ved Lavla," these were able to hit top music charts during the quarter. Our spend on new music content this year is expected to be anything between INR 300 crore and INR 350 crore. Most of that is already committed.

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

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

Vikram Mehra: 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"; Dharma Productions' film with Kartik Aaryan called "Naagzilla"; and another Bhansali Productions 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. This is across Hindi, Tamil, and Malayalam languages. We are successfully holding onto a leadership position in Haryanvi in partnerships with the erstwhile NAV Records promoters. This quarter finally saw us release new Punjabi songs after a long gap, and 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 5-year payback period, followed by 55 to 75 years of returns.

Speaker #3: Telugu cinema's most awaited film, Paradise; Dharma's film with Kartik Aaryan called Nagzila; and another Panchali Productions film with Tiger Shroff are some of the albums 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 is across Hindi, Tamil, and Malayalam languages. We have successfully held onto a leadership position in Haryanavi in partnership with the erstwhile NAV promoters.

Speaker #3: This quarter finally saw us release new Punjabi songs after a long gap. We want to follow this up with a very big, urgent deal and album later this quarter—that is, Q2.

Speaker #3: 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.

Vikram Mehra: 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. Our 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. 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.

Speaker #3: Our 180,000-odd song catalog, growing by as many as 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, which continues to grow in the country, with more and more labels working proactively along with the platforms to accelerate this process.

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—given the success of the video streaming apps in the country, or the paid television services like digital cable and DTH—that the Indian customer 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.

Vikram Mehra: 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. 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 the US. Even Brazil and China are closer to 18%, while we are just 3%. When I say percent, it means percentage of the total internet users in a market. This is based on Goldman Sachs estimates. Every percentage point of penetration is growing over 10 million paying subscribers.

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%.

Speaker #3: While we are just 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 somewhat curtailed, we should not have a problem touching a 100 million paid subscription mark pretty soon.

Vikram Mehra: We believe Indian market, if the subscription is priced correctly, which means closer to INR 100, and if the supply of free somewhere curtails, we should not have a problem touching 100 million paid subscription mark pretty soon. And this is a consensus that 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 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 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: 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.

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 processes using AI tools. We should be in a position to see the impact of these initiatives by the end of the year.

Vikram Mehra: 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. 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.

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.

Speaker #3: And today, it's already becoming a meaningful revenue contributor through our work done on the artist management side, live events side, and the brand partnership vertical.

Speaker #3: 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 earns a 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.

Vikram Mehra: 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. 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.

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 and this influential economy can be a big beneficiary, adding further to both our top line and bottom line.

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 the Munsally acquisition that we are taking a conscious call to wind down our films business and make all our investments through the Munsally production channel.

Vikram Mehra: 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, which means the film segment revenue is eventually going to come down. We continue to grow our Gen Z-targeted short form and comedy content, under FilterCopy, as well as keep on focusing on TV and web shows. Live events. 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-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: 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 us expanding a live vertical into multiple formats, helping us diversify our risk. We extended the Karma brand into smaller concerts under the Karma Live banner.

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 Maestro Ilya Raja is currently underway, and in September, we plan to tour with the Punjabi superstar Arjun Dhilla.

Vikram Mehra: 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. By the way, with whom we are also releasing an album. It's a combined deal that we've done with Arjan. Globally, music labels are increasingly focused on monetizing super fans. 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 tools target exactly this segment in the Indian context. Older, financially comfortable, willing to pay a premium for curated experience connected to the artist that they grew up listening to.

Speaker #3: By the way, with whom we are also releasing an album. These are combined deals that we have done with Arjun. Globally, music labels are increasingly focused on monetizing super fans.

Speaker #3: Luminate Research shows super fans spend 100% more than the average listener, and 73% of them end up buying physical merchandise. Karma Live and diaspora tools target exactly this segment in the Indian context.

Speaker #3: Older, financially comfortable individuals are willing to pay a premium for a curated experience that is connected to the artists they grew up listening to. All of this is going to help us further cement our position, both in terms of being the revenue leader and in helping us improve our profitability.

Vikram Mehra: 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. This quarter, we partnered with leading brands such as Hindustan Unilever, Godrej, Lakmé, et cetera. Regarding our partner companies, Pocket Aces reached breakeven in FY26 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 FY.

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: We are 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.

Speaker #3: Regarding our partner companies, Pocket Aces reached break-even financially at 26 and is now moving towards profit, and has 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 is 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.

Vikram Mehra: 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 will be very happy to take your questions now.

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 2: 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 touchtone 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 from the line of Abneesh Roy from Nuvama. Please proceed with your question.

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 touchtone 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 from 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, 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, but 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 which is driving this? And a related question on this slide: almost, I think, 14% of revenue comes from brand tie-ups, and 19% comes from brand tie-ups.

Speaker #2: And very strong brands, 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: No, I'll be 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'm 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, but the way we approached brands was very different. Each of the verticals was managing revenue from brands within the verticals.

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 we passed—the brand vertical as well as direct-from-customer vertical.

Speaker #3: Traditionally, Saregama used to be only dependent on licensing from platforms. We are 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, brands were 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 vertical. So live events were managing its own show.

Vikram Mehra: Live events was 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'm 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 around the recent times all belong to Saregama, and that music is also very much in demand as far the brands are concerned.

Speaker #3: Music was managing his own show. FilterCopy was completely separate. All that we have done is now build it as a joint team, which is managing all brand-related selling within the company.

Speaker #3: So, and this is—it's an independent team with a network across the country. 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 the 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. 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, and congrats 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. 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 in Q2? More important question is what happens from Q3? Then, 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, because then generally your music revenue base becomes higher because of the last three quarters' 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: I-

Abneesh Roy: Q3. Yeah.

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, comprising licensing, artist management, and retail, is going to grow between 20% to 23% year on year.

Vikram Mehra: I feel 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 of 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 2: Thank you, sir. The next question is from the line of Kavish Parekh 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. 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: Hopefully, another couple of quarters later, we will 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 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, with the older catalog that Saregama owns, we own all rights connected to these songs except the right of the original music video.

Speaker #4: 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. Hence, they remained 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 was not making sense.

Speaker #3: They were not contractually part of the deal that happened with the labels, and hence, they remain as part of the movie negative and are controlled by whomever is controlling the movie negative.

Speaker #3: So that's one of the weaknesses, if I may say, we have in the older catalog. 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 now been working and trying to create brand new music videos, but the incremental cost of actually shooting a music video was not making sense.

Speaker #3: With AI, we are now reaching a position where very true-to-life kinds of videos can now be created at a very, very low cost, which may start making financial sense if the 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 video can now be created at a very low cost, which may start making financial sense. If that experiment works, you literally can do both the 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 be in a 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 labels. 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 appeal to Gen X by giving them more contemporary-looking visuals. You can also modify the audio slightly to make it sound more modern.

Speaker #3: That may change in the instrumentation while you're 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 a more modern time music label we are the we literally have all the music of the yesterday year sitting only uniquely with Saregama.

Speaker #3: On the podcasting part, we are realizing that there are models that we have seen across in 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 have seen 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? Then work out models right now, licensing it to third-party podcast companies, too.

Speaker #3: Our attempt is that, how do we do spoken word in a unique fashion; and by unique, I mean we need to attach some of the biggest songs that we, people, 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 about 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, do them small, fail fast, learn from it, and then only go back and scale it.

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, 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: That's how we have approached every product launch till now. 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 kinds of investments that you would be making here—where would it, say, not be expensed or capitalized? And I think we've also been highlighting the use of AI in content acquisition processes.

Kavish Parekh: Pretty interesting. Would you want to call out the kind of investments that you would be making here? Where would it sit in the expense of 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: It's been a while since we've been doing that, I believe. So, are there any notable changes that you've seen in your content acquisition processes that you would like to call out?

Speaker #3: How—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, four 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 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 #2: Are 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?

Speaker #3: These investments—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 investment numbers that are needed out here are far, far, far, far smaller.

Vikram Mehra: These investments are whatever you 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 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 that what kind of a music works, in which languages do AI play, there's a higher adoption going in. We operate in 11 different languages. We have catalog sitting right now of 80 different languages.

Speaker #3: That's so 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 in which languages—where do AI players see higher adoption going in.

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 if that's needed.

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 I'll be happy to call out expenses needed.

Speaker #4: 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 Dilgeet's North America tour was scheduled 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 #4: 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?

Speaker #3: So Abhishek will 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 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 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 Bansali Productions, and that's why you see a reduction in the other income. You had asked me about the pipeline of the events that are happening here.

Speaker #3: What I can tell you is completely what is there 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, 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 the US. Currently, as we talk to you, we have just completed the first three shows of the Ilaiyaraaja tour in the US. We have already announced an Arijit Dilanka tour that we will be doing later in September.

Vikram Mehra: 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 UB40, a music festival, has already been announced and is being done on 13 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: 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 UN40 Music Festival has already been announced and it's being held on the 13th and 14th of February.

Speaker #3: In Bangalore, some of the larger artist-based shows—the movement—we people firm it up, and we, with 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 #4: Understood. So, the Dilgeet tour didn't happen this quarter, is it?

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

Speaker #3: No. So, Dilgeet's India tour is planned sometime in Q3. It's still tentative. We were involved with Dilgeet in the America tour also, in a limited enough 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. But 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 #4: Understood. Maybe I'll take this up offline in more detail. Thank you so much. All the very best.

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

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 2: 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. Am I audible?

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

Disha Chamria: Good afternoon, sir. Am I audible?

Speaker #3: Yes please.

Vikram Mehra: Yes, ma'am.

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

[Analyst] (Trinetra Asset Managers): Yes, sir. My question was, could you provide an update on the integration of Pocket Aces and what is the 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?

Disha Chamria: Yes, sir. My question was, could you provide an update on the integration of Pocket Aces and what is the 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 Aces—we have already 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.

Vikram Mehra: Pocket Aces, we've always been 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. For them, the marketing ability of the label is very important.

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 it doesn't become a flop, and every artist wants his album to become a hit so that they can sing more and more in the live events or the wedding circuit.

Speaker #3: So for them, the marketing ability of the label is very, very important. And what Pocket Assets brings to the table for us is a unique thing.

Vikram Mehra: 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. They, between the entire social media presence, are controlling anything between 400 to 450 million follower and subscriber footprint across Instagram, Facebook, and YouTube. 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 is ever going to become a loss leader. Pocket Aces were able to achieve breakeven last year. 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: They are the biggest brand today among Gen Z in the country. They, between their entire social media presence, are controlling anything between 400 to 450 million follower and subscriber footprint 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 assets is ever going to become a loss leader. Pocket assets were able to turn were able to achieve break even 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 assets.

Speaker #5: Got it, sir. My other question was, like other companies, one of India's largest music libraries, and beyond the traditional streaming where do you see the greatest untapped... Ma'am, there is a lot of background noise.

[Analyst] (Trinetra Asset Managers): Got it, sir. My another question was, our company owns one of the India's largest music libraries, and beyond this traditional streaming, where do you see the greatest untapped opportunity lies?

Disha Chamria: Got it, sir. My another question was, our company owns one of the India's largest music libraries, and beyond this traditional streaming, where do you see the greatest untapped opportunity lies?

Operator 2: Disha ma'am, there is lot of background noise. Can you please use your handsets?

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

Speaker #5: Can you please use your handset? Sure. Just a second, ma'am. Is it better, ma'am?

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

Disha Chamria: Sure. Just a second, ma'am. Is it better, ma'am?

Speaker #1: Yeah please proceed.

Operator 2: Yeah. Please proceed.

Operator: Yeah. Please proceed.

Speaker #5: Yes sir. So the company like as Saregama company owns like India's largest music libraries correct and beyond this traditional streaming where do you see the greatest untapped opportunity like I mean in the sense of international licensing or AI related licensing that is said and gaming or short form content where do you see the monetization opportunity?

[Analyst] (Trinetra Asset Managers): Yes, sir. The company, 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-related licensing that you said, and gaming or short-form content, where do you see the monetization opportunity?

Disha Chamria: Yes, sir. The company, 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-related licensing that you said, and 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 me only, or are you able to hear it?

Vikram Mehra: Ma'am, I am not able to understand anything. I am 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.

Operator 2: Sir, I can hear her. Disha ma'am, can you please use your handsets? I guess you are on speaker. That's why. Another request.

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

Speaker #5: And I request.

Speaker #3: They're sounding better.

Vikram Mehra: Is that sounding better?

Speaker #1: Yeah please proceed.

Operator 2: Yeah, please proceed.

Operator: Yeah, please proceed.

Speaker #5: Okay. 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.

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

Disha Chamria: Okay. Yes, sir. I wanted to understand, beyond the traditional streaming, where is the greatest untapped opportunity for Saregama company lies? In the sense, is it international licensing that you said that you wanted to tap into international businesses or AI-related licensors and gaming or short-form content that you see could be monetization opportunity for us?

Speaker #3: So ma'am the the biggest revenue max increase opportunities that we people see in front of us within music streaming is going to 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 anything 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 with Saregama in a leadership position in India, we 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, 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.

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, and 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: 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 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 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 we believe that's a large opportunity which is not fully tapped in the market that is also going to open up in in developed countries this this is a big enough revenue line we believe that should be able to give us another very very big kick.

Vikram Mehra: By public performance, I mean, whenever music is played at 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'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. 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's going to become increasingly difficult because Gen Z is not reading that much on newspaper, or is listening to radio, or is going on a conventional television.

Speaker #3: The moment I go out of music, short format on its own, what we people are doing is filter copy. 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. What Pocket Aces is uniquely bringing as a strength to us is this footprint on the short format app, either directly controlled by us or by some of the artists that we are managing today.

Vikram Mehra: The video content that they're 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: That should have—that also has the potential to become very, very big. And the third part of our business, which is the live events part of the business—as a society, the more and more we are glued onto our mobile phones, the more we start getting disconnected with people around us. The greater 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 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 governments, 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 there 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.

Disha Chamria: 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 Kalukir from Dalal & Broacha. Please proceed with your question.

Operator 2: Thank you, ma'am. The next question is from the line of Akshay Kolekar from Dalal & Broacha. Please proceed with your question.

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

Speaker #3: Thank you for taking my question. I have only one question. The question is: when I analyze your segment...

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

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

Operator 2: Sorry to interrupt, Akshay. Sir, can you speak little louder?

Operator: Sorry to interrupt, Akshay. Sir, can you speak little louder?

Akshay Kolekar: Okay. Now it's all right, ma'am? Okay.

Speaker #3: Okay. So now I now it's audible? Okay. So so when I analyze your segment wise revenue so the core music segment has grew by around 32% year on year.

Operator 2: Yes, sir.

Operator: Yes, sir.

Akshay Kolekar: When I analyze your segment-wise revenue, the core music segment has grown by around 32% year on year. Which appears to be your highest growth in the last 8 quarters, and 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 #3: So, which has appeared to be the highest growth in the last eight quarters? At the same time, your peers have reported only 21% growth.

Speaker #3: So, could you just help us understand what is the key driver behind this outperformance in the core music segment? All I can say is, 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% and 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 #3: Okay understand. Yeah that's it.

Akshay Kolekar: 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 2: Thank you, sir. The next question is from the line of Lokesh from Vallum 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.

Speaker #4: Yeah, hi. Good afternoon, Vikram. Am I audible?

Lokesh: Yeah. Hi, good afternoon, Vikram.

Lokesh Manik: Yeah. Hi, good afternoon, Vikram.

Vikram Mehra: Hi.

Lokesh: Am I audible?

Vikram Mehra: Hi.

Lokesh Manik: 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 #4: Okay. Okay. Is it better now?

Lokesh: Okay. Is it better now?

Lokesh Manik: Okay. Is it better now?

Speaker #3: Yes please go ahead.

Vikram Mehra: Yes, please go ahead.

Speaker #4: 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 in the video format.

Lokesh: Yeah. Great. 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. As I look at the revenue from songs pre-2020 annually, the last three years have been sub-weak. 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?

Lokesh Manik: Yeah. Great. 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. As I look at the revenue from songs pre-2020 annually, the last three years have been sub-weak. 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 #4: And I said, look at the revenues from songs pre-2020—annually, for the last three years, it has 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 your what you derive 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-

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 percentage of 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 Stree 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.

Vikram Mehra: on an apple to apple basis every year has been growing at very high single digits or very low double digits.

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

Vikram Mehra: When you percentages, what it hides is percentage of 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 Stree 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.

Speaker #3: You cannot, catalog cannot compete with the performance of a Rocky, running a Prem Kani or an S32 or a Durinder. But on its own, catalog is constantly growing. The only issue we people had faced, which was an industry-level issue and we all faced, is that in FY '25 onwards, a lot of platforms in the country had shut down.

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

Vikram Mehra: The platforms continue to be there right now. That's why I'm saying apple to apple. The platform that was there, whether it was a Spotify or a Gaana or a YouTube or a Saavn, if I look at catalog content, it's steadily been growing year after year. We have never seen the catalog side. The bigger question that you had asked, That's the entire attempt. Can we grow our catalog at a even faster pace? We are realizing in India and globally, there is this complete resurgence of anything which is connected to nostalgia.

Speaker #3: But the bigger 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 a very big comeback.

Vikram Mehra: If you talk the Western music also, many of the artists who were very big in 1960s and 1970s or 1980s 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. There is a constant work happening both in terms of marketing as well as in terms of keeping 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: 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.

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

Lokesh: Understood. My second question was, in this time's presentation, you have given a breakup, 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.

Lokesh Manik: Understood. My second question was, in this time's presentation, you have given a breakup, 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.

Speaker #4: 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: Sure.

Lokesh: Yeah. How they are doing.

Lokesh Manik: Yeah. How they are doing.

Vikram Mehra: Look, sharing this data right now and we're updating it on an annual basis. I think the whole objective of sharing this data was that as a company, we are fully conscious of the fact that at no juncture should we ever become overdependent 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'll 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. We thought we are now in a position that we are somewhere comfortable.

Speaker #3: So, sharing the data right now—really 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 really 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, which should give you some comfort.

Speaker #4: Great. Great.

Lokesh: Great.

Lokesh Manik: Great.

Speaker #3: My other point is, remember, if I have to grow my revenue between 20 to 23%, you cannot have any vertical lagging down.

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

Speaker #4: Got it. Got it. Got it. We should get a sense of, yeah, how the revenue from different distribution networks is moving.

Lokesh: Correct. It was just to get a sense of.

Lokesh Manik: Correct. It was just to get a sense of. How the revenue from different distribution networks are doing.

Vikram Mehra: Yeah

Lokesh: how the revenue from different distribution networks are doing.

Vikram Mehra: Yeah.

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

Operator 2: 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, on the music EBITDA for this quarter—it has come off by 1% on a year-on-year basis.

Yash Bajaj: Yes, good afternoon, sir, 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's a small number, 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's 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 music as a segment has grown 40–43% on a year-on-year basis.

Speaker #5: That's my first question.

Speaker #3: 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 we 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's just as a mix change that is happening. 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 on the short ones 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 investment, but the artist management part of the revenue is always a lower margin part. So it just has a mixed change that is happening on the core music licensing business.

Speaker #3: 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, FY26, and FY27, 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. 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, but we are almost reached there, and we are comfortable holding onto 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 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 26 numbers.

Yash Bajaj: Understood. My second question is specifically again on the music net margins. Again, from the point of view that the segment has grown at a much higher clip versus if you would have compared Q1 FY26 numbers. Is the content charge slightly more aggressive this quarter compared to Q1 FY26?

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

Speaker #3: I've told you, please evaluate us on a 12-month basis. Quarterly, we're trying to find trends, and quarterly, they are in Delhi. 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.

Vikram Mehra: I have told you, please evaluate us on a 12-month basis. We are trying to find trends in quarterly, there are not any. All depends which release got pushed to which particular quarter. That is 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, then also I tell you 12 months.

Speaker #3: When our numbers look good also, 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, 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 crore this year on marketing and new content?

Yash Bajaj: Understood, sir. I will just rephrase my question. If we had to compare FY26 net margins of the music business, and if we extrapolate that for FY27, will 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 INR 300, INR 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. We have shared with you that our annual music EBITDA guidance is 60% to 65%, and I'm holding on to that.

Vikram Mehra: See, 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%, and I'm holding on to that.

Speaker #5: Okay sir. Okay.

Yash Bajaj: Okay, sir. Okay.

Speaker #1: Thank you sir.

Operator 2: Thank you, sir.

Operator: Thank you, sir.

Speaker #5: Thanks from my side. Thank you.

Yash Bajaj: That's all 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 PMS. Please proceed with your question.

Operator 2: Thank you, sir. The next question is on the line of Saania Jain from Care PMS. Please proceed with your question.

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

Speaker #6: 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 revenues at a rate 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 revenues 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 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 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, that 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: 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, there's a jump—suddenly, more rapid—because the vertical was getting built.

Speaker #3: It's reaching that kind of a stage where there will be some stability coming in as we move into 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 artists. The revenue that you're making from the content from the artists is sitting out there in the respective, say, music vertical. While, since you're investing that much on the artist, you're also telling the artists 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 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, 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 for them to become bigger and stronger and charge greater amounts 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 would be the revenue contribution in the music licensing segment from 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 from Samiksha Capital. Please proceed with your question.

Operator 2: Thank you, ma'am. The next question is from the line of Pallavi from Sameeksha Capital. Please proceed with your question.

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

Speaker #6: Yes sir. Thank you for taking my question. I just wanted to get back on this revenue growth right 43%. Would that include the Harayanvi catalog so that's an acquisition growth and so what would be the organic number there in if any there?

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

Pallavi Deshpande: Yes, sir. Thank you for taking my question. I just wanted to get back on this, the revenue growth, 43%. Would that include the Haryanvi catalog? That's an acquisition growth. What would be the organic number there and if any there?

Speaker #3: Ma'am it obviously we are investing also 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. Yeah, 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 were evaluated. We take a call. When we report the numbers also, we evaluate ourselves also, our board also evaluates us, it's all on the basis of the total amount of money spent. Doesn't matter whether it is 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 to still go to it, right? It's already being listened to, and yeah. My second question—yeah, my second question would be this, the video segment, right?

[Company Representative] (Samiksha Capital): Right. The organic ads is still going to it, right? It is already being listened to. My second question.

Pallavi Deshpande: Right. The organic ads is still going to it, right? It is already being listened to. My second question.

Vikram Mehra: Yeah.

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

Pallavi Deshpande: My second question would be the video segment, right? It is still running the losses, when do we see a wind down of that segment completely?

Speaker #6: 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 is 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 are 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, we completely 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're all going to get cleared up. Going forward, we were in the film business primarily to acquire the music of those films.

Speaker #3: That requirement of ours is going to be met through an investment in Bansali 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, it could be regarding the content cost. I know you've given us a guidance of 65% to 65% on the EBITDA margin, but is there anything you can share with us on content cost directionally? Is it going up this year, or...?

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

Pallavi Deshpande: Lastly, it will be on the content cost. I know you have given us a guidance of 65% on the EBITDA margin, anything that you can share with us on content costs, directionally, is it going up this year?

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

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 will be spending on new music content, it will be between INR 300 to 350 crore.

Speaker #6: Right. Got that. Thank you so much.

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

Pallavi Deshpande: 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 2: Thank you, ma'am. The next question is from the line of Rohan Nagpal from PhillipCapital. Please proceed with your question.

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

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

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 crore, and the Q1, the latest presentation, has a content spend of INR 265 crore. Could you just help me reconcile the difference in the two numbers?

Speaker #7: Could you just help me reconcile the difference in 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.

Abhishek Kapoor: Rohan, can you repeat your query one?

Rohan Nagpal: The presentation published this quarter, in the cash flow statement, has an INR 265 crore line item under spend on new content. The Q4 fiscal 2026 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 FY26 presentation, the cash flow statement has a content spend line item of ₹186 crore. Why is there a difference between those two?

Speaker #7: Q4.

Vikram Mehra: Q4. Are you talking about Q4?

Abhishek Kapoor: 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 2026 and Q1 2027.

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

Abhishek Kapoor: 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 a 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.

Abhishek Kapoor: Rohan, I don't have the presentation readily 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 proceed with your question.

Operator 2: Thank you, sir. The next question is from the line of Ravi Naredi from Naredi Investments. Please proceed with your question.

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

Speaker #8: Hello Vikram. Vikram ji, good afternoon.

Ravi Kumar Naredi: Vikramji, good afternoon.

Ravi Naredi: Vikramji, good afternoon.

Speaker #3: Welcome, sir. कैसे हैं आप? आपकी सर. सर, आपकी भी. How much earning bifurcation—old and new songs revenue—can you tell us? How much revenue from new songs, how much revenue from old songs?

Vikram Mehra: Shanam, sir.

Ravi Kumar Naredi: How are you?

Ravi Naredi: How are you?

Vikram Mehra: I'm good, sir.

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

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

Speaker #8: Right. Again, if you see part 6 in our corporate presentation—I think we released it around a week ago—we have given by decade our composition, in terms of how many songs were released in each decade out of the 180,000 songs.

Vikram Mehra: Right. If you see the Part Six in our corporate presentation, I think we released it around a week ago. We people have given by decade. Our composition, in every decade, how many songs have been released out of 180,000 songs. Which song, how many songs belong to which decade, 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: 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 the 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 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?

Ravi 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're 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 aged 25 to 30, we can give you a song license, we can make songs for you, we can make short format content for you, which can go on Instagram.

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're 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, [Foreign language] Which places us very uniquely for any brand in the market that wants to talk to the younger people.

Speaker #8: But all I can say is we are the only company today—first, we are 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 brand, 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, वह 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.

Vikram Mehra: If you want, we can also give sponsorship to all the events connected to our Gen V, whether it is UB40 or the Backstage Siblings concert. Which places us very uniquely for any brand in the market that wants to talk to the younger people.

Speaker #8: Which places are very, very unique 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 topped, how much of a subscription increase can we expect in our company, according to your view?

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

Ravi Naredi: Right. 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 reach 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. This can happen in a period of 12 to 18 months. We had done this study 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 cannot live without music. Now, 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 that if you make music free, then we will go out there and pay. I think there's a large opportunity sitting here.

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. This can happen in a period of 12 to 18 months. We had done this study 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 [Foreign language]. Now, 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 that if you make music 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 हफ्ते 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 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 वह कंजूसी करेंगे.

Vikram Mehra: Video companies have taught us that Indian consumer is not like that they will do kanjoosi only. If you give value to the Indian consumer, the 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 big 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, कि 30 के नीचे वाले बिना song के रह नहीं सकते. I am in 60; I cannot live without music.

Ravi Kumar Naredi: Right. You are saying wrong, sir, that people below 30 cannot live without listening to music. I am in 60, I cannot live without music. You will die of a heart attack, but life goes on even with headphones. Thank you very much, sir.

Ravi Naredi: Right. You are saying wrong, sir, that people below 30 cannot live without listening to music. I am in 60, I cannot live without music. You will die of a heart attack, but life goes on even with headphones. Thank you very much, sir.

Speaker #8: आप हटोगे दिल से, पीस के हो तो चलता।

Speaker #3: Thank you very much sir.

Speaker #8: 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 2: 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: Congrats on a good set of numbers, 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. Is it we 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 had.

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 don't do it on their own?

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

Speaker #3: The question is a very solid and fair question. इसीलिए मैं artist management को कभी भी अलग करके नहीं बोलता हूं. 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 agencies, if you keep on seeing in the country, all of them are standalone artist management companies.

Speaker #3: Their job is to represent the artist, get them some work, and whatever money comes in, they keep a percentage. We are uniquely placed as the only company that is also investing in its own content.

Speaker #3: 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 or FilterCopy.

Vikram Mehra: We are also ensuring every artist that we are managing gets 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. That's why if you see the churn which is happening from our catalog, and I'm not declaring the names of these artists, but you will find the names of big artists in the public, among our artists who are there. 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 Ghelani. We are doing music with Viraj. We also do all the live events of Viraj's stand-up comedy.

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 the artists—ke naam main declare nahi kar raha hoon, par bade artists ke naam aapko mil jayenge public ke andar.

Speaker #3: हमारे पास कौन पड़े हैं। We are not going to find churn because we are uniquely helping artists to become that much bigger. अभी मैं आपको example देता हूँ।

Speaker #3: मेरे पास एक आर्टिस्ट है, विराज गिलानी. अब विराज के साथ हम म्यूजिक भी कर रहे हैं. विराज के सारे स्टैंड-अप कॉमेडी के लाइव इवेंट्स भी हम लोग करते हैं.

Vikram Mehra: 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 Himesh Reshammiya ji's concert, Maahi did the opening. This is a unique flywheel ecosystem that we are able to offer to the artist, which in the country, honestly, nobody else is in a position to do it. We consider artist management not a separate vertical, but an integral part of our core content business.

Speaker #3: विराज के साथ last year हम लोगों ने एक movie भी की हुई है। और विराज को artist manage भी हम ही करते हैं। हमारे पास एक young artist है, called माही।

Speaker #3: माही हमारे लिए गाने गाते हैं। माही हमारे म्यूजिक वीडियोज़ में भी अपियर होते हैं। माही फिल्टर कॉपी की सीरीज़ में भी अपियर होते हैं।

Speaker #3: और माही के live events भी हम लोग manage कर रहे हैं। और जब कोई बड़ी concert होती है, like हिमेश रेशमिया जी की concert में opening माही ने करी 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 is 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 that. The other question was on the opportunity size—if you can give any color on how big this opportunity can be, and where India is, 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 and where is India and where are we standing?

Speaker #8: The artist management piece, in terms of the extent to which we are managing it, is bigger. But artist management is a normal part of the majority of our international peers also.

Vikram Mehra: Sir, 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 the artist management industry will get. Actually, the real money for artist management comes in right now from singing in weddings or performing in weddings. That's it. Weddings, corporates, and brands. This is a large enough space. Bigger those markets become, bigger is the fees these artists can charge. We keep giving more opportunities to an artist through our content so that they keep getting bigger. The bigger they get, the more they will charge. The more they charge, the more our percentage increases. As far as live events is concerned, see, it's still an industry which is 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 artist को और opportunities देते रहते हैं कि वो और बड़े होते चले जाएं। जितने वो बड़े होंगे, उतना वो charge करेंगे।

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: In pre-COVID times, there was not much focus on live in our country. Now, with the 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 event space in a very substantial fashion. Jury is still out saying how big it 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. That is why at Saregama, we are keeping a tight balancing act between working with artists on artist-based concerts.

Speaker #8: Pre-COVID time के अंदर live पे इतना focus हमारे देश में नहीं होता था. Now, with the 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 is 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 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: 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.

Vikram Mehra: 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 short run will have losses. Long run, they become very heavy margin products. That is why launch of a music festival called UB40, launch of this show called Krishna with Manoj Muntashir, launch of Carvaan Live property. In all these places, artist becomes incidental. It is a show and the concept, which is a primary thing, which allows us to go back and improve our margins. Have I answered your question, sir?

Speaker #8: 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. In the short run, mein losses honge, but in the long run, they become very heavy margin products.

Speaker #8: That's why the launch of a music festival called UN40, the launch of this show called Krishna with Manoj Muntashir, the launch of the Carvaan Live property—in all these places, the artist becomes incidental. It's the show and the concept which are the primary things, which allows us to go back and improve our margins.

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. Because if you take the Gen Z audience, then the chances are it will get converted very soon. Do you have any demographics breakup?

Speaker #7: Got it, sir. Sir, last—yes, sir. Yes, sir. Surely. Sir, the last question is on the demographics of the audience which pays the subscription fee.

Speaker #7: I know we don't directly connect with 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.

Speaker #7: Because if it is the Gen Z audience, then the chances it will get converted are very, very soon. So do you have any demographics break-up?

Speaker #8: I'll tell you right now, we don't get the data, but because we were getting the research done, we've all seen the research data coming in. It's not that Spotify is sharing the data with us.

Vikram Mehra: Because we were getting the research done, we all seen the research data coming in. It is not that Spotify is sharing the data with us. From the research data that is coming out, very distinctly clear, that people like me who are above 50 years of age, nobody pays. Because this entire generation is growing up on the fact that for us digital is free. 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 is making financial sense, it is affordable.

Speaker #8: From the research, data 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 #8: Because ये पूरी generation इस बात पे grow करेगी हम सबकी कि हम लोगों के लिए digital free होता है. The entire growth is coming from Gen Z and millennials.

Speaker #8: That generation is born knowing that digital has to be paid for. The older people always found digital to be the free way of consuming stuff.

Speaker #8: 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: Agreed. Thank you, 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. It's very admiring to see how you're building each of the new business pieces. My best wishes, sir. Thank you.

Speaker #7: Thank you.

Speaker #8: 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 2: Thank you, sir. The next question is from the line of Kavish Parekh 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. Thanks for the follow-up. The scale-up in the artist management business has been impressive, which is also evident from the kind of discussions we had on the call earlier today.

Kavish Parekh: Hi, team. Thanks for the follow-up. Vikram, the scale-up in 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% revenues 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% CAGR. 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 20 to 23 percent CAGR.

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: one is increasing monetization, or 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 you see the segment sort of saturating?

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

Speaker #8: 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. 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'll repeat again, when you look at artist management vertical, see it as a by-product of the main content business that we people are in. If we were not into content business, we wouldn't have been there in the 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'll repeat again—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 there in the artist management vertical on its own. It does not make sense because there is no clear moat that we have.

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. Our moat is single factor. 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 bigger 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 parts 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 life, which is going to ensure a lower churn, and in the long run, improvement in margin.

Speaker #8: In artist management, if we are a standalone company, our moat is a 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 come 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, since 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 #7: Wonderful. Ma'am, any comments? Of course, we have to look at this in tandem with the other. Any comments on these two drivers that I spoke about—increasing wallet share from existing artists and/or underlying growth in artist earnings? And lastly, on the competition bit, my understanding is that the space remains highly fragmented, with several emerging companies sort of competing for the same pool of talent.

Kavish Parekh: Understood. Any comments, of course, we have to look at this in tandem with the other. 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 the 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 players?

Speaker #7: Beyond these emerging or relatively small-scale players, do you also see competition from any larger players?

Speaker #8: 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, but 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, 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 our 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 #8: 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 #8: We will not be able to help them become big. To answer your question—the first question—I thought I gave that the more we are, we will be in a position to help artists to become bigger. Better, we will become a negotiation power for the artist to take a higher percentage of his commissions.

Speaker #8: 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 #8: 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.

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

Speaker #8: 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 #7: Bought it. Very helpful. Thanks in advance.

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

Speaker #8: 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 2: Thank you, sir. The next question is from 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.

Operator: Thank you, sir. The next question is from 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 #8: 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, with 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, a 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 #8: With over 680 million internet users in India, 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 #8: 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.

Speaker #8: 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, 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 #8: We are seeing in the more developed markets that there is a saturation in terms of subscriber expansion; there's limited upside available on ARPU expansion. They are working more on format diversification.

Speaker #8: We have all three opportunities open in front of us. To summarize, we operate in the world's most underpenetrated large music market, with a high-margin structure, and an owned IP catalog growing at four to five thousand releases a year.

Speaker #8: 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 much longer runway in India than anywhere else in the world.

Speaker #8: 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 2: 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.

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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Q1 2027 Saregama India Ltd Earnings Call

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