Saregama India shares surged 18.40% to an intraday high of ₹396.70 on Thursday after the company reported a sharp improvement in quarterly profitability, with the results showing higher music monetisation, strong artist-management growth and a record EBITDA run-rate.

Earnings beat

Consolidated net profit rose 23.9% year-on-year to ₹74.14 crore in Q4 FY26, while revenue from operations climbed 19.4% to ₹287.44 crore. EBITDA jumped 50.6% to ₹120.95 crore and the margin expanded to 42.08% from 33.35% a year earlier, underlining a much stronger operating mix. The company also said this was its “highest ever quarterly EBITDA,” with adjusted EBITDA at ₹132.7 crore and operational PBT at ₹105 crore.

Music drives growth

The main driver was the music business, which delivered ₹200.43 crore of quarterly revenue and remained the largest contributor to segment performance. Saregama said music annual revenue grew 17% to ₹814.4 crore, while music EBITDA rose 22% to ₹516.7 crore and music net margin increased 28% to ₹376.8 crore. The company’s content engine was supported by fresh releases across languages, stronger licensing traction and growing digital reach.

What lifted profit

A big part of the profit surge came from operating leverage in music, a better revenue mix and scale-up in artiste management, where quarterly revenue more than doubled to ₹42.46 crore from ₹18.83 crore a year earlier. The company added 33 artistes in Q4, taking the total roster to 300-plus, while digital reach crossed 410 million and owned-and-controlled digital footprint touched 650 million-plus followers and subscribers. Saregama also highlighted record investment in new music and catalogue purchase, saying combined investment in new music and catalogue purchase was the highest ever.

The release shows Saregama is not just monetising its old catalogue; it is buying and building new IP. During the year, it acquired Pocket Aces and Finnet Media, and later invested in Bhansali Productions, while the presentation says these transactions helped broaden the platform across films, digital series and short-format content. The company also said the results include an exceptional item linked to labour code changes, which affects comparability but does not explain the core operating surge.

Other segments

Video revenue was softer on the yearly base, and events remained volatile, with the segment posting a quarterly loss in the consolidated segment table. That makes the Q4 beat even more music-centric, which is why the market likely rewarded the print with a sharp re-rating. Saregama’s own commentary stressed the broader strategy: “Another path breaking year for Saregama with highest ever EBITDA, driven by clear strategy of aggressive investments and diversification of IP monetization,” Avarna Jain, vice chairperson, Saregama India, said.

The share surge was likely driven by three things at once: clear earnings beat, margin expansion and confidence that Saregama’s IP-led model is compounding rather than peaking. Management’s line that it stands “in a strong position with its balanced outlook towards investment and profitability” will have helped reinforce the growth narrative.