Tips Music Limited Q3 FY26 Earnings Call Summary

Summary

Tips Music Limited - Q3 FY26 Earnings Call Summary Monday, January 19, 2026 4:00 PM

Event Participants

Executives 4 Girish Taurani (Executive Director), Hari Nair (CEO), Kumar Taurani (Chairman and Managing Director), Sushant Dalmia (CFO)

Analysts 7 Akshay Kolekar, Bhargav, Jyoti Singh, Kavish Parekh, Ravi Naredi, Robert Marshall-Lee, Saket Mehrotra

Financials & KPIs

Geographic & Segment Commentary

• Catalogue (Legacy) Music: This segment contributes 85% of total revenue. Management highlighted that 90s repertoire remains the primary growth driver, with tracks like “Soldier Soldier” and “Jeene Laga Hoon” maintaining high virality on social media platforms.
• New Content & YouTube: Contributes 15% of revenue with 108 new releases in Q3 (70 film, 38 non-film). While YouTube views showed a slight decline due to Shorts accounting, the company maintains its conservative “30-second view” counting methodology.
• Digital Platforms: Paid subscription revenue (led by Spotify) is growing at 40-50% YoY, now accounting for approximately 10% of total revenue. Management noted that Spotify’s subscriber base has increased by over 50% compared to last year.

Company-Specific & Strategic Commentary

• Content Acquisition Caution: Management reiterated a disciplined approach to buying content, refusing to overpay in a “mad rush.” Content cost is targeted at 25-28% of revenue longer-term, though it remained lower this quarter (9%) due to project delays.
• Social Media Monetization: Virality on Instagram is used as a funnel to drive high-margin streams on Spotify and YouTube. A single viral trend for an old track like “Sanu Nehruwali” can jump from 1,000 to 100,000+ daily streams.
• Broadcast Partnership: The company signed a partnership with B4U TV to expand the reach of its music catalogue to global television audiences.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Catalogue vs. New Content

• Question: What is the revenue split between legacy and new music? (Akshay Kolekar)
• Answer: Approximately 85% of revenue is derived from the legacy catalogue, which remains highly profitable. New releases account for the remaining 15% (Kumar Taurani).

YouTube Views Discrepancy

• Question: Why do total views show a decline while competitors show growth? (Kavish Parekh)
• Answer: Tips continues to use the “old methodology” where a view is only counted after 30 seconds of play. Competitors may be using the new YouTube reporting that includes Shorts views of less than 3 seconds (Sushant Dalmia).

FY27 Content Pipeline

• Question: Can you name specific Hindi releases for the next fiscal year? (Kavish Parekh)
• Answer: Notable projects include an Imtiaz Ali/Diljit Dosanjh/AR Rahman film, David Dhawan’s “Hai Jawani Toh Ishq Hona Hai” starring Varun Dhawan, and projects featuring Siddhant Chaturvedi and Wamiqa Gabbi (Kumar Taurani).

Paid Subscription Trends

• Question: How much of the revenue is from paid subscribers vs. ads? (Yashowardhan Agarwal)
• Answer: Paid subscription revenue accounts for ~10% of total revenue and is growing at 40-50% (Sushant Dalmia).

Key Takeaway

Tips Music delivered a robust Q3 FY26 with 21% revenue growth reaching ₹94.29 crores and a significant 33% increase in PAT to ₹58.7 crores. The performance was characterized by exceptional operating margins of 79%, driven by the continued dominance of the legacy catalogue (85% of revenue) and lower-than-guided content spending of 9% for the quarter. Management demonstrated strong shareholder focus by fulfilling a 100% PAT payout commitment through a total dividend of ₹166.18 crores for the year. Looking ahead, the company has upwardly revised its PAT guidance to 25%+ for FY26 while maintaining a 20% revenue growth target. Despite short-term fluctuations in YouTube view counts due to conservative reporting, the strategic shift toward high-quality content acquisition and a strong FY27 film pipeline positions the company to target a ₹450+ crore revenue base in the coming fiscal year.