Shares of Saregama India Ltd. gained 18.40% on Thursday, reaching an intraday high of ₹396.70 per share following the release of strong fourth quarter earnings. According to reports from Trade Brains, this represents the biggest single-day gain for the stock since September 2024. The stock is now trading 17% higher at ₹391.35, resulting in the company turning positive on a year-to-date basis. With a market capitalization of ₹7,500 crore, the share has delivered a 92% return over the last five years, demonstrating strong long-term investor confidence.
The company delivered robust financial results across key parameters. As reported by Trade Brains, 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. The company's EBITDA jumped 50.6% to ₹120.95 crore with margins expanding sharply to 42.08% from 33.35% in the year-ago period, marking this as the highest ever quarterly EBITDA for the company. Adjusted EBITDA reached ₹132.7 crore and operational PBT stood at ₹105 crore, demonstrating a much stronger operating mix. The main driver was the music business, which delivered ₹200.43 crore of quarterly revenue and remained the largest contributor to segment performance.
The music segment emerged as the primary growth driver, with Saregama reporting music annual revenue grew 17% to ₹814.4 crore and music EBITDA rose 22% to ₹516.7 crore. As reported by CNBC TV18, the music net margin increased 28% to ₹376.8 crore, reflecting improved operational efficiency. The company's quarterly revenue more than doubled to ₹42.46 crore from ₹18.83 crore a year earlier, driven by operating leverage in music, better revenue mix, and scale-up in artiste management. The music business delivered ₹200.43 crore of quarterly revenue and remained the largest contributor to segment performance, supported by fresh releases across languages, stronger licensing traction and growing digital reach.
According to the company's investor presentation reported by CNBC TV18, Saregama India released over 1,200 film and non-film tracks spanning multiple languages including Hindi, Punjabi, Tamil, Malayalam, Telugu, Kannada, and other languages in the fourth quarter. The company added 33 artistes in the fourth quarter, taking the total roster to over 300 with an aggregate digital reach of over 410 million. This expanding content portfolio and rising contribution from the core music business has reinforced investor confidence. The company also highlighted record investment in new music and catalogue purchase, saying combined investment in new music and catalogue purchase was the highest ever. 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.
Avarna Jain, vice-chairperson of Saregama India, stated that the company stands in a strong position with its balanced outlook towards investment and profitability. As reported by CNBC TV18, this positive management commentary contributed to the strong investor response to the quarterly results, with sentiment further supported by expanding digital reach, higher content output, and steady IP-led monetisation. The company'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," Jain said. The share surge was likely driven by three key factors: clear earnings beat, margin expansion, and confidence that Saregama's IP-led model is compounding rather than peaking, with management's line that it stands "in a strong position with its balanced outlook towards investment and profitability" helping reinforce the growth narrative.
