Shares of Saregama India surged 13.3% to ₹637 on Wednesday, following the company's robust second-quarter results for FY27 that came in ahead of Street estimates. According to LiveMint, the company's consolidated net profit jumped 46.4% to ₹64.17 crore in Q2, compared with ₹43.83 crore in the corresponding quarter last year. Revenue from operations increased 36.63% to ₹314.30 crore from ₹230 crore in the year-ago period, while total expenses rose 31% to ₹237.69 crore. The company's total income, including other income, reached ₹319.47 crore in the September quarter, up 32.28% year-on-year.
The music segment generated ₹251.3 crore in revenue, marking a 35% increase from the previous year, as reported by LiveMint. Live events emerged as a standout performer, with revenue reaching ₹44.7 crore and registering 101% year-on-year growth, supported by a higher number of events. During Q2 FY27, the company released more than 650 film and non-film tracks across several languages, including Hindi, Bhojpuri, Punjabi, Tamil, Telugu, Malayalam and Kannada. As per Avarna Jain, Vice Chairperson of Saregama India, the company continued to build on its growth momentum during the quarter, supported by the performance of its music business and expansion of presence across live events and other entertainment formats. The focus remains on maximising the value of intellectual property through multiple monetisation avenues while maintaining financial discipline.
The Video business, which includes films, television, digital series and short-format content, reported revenue of ₹18.3 crore, reflecting a 16% decline year-on-year. However, the company continued to strengthen its multi-format live entertainment portfolio, leveraging its artiste relationships and music intellectual property to engage audiences across geographies and create monetisation opportunities. During the quarter, Saregama collaborated with marquee brands such as Google, Cadbury, Apple, Tanishq, and Reliance, among others, for high-impact, integrated campaigns, leveraging its IPs to drive strong brand engagement. The company's songs were also used in marquee projects including the Hindi film Hai Jawani Toh Ishq Hona Hai, the Tamil film DC, and Mess, produced by HRX Films, among others.
In a significant expansion, the company added 54 artistes in Q2 FY27, taking its total roster to 340 artistes, with an aggregate digital reach of more than 450 million. According to LiveMint, the stock price has been on an upward trajectory since October 26 and has surged 30% since then, marking one of the stock's biggest one-way rallies in recent months. The latest rally has also lifted the stock's gains in 2026 to 81%, marking a sharp turnaround from its 24% decline in 2025. If the stock closes the year with similar gains, it would mark its biggest annual surge since 2021, when it gained 522%.
Analysts view paid music streaming as the largest long-term growth opportunity, with India's paid streaming penetration remaining around 3%, significantly below developed markets like the US (57%) and Sweden (67%). As per The Economic Times, management expects 64% of free music users to switch to paid plans if free supply were curtailed, with every 1 percentage point increase in penetration translating to over 10 million paying subscribers. The Indian market has the potential to eventually support nearly 100 million paid subscribers under the right pricing (₹100/month), with the company maintaining its medium-term revenue compound annual growth rate (CAGR) guidance of 20-23% for the music vertical.
