According to the FICCI-EY Media and Entertainment Report 2026, the Indian music segment was valued at ₹5,900 crore in 2025, growing at 10% year-on-year. Digital licensing accounts for 58% of industry revenue, with the country recording 5.8 trillion streams of music and approximately 14 million paid subscriptions. The Indian Performing Right Society (IPRS) paid out royalties worth ₹628.3 crore in FY26, highlighting the significant revenue potential in music rights ownership.
Founded in 1902 and belonging to the RP-Sanjiv Goenka Group, Saregama India operates across music licensing, artiste management, live events and video content while selling physical products like Carvaan. The company's catalogue comprises over 1,80,000 songs across Hindi, Bengali, Tamil, Telugu, Malayalam, Punjabi, devotional, classical and regional music. In Q2 FY27, the company released more than 650 film and non-film tracks and added 54 artistes, taking its managed roster to 340 with an aggregate digital reach exceeding 450 million. Management has guided towards new music content expenditure of ₹300–350 crore in FY27, expecting cumulative expenditure of approximately ₹1,200 crore during FY28–FY30.
Founded in 1988 by the Taurani brothers, Tips Music primarily focuses on creating and acquiring audio-visual music content, with a catalogue of over 38,000 songs across Hindi film soundtracks, regional music including Punjabi and Tamil, and non-film music. The company reported 164.5 million YouTube subscribers and more than 54.3 billion cumulative views as of Q2 FY27. During Q2 FY27, Tips released 73 songs comprising 40 film songs and 33 non-film songs, while content costs increased approximately 97% year-on-year to ₹26.2 crore.
Saregama reported consolidated revenue of ₹314.30 crore in Q2 FY27, up 36.6% year-on-year, with net profit growing 46.4% to ₹64.17 crore. The music segment generated ₹200.70 crore, up 25.3% year-on-year. Tips Music reported standalone revenue of ₹120.06 crore in Q2 FY27, up 34.6% from ₹89.22 crore in Q2 FY26, with profit after tax increasing 23% to ₹65.5 crore. However, Tips showed operating EBITDA margin declining to 70.5% from 76% a year earlier, indicating pressure from higher content investments.
Both companies demonstrate strong market performance with Saregama shares closing at ₹647.80 on NSE, delivering 61.5% returns over six months and 54.9% over one year, while Tips Music closed at ₹789.30, up 22% over six months and 59% over one year. Saregama trades at a trailing P/E ratio of approximately 50 times with ROCE of 17.3% and ROE of 12.7%, while Tips has a trailing P/E ratio of 44.6 times with ROCE of 118% and ROE of 89.5%. The analysis suggests that while Saregama offers greater diversification across entertainment segments, Tips demonstrates superior capital efficiency and returns on shareholders' equity.
