Tips Music shares climbed 8.02% to ₹660 on April 23, reaching an eight-month high following exceptional Q4FY26 results. According to reports from Live Mint, the company reported revenue from operations rising 32% year-on-year to ₹103.9 crore, compared to ₹78.5 crore in Q4FY25. Operating EBITDA surged 106% YoY to ₹76.9 crore, with EBITDA margin improving significantly to 74.0% from 47.5% in the previous year. On a sequential basis, revenue grew 10% quarter-on-quarter, while EBITDA, EBIT, and PAT rose 3%, 2%, and 1% respectively. The latest results show PAT soaring 93% to ₹59 crore, demonstrating the company's strong operational performance.
For the full financial year FY26, revenue from operations increased 21% YoY to ₹375.5 crore, as reported by Live Mint. Operating EBITDA grew 33% YoY to ₹275.8 crore, with EBITDA margin improving to 73.4% from 66.5% in FY25. At the bottom line, net profit increased 30% YoY to ₹216.6 crore, with margins improving to 57.7% in FY26, compared to 53.6% in the previous financial year. The company also declared a total dividend of ₹13 per share for FY26, reflecting its strong financial health. Chairman & Managing Director Kumar Taurani noted that the growth was driven by strong performance across both digital and non-digital segments, and the company distributed a total dividend payout of ₹166 crore during the year.
During the March quarter, Tips Music released 66 new songs, including 47 film and 19 non-film tracks, according to Live Mint reports. On YouTube, "Tu Jaane Hai Kahan" crossed 10 million views, while "Tehzeeb" and "Jamuna Kinara" recorded 2.4 million views each, taking the subscriber base to 153.1 million. The company also strengthened brand partnerships during the quarter, collaborating with leading brands such as Hyundai and Tinder. Against guidance of 20% growth in both revenue and PAT, the company closed the year with revenue growth of 21% and PAT growth of 30%, surpassing its initial guidance.
Despite strong performance, Tips Music faces scrutiny over its valuation and operational metrics. The company is trading at a price-to-earnings ratio of approximately 41, which is higher than its closest listed peer Saregama India, which trades at a P/E of around 34-35. While Tips Music demonstrates superior return metrics including Return on Equity (ROE) between 79-92% and Return on Capital Employed (ROCE) exceeding 122%, significantly higher than *Saregama's ROE of 12-14%**, its premium valuation may be difficult to sustain. A key concern highlighted is the company's working capital days increasing sharply from 70.1 to 192, suggesting potential challenges in managing inventory or collecting payments from customers, signaling operational difficulties that could impact future cash flow.
