India's music industry is positioned for significant expansion, with the sector projected to grow at a 13.4% CAGR to ₹7,800 crore by 2027, up from ₹5,300 crore in 2024. According to Tips Music reports, the industry revenue is expected to reach ₹10,000 crore over the next three to four years, compared to the current ₹3,000–4,000 crore. India has already established itself as the fastest-growing music market globally by volume, with total music streaming rising 34% in 2023. As reported by NDTV Profit, the country accounts for nearly 15% of global streaming volume but contributes only about 2% of global music industry value.
The shift from advertising-supported to subscription-based revenue is reshaping the industry landscape. According to the FICCI–EY Media & Entertainment Report 2025, India recorded 4.8 lakh crore music streams in 2024, with 4.6 lakh crore streams being free or ad-supported and 15,400 crore streams from paid subscribers. Paid subscriptions increased from 70 lakh in 2023 to 105 lakh in 2024 and are expected to cross 250 lakh over the next three years. Audio subscription revenues more than doubled in 2024 to ₹700 crore, with subscription streams typically generating three times the revenue of ad-supported streams.
Tips Music demonstrated strong financial performance in Q3 FY26, with revenue rising 21% year-on-year to ₹94.3 crore, driven by the release of 108 new songs and over 50% growth in paid subscribers. As reported by NDTV Profit, operating EBITDA margin expanded to 79.0% from 71.6% in Q3 FY25, aided by a 39% decline in content costs. Net profit rose 33% year-on-year to ₹58.7 crore. The company maintains a conservative accounting policy that expenses full content costs in the quarter of release, resulting in immediate recognition of content investments and clearer earnings visibility.
Management has reiterated its FY26 revenue growth guidance of 20% and raised net profit growth guidance to 25% from 20%. For FY27, the company targets 20% growth in both revenue and profit. According to NDTV Profit, Tips Music expects 25–28% growth over the longer term while maintaining content acquisition spend at 25–28% of revenue. The company's YouTube subscriber base stands at 145.3 million with annualised quarterly views of 53.2 billion, with 85% of revenue coming from its legacy catalogue of over 34,000 songs across 25+ languages.
At ₹549 per share, Tips trades at a price-to-earnings multiple of 37x, close to its 10-year median of 33x and peer Saregama's 32x. The company reported a return on capital employed of 105% and return on equity of 86%, reflecting low capital intensity and upfront expensing. As reported by NDTV Profit, the planned shift of YouTube Shorts to an advertising-led revenue-share model is expected to support revenue growth, given over one trillion Shorts views in India since 2020. The company's conservative accounting approach and strong catalogue monetisation position it well for the industry's transition to subscription-based revenue models.
