Saregama India Ltd Q1 FY27 Results Analysis: PAT Surges 42%, EBITDA Margin Expands 340 bps

Saregama India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 263.60 Cr (+27.48% YoY) and PAT growth of +42.10% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 27.5% YoY, PAT up 42%, and EBITDA margin expanded 340 bps. Music segment growth accelerated to 28.8% YoY, above medium-term guidance. Artist Management and Events segments showed strong growth, diversifying revenue. Video segment declined as expected. Overall strong execution with no guidance beats but solid performance.

Key Investment Insights

Key Positives

• Revenue grew 27.5% YoY to Rs.263.60 Cr, the strongest quarterly growth in four quarters.
• PAT grew 42.1% YoY to Rs.51.88 Cr, outpacing revenue.
• EBITDA margin expanded 340 bps YoY to 37.0% due to operating leverage.
• Music segment revenue grew 28.8% YoY, exceeding the 20-23% CAGR guidance.
• Artist Management revenue more than doubled (+102.4% YoY) to Rs.46.02 Cr.
• Events segment revenue grew 214% YoY and swung to near breakeven (loss of Rs.0.01 Cr vs loss of Rs.2.81 Cr a year ago).
• Credit rating reaffirmed at AA-/A1+ by CARE.

Risk Factors

• Video segment revenue declined 52.4% YoY to Rs.16.96 Cr and recorded a loss of Rs.4.34 Cr (vs profit of Rs.6.30 Cr in Q4 FY26).
• Finance costs rose 121.4% YoY to Rs.2.17 Cr due to higher borrowings for content investment.
• Other income fell 70.4% YoY to Rs.4.21 Cr, reducing total income growth.
• Consolidated EBITDA margin declined sequentially from 45.26% to 37.0% (seasonal, but a sharp drop).