Saregama Plans ₹1,200 Crore Content Investment Between FY28 and FY30

Key Takeaways

• Saregama India plans to invest approximately ₹1,200 crore in new content between FY28 and FY30.
• The estimate is based on an annual content-budget increase of around 10%, starting from the FY27 budget midpoint of ₹325 crore.
• The company has guided for ₹300–350 crore in new content spending during FY27.
• Saregama expects music acquired over the previous two to four years to contribute more strongly to profitability as the catalogue matures.
• The company has maintained its three-to-five-year music revenue growth guidance of 20–23% CAGR and an EBITDA margin target of 60–65%.
• Its music catalogue contains more than 180,000 songs, with approximately 4,500–5,000 new releases added annually.
• The investment strategy also covers music associated with Bhansali Productions, while the separate equity investment in the production company remains distinct.

Saregama Plans ₹1,200 Crore Investment in New Content

Indian music and entertainment company Saregama India is preparing to spend approximately ₹1,200 crore on new content over three financial years, from FY28 to FY30.

Managing Director Vikram Mehra shared the investment outlook during the company’s Q2 FY27 earnings conference call on November 4, 2026.

The company expects its annual content budget to increase by approximately 10% after FY27. Saregama has guided for spending of ₹300–350 crore on new content in FY27. Using ₹325 crore as the midpoint and applying annual increases of around 10%, management expects combined spending of approximately ₹1,200 crore across FY28, FY29 and FY30.

The investment reflects Saregama’s strategy of expanding its music catalogue and acquiring content that can generate licensing revenue over several decades.

The company believes that content acquired in previous years is now beginning to contribute more positively to margins. This could allow it to continue investing in new music while benefiting from the growing profitability of its existing catalogue.

The planned ₹1,200 crore is a management estimate for new content investment, not a confirmed single-year expenditure or a separate acquisition announcement.

How Saregama Calculated Its ₹1,200 Crore Content Budget

The investment estimate is based on the company’s expected FY27 spending and an assumed annual increase of approximately 10%.

Saregama’s New Content Investment Outlook

Financial year	Estimated content spending
FY27	₹300–350 crore
FY28	Around ₹358 crore
FY29	Around ₹394 crore
FY30	Around ₹433 crore
FY28–FY30 combined	Approximately ₹1,200 crore

<text color=”secondary” size=”xs”>FY28–FY30 figures are illustrative estimates using ₹325 crore as the FY27 starting point and applying 10% annual growth. They are not separately announced annual budgets.</text>

The calculation demonstrates how Saregama expects its content investment to grow over the next three years.

The company is not simply increasing spending to acquire more songs. Its strategy is based on building a larger intellectual property catalogue that can be monetised through multiple channels, including music streaming platforms, films, television, advertising, short-form videos and live events.

The objective is to acquire content that can generate revenue over an extended period rather than relying entirely on the immediate popularity of a new release.

Why Saregama Is Increasing Its Content Investment

Saregama’s business model is built around owning and licensing music rights.

When the company acquires or produces music content, it can earn revenue whenever that intellectual property is used commercially, subject to the relevant licensing agreements.

For example, a song can generate revenue through:

• Music streaming platforms such as Spotify and YouTube Music.
• Film and television licensing.
• Radio broadcasting.
• Advertising campaigns and brand partnerships.
• Short-form videos and social media platforms.
• Live performances and other entertainment formats.

This creates opportunities to monetise the same content through multiple distribution channels.

Saregama’s management has said that new music acquisitions generally have a five-year payback target, followed by a much longer period of potential returns.

The company estimates that newly acquired music can generate returns over approximately 55–75 years after the payback period.

This long-term approach explains why Saregama is willing to make substantial upfront investments in content.

Older Music Acquisitions Are Beginning to Improve Margins

One of the most important points from the earnings call was management’s explanation of how earlier content investments are affecting profitability.

Saregama began significantly increasing its content investments in FY24. At that time, management indicated that it could take approximately two to three years for EBITDA and profit growth to catch up with revenue growth.

According to Mehra, content acquired two to four years earlier is now beginning to contribute positive margins.

This is important because new content initially carries acquisition and production-related costs. As the content generates revenue over time, its contribution to profitability can improve.

The company believes it is now entering this stage of its investment cycle.

Saregama’s Music Business Reports 35% Revenue Growth

The ₹1,200 crore investment plan comes after strong performance from Saregama’s music business in Q2 FY27.

For the quarter ended September 30, 2026, the music vertical reported revenue of ₹251.3 crore, representing 35% year-on-year growth.

Music EBITDA increased 37% to ₹154 crore, while music net margin increased 46% to approximately ₹116.5 crore.

Saregama Q2 FY27 Financial Performance

Metric	Q2 FY27	Year-on-year growth
Consolidated revenue from operations	₹314.3 crore	37%
Music revenue	₹251.3 crore	35%
Music EBITDA	₹154 crore	37%
Music net margin	₹116.5 crore	46%
Live events revenue	₹44.7 crore	101%
Video revenue	₹18.3 crore	Down 16%
Consolidated adjusted EBITDA	₹118 crore	39%

The music business remains the company’s largest revenue contributor.

However, management noted that the first half of FY26 had provided a relatively low comparison base, which helped the reported year-on-year growth in the first half of FY27.

Saregama’s overall revenue from operations reached ₹314.3 crore in Q2 FY27, while its consolidated net profit was approximately ₹64.2 crore.

The performance provides a financial backdrop for the company’s decision to continue investing in new music and entertainment content.

Bhansali Productions’ Music Rights Are Included in the Investment Plan

Saregama’s content strategy also includes its relationship with Bhansali Productions, associated with filmmaker Sanjay Leela Bhansali.

During the earnings call, an investor asked whether the proposed ₹1,200 crore investment included content associated with the production company.

Mehra clarified that the music rights acquired from Bhansali Productions would be included in the content-spending budget.

However, the music arrangement and Saregama’s equity investment in Bhansali Productions are separate transactions.

The company pays separately for the music content it acquires. Mehra also clarified that the payment for the film Love & War is separate.

This distinction matters because the ₹1,200 crore figure should not be interpreted as the total amount Saregama will invest in film production or its equity partnership.

The music rights form part of the company’s broader content acquisition strategy.

Saregama Is Expanding Beyond Traditional Music Licensing

Although music remains its core business, Saregama is expanding into other entertainment activities that can help monetise its intellectual property and artist relationships.

These include subscriptions, artist management, brand partnerships, live events and digital video content.

1. Artist Management and Brand Partnerships

Saregama represented 340 artists at the end of Q2 FY27, with a combined following of more than 450 million across Instagram and YouTube.

The company helps artists build popularity through music releases and then monetises their audience through live performances, wedding bookings and brand endorsements.

During Q2, Saregama completed more than 20 brand deals involving companies including Apple, Airbnb, Google, Cadbury and Tanishq.

2. Paid Music Subscriptions

Management said paid music subscriptions are growing faster than ad-supported users.

Paid listeners generate higher revenue per song stream than users listening through free, advertising-supported services.

Saregama believes India has significant potential for subscription growth. New subscribers are currently the primary growth driver, while subscription pricing could become another contributor over the next two to three years.

3. Live Events

Saregama is also increasing its focus on company-owned live entertainment formats.

Its portfolio includes UN40, a music festival; Hahakaar, a stand-up comedy festival; Krishna – Radha Se Ranbhumi Tak, a devotional concert format; and Carvaan Live.

During Q2 FY27, the company produced 54 Carvaan Live shows with an audience of approximately 10,000 people.

It also organised an Ilaiyaraaja US tour across 11 cities, attracting around 20,000 people, along with 17 devotional shows.

The company expects to continue investing in its own event intellectual property, although these formats can require upfront spending before becoming commercially established.

Saregama Is Also Exploring Artificial Intelligence

Another area of interest is generative AI.

Saregama expects AI to help reduce costs and accelerate content production over the long term.

The company has established two AI-focused teams.

The first team is exploring new audio and video formats using generative AI tools. Its work includes podcasts using Saregama songs and new-age music videos based on older tracks. The company plans to release approximately 100 hours of podcast content in Q3 FY27.

The second team is examining internal business processes to identify opportunities for greater efficiency.

At the same time, Saregama is concerned about unauthorised AI-generated covers and remakes of its copyrighted songs.

The company is investing in technology to identify such content on streaming platforms. It may seek removal of unauthorised versions or negotiate licensing arrangements with AI creators.

This approach reflects the importance of intellectual property protection as generative AI becomes more widely used in music production.

What Saregama’s Investment Means for the Indian Music Industry

Saregama’s planned spending highlights the growing importance of music ownership and intellectual property in India’s entertainment industry.

Music labels are no longer dependent only on selling albums or licensing songs to films. Their catalogues can generate revenue across streaming services, social media platforms, advertisements, television, live performances and digital entertainment.

The expansion of paid subscriptions also creates opportunities for music companies to earn more from existing catalogues.

However, content investment carries risks. Not every new song becomes popular, and the returns from individual acquisitions can vary considerably.

The five-year payback target is a management expectation, not a guarantee that every acquisition will recover its cost within that period.

Saregama will need to maintain a balance between acquiring established music rights, investing in new artists and producing content that attracts younger audiences.

The Bigger Picture

Saregama’s ₹1,200 crore content investment plan reflects a long-term strategy built around intellectual property ownership. Rather than depending exclusively on new releases for immediate revenue, the company wants to develop a larger catalogue that can generate licensing income over several decades.

Its confidence is supported by the improving contribution of older acquisitions, strong music revenue growth and expansion into subscriptions, artist management and live events. However, the success of the plan will depend on how efficiently Saregama selects content, controls acquisition costs and converts audience interest into sustainable revenue.

Frequently Asked Questions

1. How much will Saregama spend on content between FY28 and FY30?

Saregama expects to spend approximately ₹1,200 crore on new content over FY28, FY29 and FY30 combined, according to management guidance shared during its Q2 FY27 earnings call.

2. How much is Saregama spending on content in FY27?

The company has guided for new content spending of ₹300–350 crore in FY27, using ₹325 crore as the midpoint for its subsequent budget calculations.

3. Why is Saregama increasing its content budget?

The company wants to expand its music catalogue and acquire intellectual property that can generate revenue through streaming, films, television, advertising, social media and other licensing channels.

4. Does the ₹1,200 crore investment include Bhansali Productions’ music?

Yes. Managing Director Vikram Mehra clarified that payments for music content acquired from Bhansali Productions are included in the planned content-spending pool. The separate equity arrangement is distinct, and the payment for Love & War is separate.

5. How large is Saregama’s music catalogue?

Saregama owns a catalogue of more than 180,000 songs and adds approximately 4,500–5,000 new releases annually.

6. What is Saregama’s expected payback period for new music acquisitions?

Management has maintained a target payback period of approximately five years for new music acquisitions, followed by potential returns over 55–75 years. These are company expectations rather than guaranteed outcomes.

7. What is Saregama’s music revenue growth target?

Saregama has maintained guidance for 20–23% music revenue CAGR over a three-to-five-year period, with an expected music EBITDA margin of 60–65%.

Looking Ahead

Saregama’s planned ₹1,200 crore investment between FY28 and FY30 signals that the company intends to continue expanding its music catalogue even as older acquisitions begin contributing more strongly to profitability. Its strategy combines long-term music ownership with newer revenue opportunities in subscriptions, artist management, brand partnerships, live events and AI-assisted content creation.

The next three financial years will show whether the company can convert this investment into sustainable revenue growth and stronger margins. The challenge will be to acquire valuable intellectual property at sensible prices while ensuring that new releases attract audiences across India’s increasingly competitive music and entertainment market.