Saregama sets 60-65% music margin target, skips Dhurandhar 2
In Q4 FY26 call, management reveals it walked away from a major acquisition amid peer pressure, while guiding margin expansion and a ₹300-350 cr content budget.
What's new
- Saregama refused Dhurandhar 2 acquisition despite 'peer and partner pressure'.
- Guides 20-23% revenue CAGR and 60-65% EBITDA margins for music over medium term.
- FY27 content investment budget set at ₹300-350 crore; Bhansali partnership detailed.
Why it matters
Saregama's willingness to walk away from a high-profile acquisition signals discipline in a market where rivals often overpay. The margin guidance—60-65% EBITDA—is aggressive for content-heavy music companies but backed by a clear content budget. Investors should watch whether the company can sustain this without the scale that Dhurandhar would have brought.
What we're watching
- Whether the Dhurandhar 2 decision affects future growth trajectory.
- Execution against the 20-23% revenue CAGR target.
- Bhansali Productions output and its contribution to film music revenue.
The full read
In its Q4 FY26 earnings call, Saregama India offered rare forward-looking clarity. Management revealed it passed on the Dhurandhar 2 acquisition despite pressure from peers and partners—a deliberate bet on organic discipline over scale buying. More importantly, it laid out medium-term guidance: 20-23% revenue CAGR for the music vertical, with EBITDA margins of 60-65%. To back that, it has allocated ₹300-350 crore in content spending for FY27, including its partnership with Bhansali Productions. The transcript adds no new material facts beyond what was disclosed live on May 14, but the strategic details confirm a management team focused on margin quality over headline growth. The open question is whether the discipline pays off or leaves the company underweight on blockbuster content.