Tips Music (TIPSMUSIC) Q3 25/26 earnings summary

Executive summary

• Strong content usage momentum across platforms, supporting 20% revenue growth guidance and an upward revision of PAT growth guidance to 25% for the year, up from 20% previously.

• Operates a large music catalogue in over 25 languages, distributed globally across digital platforms, with 145.3 million YouTube subscribers and a focus on the Indian subcontinent and diaspora.

• Maintains a debt-free balance sheet with ₹303 crore in cash and investments as of Q3FY26.

• Unique in expensing 100% of content cost in the quarter of release, supporting transparent financials.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed with an unmodified conclusion by statutory auditors.

Financial highlights

• Q3 FY26 revenue was INR 94.29 crore, up 21% year-over-year from INR 77.7 crore in Q3 FY25.

• Operating EBITDA grew 34% to INR 74.5 crore, with margins improving to 79% from 72% year-over-year.

• PAT for Q3 FY26 was INR 58.7 crore, up 33% from INR 44.2 crore, with PAT margins at 62%.

• Nine-month FY26 revenue reached INR 271 crore, a 17% increase from INR 232 crore in the prior year period; nine-month PAT was INR 137.5 crore, up 16%.

• Basic and diluted EPS for Q3FY26 at ₹4.6, up from ₹3.5 in Q3FY25.

Outlook and guidance

• Revenue growth guidance for FY26 maintained at 20%, with PAT growth guidance revised upward to 25%.

• Content cost for FY26 expected to be around 18%, lower than the initial 25% guidance due to a movie release shifting to next year.

• For FY27, content cost is expected to rise to 25-28% as more content is acquired and released.

• Industry subscription revenue is growing at 40-50% CAGR; paid subscribers expected to more than double in three years.

• Digital advertising in India projected to grow at 19% CAGR through CY2026, with digital media to account for 61% of total ad spend.