Saregama India

SAREGAMA is trading at ₹617.60, maintaining a bullish structure across daily, weekly, and monthly timeframes with price positioned above all key moving averages and the Supertrend indicator. The long-term trend is strong (Monthly ADX 40.74), though the daily trend is developing (ADX 24.36). Participation spiked significantly on November 4 with extreme volume (+57.5x ratio) driving a +13.3% gain, followed by a high-volume pullback (-2.3%) on November 6. The stock sits near its yearly highs (+85.3% in the 252-day range) with current drawdown at -3.0%. Key resistance lies at ₹638.83 (pivot, +3.44%), while immediate support rests at ₹606.67 (-1.77%).

Saregama India reported strong Q2 FY27 financial results, with net profit rising 46.4% year-on-year to ₹64.17 crore and total revenue from operations increasing 36.63% to ₹314.30 crore. This performance was driven by robust growth in the Music and Live Events segments, supported by the release of over 650 tracks and the addition of 54 artistes, although Video revenue declined by 16%. The company’s EBITDA margin expanded to 32.3%, a development that contributed to a 9.4% share price surge on November 4. Vice Chairperson Avarna Jain attributed these gains to monetizing intellectual property across multiple avenues while maintaining financial discipline. Additionally, the board approved the voluntary liquidation of two wholly-owned subsidiaries: Saregama FZE in Dubai and Kolkata Metro Networks Limited. In broader market context, ICICI Securities included Saregama among ten recommended stocks for Muhurat Trading, citing strong earnings and attractive valuations despite recent market weakness.

Saregama India Limited reported strong operational growth for Q2 FY27 (ended 30 September 2026), with Revenue from Operations rising 37% YoY to ₹3,143 Mn and Adjusted EBITDA increasing 39% YoY to ₹1,180 Mn. This performance was driven by a 101% surge in Live Events revenue to ₹447 Mn and a 35% increase in Music revenue to ₹2,513 Mn, partially offset by a 16% decline in Video revenue to ₹183 Mn. The company expanded its roster by adding 54 artistes, bringing the total to 340, and released over 650 tracks.

Concurrently, the Board approved the voluntary liquidation of wholly owned subsidiary Kolkata Metro Networks Limited (KMNL) and the closure of Saregama FZE, Dubai. KMNL’s liquidation requires shareholder approval on 20 November 2026; it contributed ₹294.33 lakhs (0.36% of standalone revenue) in FY2026. Saregama FZE is expected to close by 31 March 2027 to eliminate administrative costs, having contributed ₹647.87 lakhs (0.66% of consolidated revenue) in FY2026. These restructuring steps aim to streamline operations and reduce overheads.

Saregama India’s operating trajectory shows a clear recovery in profitability despite recent revenue headwinds. In Q2 FY2026-27, the company reported sequential growth in Net Profit to ₹64.2 crore (up from ₹51.9 crore in Q1) and Basic EPS to ₹3.37 per share (up from ₹2.69). This follows a TTM sales decline of 11%, yet TTM Operating Profit expanded to ₹374 crore while Interest costs remained low at ₹7 crore, indicating effective cost management and margin resilience.

Financial health remains robust with strong cash generation. Cash from Operating Activities reached ₹331 crore in Mar 2025, though it moderated to ₹100 crore in Mar 2026 as CFO/EBITDA conversion dropped to 49%. The balance sheet is asset-heavy, with Fixed Assets growing to ₹1,031 crore by Mar 2026 and Investments surging to ₹379 crore, likely reflecting strategic capital allocation. Borrowings increased significantly to ₹73 crore in Mar 2026, up from ₹3 crore the prior year, raising leverage slightly but keeping interest expenses manageable. Working capital efficiency improved markedly from Mar 2024 to Mar 2025 (Cash Conversion Cycle falling from 302 to 120 days), though it deteriorated to 164 days in Mar 2026 due to higher inventory days (280 vs 161).

Ownership structure shows increasing institutional confidence, with DIIs raising their stake to 9.36% in Sep 2026, while promoters maintained control at 60.84%. The key checkpoint for investors is whether the recent rise in borrowings and working capital days signals sustainable investment-led growth or temporary operational friction.

Saregama India demonstrates a clear operational shift toward monetizing its intellectual property portfolio, evidenced by strong Q2 FY27 financial results. The company reported a 46.4% year-on-year increase in net profit to ₹64.17 crore and a 36.63% rise in total revenue from operations to ₹314.30 crore for the September quarter. This growth was driven by the release of over 650 tracks and the addition of 54 artistes, which supported expansion in both Music and Live Events segments. Additionally, management approved the voluntary liquidation of two wholly-owned subsidiaries (Saregama FZE and Kolkata Metro Networks Limited), signaling a focus on core business efficiency. Technically, the stock maintains bullish momentum across daily, weekly, and monthly timeframes, with the Supertrend indicator aligned positively and significant upside resistance levels at ₹638.83 and ₹664.22. The stock has delivered a 76.1% year-to-date return as of November 6, 2026, reflecting sustained investor confidence despite recent volatility.