Earnings Call Transcript

July 28, 2026 To, To, Listing Department Listing Department BSE Limited National Stock Exchange of India Limited P.J Towers, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Fort, Mumbai – 400 001 Bandra Kurla Complex, Bandra (E), Mumbai – 400 050 Scrip Code: 532375 Symbol: TIPSMUSIC Sub: Transcript of Earnings Conference Call Dear Sir/Ma’am, In terms of the Regulation 30 of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, we are enclosing herewith the transcript of earnings conference call on Unaudited Financial Results for the quarter ended June 30, 2026 held on Wednesday, July 22, 2026. You are requested to take this information on your record. Thanking you, For TIPS MUSIC LIMITED (Formerly known as Tips Industries Limited) Bijal R. Patel Company Secretary Encl: a/a “Tips Music Limited Q1 FY‘27 Earnings Conference Call” July 22, 2026 MANAGEMENT: MR. KUMAR TAURANI – CHAIRMAN AND MANAGING DIRECTOR – TIPS MUSIC LIMITED MR. GIRISH TAURANI – EXECUTIVE DIRECTOR – TIPS MUSIC LIMITED MR. SUSHANT DALMIA – CHIEF FINANCIAL OFFICER – TIPS MUSIC LIMITED MODERATOR: MS. AYUSHI GUPTA – MUFG INTIME Page 1 of 13 Tips Music Limited July 22, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Tips Music Limited Q1 FY '27 Earnings Conference Call hosted by MUFG. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ayushi Gupta for opening remarks. Thank you, and over to you. Ayushi Gupta: Thank you. Good evening, ladies and gentlemen. I welcome you to the Q1 FY '27 Earnings Conference Call of Tips Music Limited. To discuss this quarter's performance, we have from the management, Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish Taurani, Executive Director; and Mr. Sushant Dalmia, Chief Financial Officer. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to the management for their opening remarks, and then we can open the floor for the Q&A. Thank you, and over to you, sir. Kumar Taurani: Good evening, everyone, and welcome to Tips Music Limited's Q1 FY '27 Earnings Call. Thank you for joining us today and for your continued trust in the company. Our catalog and new releases are doing very well. As a result, our growth as well as engagement has improved across all the platforms. Your company has announced a separate Board meeting to consider buyback of shares on 5th August 2026. As stated earlier, we remain committed to distribute last year's PAT that is INR217 crores this year in form of dividend and buyback. With that, I would now like to invite Girish to share his perspective on the quarter. Over to you, Girish. Girish Taurani: Thank you, Kumarji. Good evening, everyone. I'm pleased to share that we delivered a strong quarter with healthy contributions, both digital and non-digital segments. During Q1 FY '27, we released 73 songs, including 55 film songs and 18 non-film songs. Our key releases, "Hai Jawani Toh Ishq Hona Hai" and "Main Vaapas Aaunga" received an encouraging response from the audiences. The album "Hai Jawani Toh Ishq Hona Hai" crossed 186 million views on YouTube, while its most popular track, "Chunnari Chunnari - Let's Go," crossed 70 million views. Similarly, the music album "Main Vaapas Aaunga", achieved nearly 100 million YouTube views with female versions of "Tere Paas Mein" witnessing strong traction on Spotify. "Tere Liye" from the movie "Prince" secured a position among the top 10 songs on Spotify's daily charts, highlighting the enduring appeal of our music library and its catalog. Further strengthening our digital footprint, our cumulative YouTube subscriber base increased to 158.3 million, reflecting sustained audience engagement and the growing reach of our content across platforms. Page 2 of 13 Tips Music Limited July 22, 2026 I will now be handing over the call to Sushant to take you through the financial performance in detail. Thank you, everybody. Sushant Dalmia: Thanks, Girish, and welcome, everyone, to the Q1 FY '27 earnings call. I'm pleased to present the key financial highlights for the quarter. Revenue for Q1 FY '27 stood at INR106.51 crores, reflecting a 21% Y-o-Y growth. Content costs increased by 90% Y-o-Y, driven by our new releases. Please note that as per our conservative accounting policy, we have expensed the entire content cost of the new releases in this quarter, while the corresponding revenue started coming from mid-month of May only. Profit after tax amounted to INR43.89 crores, reporting a 4% degrowth compared to Q1 FY '26. With this, I conclude my opening remarks and open the floor for Q&A. Moderator: Thank you very much. The first question is from the line of Akshay Kolekar from Dalal & Broacha. Please go ahead. Akshay Kolekar: So, my question is on, basically, the content cost. For the last quarter, you are saying that INR80 crores to INR90 crores of content we have acquired for the whole year. But we see that on this quarter, like Q1, your total content cost is around INR40 crores. So is there any increase in the content cost in going onward next quarters? Or do we still maintain the INR80 crores - INR90 crores of content cost? Kumar Taurani: Sushant? Sushant Dalmia: Akshay, the overall content budget for the year would be in that range of INR90 crores to INR100 crores, reflecting our continued commitment to build a strong content library. We have a robust new release pipeline also for the year. That includes music from Balaji Telefilms, music from Tips Films and other regional and non-film music releases also. And we are also pleased to report that the content released in Q1 has performed exceptionally well, reinforcing our confidence in the strength of this pipeline. Akshay Kolekar: Okay. Got it. And my second question is on basically, as we see that the paid music subscription has been continually growing in India. So, do you expect that subscription revenue becomes a larger contribution than advertising-led revenue,likewhat will be the mix over a 3 to 5 years horizon? Like how much is for subscription-based and advertisement-based revenue? And could you give a percentage-wise for this quarter also, how much is for subscription-based revenue and advertisement-led? Sushant Dalmia: Akshay, subscription-based revenue across platforms on an average is currently,10% to 15%. But if you see globally, subscription is the main driver, more than 50% of the revenue comes from subscription. In India also, we see that percentage moving ahead over the next 3 to 5 years. And most of the platforms, be it Spotify, YouTube or other platforms, they are pushing more towards subscription. So going ahead, we see a healthy growth and the paid subscribers are also growing in the range of 40% to 50% CAGR. Page 3 of 13 Tips Music Limited July 22, 2026 Akshay Kolekar: Okay. And my question is on basically EBITDA margin. Like if you check historically also, so we have maintained around 65% to 70% of EBITDA margin, on a normalized level for a full year. So like due to a larger portion of content cost this year around 40%, we have EBITDA margin. So this EBITDA margin do we expect any structurally lower margin in the next quarter or going forward? Or it will be in a range around 65% to 70%? Sushant Dalmia: For EBITDA margin, you have to look on an annual basis. Quarterly, there could be aberrations due to content [Showing first 8,000 characters — download PDF for full document]