Saregama Q3 FY26: Ad expenses sees 9% rise YoY to Rs 23 crore

Saregama India Ltd reported a weak performance in the third quarter of FY26, with both revenue and profit declining year-on-year.

The music and entertainment company posted a 17.7% year-on-year drop in net profit to Rs 51.24 crore for the quarter ended December 31, 2025, compared with Rs 62.34 crore in the same period last fiscal.

Revenue from operations fell sharply to Rs 260 crore in Q3 FY26, from Rs 483 crore in Q3 FY25, weighed down primarily by a steep decline in events and video revenues.

Music revenue, however, remained resilient, rising 10.4% year-on-year to Rs 179 crore during the quarter, driven by Dhurandhar's box office success. The artist management segment more than doubled, reporting a 118% jump to Rs 39 crore. In contrast, video revenue declined to Rs 18.7 crore, from Rs 24 crore a year earlier.

The sharpest contraction was seen in the events business, where revenue plunged to Rs 22 crore in Q3 FY26, from Rs 278 crore in the corresponding quarter last year.

The company’s total income stood at Rs 267 crore for the quarter.

The revenue decline was accompanied by a significant reduction in costs. Total expenses were cut by 53.8% year-on-year to Rs 191 crore, compared with Rs 414 crore in Q3 FY25. Operational costs dropped 74.2% to Rs 80 crore, from Rs 311 crore a year earlier.

However, advertising and sales promotion expenses increased 9% year-on-year, with spending rising to Rs 22.9 crore, from Rs 21 crore in Q3 FY25.

Royalty expenses declined 3.7% to Rs 17 crore during the quarter.