Tips Music doubles down on promotion, advertising costs jump 87% in Q2

Music label Tips Industries Ltd on Wednesday reported a 10.4% year-on-year (YoY) rise in net profit at Rs 53.1 crore for the second quarter of FY26, compared to Rs 48.1 crore in the same period last year.

The company’s revenue grew 11% YoY to Rs 89.22 crore in the September 2025 quarter, up from Rs 80.6 crore in Q2 FY25, driven by continued demand for music streaming and content licensing.

Over the last 10 quarters, Tips Music’s cumulative revenue has reached Rs 729.6 crore, while total profit has climbed to Rs 392.3 crore, reflecting sustained growth in its digital content business.

TIPS Music reports 19% YoY revenue growth in Q1FY26; crosses 125 million YouTube subscribers

Operating performance also remained robust, with EBITDA rising 14% to Rs 67.8 crore in Q2 FY26, compared to Rs 59.5 crore in Q2 FY25. The company’s EBITDA margin expanded 220 basis points (bps) to 76%, up from 73.8% a year earlier.

Advertising expenses saw a notable jump of 87.5%, increasing to Rs 6 crore in the September quarter from Rs 3.2 crore in the corresponding period last year, indicating higher promotional activity and digital visibility investments.

Tips Music's adex rises 69%; music revenue accounted for Rs 310 crore in FY25

India’s digital advertising industry continues to expand rapidly, touching Rs 49,251 crore in 2024, up from Rs 40,685 crore in 2023, and is expected to grow at a 19% compound annual growth rate (CAGR). The largest share of digital ad spending comes from social media (29%), followed by online video (28%), with both segments projected to grow at over 20% CAGR through 2026 — a trend benefiting content-driven companies like Tips Music.