Tips Music bets on Spotify, YouTube and catalog expansion to drive 20% H2 growth

Tips Industries Chairman and Managing Director Kumar Taurani has projected a 20% growth for the second half of FY26, driven by a combination of strong music performance, monetization from platforms, and catalog expansion.

During the Q2 earning call, when asked about the roadmap to achieve this growth, Taurani said, “The growth will come from good songs, strong YouTube performance, and some smaller factors. We have also increased prices on Spotify, so that will benefit us as well.”

He explained that Spotify, which contributes around 55% of Tips’ streaming revenue, recently increased subscription prices globally --to GBP 10 in the UK, $10 in the US, AUD $10 in Australia, and SGD 10 in Singapore. “Spotify is here to do business for the next 50–100 years. They have 15 billion streams per month. If they open it up to 25 billion streams, industry growth can jump 40% immediately,” Taurani said, adding that the platform’s efforts to control free consumption are aimed at improving margins for both the company and the music labels.

On short-format video platforms, Taurani said these platforms are yet to share ad revenues with music labels. “But we are seeing a big jump in revenue because our content is performing very well on these platforms. Our catalog has been doing well over the last four to five years, and that continues to drive growth,” he added.

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Taurani also noted that music streaming platforms like Spotify and JioSaavn are pushing users towards paid subscriptions. “They are restricting free streams and encouraging paid users. That’s good for business in the long term,” he said.

On the acquisition of Studio Radha’s cultural music catalog--which includes Gujarati and Kutchi songs--CFO Sushant Dalmia said the company is in the process of digitizing the asset, which will take six to twelve months. “We’re focusing on inorganic growth, and wherever we see value, we will acquire,” Dalmia added.

CEO Hari Nair highlighted the long-term potential of devotional content. “Devotional music offers longer and better monetization than regular tracks. It’s sticky content that continues to generate steady revenue across YouTube and Spotify," Nair said.

Looking ahead, Taurani projected that India’s music industry could grow to Rs 10,000–12,000 crore in the next five years, driven by three major factors -- subscription growth, short-format platforms like Instagram Reels and YouTube Shorts, and public performance revenues.

“If TikTok returns and YouTube Shorts begins profit-sharing, industry size can even reach Rs 15,000 crore. With a 7–8% market share, Tips could easily touch Rs 700–800 crore in revenue. Public performance alone, currently a Rs 350 crore business, can grow to Rs 2,000 crore,” Taurani added.

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

Tips Industries Ltd 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. Besides, the company's 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