Tips Music Share Price: Company’s Board Shares Its Future Growth Plans, Check the Details

Synopsis: A company that produces motion pictures, songs and more has revised its PAT growth guidance by increasing it by 500 bps. In Q3FY26, this entertainment company witnessed its profit grow by 34 percent, and is also in a partnership deal with the global entertainment company Warnerbros.

A small cap company in the business of Producing and distributing motion Pictures saw its stock to be in the spotlight soon after the company revised its PAT’s growth guidance by increasing it to 25 percent. This company in context has a profit CAGR of 36 percent, while the sales CAGR is at 32 percent. With a market cap of Rs 6,964 Cr, Tips Music Ltd saw its stock hit an intraday high of Rs 552 which is 3 percent higher than the previous close of Rs 536. 

Guidance 

In the recent conference call of Tips Music Ltd the company has given specific guidance on the company’s PAT and revenue, where the company states that it has  upgraded their PAT growth guidance from the previously mentioned 20 percent to the current 25 percent for FY26. while the company expects its Revenue growth guidance to be the same around the 20 percent that was given previously for the current fiscal year.  

Additionally the company also stated that the paid subscription revenue of the company has witnessed a growth in range of 40- 50 percent YoY which makes 10 percent of their revenue. 

The growth statement is supported by strong industry tailwinds, as the company expects the market which is currently valued at Rs 3,500- 4,000 crore to expand rapidly, potentially reaching Rs 5,500- 6,000 crore in the near term and Rs 10,000 crore over 4- 5 years, they also highlighted that the company’s partnership  with Warner Bros has been going in line with the expectations.

The Q3FY26 Result and Financials

In the latest quarterly result the company saw its revenue grow by 20 percent YoY from Rs 78 Cr in Q3FY25 to Rs 94 Cr in Q3FY26, while the QoQ grew by 5.6 percent from Q2FY26’s Rs 89 Cr. The net profits grew by 34 percent YoY from Rs 44 Cr in Q3FY25 to Rs 59 Cr in Q3FY26, while the QoQ grew by 11 percent from Rs 53 Cr in Q2FY26.

On a 9 month basis, the 9MFY26 revenue grew by 17 percent from Rs 232 Cr of 9MFY25 to 9MFY26’s Rs 271 Cr. While the Net profit for the same period of time grew by 16 percent from Rs 135 Cr to Rs 157 Cr.

Moreover, the company also saw its operating profit margin increase by 700 bps from Q3FY25’s 72 percent to Q3FY26’s 79 percent. The company has a ROCE of 109 percent , while the ROE is at 83 percent.

The company has a 3 year profit CAGR of 36 percent, while the TTM number is at 16 percent. The 3 year sales CAGR is at 32 percent, while the TTM is at 18 percent. 

Industry Highlights

Monetisation of short-form content across the digital media industry is set to accelerate as Shorts consumption outpaces other formats, with over 1 trillion views recorded since 2020 and a clear shift toward advertising-led revenue models. Public performance rights are emerging as a major industry catalyst, with revenues growing at a 40- 50 percent CAGR and expected to contribute Rs 2,500- 3,000 crore over the next five years, supported by stronger IP enforcement.

At the same time, AI-driven music usage is creating new royalty streams for the industry, backed by licensing agreements with global majors such as Warner Music Group and Universal Music Group, helping safeguard creator rights and support sustainable ecosystem growth.

In CY2024, industry revenue mix was led by subscription-based audio streaming at 51 percent, followed by ad-supported streaming at 18 percent and physical media formats at 16 percent, with the balance coming from synchronisation, performance rights, downloads, and other digital formats.

The company has also declared dividend of Rs 5 per share, with the dividend payout summing upto Rs 63.9 crore for the company. Moreover the company’s total dividend payout in this fiscal year stands at Rs 166.2 crore

Tips Industries Limited, incorporated in 1975, operates in the production and distribution of motion pictures and the acquisition, management, and monetisation of music rights. The company is headquartered in Mumbai, Maharashtra, and is one of the prominent player in India’s film and music entertainment industry. 

Tips Industries Limited is an Indian music label with a global digital presence, offering content in 25+ languages. As of the latest quarter, It is debt-free with Rs 303 crore cash, strong A&R capabilities, 75 percent digital revenue, 145 million YouTube subscribers, and a unique content cost expensing model. The company has made deals with includes various big companies such as Youtube, Netflix, Tata Sky, Spotify, Facebook, Sony, Viacom, and apple music.

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