TIPS Music Q4 results are out. YoY there is improvement, but QoQ bad. Seems they still achieved almost 30% topline and bottomline growth for FY’25 as mentioned in previous concall.
But question here is I see a significant increase in Working Capital Days compared to Mar 2024(-44 to 178). Also there is high increase in “Other Financial Assets”. Any justification for it or really a concern?
Also I observe a high volume sell today(23rd April).
Mr.Taurani says ..our total industry is around INR3,500 crores, INR4,000 crores in that range.
Few excerpts from concall transcript..
And we have a potential to grow around INR10,000 crores in the next 4 to 5 years. Sony Music Publishing is the number one publishing house in the world with more than 31% market share control. So, they are integrated with most of the societies and collection agents. So, with us adding the YouTube into their kitty, we feel that our publishing revenues will drastically increase because we were not able to reach to a certain society, they will reach out.
Also, Sony Music Publishing has a better, , rates or negotiated rates with the global societies than what we could do ourselves. So I feel overall, we’ll have a good increase in the publishing revenues.
success ratio is only 10%, 15%. So, we are INR1,000 crores industry, maybe success ratio is around INR150 crores, INR200 crores. So, we want to just focus on that amount as we want to have a maximum good titles from that category.
If we succeeded for 60%, 70% in acquiring those content, it will be enough for us. So if we be greedy and we go more than 30% or 25%, 28%, than there will be higher chance of getting a bad products and higher chance of doing many flops. So we are very, very cautious and very careful. And we feel the number is absolutely correct. INR100 crores is a big money. We can get a really good content India is a great market to be in for music Worldwide total streaming volume reached approximately 7.1 trillion in 2023.
During that time, the USA alone accounted for 1.45 trillion streams. In 2022, India recorded 0.6 trillion streams, and in 2023, India’s contribution to the global total music streaming volume was 1 trillion.
Tips has been a consistently great company, they have after a lot of time dropped quarterly growth to 20% from 30%. Even then they grew 30% YoY. Stock market returns haven’t been linear ofcourse. I remain invested and have been adding around the cmp levels. The business is one of the best - easy to understand for someone amateur like me, great fundamentals, consistent high growth, positive outlook and good terminal value.
After reading latest concall script and also according to previous quarter, I feel concern about revised growth guidance. New content addition is lowered. Due to paywall structure, there is impact in almost everywhere in You tube, Spotify. To get momentum back, Tips will need new platforms & new strategies otherwise there will be constant 20% growth which is not bad at all. Didn’t like management reducing stake by almost 10% in last 3 years although its transferred to institutions. Management is not that much hungry as in previous years.
Good business, good fundamentals but only growth expectations have concern.
Disclosure Invested but looking for better growth opportunities.
Q2FY26 concall transcript released: https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=0c4262c4-444a-4a96-ab6b-14e591355288.pdf
The management has revised guidance downward from 30% to 20%. They reiterated content costs to be 25% of revenue meaning down the line the budget for content would be constrained from earlier. Emphasis on quality over quantity is there again for acquisition. As @AbhijeetSakhare mentions, they need to explore other strategies for growth (maybe flat fee to rev share for shorts videos could help).
Disc: At the moment, this goes into the Wait bucket for me as I am not already invested.
As per the latest conference call, the next two quarters are expected to be better, and the company is guiding for 25% growth in next quarters to achieve overall 20% yearly growth. The YouTube Shorts renewal is due in June 2026, which may boost topline & bottom line.
I also checked the competitor’s conference call transcript, and there was industry-wide pressure observed in Q1.
I noticed that Tips is not being aggressive in acquiring new content, possibly because they don’t want to pay high prices, which I feel is a good business strategy.
I strongly feel that 20% growth is quite reasonable.
Disclosure: I am invested in the company and may have a biased view.
KumarTaurani: I feel the industry can grow, industry can become in the next five years, around INR10,000 crores to INR12,000 crores industry can happen and should do because of this three major things are there. One is that subscription. Second is short content, Instagram Reels, TikTok. TikTok will come back and this YouTube Shorts, they will do some profit sharing, some revenue sharing with us, they will also start a model where advertisers can advertise.
So I think industry can be INR15,000 crores also. So if we have around 7%, 8% share, so you can estimate what can be our business, we can achieve easily INR7,000 crores, INR8,000 crores, not a big deal.
can someone explain this above part .. which industry he speaks of ? Does its Artist Management.
We can conclude his statement as company can grow by 2-3 times in next 5 years.
I think the Company as well as the Sector are not lucrative. Below are my personal observations.
Reliance on Past Glory (90s):
Company is heavily reliant on its collection primarily, 90s hits. In fact, its entire youtube, instagram, website, and other platforms are filled with so-called new content being 90s playlist, re-releases, remixes, etc.
The new content appears to be relatively pale in popularity and smaller in terms of quantity.
90s are over since 2.5 decades now. Generations that enjoyed 90s music is now in their 40s and 50s. They are busy with their businesses, learnings and upskilling, spirituality, etc. Their music taste too has expanded to international music, bhajans, instrumental, etc. Further, instead of music, time and attention are taken by podcasts, audiobooks, etc. Post-millennials, Gen Z being the first fully “digitally native” generation, have a completely different taste in music. Further, on the audio front, time and attention are divided into music, podcasts, audiobooks, learnings, etc. All in all, 90s music, just like everything else will phase out with time. In fact, it has phased out. But Company management appears to be in denial and cut off from reality. Company’s reliance on its past glory is a huge cause of concern when other entities in music industry, like Spotify, are updating their library with newer content including podcasts, etc.
As a sector, I do not find it investable right now. I feel that Indian music’s share in Indian people’s lives has declined.
Indian Music Share Decline in Indian Public’s Lives:
I. Pervasiveness of Indian Music (Drastic Decline Due to Music Copyright- Double-Edged Sword):
Prior to music copyright being enforced (in recent years), Indian music and songs were pervasive in India. Music would be played in establishments like restaurants, showrooms, etc in the background, during every public gathering (small and big), weddings, college festivals, festivals like Ganpati, Diwali, Navratri, etc.
Even on TV, songs would often get revived and popular due to being played on shows like Kapil Sharma Show, Bigg Boss, etc. Those songs would again get a revival and be played repeatedly on Youtube, etc.
However, with strict copyright enforcement, royalty / license fee have to be paid for song / music being played. This applies to lounges, hotels, pubs, banquet halls and even wedding venues. As a result, most establishments like restaurants, etc have stopped playing music. Shows like Bigg Boss have replaced morning movie songs with their own compositions which are not that popular. On Youtube videos, shorts of Kapil Sharma show, movie songs are muted. Music is only purchased when a person deems it worthy of the expense. In a developing country like India, it is often a discretionary spending and people avoid it. So, Indian public does not have the pervasive touch with music as it had earlier.
II. Exposure to Non-Indian, International Music:
Global music industry is massive. With globalization and increased international exposure, the newer generations (after Millennials) is no longer stuck to Indian music alone. International music, artists, live shows, etc have a robust and increasingly growing demand. It appears that international music growth could well outpace Indian music growth for certain demographics.
III. Sudden Availability of Non-Music Content (Indian movies, international movies and tv shows, podcasts, stand up comedy, motivational content, educational content, documentaries, educational, health, hobby, news, etc):
On the other hand, a mountain of videos such as podcasts, stand up comedy, motivational content, documentaries, educational, health, hobby, news, etc are streamed for free (ad supported) as well as for a price. Further, with education becoming more digital, side hustle becoming more popular, people becoming more aware about health, fitness, news, etc., the need for non-music videos has gone up. Many people are willing to pay for such content rather than paying for music.
Plethora of Indian movies were now available for streaming (as opposed to having to visit a theatre during its release or waiting for it to be streamed by a channel). Video players were purchased only by higher income strata unlike music audio tapes which were purchased by all economic strata. So, the backlog of unwatched movies for Indian public was way higher than that of music not listened to. That is also the reason why Netflix, etc were more popular and hooked on to when they newly entered the market as opposed to now, where they are more pervasive but not that essential. Now, even OTT Platforms are struggling and fiercely competitive as the appetite for movies and tv shows is now milder than before.
With the advent of streaming platforms like Netflix, international movies and tv shows were also accessible to Indian public. The initial popularity of OTT platforms was due to high appetite and hunger for international content which was earlier unavailable. However, even that novelty has faded. People are no longer auto-renewing their subscriptions. People are not hesitant to switch from OTT platform to another. In fact, music, OTT subscriptions, etc are the first to be cut from personal budgets.
IV. Expansion of Television:
In the recent years, television has exploded with hundreds of channels for entertainment, news, etc. Tv shows such as daily soaps, series, reality shows, social cause content, infotainment, etc are available to Indian public.
Bollywood actors hosting tv shows; singers, dancers, etc being on reality shows; and premiumisation has led to TV becoming a popular medium with social strata.
TV consumption has risen significantly with people spending hours on tv content daily. TV has eaten into music’s share.
V. Indian Public Becoming Busier with Activities Instead of Passive Music Listening:
Advent of social media has led to public creating content via reels, shorts, etc rather than simply consuming content.
Reading (kindle, etc), online classes, etc are now available with internet.
Further, internet has made knowledge available to everyone. Newer opportunities have opened up (business, education, learning, etc).
General Public is busy implementing health tips, learning new hobbies, etc rather than passively listening to music for hours (those days are long gone and likely to never come back).
Increasing income has led to spending more time and money on travel, lifestyle upgrades, shopping, fitness activities, etc rather than passive music consumption.
VI. Repeatability & Piracy versus Novelty:
Company, in its annual report, has cited that music has highest repeatability as compared to news, movies, etc.
It also appears that music companies count on “repeatability” for a significant portion of their revenue generation.
In today’s world, there is an ocean of new content being unleashed everyday- both music and non-music. So, repeatability of any form of content is likely to be significantly lower than in prior times.
Further, music has historically been more susceptible to piracy than certain non-music content.
Due to piracy, the revenue from one-time as well as repeated consumption is likely to continue to be lost.
VII. Free, Ad Revenue Based Music Not Sustainable and India Not Ready to Pay for Music:
For streaming services, the business model doesn’t permit providing free music, and this fact is well understood by both the music labels and digital service providers. Hungama, Wynk, Resso have closed down. Gaana, Spotify, JioSaavan are pushing for paid subscription.
While the push for paid subscription led to paid subscriptions growing from 8 million to 10.5 million, it reduced the overall audience from 185 million to 175 million. [India’s Music Segment- EY-FICCI Report (2025)].
With plethora of non-music content vying for Indian public’s attention, the bond of public with music has already thinned. To top that with the burden of having to pay for music has alienated a section of users.
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All in all, factors cited above has caused a decline in music’s share in Indian people’s lives.
Non-music content and other activities have eaten into music’s share in terms of time and money spent by people.
Good anti thesis pointers which holds in it’s way, though I would like to put up some personal experential pointers and away or not influenced from any reports as such -
Yeah, so tastes and preferences may gradually change but human emotions stays forever. Yeah the companies like Tips and Saregama will have to adapt these changes and I think they’re the one’s who senses early these gradual flips than we do.
The business model stays same as JIO…pehle free diya ab free ka option hi mat do. Generations after millenials will have no option but to PAY. Music is like an addcition which never subsides.
I don’t think most businesses are open to noticing and sensing changes. That’s why big companies go out of business.
I am still shocked that Tips Music is relying on “repeatability” of 90s hits. Millennials in their 40s and 50s are not going to take the company forward with no major new content being churned out by Tips Music.
With internet, there is so much new content every single moment, that the era of repeatedly listening to the same few songs for years is never likely to come back.
Listening to music passively while doing chores is possible. The same is offered by podcasts, audiobooks, etc. I am not denying that music is amazing… I am just sensing that people are busier with so many options for things to do. These options were not available to older generations.
Days of sitting and doing nothing but listening to music for hours are long gone.
Days of repeatedly listening to the same music for years are also long gone.
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People think that music / songs are no longer as good and that’s why they aren’t such big hits that they last for years. But I feel that new music / songs and even lyrics are often beautiful. However, because there is new content being churned out every moment and from all artists across the globe, no matter how good the music / song is, it fades out faster.
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There was a time when music labels decided every artist’s career. Now, all artists have a free platform on youtube, instagram, etc. So, it is not essential that all talent and all hits will come via music labels. Ton of good content is made available directly on many platforms.
While the challenges of grabbing people’s attention are real, owning a library of famous, nostalgic music is actually very profitable. Because these old songs cost very little to manage now, they keep generating steady cash flow from streaming platforms year after year. 90s songs were for longevity; modern songs are for speed.
Are we underestimating the incredible profitability and enduring cash-flow generation of owning a high-margin, nostalgic IP catalog in the digital age?
Tips needs to build new IP to ensure future relevance. I feel management must be working on the same.
Disclosure: I am invested in the company and may have a biased view.
Holding IP doesn’t mean cash flow will be generated. Labels hold IP for 70s and 80s songs, black and white movies, etc. Does that mean they generate huge cash flows? DEMAND IS THE KEY. Without Demand, IP has no power to generate revenue.
I think the decline of 90s has long begun… it’s just that 90s are so loved that everyone is in denial.
As I mentioned above, I feel that without demand, there is not much that IP alone can generate. Other than sporadic resurgence of a song here and there or being streamed for learning music by an extremely tiny section of the population, there is no steady demand for this catalogue.
It is like owning something very valuable that has not market / buyers.
90s music might not be super popular anymore, but as more people in India use streaming apps, even old songs keep earning a steady amount of money.
These songs act more like an income-producing asset than a growth asset. They don’t shoot up in value, but they give you regular, low-risk income that doesn’t depend on the stock market or the economy.
They keep that for study income and they will created new set of songs…
Once people subscribe to a channel on Youtube, they rarely unsubscribe even if they don’t watch that channel. This subscription is “FREE”. So, it’s not the best barometer.
Even for this “FREE” channel, Views are Declining.
| Particulars | Q2FY26 | Q1FY26 | Q4FY25 | Q3FY25 | Q2FY25 | Q1FY25 | Q4FY24 | Q3FY24 | Q2FY24 | Q1FY24 | Q4FY23 | Q3FY23 | Q2FY23 | Q1FY23 | Q4FY22 | Q3FY22 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarterly YouTube Views (in. Bn) | 52.00 | 56.70 | 56.70 | 52.80 | 56.60 | 62.20 | 47.80 | 47.00 | 50.90 | 48.30 | 33.60 | 31.00 | 27.30 | 20.80 | 16.40 | 15.10 |
| QoQ Change (%) | -8.3% | 0.0% | 7.4% | -6.7% | -9.0% | 30.1% | 1.7% | -7.7% | 5.4% | 43.8% | 8.4% | 13.6% | 31.3% | 26.8% | 8.6% | |
| YoY Change (%) | -8.1% | -8.8% | 18.6% | 12.3% | 11.2% | 28.8% | 42.3% | 51.6% | 86.4% | 132.2% | 104.9% | 105.3% |
See screenshot below. As of now, Tips Official Channel’s “LATEST” content is filled with rehash of 90s. Right now, it’s 2025!
Unless there is a serious revamp in strategy, this doesn’t look promising.
Music labels in India are moving upstream. Owning catalogue is no longer enough; owning content origination is becoming the real moat.
The Universal Music Group–Excel Entertainment deal makes this explicit. Universal Music India has acquired a ~30% minority stake in Excel at an ~₹2,400 crore enterprise value, but the real asset is not the equity—it is captive future music IP. All Excel-owned projects now come with global music distribution rights for UMG, with a dedicated Excel label distributed worldwide. Music monetisation is being embedded at the greenlight stage, not chased later through competitive auctions. This materially improves ROI visibility, reduces content scarcity risk, and strengthens long-term bargaining power.
The Saregama India–Bhansali Productions partnership follows the same logic. A ₹325 crore strategic investment for ~28% upfront stake (with options to scale to control) secures exclusive music rights to all future Bhansali films under a pre-agreed pricing framework. Fewer films, but high-quality, music-led, long-tail IP with strong repeat value across streaming, international licensing, and sync. Structured via CCPS, the deal protects downside while preserving equity upside—content certainty with financial optionality.
The pattern is clear. As OTTs, studios, and global labels compete for the same soundtracks, rights inflation is inevitable. Labels without captive production tie-ups will face rising acquisition costs, lower incremental returns, and volatile earnings. This likely bifurcates the industry into mega labels locking in blockbuster pipelines versus niche players focused on regional/indie discovery.
This puts Tips Music at a crossroads. Tips Films is too small to consistently originate blockbuster-grade content. With a large cash balance, the choice is binary: deploy capital into strategic production partnerships to secure future IP, or continue to return cash via dividends/buybacks and accept a niche catalogue role.
The takeaway is simple: the music business is shifting from catalogue ownership to source control. Labels that move upstream become integrated IP platforms; those that do not risk becoming price-takers. Capital allocation today will determine how Tips Music compounds from here.
Tips Music CEO Hari Nair to Step Down From India’s leading and
most loved Music Label following Digital Pivot and Revenue
Growth.
Mumbai, March 10, 2026: Tips Music Limited (BSE: 532375, NSE: TIPSMUSIC)
announced today that Chief Executive Officer Mr. Hari Nair will be stepping down
from his role effective April 30, 2026. Nair departs after successfully pivoting the
evergreen music label into a modernized and proprietary software led, data-first
digital powerhouse, delivering consistent revenue growth by securing major deals
such as Sony Music Publishing, TikTok, and renewals with Warner Music.
During his tenure, Nair sharpened the organisation into a fit-for-purpose
organization. Leveraging his tech-entertainment background from ByteDance, he
drove high accountability across the business, built a brand partnership division
from the ground up, and established a modernized proprietary software led
technological foundation.
Kumar Taurani, Chairman and Managing Director of Tips Music Ltd., commented:
“Hari is a passionate, revenue and data-driven leader. He spearheaded and built
a high-performance, data-first culture in the organisation. I thank him for his
contribution in driving our revenues, to achieve revenue targets as committed by
us to all our shareholders. I wish him the very best for the future"
Hari Nair, outgoing CEO, stated:
" Leading a publicly listed organisation like Tips Music through this strategic pivot
has been a phenomenal learning experience. The revenue growth is fundamentally
driven by the legendary Tips catalogue. I am grateful to Kumarji, Girish, and the
entire Tips Music team for their trust and support. With a robust digital foundation
and world-class systems now firmly in place, it is the right time for me to step
down, ensure a seamless handover, and look toward my next leadership
challenge."
So this is an issue got TIPS in your opinion?
