Saregama India Limited (NSE: SAREGAMA) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Pranav Kshatriya — Moderator
Vikram Mehra — Managing Director, Executive Director
Vikram Mehra — Managing Director, Executive Director
Pankaj Chaturvedi — Chief Financial Officer
Analysts:
Unidentified Participant
Harssh K Shah — Analyst
Lokesh Manik — Analyst
Govindarajan Chellappa — Analyst
Anand Bhaskaran — Analyst
Ravi Naredi — Analyst
Pallavi Deshpande — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Saregama India Unlimited Q1 and FY26 earnings conference call hosted by MK Global Financial Services Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Kshatriya from MK Global Financial Services Ltd. Thank you. And over to you sir.
Pranav Kshatriya — Moderator
Thank you. Good morning everyone. I would like to welcome the management and thank them for this opportunity we have with us today. Mr. Vikram Mehra, Managing Director, Mr. Pankaj Chaturvedi, CFO Mr. Anand Kumar, Group Head Investor Relations and Mr. Pankaj Khedia, Executive Director Investor Relations. I shall now hand over the call to the management for their opening remarks. Thank you. And over to you guys.
Vikram Mehra — Managing Director, Executive Director
Good morning to all of you people. This quarter saw operating revenue of 206 crore and a PBT of 51 crore. This specific quarter was affected by by multiple factors. Primarily being a lot of movies that were planned for skit or quarter one actually got postponed. As always I’ll request all of you to evaluate us on a rolling 12 month basis and please not on a quarter by quarter basis. Let’s start with the first vertical music which comprises of licensing and artist management. The segment grew by 12% on a year on year basis we are confident of achieving 22% to 23% annual growth on a medium term basis under the music vertical.
We have been maintaining that position in the past and we continue maintaining this position this quarter for release of successful Tamil film albums Thug Life with two of the songs topping Spotify charts. This is a Kamala Hassan and AR Rahman and Mani Ratnam movie. Two Telugu songs from Film Court and Hit 3 also fared very well and topped Telugu Spotify charts. Similarly songs from the Bengali film Dhoom Ketu have been hitting YouTube charts. Our other big release was Jacqueline and Neil Nitin Mukesh Starer digital music show called Hai Junoon which came on JIO Hotstar. This had a great combination.
A lot of new original songs as well as recreations of some of the biggest songs that Saregama owns. On the non film side we continue our focus and release lot of songs but primarily of our own exclusive artists like Mahi Keshav, Gujarati superstar Jignesh Barod. Overall, Kamdi released 1000 plus original and premium recreations across Hindi, Bhojpuri, Gujarati, Tamil, Telugu, Malayaram, Marathi and Bengali languages. I think a big highlight which is more of July, but I want to share with you something we are very very happy and proud about is the acquisition of the biggest and the most popular Haryanvi music catalog under the company named Nav Records with 6,500 tracks across Haryanavi, Punjabi, Ghazal, Devotional and Indie Pop.
Some of the songs here have a YouTube viewership which is higher than even the biggest songs that Saregama owns and Haryanavi always used to be an area where Saregama didn’t have strength so it helped us in filling that gap beautifully. This acquisition also includes popular YouTube channels like Nav, Haryanvi, Nupur Audio with an overall 24 million subscriber base, this deal will be funded entirely through our QIP monies. We are still in the process to operationalize it and I expect that revenues will start flowing through our book from quarter three onwards. Overall our spend for the new content for this year will be somewhere between 350 to 380 crore.
But most of our big releases are scheduled at this juncture between Q3 and Q4. This includes Ranveer Singh’s Dhukrander, Sanjalila, Banchali’s Love and War, Dharma’s movie which is a Kartik Aryan Sara Meht era 2 Meri Tu Mera Materi, Telugu superstar Nani’s Paradise, Tamil ultimate hero Dhanush Idli Kadai, Kannada superstar Darshan’s Devil and Tamil also Shivakartiken’s Parashakti. With all these investments that we people are doing we continue with the guidance of a five year payback period and after that we have another 55 to 75 years in front of us to keep on reaping in the returns.
This quarter which is April to June was the second quarter which faced the dire pressure of Airtel wing closing around November last year they were the last people who had to shut down or moving from free to pay. This cycle should get over by the time we people add in the Q3. Amid of Q3. On the YouTube side quarter one saw some pressure due to advertising stopping primarily during the Indo Pakistan war but it normalized by early June. As stated earlier, I think the biggest impact was on account of a lot of movies getting pushed to the later quarters.
Unlike last year where Q1 saw our biggest releases of the year we had Taba Thoba song hitting out there in Q1 we had chamquila which was a massive movie and that had hit us in quarter one and Kalki which is Prabhas movie in Telugu and Amitabh Bachchan was also starred in that. All that had hit in Q1. Suddenly when you do a Q1 to quarter one these kind of issues keep on happening. That’s why I keep on requesting and urging all of you guys please see us on a rolling 12 month basis. You get a far better picture.
Artist Management the newest vertical under music monetization wherein artists are made popular through IP releases and then we monetize these artists by booking them for live events, weddings and brand endorsements from which Saregama gets a share. During this quarter 25 odd new influencers and artists were added. Taking a total count of the artists that we are managing in the company to 230 and between these 230 artists we have they have a 200 million follower base on Instagram and YouTube. The artist that we are super proud of who became part of the family was Dr. Kumar Vishwas, our poet.
Right now of ultimate fame. As our investment in new content goes these artists are going to become bigger and bigger. And we believe that with digital advertising growing at 15% per annum, the biggest beneficiary of these will be the artists and influencers. And as the number one agency that is representing these artists and helping them grow, we stand to benefit in a short to medium run. On the video front this was a softer quarter. We had only one Malayalam release in which we incurred a small loss. Also had a digital series Find the Falvi once again with our own artist called RJ Karishma.
The series came on Jiohotstar on a full year basis. We are confident that this video vertical will also result into profits. On live event side, Sarigama Live successfully launched the capmania tour in 2025 with Himesh Rishumya. It started with the first event happening in Bombay in Q1 and this was followed up by two hopeful shows that we did in the month of July in Delhi. As always whenever you start a new tour the first one or two events end up losing money. We are still trying to go out there and establish the show and the marketing spends are disproportionately high right now at the beginning of it but we believe as the show keeps on progressing and similar will be the theme of Capmania.
We plan to take it to multiple cities and maybe outside India too. Everything like the Dilji dosage part, we expect this tour also with time to start becoming more and more profitable. The other show that we did right now was a stand up comedy act that we are doing with our own artist Viraj Kilani under the name Datsu Viraj. We had successful shows in financial year 25 and we followed it up with four additional performances in Bombay and Gujarat during Q1. Our new retail strategy for Carva has been fully rolled out whereby we are retailing it primarily from E commerce and modern trade stores.
The team size has been cut dramatically from 150 to under 20 now. While the volumes and revenues have shrunk, the profitability margins have started improving and we expect by the time we hit the end of the year we should be writing mid single digit margins on Karma which is back to the old good old days. Over the next few years we will continue investing in new music content aggressively. This will not only contribute to the immediate growth numbers of the company but more importantly future proof the company by putting it on a long term growth path.
Amongst all this we are maintaining at the company level. Our adjusted EBITDA guidance was 32 to 33%. Arigama’s growth narrative will continue to be steady in the medium to long term Curtsy the massive increase in the digital consumption of this country both in terms of new customers coming into the market and existing customers consuming more and more and we are seeing every year this trend is becoming stronger. We now have a 400 million Internet footprint. Combine that with our cash reserves, professional management debt and access to the soundtracks of the best movies, we believe that we will not only be able to maintain our earning guidance for next two to three years, but hopefully for the next 20 to 30 years.
Thank you ladies and gentlemen. Happy to take questions now.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Harsh Kesha from Dalal and Rohra. Please go ahead.
Harssh K Shah
Yeah, thanks for the opportunity. A few questions for my side. So firstly if you could, you know. Kind of help us understand what challenges are headwinds the overall industry is kind of facing other than, you know, certain music apps, you know, kind of shutting shop. So basically my question is coming from the point of view of YouTube. So I, I acknowledge that you mentioned that Q1 had some challenges. But in general are we seeing say a lower ad spends or lower number of advertisement run on music videos which you know, kind of impacts your monetization or you know, is it something extremely temporary? Some thoughts on that?
Vikram Mehra
Yeah. So we are not seeing any headwinds right now on YouTube. What happened in the month of May happened not just on YouTube but across every media. When the country is in that situation right now, you typically have advertising that stops on a temporary basis. I think it’s very expected. And these things don’t happen regularly. Typically. Q1 is typically weaker for YouTube typically because most of the advertising goes through television behind IPL. That’s a Q1 phenomena. In general this year got worsened to some extent because of this problem in the month of May. But June, we have seen the numbers coming back and if you see the views data in the month of June is very clearly available, you can also track it all our channels combined, we are in a pretty healthy state once again.
Harssh K Shah
Got it. Okay. Yeah. Is this better?
Vikram Mehra
Yeah,
Harssh K Shah
yeah. So my question is on the video segment. So I, I, I know that you mentioned that this year we will, you know, start making profits. So you are talking about the exit run rate or on the full year we will see profits and what profits are taking. Yeah.
Vikram Mehra
So we people see video business again cannot be seen on a quarterly basis. Please see it as an annual basis. Because a lot depends on which quarter what releases are happening. Unlike our music business where we are aggressively investing and the video business will follow extremely cautious approach. That’s where we have shared our internal guidelines that at any particular time we will not be locking more than 18 of our total capital employed across the entire video and live segment business. So we approach this part very cautious. Whatever positive and negative will happen, you will see very, very low swings in the numbers as people go forward.
There are more titles coming in in the later part of the year and you will see us on the profit side by the time we need to go back and end the financial year in the video segment.
Harssh K Shah
Got it. And related questions, any specific reason why the capital employed within the video vertical has gone up by almost 25% on a year, on year basis.
Vikram Mehra
It’s just a temporary phenomena right now. By the time you go into end of Q2 Q3, the number is going to fall down once again. So if you just go back and look at the capital employed on the video segment across the last two, three years, you will see the in between swings that go back and come in when you go back and invest. But the monies may have just come out there in a week after the quarter gets ended. So please, I think the right way for you to look at right now how we are exiting the year compared to the last year.
So this is a temporary phenomena. It will all get squared out. But the key part is at no juncture will the capital deployed across the entire video segment, which is films, TV series content, video series content, short format content, all segments combined, plus live events, will ever exceed more than 18% of the total capital deployed. And we are far lower than that at the moment.
Harssh K Shah
Got it. And lastly, any update on the profitability status of the Pocket ac? And maybe if you could quantify the amount of losses we may have faced in pocket cases this quarter and when do we think in terms of profitability, we’ll kind of be positive.
Vikram Mehra
So this year I had stated this when we declared the annual results and I spoke to all of you guys in the month of May this financial year, Pocket Aces is going to turn profitable. I think we have a very fine management team out there who are doing everything right here. So our process out there is very, very clear. Rather than cutting on muscle, we are going out there and improving our revenue stream so that we end up building and further building up the extremely strong brands that we people have within Pocket Aces, Filter, Copy, Dice Media and Cloud and make it a formidable force.
But I understand your concern and give you the comfort that by the end of the year you will have Pocket Aces turning profitable.
Harssh K Shah
Got it. Thank you. That’s it from my side.
operator
Thank you. The next question comes from the line of Lokesh Manik from Vellum Capital. Please go ahead.
Vikram Mehra
Sorry, your voice is not clear.
Unidentified Speaker
Your voice is not clear.
Lokesh Manik
Yeah. Is it better now?
Vikram Mehra
Yes.
Lokesh Manik
Yeah. Good morning. My question was just continuing on the video segment. It’s been now more than eight quarters that we’ve not seen significant profitability there. Does Pocket Aces get classified under the video segment or there is a split between video and music? How do we look into this area?
Vikram Mehra
So Pocket Aces, the talent management part right now is sitting the biggest part of Pocket Aces is under video. I think that should answer your question.
Lokesh Manik
Okay, so the video is then driven by Pocket Aces. Now.
Vikram Mehra
Just give me a sec. I want to clarify out here that the loss that you’re seeing in this quarter is not an account. That is account of the only film that the people released. We had some amount of losses in that film. So we understand the video segment are still early days. For us, unlike the business right now that we have been running for 125 years now, this is still a really new business for us. That’s why we are doing a lot of experiments, but small experiments, learning from our mistakes and going up. You are never going to be seeing any dramatic losses happening on the video segment.
That much I can assure you.
Lokesh Manik
Great, Great. My second question was more a clarification. Do we on a per stream basis do we make more in YouTube versus audio platforms? That was the understanding we got from some channel checks.
Vikram Mehra
I will not be able because this is not getting into specific deals that I have with YouTube versus the deal I put some of the streams.
Lokesh Manik
No, I don’t need the number, just if it is higher or lower.
Vikram Mehra
Again, I’ll give a very circuitous answer. A lot depends right now on the kind of content we are putting up. Yes, there are cases at times right now where you do end up making little higher. But there are also equal number of cases where YouTube is far lower than what you make from streaming. See, the big difference in YouTube philosophically is that what percentage of your total views are coming from European and the American world? Because the number of views a music video get from those markets we get a share of advertising that is either in dollars or euros or pounds and the advantage that one ends up getting.
So there are languages and specific kind of videos which do very well out there in YouTube. Well, there are other languages which are primarily spoken by people in India and you don’t have too many Indian origin people of that language sharing outside. So internally we have a very clear benchmark that people work with for every language and within the language or genre of music that we are creating that what is the profile of that across each of the partner platforms that we work with? It’s not just YouTube, it’s YouTube versus Apple versus Spotify versus Starvan versus Ghana versus Amazon.
Lokesh Manik
I’ll just tell you where I’m coming from is more from the distribution network that we are creating. It shouldn’t be the case that, you know, we create this distribution network and when the audience comes back to us to listen to the music, it comes through a platform that is giving us a lower realization versus a platform which is giving us a higher realization. That was my only clarification. I needed that the case happening.
Vikram Mehra
I will not talk about specific platform, but I can tell you all the platforms of our whether it’s a video streaming platforms or the audio streaming platforms are making started making a few strong effort to take their customers towards paid subscription so if you see whether you watch Spotify or all of them started making an effort right now to move people behind the paid wall. So I like to believe that the revenue yield is going to start going up on each of these platforms and it’s not going to remain specific to only one or two platforms.
A little bit of a concern for us are the short format apps that are there in the country right now, which are still there on a fixed fee for all of us. We believe with time, maybe on a medium term basis that should open up and we should start getting a share of advertising there. But that’s a very different line of business. But on the audio video side, I think paid economy is shorted getting into both of them.
Lokesh Manik
Okay. And in the short format, they were not able to compensate for the loss that we have seen from minimum guarantees from these platforms which are shut down. They would be too small today. Is that a fair assessment?
Vikram Mehra
Short format was there when these free platforms with minimum guarantees were there. The short format is not a new phenomenon. You have primarily two big international apps in India, which is Instagram Reels and YouTube shorts. Some of the local guys who jumped into it, they have started going slow. But these guys have been there right now for last five, six years. We believe that a big breakout may happen in the short form at apps when like some other international short format app, these two also start sharing a part of their advertising revenue with the content creators.
YouTube has already started doing that in the non music category. We believe it will eventually come to music also. But I am going to put my bets on a short to medium term there. I am not putting my bet on an immediate basis that it will happen.
Lokesh Manik
Fair enough. And the advertising budget that we see in the industry, that is, you know, sort of at the macro level, if you see it is fixed now for that budget, you know, there are different forms of content that are competing. Do you see music as a, you know, seeing a threat in the form of a content from different forms of content that are emerging, which is, you know, playing down the growth in the music industry at 10% versus, you know, digital advertising group like you mentioned, at 15%.
Vikram Mehra
You know, in a way music has an unfair advantage out here because the money that when you consume content on any digital media, what are you consuming? Consuming music video, I understand, or listening to a song which is hardcore music. But every time you watch a digital series, there’s a high probability that a song somewhere has been added to that. It may be as simple as a telephone ringing and the ringtone of the telephone being tawba tawba or it may be somebody humming me, it’s part of the video series itself or a new or even if somebody is walking right now and songs are going on in every case we people end up generating revenue.
So we like to believe right now that as more and more people jump to into the digital band wagon and start consuming more content, we will get a larger and larger share of the advertising revenue. And as India moves from advertising to a paid economy which has happened in every other part of the world and has started happening out there on the video OTT side and before that happened with digital cable and the DTF side we believe right now that in times to come this share of this value of the kitty will keep on going up.
And that’s the reason as a company we’re investing so heavily in content because we believe we will be able to monetize a lot in on a short term basis itself.
Lokesh Manik
I’ll come back in the queue for more queries. Thank you.
operator
Thank you. The next question comes from the line of Govind Rajan Chelappa from csim. Please go ahead.
Govindarajan Chellappa
Yeah, hi. Hi. Thanks for the opportunity. Couple of questions. First, we’ve been talking about the shift to subscribers in the music space for the last two years now relative to. What you had expected. How has been the pace of the shift? Just looking from the numbers, it doesn’t look like it’s moved as fast as you would have anticipated two years back. And if that’s the case, what is holding it back?
Vikram Mehra
Govind, what’s happening is the numbers are a misleading part because when you look at the absolute numbers you are seeing numbers not growing that steeply because the free business minimum guarantees are all going away for all of us. So while the paid economy is taking up, remember in the last three to four last what, 30 months we have wings shutting down, we have reso which is a bytedance big part right now that shutting down in the country, Hungama shutting down in the country Ghana going right now completely from free to pay economy and hence all of us have taken out our MGS.
4 platforms in India have shut down and in spite of that companies like Saragama are still showing growth. I will not be able to show growth unless there was genuine revenue coming up. Actually subscription has started showing its head. A year back I remember somebody asking me and I said I’m seeing green shoots now. Those green shoots are actually becoming, becoming like saplings and we believe, give it another 4, 6/4 you will see right now subscription becoming the primary way in which people consume content.
Govindarajan Chellappa
I mean if you can give some numbers at the industry level, what proportion of, let’s say consumers are now paid OTT plus YouTube together or just.
Vikram Mehra
Well, I’ll urge right now it’s wrong on my part to give numbers on the industry part. There are various industry reports that you can go back and look at but you need to, I think just empirically, once again think of what I shared with you. Out of these, what eight platforms that they were in India, four platforms have shut down. In spite of that, companies like Saragama are growing in revenue. I can’t grow unless streaming business is also growing along with it. Streaming is a large part of whatever revenue that we people make. Will give you the comfort that yes, some of the free business has shifted from these four shutdown platforms to the other two platforms which is Spotify and Savant.
But the larger number we people are seeing growth rate coming is from the subscription side.
Govindarajan Chellappa
My second question is on videos. I mean I know the amounts are small, but it does take a lot of management time bandwidth in running a business like this. We’ve been doing this for the last many years from 2000, mid-2010. At what point do you take a. Call that it is working or not? It’s no longer an experiment, right?
Vikram Mehra
It’s been a fairly long listen. What is the video part? The series business that we people run right now actually is an auto Mode. Not even 2010. We have been doing it from year 2000 onwards. Right now when we made series for Sun TV. That business is a well oiled machine that just keeps on running. We run two to three series in a year. Most of them go to anything between 3,000 episodes to 4,000 episodes at a time. So they just run on their own. And that’s the power. When you have strong enough number two and number three levels built into the company, I can assure you and you can one day just come out there and monitor my time or the senior management management’s time.
Less time goes out there in the series business. Yes, the short format content business that we people run under filter Copy, which is a relatively new vertical within the company once again that churns out at that fast pace that the amount of management time that’s going in it right now is relatively limited. We inherently believe that there is potential on the video side from both perspectives. Video is video on its own. The consumption is going up and we don’t want a situation where we don’t have a play on the video side at all most international levels and all of my competitors in India have a video play also going on.
Second video also becomes a great source to get brand new music and also to monetize our existing music or promote existing music by pushing that music as part of the video assets that are going out. Again, let me take example of Filter Copy. One of the amazing part that the Filter Copy management team and the music team out here have done together is to ensure that the millions of views which are getting generated on Filter Copy content, almost all of them have some old song of sare drama which gets placed. What it does is to build fresh recall for the older content of ours and we see immediately a causal effect relationship getting build that people listen to that content on a Filter Copy video and then go to Spotify or YouTube or a Savon or an Apple and add that song as part of the playlist.
So we believe there is a strategic play right now that we people have right now on the video site. We were never into big budget Hindi films and on our own we have no plans right now within Saregama as a company to go into these big budget Hindi films. We will remain wherever the budgets are under control, the actors are ready to come on the back ended side so that the risk that we people end up taking is on a relatively lower side.
Govindarajan Chellappa
And last question was on working capital. There’s almost a 210crore increase in working capital during the quarter and it’s across all items. I mean inventory has gone up a lot, receivables have gone up and payables have fallen. I know there is some quarterly fluctuation but this just does seem to be a lot more than what you normally see from one quarter to another. Any particular reason for that?
Pankaj Chaturvedi
Hi, Govind Pankat this side. I’ll just take sides. So as you rightly mentioned in your question, there are quarterly patterns on this working capital side. If you just pick up even past numbers, you’ll see quarter two at times will be completely different to quarter one. So that is one answer to your question. Secondly, as we said on the film side, on the video side there are some very exciting projects that are lined up. We have made some investments over there that’s also sitting part of in our inventory, the investments made over there. Hence you see the jump in the inventory and the receivables.
But as we move forward, when you see Q2, Q3, a lot of these things will get normalized.
Govindarajan Chellappa
Okay. Okay.
operator
Thank you. Before we move towards the next question, we would like to remind participants you may press star and one to ask a question. The next question comes from the line of Anand Bhaskaran from SEMA Private Limited. Please go ahead.
Anand Bhaskaran
Yeah, good morning. Can you hear me?
Vikram Mehra
Yes, please.
operator
Yes sir.
Anand Bhaskaran
Yeah, I just want to know that. The. I just want to know your clear indication of the way things are going in the segment revenue side like right now, I guess music is contributing on. 69% and artists manage on 11, video on 17. So I just want to know overall breakup, what you see going forward for FY26 and FY27, what would be the main driver for the revenue out of these four segments?
Pankaj Chaturvedi
So for us out of these segments right now, we have shared our revenue growth projections on a short to medium term basis. The music business which is licensing plus artist management, that’s a music business within Saragama that should be growing at 22 to 23% CAGR on a short to medium term basis. The video business is expected to be along the lines of more 25% on a medium term basis. Our EBITDA guidelines are 32 to 33%.
Anand Bhaskaran
Okay. Okay. That’s all the question I have right now.
Vikram Mehra
Thank you.
operator
Thank you. The next question comes from the line of Ravi Naredi from Narendi Investment. Please go ahead.
Ravi Naredi
Thank you. Vikram D. How are you?
Vikram Mehra
All good sir. [Foreign Speech]
Ravi Naredi
So nice. Sir, you mentioned few big players like Google used our song in their advertisement. How much revenue we earned? Whether it is more than 5 crore in a year.
Vikram Mehra
The money that we people make from brands using their ads or music is substantial enough. I will not be in a position to give you a number number here. It’s very competitively sensitive data. We compete with other people also. But it’s a substantial enough part. In fact they have a dedicated team that just looks after that.
Vikram Mehra
No problem. Sir. Nowadays how it content cost you find? Because lot of Bodywood movies are lesser. So are you finding difficult to acquire content cost at comparatively low rates?
Vikram Mehra
Sure is. The content cost keeps on moving up and down at times between various languages. I think what will give you comfort is all of us starting from me to everybody down. The first criteria on which our performance is evaluated Within Saregama is 5 year payback period for all the content we acquired during the year. Even if it comes, the market share falls. Review numbers can move here and there. This criteria of 5 year payback period can never move. So whatever we people do in terms of content acquisition, we do keeping in mind that we don’t end up overpaying.
Otherwise we will not be able to satisfy this five year payback period. We have seen in some of the languages where some albums did very very well. The prices went up substantially. It happened in couple of South Indian languages. Companies like ours and even one of our competitors have just pulled back saying right now we will not invest at these kind of prices that are there in the market. So you are aware sir that we have been sitting on some of the QIP money for some time. And however tempting it may be to go out there and acquire content at any price, as a management team at Saragama we are very conscious of the fact that even if it comes at the cost of market share we will not invest in in content if we believe that it’s overpriced.
And we will not be able to live up to five years. Okay.
Ravi Naredi
Okay. And sir, had you been valued our. Library of song, of film or other films. We have made any barometer to evaluate this valuation.
Vikram Mehra
I’m not very clear about your question.
Ravi Naredi
We have so many songs like your. 1 lakh 50,000 or films which we. Have made any barometer to value this content.
Vikram Mehra
So we have not done a valuation exercise. Of all the IP that three people own. We have what lakh in a 75,000 songs. We have some 75 plus if I remember new movies, we have some 171800 hours of 3000 hours. 3000 hours of TV content IP that we people own. And we have of lots, lots of content that we own in pocket. We charge off everything. We have never done a valuation exercise.
Unidentified Speaker
Ravi, just a question. I mean just to understand why there’s a question coming up. Is there any kind of thought process behind this question?
Ravi Naredi
One thing is there in our mind. What is the valuation of our company? It is almost 10,000 crore. So I would like to find whether our content cost is more than 10,000 crore or lesser. That is in my mind. I am very novice in this music industry. So just asking you whether any barometer is there to evaluate.
Vikram Mehra
That is my point. The internal exercise has not been carried out. Okay. Okay.
Ravi Naredi
And NASA, almost 700 crore we will spend on content cost in financial year 2627 thereafter what will be our plan?
Vikram Mehra
So we have been stating that we want to get acquired 25 to 30% of all new content that comes out. We believe that with this 700 crore we will reach that level. At this moment we have no intent to increase our market share of new content beyond 30%. Let’s see how well we people fare over the next 18 months. And we will then share with you. But standing Today I think we are comfortable with the kind of market share that we people are getting at this moment. For us the good part is that not only we are getting content, we are our hit ratio to flop ratio is the best in the market today because we’re using data to decide what content to pick up and what cost structure picks up.
So we will share with you sir, if over the next 18 months the future strategy.
Ravi Naredi
Okay. Okay. All the best, sir. Thank you. Thank you very much.
operator
Thank you. The next question comes from the line of Rahul Bicha from Multi act pms. Please go ahead.
Unidentified Participant
Yeah, Darshan here. Thanks for the opportunity. I have two questions. First one is on minimum guarantee on Spotify and Jio 7. So what we understand is Spotify and Jiosawan has done away with minimum guarantee across the music labels. So just wanted to know when that minimum guarantee was taken away by the Spotify and Jio 7 and what was the impact of it in our Q1 numbers?
Vikram Mehra
I can’t comment on specific commercial leads that we have with these two platforms. All I can say maybe your information may not be 100% accurate. But I leave it just there, sir.
Unidentified Participant
Okay. And second question is on YouTube. So YouTube has changed monetization policy towards user generated content. So has that impacted us in Q1? The growth has been impacted negatively in Q1 because of that.
Vikram Mehra
No, sir. The specific thing you’re talking about is not just a quarter old. It started happening from last year onwards and that has been fully factored in. If you see our revenues, I wouldn’t have been able to show you this kind of a revenue growth unless YouTube was also firing for us. We had very little newer content getting released in this quarter. Yes, we did a pretty decent job of making more money from our older content. And for that it’s important to both the channel revenue as well as the user generated content. Revenue should go up.
So I think we have proud of what the team has been able to do out here. We’ve been able to hold on to our revenue growth.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the line of Pallavi Deshpande from Samiksha Capital. Please go ahead.