Saregama India Limited (NSE: SAREGAMA) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Vikram Mehra — Managing Director
Pankaj Mahesh Chaturvedi — Chief Financial Officer
Analysts:
Eksha Modi — Analyst
Abneesh Roy — Analyst
Swapnil Potdukhe — Analyst
Mayur Patel — Analyst
Kavish Parekh — Analyst
Harssh Shah — Analyst
Jyoti Singh — Analyst
Lokesh Manik — Analyst
Akshay Jogani — Analyst
Aman Singh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Saregama India Limited, hosted by JM Financial Institutional Securities Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
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 the conference call, please signal an operator by pressing star then zero on your touchstone phone.
I now hand the conference over to Ms Iksha Modi from JM Financial.
Eksha Modi — Analyst
Thank you, and over to you, ma’am. Thank you, Puja. Good morning, everyone, and welcome to Q4 FY ’25 earnings conference call of India Limited. First of all, I would like to thank the management of India Limited for giving us the opportunity to host this call. From the management team, we have Mr Vikram Mehra, Managing Director; Mr Pankaj, Chief Financial Officer; Mr Anand Kumar, Group Head, Investor Relations; and Mr Pankaj Kedia, Vice-President, Investor Relations.
I would now like to hand over the call to Mr Vikram Mehra for his opening remarks, post which we can open the floor for Q&A. Thank you, and over to you, sir.
Vikram Mehra — Managing Director
Thank you, and a very good morning to everyone. Financial year ’25 saw our highest annual revenue of INR1,171 crores, which is 46% growth over financial year ’24 and also our highest EBITDA of INR356 crores, which is 18% growth over financial year ’24 and a PBT of INR276 crores, which is 2% higher than last year. Our investment on content this year was INR316 crores, which was 62% higher than that of — in financial year ’24. All of this is in sync with the strategy shared with all of you guys over the last few quarters, wherein we want to future-proof our company through aggressive new IP purchase, but at the same time hedge our risk by diversifying our IP portfolio across music, live events, long-format video, short format video and management of the content creators.
The other big highlight of the year for RAF was that our digital footprint across YouTube, Instagram and Facebook grew from 239 million as of last year to 350 million during the year. That’s a massive growth right now by any yard state. Coming to the quarter, this quarter saw operating revenue of INR241 crore and a PBT of INR81.6 crores. Let me start as always with the music business, which comprises of music licensing and artist management. This vertical remained flattish on a year-on-year basis during the quarter, primarily because of shutting down.
We had no revenue coming from our platform during this quarter. But if we see the numbers on a full-year basis, revenues grew by close to 13%, which is lower than the previous year. But the big area of decline was primarily on account of closure of Wink and movement of closure of Wink, movement of Ghana and Hangama from a free service to a fully paid service. But the good news was that this fall was countered by increase in revenue coming from paid subscription and also from the YouTube premium channels. In fact, for us, the revenue made from paid OTT and YouTube services grew by a very-high double-digit percentage. But remember, the base is still very, very small. And in the next few quarters, we believe paid subscription to become the single biggest growth driver for.
So yes, there has been a lot of pain over the last few quarters with multiple services shutting down, whether it was Res shutting down earlier, Hangama has shut-down, wink has shut-down, Ghana has gone behind the paywall. All this has been given short-term pain to us because our monies that were coming from the free services has stopped coming. But in the long-run, it’s a very healthy sign for the industry’s growth. On the publishing side of the business, the revenues continue to grow. Every major web show in India from Season 4 and Amazon MX Player to a couple of season 3 and 4 on Netflix or the IPL opening ceremony in star or it was a big movie like Salman Star or Balaya Star Movie Daku Maraj, they all have one thing in common. They have taken a license for the Saragama song in the show. Even brands like Tata Motors who came with this massive Tata curvy campaign during IPL using the song Taba or Dream 11 or Mobile One they all used our songs in this quarter. Our focus on keeping our catalog relevant is growing practically every quarter onwards.
We have a dedicated team whose only role is to maximize the revenue that is coming by from the older content of ours. We continue with the strategy of future-proofing this company by investing in newer content. The last 12 months have been the most aggressive from Saregama’s side in terms of new content release. We spent close to INR300 crores on new content alone and its marketing. Most of our albums are charting at top position across various languages. All this can be easily verified through YouTube or Spotified Charts. We have 10 songs released in financial year ’25 that have crossed the 100 million views mark-on YouTube. This has been just songs released and over the last 12 months, 10 of them are sitting in the 100 million. An album like history 2 has crossed 3.1 billion streams across YouTube and OTT in less than a year. That tells you that if you get a good album and you market it correctly, there is a lot of revenue potential that is sitting in there. This quarter saw a release of two very popular songs, which have been chart. One is Premalu from a movie quote and second is Ariji Ching Herto Mehu from Akshay movie Sky.
The company continued to maintain its leadership position across Gujarati and Bhoshpuri languages. We have also opened our content acquisition now in Uriya and languages. If you see the track-record in financial year ’25, we have the best hit rate ratio. I — yes, some of that is fate. I won’t run away from it, but I give a lot of credit to our database acquisition approach that we people have been able to instill within the system. This is good predictive models that are allowing us to buy the right content at the right pricing.
This year, we also ended-up acquiring 22 small music labels across seven languages, this trend overall they — who control 2,800 songs. This — these are all low-profile under the radar acquisitions, typically in languages where we are not very strong relatively more modern languages of the country. This costed us close to INR17 crores and we believe all this is going to further strengthen our position as we go-forward. So our lineup for the next 12 months is all-in place where we have music from some of the biggest films that are going to get released this year.
Let me start with the — at this — in this quarter, one of the most highly-anticipated films is a Tamil film called Thug Live, which has got Kamla Hassan and Mani Ratnam coming together after many, many years along with music. We then have which is a movie. We also have Salzami. We have Sanjala love in war. We have superstar Nani’s paradise and Hitri. We have Ranvi Singh Tamil superstar Dhanush, another massive star of Tamil called Surya’s and Shiva.
And I’m just giving you the names of some of the bigger titles. Similarly, there are huge titles which are sitting in, whether it’s Darshan’s Devil in Canada and similar big title sitting out there in Malayalam too. South was and continues to remain a huge focus area for us, while we keep on strengthening our position on the Hindi side too. As I’ve been sharing with you right now for over in a few quarters, the next few years will be the period during which we will invest in content in very heavy fashion to once again get ourselves back into the number-one position that we used to enjoy a few decades back.
We will buy big and we will buy smart. This year, the charge-off on account of new content was 48% higher than last year. We are in a transitional state currently where new content expenses are going up in a step fashion, because if you see the chart which has been shared in our presentation, it will show you right now how steeply our content acquisition budgets are going up. Since the expenses are going up in a step fashion, the incremental revenue from this expenses are just about matching the charge-offs that we will are taking.
As we move to the later part of financial year ’26, you will start seeing the impact right now that the increase in revenue will also start having a direct impact on the profitability. At the beginning of the year, I had stated this that during the next — this is as of April 24, as said, it will take us for the next six to seven quarters. The top-line is going to grow rapidly. The EBITDA is going to follow, but not that rapidly and PBT will be growing at a slower rate up. And the moment we come from to the seventh or the eighth quarter, PBT will also start moving at a much faster pace.
For the simple reason that the content that we would have taken by that time will start having a revenue which is higher than the charge-off that we will be accounting for. With all this investment in new content, we maintain our guidance of five-year payback period. And after the five years over, you have another 55 to 75 years of reaping profits. Artist management, the new vertical under music monetization, then artists are made popular through our IP releases and then we monetize these artists by booking them for live event weddings and brand endorsements from which Sharigama gets a share.
As our investment in new content goes up, these artists are going to become bigger and bigger. With digital advertising growing at 17% per annum, we believe that the artists and the influencer economy will be the biggest beneficiary. I’ll give you an example of how we people are now using our power of content creation to go and make our artist bigger. Our artist Mahi sang for the movie Nadania and also signed for the hot star show while Pragati is the lead actress in our own show called AFK, she also sank for her Junun show which is on.
Three of our talent, Viraj Gilani, Arjun and are also appearing in a comedy film produced by us called Animals. During the year, we added Samuta, our prominent Canada artist with 1.3 million followers and current phenomenone with 1.4 million followers as part of our influencer management program. And you will be seeing more-and-more content coming with these people. Viraj is a great example as an artist who is managed by us. We are doing live shows also with Viraj and we are now also doing digital content creation both from — which are funded by brands and are put on YouTube, also shows that can be licensed out to digital platforms like Netflix and Amazon.
Overall, with our stated goal of acquiring 25% to 30% of all new music released in India, the music licensing vertical should double its revenue in next three, 3.5 years. And all this acquisition that we are doing will be funded through QIP and internal accruals. Now let me shift to the video vertical, where we make films under the brand-name, digital series under brand-name dive and short format content under the brand-name filter copy.
The most exciting thing for us in this category always remains is massive growth in smartphone ownership, which is turning every TV into the hands of every individual in this country. And if you see anybody who in this country is free even for five minutes is consuming some form of content or other, and we want to be in the center of it. We are still at a very early-stage of building this vertical. We expect over the next five years this vertical to keep on growing at a CAGR of 25%. We released multiple series during this quarter, Agra Affairs and Amazon MX player oops up here on, a branded series high heels on YouTube where Loyal was our advertiser. We also released a small-scale goofilm called.
Our TVC and TV continue to perform very, very well. Video vertical, we are still trying to find a way what we are clear about video vertical is we will try multiple things, try all things at a smaller budget. If we have to fail, we’ll fail fast, but we’ll fail small so that we can keep on correcting our mistakes and come out with a strategy that is expected to work. Financial year ’25 was also a little difficult because most of the digital platforms that used to license our content were in a state of flux. There was a merger going on between two of the biggest platforms.
The third one had a change of leadership. So we saw right now not enough amount of licensing was happening. We believe financial year ’23 is going to be far better. Let me move to the live events piece. As promised after a very successful tool in the last quarter that we will continue — we will now continue building on the live event vertical. We believe this is a vertical which has got a serious amount of leg in the days to come. During the quarter, we did successful shows of Viraj Gilani and. Later this year, starting from Q1, we have shows plan with Himesh, we have showed of Viraj Gilani. We have next round of disco dancer shows coming in.
We also have a kids series live series say Cheese Grandpa and we are also planning a two-day music festival in southern part of the country. While India tour success may not get repeated in every quarter, the success of that tour has proved to us the long-term potential of the live events vertical. It’s no-brainer that as the disposable incomes in the country goes up, the discretionary spends are going to go up. And one of the big beneficiary of increase in discretionary spend world over always has been experienced entertainment. People like to go out there and enjoy themselves along with their friends and family.
So keeping that in mind, we will continue to keep on experimenting and scaling the lives of any business in future. This year saw the transition of Carva from being a hardcore retail store-driven product to now practically for all purposes, 100% e-commerce driven product. We are selling it from the big digital platform and some of the modern retail outlets only. We have scaled down our product portfolio and in that infrastructure that we had got build to support the Karma business. The manpower that was supporting Karma has been brought down from over 100 plus at the beginning of the year to under 25 as we reach here.
We still believe in this product. We believe this product has legs there as long as we are managing it at a cost structure that makes sense. We will continue pushing it on e-commerce and we are fairly certain that we will start touching single middle-digit margins by the end of financial year ’26. Our long-term strategy of diversifying from just being a music label to an entertainment IP company is paying-off. It not only reduces overdependence on any word and vertical, but is allowing us to drive massive cost and revenue synergies across all the verticals. Between financial year ’25 to ’27, we committed to invest over INR1,000 crores in new music content. All this content — content worth close to INR5250 crores already secured. This will contribute not only to the immediate growth, but also put the company on a long-term growth path.
We believe music verticals comprising of licensing and artist management to grow at 22% to 23% per annum over the medium-term. At the overall companies level, we expect PBT to double over the next to four years. Both music and video verticals are going to contribute to that. We maintain our annual adjusted EBITDA guidance of 32% to 33%. There may be a uplift here and there on the quarter because if a big event number is coming in. But overall, keeping in mind that we are in music, video as a live events business, we are holding on to our EBITDA guidance of 30% to 33%. PBT numbers, which are on the lower side for this financial year will start moving up by Q3, Q4 of this year — of the financial year ’26.
We are all as a company extremely bullish on the way that digital economy is panning out. We are very happy with the processes and the data-driven approach that we have been able to go back and build-in Saregama, which makes the company not only very strong on IP, but also in a way independent of individual dependence. The basic infrastructure of processes and data will ensure that the company is going to survive and become and recover back to number-one position in the days to come.
Thank you and open to questions now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. 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 is from the line of Abneesh Roy from Nuvama. Please go-ahead.
Abneesh Roy
Yeah, thanks. My first question is on revenue. So revenue was weak this time versus very strong growth in earlier quarters. So if you could tell us in FY ’26, how we should build-in terms of our model for each of the revenue items, was there any one-off which led to revenue decline this time?
Vikram Mehra
And so remember, please don’t compare us quarter-four with quarter three, quarter three had one-off revenue of the leach tool that had got factored in. On otherwise, if you look at an overall basis, even if you look at the year-wise basis, financial year ’25 is a 42% — 48% — 46% growth over year financial year ’24. So I don’t think revenue growth has been an issue right now in this particular
Abneesh Roy
No, Q4 Y-o-Y, I’m saying Q4 Y-o-Y, it is down 8%.
Vikram Mehra
Always — I mean, I think we have stated this to you in specific and by and large, the entire investment community, please look at our business on a 12-month rolling basis. You cannot look at our business on a quarterly basis. It just does not work that way. And you can — I’m not saying look at me on a financial year basis, but please look at us right on a 12-month rolling basis. The quarterly seasonality and the way our movies release gets pushed.
So the music revenue starts getting pushed or the film revenue still starts getting pushed, a live event getting pushed from 1/4 to the second-quarter, this is a way of life for us. One small event in the environment right now and everything starts getting pushed. So please look at us on a 12-month basis. And I think we had a very decent financial year ’25. But as we people go-forward, the music licensing business of ours is going to be growing at 22% to 23% on a mid-term basis. The video business of ours is going to be growing at 25% per year-on a medium-term basis.
Abneesh Roy
So there was no one-off in Q4. I do understand that it’s a longer-term horizon. But in terms of pushing off, was there any particular reason because anywhere we are comparing Q4 to Q4, there is a calendar, right? For three months there will be a calendar?
Vikram Mehra
No, I’m but every time this is an old question that are coming in, there may have been even right now which would have got the revenues overflows from a OTD platform may have come in a particular quarter and one financial year may not come in the same quarter the next financial year, right? Society overflows are also functioning that way. It’s not in our hand. The publishing societies who give monies to us, they decide their own cycle and sometimes a large amount of money comes in Q3, sometimes it comes in Q4. So you can’t compare in the real sense right now quarter-to-quarter better to look at our data always-on a rolling 12-month basis.
Abneesh Roy
Sure. Last quick question. Recently, we saw one movie on the last day move from cinema theater to OTT. Could you tell us in terms of Hindi movies or say even for the regional, is there any churn which is happening in terms of theater versus OTET? Any thinking which is again coming back because there in the COVID, but suddenly last week that development geopolitical very quick for such a drastic action. So is there something more behind that because you are a veteran in that industry, your thoughts on that?
Vikram Mehra
Firstly, let me just let inform you right now that the same movie you’re talking about has once again decided to come in theaters. So that deal is done. So they are coming back into theaters. See, this is — and as a music label, when I look at it, we — we have enough protection in an agreement that if a movie decides to move from a theater release to an OTT release, we get a suitable amount of adjustments in the fee that we are paying to a film producer to keep it here. But this part that this debate is ongoing at this juncture that will people be going to theaters to watch a movie?
But just look at the success of movies that are doing well, whether it was or or you find both are INR500 crores plus movies that are working on. Let’s wait which way Thug Life in thousands is going to go back and work. If you look at Hindi’s Raid 2 or Good Bad and ugly that came in Tamil recently, all of them are 100 — we touch between INR100 crore to INR150 crores. So there are still — if there are good movies, people are still very happy to come to the theater. Remember for — for all of us and even more if you’re living in non-Bombay, Delhi, Bangalore,, what does a person do to entertain himself along with his or her family?
So going out to have a burger at a mall is a great thing, but you can’t do it every weekend. Sometimes you need a chain and theater provides this massive amount of change for any family. So that’s why in general, we believe that theater economy is still very much there to stay, but the kind of movies that will do well in theatre may undergo some amount of charge.
Abneesh Roy
Sure, understood. That’s it from my side. Thank you.
Operator
Thank you. And we’ll take our next question from the line of Swapnil from JM Financial. Please go-ahead.
Swapnil Potdukhe
Hi, thanks for the opportunity. My first question is on the one-off impact that you mentioned in your opening remarks with respect to closure of Wing, Khana, Reso, etc. I just wanted to get a sense as to when exactly should we expect the disclosures to come into our base because if I’m not wrong closed in July sometime Ghana was a bit earlier if I’m not wrong. So just getting the same touch to the time as to where this one-offs will not be an impact on our music revenues going ahead.
Vikram Mehra
Answer two-ways — two-parts here. One, am I understanding we closed in November, not in July. So this is the first-quarter that we people had without any revenues coming from there. So let me restate our position. Sad as we are that some of these free streaming platforms are shutting down, but truly speaking, in a way, we are very relieved that because we know free streaming is not the way this industry can get built.
Globally, if every market after-market from a US to a China to any of the European countries or even some of the LatAm countries, the music industry is built on the back of paid subscription on streaming. There was over 700 million people who are paying for some form of audio streaming on some platform or other. We believe that with less number of players available, you will see that transition happening rapidly in India also. We are already seeing the green shoots, as I mentioned in my opening statement that the revenue that Saregama make from paid subscription part of the streaming platforms has grown by a very-high double-digit percentage during the year.
So if I’m not a betting man, but if I have to put my neck out, I’ll say four, five quarters, you will see paid subscriptions really taking off. And as mentioned in the past, the yield that we all get entire industry, not just Saregama, all of us the yield that we will get for one song heard and the paid subscription is far higher than the yield we get on the free side. So yes, there is a short-term pain that is being affected on us, but I think this is the right thing to happen right now for economy to take.
Swapnil Potdukhe
Okay. Vikram, just on that subscription piece, right, what would be the revenue-share in your music from the subscriptions today? And secondly, yes, sorry.
Vikram Mehra
No, sir, the share of subscription side, what is — rephrase your question?
Swapnil Potdukhe
My question is very simple. What would be the share of subscription in your music business today?
Vikram Mehra
I will not be able to share that right now because that’s all data, I’ll be going and violating all my agreement. What I can tell you that if I have a subscription deal going on with their platform, on an average, the platform shares 50% of whatever they make. So if there is a platform X who are making INR100 net in a month, on an average they will share 50 bucks, what is called as a content pool, this money gets divided equally amongst all the songs into the number of times the songs are heard during the month. Okay. And so the question would be the — is given that you are still maintaining your medium-term guidance on the music revenues, will this paid subsolutions revenue be able to offset any impact of these closures which will still be there in your base, right for FY ’26 at least some part of that. You may be able to come? Yeah. So when I have given the guidance of 22% to 23% growth in our music business, that is not dependent on subscription taking off. This is an impact of the growth in the digital economy and the increase in the market-share that Saregam is able to drive. As and when the subscription takes off in aggressive in a fashion, the numbers are going to be far higher than this. Our answer to your second question out here is, are we confident that the growth numbers are going to be higher in the music side this year financial year ’26 compared to ’25? Yes, we are.
Swapnil Potdukhe
Okay. And so that would also mean that your YouTube revenues in your music would have gone up meaningfully, right? If I’m not wrong, digital used to contribute around 70% of your total revenues, music revenues and of your
Vikram Mehra
Digital contributes around that number. Digital includes all the streaming — audio streaming platforms, video streaming platforms and short format apps. Overall, digital is around that number for 70%.
Swapnil Potdukhe
So — and YouTube used to be around 13% to 35%
Vikram Mehra
Have never been to this, so please don’t put words in my mouth.
Swapnil Potdukhe
No, but initiatively that number would have only gone up, right, from YouTube revenue
Vikram Mehra
In my that YouTube revenues grew for us and that was to a large extent able to help neutralize because overall revenues are still music revenues have gone up by 13% during the year. The big health came from subscription, which has a small base going up, substantially growing substantially and YouTube number is doing pretty well for us. I’ve given you if is an F2 is an exception, I understand that part. But still 3.1 billion numbers have all come during this financial year. It was released in the month of August, so I think first it in July or somewhere. And we have done 3.1 billion. There are music labels whose total number of screens during the year become 3.1 billion, which is a single album has done.
Swapnil Potdukhe
Got it. And just one question. So you mentioned that you have acquired a significantly high amount of content this year, roughly around INR300 plus crores. So — but at the same time, we are not seeing our music revenues growing in a way, right? This year, particularly, obviously, there were some one-offs and that is there. But does that also mean that the payback period for any content that you acquired already may go maybe longer than five years than the typical that we typically have, right? Well, most of the revenues come on the.
Vikram Mehra
We are holding onto a guidance five-year payback period and are very confident of that. If and when we people start realizing at any time that these sources of revenue are coming down, so does the cost of acquisition.
Swapnil Potdukhe
Got it. And just the last one on the Kharma side. So obviously, the revenues are meaningfully down because of, say, changing the strategy there. My — any sense on what kind of our profitability was there in the business in FY ’24 and where are we in FY ’25 now?
Vikram Mehra
Yeah. So all I can say is Karva at best-in the quarter was just doing a breakeven. With all these new changes that have been brought in, which is rationalizing the manpower, rationalizing the number of SKUs that we people are putting in and getting out-of-the mom-and-pop retail outlets, which also meant there was a lot of distribution expenses. With all these actions that we have taken, we believe that Carva in financial year ’26 should start coming back to the mid-single-digit margin percentages.
Swapnil Potdukhe
Got it. Thanks a lot, Vikram and all the best. Thank you.
Operator
Thank you. The next question is from the line of Mayur Patel from 361 AMC. Please go-ahead.
Mayur Patel
Hi, Vikram and the team. Thanks for the opportunity. So just one question. Is it possible to quantify if we exclude the impact of wink shutting down, what could have been the music revenue growth in this quarter?
Vikram Mehra
Yeah. I can’t give you specific. Then I’m giving you what was the deal value of my wink. So that
Mayur Patel
Can you visit, sorry.
Vikram Mehra
But the revenue would have been decent right now. So let me put it this week, again, please don’t look at it ever on a quarter basis. Our industry is in a fashion in a way right now that you need to look at us on a 12-month rolling basis. Rewarders punish us but also to it on a 12-month rolling basis. Because the way the practices of the industry are the monies that we end-up getting, they are not timed right now to a particular month at any — for any of the — our partners. So
Mayur Patel
The idea was to just understand that excluding these shutdowns, how is the organic growth is it?
Vikram Mehra
So let me answer the question in a different fashion. We people have been managing this 20% to 23% growth on a music licensing business right now on a steady fashion over the last six, seven years now. And I’m holding on that guidance as the people go-forward, which — and this is irrespective of subscription taking off in a very big fashion. We believe subscription, it continues to grow at the rate it’s growing today, which is when two of the big platforms, Spotify and Gio are still offering free service. Keeping that in mind and we have our projection is 22% to 23%, which tells you we are fairly confident that the — the impacts may be happening right now in the short-term here and there. But on a medium-term basis, we believe there is a very healthy growth potential which is sitting in.
Mayur Patel
Sure. And is it like you’ve given a good outlook on the shift to the paid subscription base, but over next one year, do you think sometime during next 12 months would be the inflection point for this paid as a catalyst you know, taking off.
Vikram Mehra
Repeat myself out here it’s difficult to — since to take a take a punt on this, but yes, I — from whatever conversations we are having right now because there are only two free guys left in the market now. One of them is world’s biggest streaming platform, which world over drives only paid subscription, free is not their model and other is India’s biggest conglomerate. So I like — who also have put — if you see this year, IPL was also put behind the paywall. So I have no reasons to believe that these guys will continue dueling out free services because financially it does not make sense for them also. So yes, whether it will be four quarters, five quarters, I don’t know. But it is that horizon in which I believe that our subscription economy, we should start digging off.
Mayur Patel
Got it. Thanks. Thanks a lot, Vikram, and all the best. Thank you.
Vikram Mehra
Thank you. The next question is from the line of Kavish Parik from B&K Securities. Please proceed.
Kavish Parekh
Hi, Vikram. Thanks for the opportunity. Vikram, could you share some more details about the exceptional gain that you’ve recorded? What changed in the outlook for season? And what is the new valuation?
Pankaj Mahesh Chaturvedi
So hi Karish this. I’ll just take that question. Yeah. Yeah. So when we acquired Pocket this is for about 51% stake, we recorded 100% liability in our books because it was a committed transaction, right? So based on the valuation and estimates, we recorded a liability. We also did a purchase price allocation and recorded a goodwill to that effect. Now when we have acquired the remaining 40%, 40 point something and we also need to acquire the remaining 8%, 9%, we have reassisted the liability.
There is a write-back of liability on account of the lesser consideration and there is a corresponding impact on account of reduction in goodwill. The net impact of this entire amount is about INR4.9 crores, which is shown as an exceptional item not arising from business. Having said that, there is a third element to it. The contractual liability that we have as a part of accounting standards we record at a discounted value at a net present value. So there is a notional finance cost of about INR4.1 crores, but that is sitting in my finance cost line-item, above the exception item.
If I just put all this together, the total impact of these three items is about INR0.8 crores plus on the overall P&L. Operationally, I would say if you kind of want to still adjust this INR0.8 crores, our PBT would be about INR275 crores. So this is an accounting adjustment. We still are very bullish on pocket. It is just on account of a prudent and conservative accounting policy that we reassess our liabilities and valuation so that it gets reflected correctly in our balance sheet.
Kavish Parekh
Understood. Thanks for that, Pankaj. Thanks for detailed explanation. On following-up, so FY ’24 had witnessed a 12-odd percent decline in terms of revenues for How did revenues grow in FY ’25 and did you manage to it breakeven? And is there any timeline for acquiring the balance 10%?
Vikram Mehra
Yeah. So let me try to answer the first two things. The good news is is back onto the growth path. So we have close to 18% growth that we have been able to go and register in Pocket across the year. The losses have come down on pocket basis. The — I’m — where I’m going to confess is we have not been able to do, we have not been able to get them to breakeven at this juncture. We are still a little of breakeven, but the losses have come down drastically compared to what they were.
Sometime in the middle of this year, we hope right now that we will end-up achieving the breakeven number also. And the remaining stake we are looking at right now, there’s very limited amount left here. Over the next 12 to 15 months, it should also go. So apart from the ESOP which are sitting right now with the senior executives there, everything else is going to be picked-up by us.
Kavish Parekh
Understood. Thanks a lot. Thank you, team. Thank you.
Operator
Thank you. We’ll take our next question from the line of Harsh Shahu from Dalal Rochha. Please go-ahead.
Harssh Shah
Yeah. Thank you for the opportunity. Few questions from my side. So firstly, on the EBIT margin when I look in the music vertical which
Vikram Mehra
You can your volumes are not — you may have to yourself, your voice is breaking. No, there is a disturbance.
Harssh Shah
Yeah, one second. Yeah. Is it audible now?
Vikram Mehra
Yeah, better.
Harssh Shah
Yeah. So basically what I was asking is on the EBIT margin in the music vertical, right, which we kind of include the Carvan part also. So what we observe that the EBIT margin are at multi-quarter high. So basically what I wanted to understand here is, is it a function of, I mean, in addition to the reduction in losses in the car one business, anything else which has kind of contributed to the higher profitability in the music vertical, meaning has there been any sort of rationalization that has happened even on the music vertical, I mean excluding the retail part?
Vikram Mehra
So because you’re trying to derive the profitability by removing Karma without knowing profitability. So yes, have the carbon numbers are up — take them as a breakeven numbers only that are sitting in here. What you’re also going to see right now two trends. One, if you see the numbers that the — we are showing a very decent growth right now at the EBITDA level also. That’s one good part. Second, the royalty expenses, if you see on the overall basis, you’re going to see the number coming down in-spite of the music revenue going up because all the newer content that we people are picking-up. If it is non-Hindi film content, it is all royalty-free music, it’s only one-time payment.
If it is Hindi film content, the newer content, the royalty payouts have not started yet. They will happen only if once you people recover, which is typically a five-year payback cycle. But as people keep on growing these revenues more-and-more substantially, yes, the profitability profile of music licensing will continue improving because apart from content, the only other cost exception out here is either manpower cost or the tech cost that people are putting in. Both of them don’t jump-up right now linearly along with the revenue.
Okay. So basically what you’re indicating is a from.
Operator
Sorry. Sorry to interrupt, Harsh, your voice is breaking. So maybe I did too.
Harssh Shah
Is it audible right now?
Operator
Yes, sir.
Harssh Shah
Yeah. So what I’m asking is that the improvement in margin that we are seeing here, so basically it is more to do with scale, right?
Vikram Mehra
So listen, when you are talking about improvement in margin, please look at everything on a financial year basis or 12-month basis, please don’t read anything on a quarter basis. Our margins don’t change quarter-on-quarter at all. The same thing which I have repeated I think three, four times earlier, I’ll again reiterate. Please read us on 12-month rolling basis — evaluate our performance only on a 12-month rolling basis. I don’t think I’ll be honest out here.
I don’t think the benefits of scale have started accruing to us yet. I don’t even see at this moment, our music licensing margins going up that dramatically and they are not expected to grow up that dramatically. You will see — start seeing improvement on the music — music revenue — music margins of ours, which is licensing plus artist management as we start hitting the end of this financial year, because that’s a time the charge-off on account of the new music is going to be far lower than the benefits of last two-year content acquisitions revenue. Have I made my point?
Harssh Shah
Yeah, yeah. Got it, got it. Secondly, when I look at the inventory number in the balance sheet, is the understanding correct that at this time around for the full-year we might have purchased less number of Hindi sums because I mean because I look at the intangible that has increased much faster than the inventory number. How should fall is breaking so much number.
Pankaj Mahesh Chaturvedi
First, the breakup between Hindi and all non-Hindi largely remains same. See, it depends on what period or what point of time during the financial year you make a purchase. It also, you know, so I mean, if I can answer that question because when you’re looking at intangible, you’re looking at the carrying cost. Yeah, if you can repeat what is the exact question on intangibles?
Harssh Shah
No, so basically what I was trying to understand that for FY ’25, is it a case that we have acquired more of non-Hindi?
Vikram Mehra
Really hurt. The ratio remains more or less similar. It may not be exact from year-to-year basis. But yeah, the market behave in a certain way and we follow the market. So there is no strategic shift right now, Harsh if I can answer your question. We are not making any strategic shift. It may still happen on the phasing of the movies, some movies release on-time, some movies get delayed, so you may get this feeling at time. But overall, we are very, very bullish on the regional side.
Within regional, on the film side, the South market is a big focus area for us. On the non-film side, we are focusing a lot on languages like Bojpuri, Bengali,, Uriya, Gujarati, Maharati and Punjabi. Those are the languages we people are attacking. We are considering Rajasthani also as a potential area we want to get ourselves into. Hindi film, we are making a slower steps. The good thing for us is the — if you look at calendar year ’24, two biggest albums of Hindi both belong to us. So we are get — we are getting it right and hopefully getting it right at the appropriate pricing.
Harssh Shah
Got it. And one last question from my side. So on the radio segment, right, sir, you did mention that we are in the early stages of kind of developing this vertical. But the profitability, I understand that we are in the early stages been kind of underwhelming and definitely certain lessons we would have learned right as to how we want to kind of build this vertical. So if you could highlight what is going to drive the profitability or maybe what steps would you be taking to ensure that we don’t borrow money or even smaller number, but kind of grow profitably going-forward.
Vikram Mehra
So we will be — all I can say is when we started the video vertical, our only concept at that time was direct to digital small budget films. From that time to now where we are saying that we will make theatrical films, but only at a smaller budget. These are not micro budget, but the smaller budget films, two acquiring pocket, which gives us a huge expertise in the shorter format content, two high-quality youth-oriented digital content that goes on YouTube or to platforms like Amazon, Mini or Amazon, MX Player or a Netflix or a, we have to — we have also moved a lot and each of these verticals is evaluated both on the basis of their ability to grow as well as their margin profile and the kind of engagement we are able to bring with the target segment that we people are after. So you will see that experimentation.
All I can say is a year back, when we are having this conversation, similar call, somebody asked me the same question on live events, saying, why are you doing live events, live events doesn’t make money. Today, nobody has asked me this question because live events have started making money. So give us time, we are not — we are not geniuses that we will get everything right the first time. We are — but we are approaching there. You are not seeing our losses ever going to be that big because we experiment a lot, we fail, but we fail fast and we fail small to get our strategy in-place. So video is a focus market for us. We will never do this all guns blaring approach out there in video. We will experiment and we will turn it profitable.
Harssh Shah
Got it. It’s a demerger, anything possible in terms of demerger on cars or something like that?
Vikram Mehra
This is all right now is let’s go to the business right now.
Harssh Shah
Got it. Got it. Thank you. That’s it from my side. Thanks.
Operator
Thank you. And the next question is from the line of Jioti Singh from Arihant Capital. Please go-ahead.
Jyoti Singh
Yeah, thank you for the opportunity. Sir, as you mentioned on the revenue side. So given the recent decline in revenue from the event business, so can you share how shows such as Mania and that’s overaj are expected to revive momentum in this segment? And are there any measurable KPIs or target you are aiming for? And second question on the regional language side, like we are a lot of focus on the Bojpuri and other Gujarati language, but they still contribute only a small portion to the overall revenue mix. So can you provide insight on it?
Vikram Mehra
Yeah. Did you see a decline in the events revenue.
Jyoti Singh
Even like compared to earlier quarter right now.
Vikram Mehra
So I’m repeating for your fake sixth time in this call, please evaluate us on a 12-month rolling basis. You cannot do business like event cannot be seen on a quarterly basis. Most of the events in this country happen in the Diwaliwala timeframe, right? Other times the number even start coming down. I’m please, please, I’m requesting you. Everything read us on it. Your question is valid, how will we maintain the growth momentum? I’ll answer that. But please don’t look at these things right now on a quarter-to-quarter basis will never work-out.
Coming — going ahead on the events part, yes, we believe in events a lot. What success has gone back and taught us that if we get a good artist and we put up a very good show there, we marketed correctly. Indian customers are looking for opportunities like that to go out to their friends and families and they are ready to spend money. We are exploring possibilities or working on both artist-driven shows like Himesh and there are other artists also. Last quarter we did something with. We are constantly looking at which one artists can we go out there and work with. Also do IP shows like get disco dancer, the musical, get grandpa musical, also launched the first music festival from our side. So there is constant work which is happening.
The very nature of the live events business is that the capital gets locked-in it for a very, very short-duration. So the best-case scenario is high single-digit margin, but a very-high IRR. So you will see investment happening our side throughout. Also, all the artists that we people have as part of our artist management vertical, we’ll try to plug them in also right now in some of these live events because in that case, we get a double benefit, we get benefits on the live event as well as the artist profile goes up and we can make more money under the artist management vertical apart. So that’s the first question — sorry, I — second question, I lost track.
Jyoti Singh
Yeah. So sir, second question basically on the regional side. So there is a strong focus on both and other region language, but this will contribute a small portion to the overall mix.
Vikram Mehra
Yeah. It may contribute small portion on the revenue, but it also contributes even smaller portion on cost. We — at this juncture, again, I’m not a betting man. I don’t want to take bets right now that a particular language will become bigger compared to the other ones. The — what we are seeing right now is more-and-more of us as Indians are now finally appreciating and enjoying our local culture, our local musical, our local movies, so regional consumption of content in regional languages, I think is going up substantially. We are — and languages like is what second or the third-largest spoken language in the country.
We believe it’s a large-enough market, you are talking — once you — when you do content in, you talk to Eastern UP BR, parts of West Bengal,, Jar Khand and you are also getting into part of MP parts of Bombay, Bangalore, Delhi, that’s the audience that is sitting in there. Similarly, Gujarati, one of the highest disposable and discretionary spends community. We believe even if the — on the overall pie, this number may be smaller, but it’s a profitable pie and why should we let go of that?
Jyoti Singh
Okay. Thank you so much.
Vikram Mehra
Thank you, ma’am.
Operator
Thank you. We’ll take our next question from the line of Lokesh Manik from Capital Advisors. Please go-ahead.
Lokesh Manik
Good afternoon to the team. The first question was on the music vertical. We had a content charge of about INR85 crores last year FY ’24. I believe we ought to have seen revenue increase by that much at the limit. And given that your past commentary that the listener is platform-agnostic, that is if one platform shuts down, which he will go to another platform and listen to use it. Given these two scenarios, you know is been shutting down the only reason that we are seeing a flattish growth on the music side.
Vikram Mehra
See, that’s your primary reason. You’re right, customers do switch, but there’s always that much amount of a lag between a service shutting down and the customer from that service moving across to the second service. Also, there is a role of minimum guarantees that starts happening out here. So the net impact is there, but has the industry been able to absorb the closure of a service like a Reso, yes, we all have been able to, but Resso has been shut now for over what, 15, 16 months and that does not even factor-in anywhere in the overall revenues for the industry. So yes, actually in the next part is, yes, that’s a short-term impact that we people have gone out there and seen. Had the impact of — last year I had Ghana on a pay side, Ghana became a completely on the free side. Brink Impact were sitting in out there had that not been there. We would have been back right now on the track of what we have been able to do for so many years and we are committed to be doing starting once again right of financial year ’26.
Lokesh Manik
Got it. My second question,, was on video. Prior to, we were at about INR115 odd crores in ’23, 157 in ’24, so that had some impact of pocket. So if I add the three verticals, that is the web series, that is the TV, the Roja series and some TV and the third is now the pocket. But the revenue seems to be subdued in that sense. So which vertical would you say would have gone down or not this year? Sure. Okay. And second is just continuing on this. Since we are still figuring out our strategy in this — in this area, area and we still not seen any synergistic effect on music from this vertical. So becoming profitably PBT positive in the next two years, what factors are giving you that confidential?
Vikram Mehra
Okay. So let me first answer your second part. I don’t know where did you arrive at that there is no synergy going-in. We have seen a massive amount of positive impact that we people have got on the music side. In terms of our ability to acquire content when we are competing with the existing number-one go to a film producer and have a chat with the provision, explain to them the power that a channel like a filter copy ends up giving us or our ability on the bond — on influencer side also that we will be able to use this 315 million digital footprint to go back and promote the new film that the producer is getting in. That gives us a big edge in terms of acquiring newer content.
Something I think we people are maybe not giving enough credit to, we are just in this business of acquiring new music content right now in the last two, three years only and every big banner of this country, every — and if you start seeing the biggest movies that are coming in. If it is not — which is unless there is a funding somebody is producing — if a music level is producing a movie, then it’s a different issue. Everywhere else right now, all music is coming to us. I think that’s a huge benefit that Filter Copy ended-up giving us. But answer to your first question, which vertical is not doing it? It’s a fair assessment. The vertical right now where we people were licensing shows to digital platforms like Netflix or Amazon Mini or Amazon MX Player or a 35 or a, yes, that vertical was under pressure because the — literally there was a very little amount of license content that was being acquired by these platforms.
We — we’re already seeing trends here now that now that the merger has gone through between the top two guys, the other people have also started opening up once again in terms of going and licensing content. You will see numbers going up right now on the CV side too.
Lokesh Manik
John, any threat on from the oversupply situation? There was an article today in Economic Times, which said there is an oversupply of content in the industry today. Producers are sitting with a lot of unsold inventory. So any threat on that front do you see that this is just temporary?
Vikram Mehra
So let me first answer from Saregama perspective, we don’t create content unless we have a destination platform to give you comfort there. We — any of that series content that we people are creating, we do it only and only if our platform has given a green light for that. Otherwise, we don’t go-ahead. So even if there is an issue at times that happens in terms of oversupply, we won’t be caught in that here because we have pre-agreements going on.
But yes, you were right because there was so little acquisition that was going on in the last 15 months. Because of this merger, change in management, there is this feeling right now that there is some — some of the content producers take punch, they create content and then after that go back and license it. They are — they may have content which is unsold. But as a policy, Sare Gamma doesn’t — we never do this. We know that if we produce content and then sell it, our margins will be higher, but there we play safer there, we create content only and only if we see a platform greenlighting it.
Lokesh Manik
Like on the question of profitability, given we are still figuring out the strategy in this segment? Just some thoughts on that.
Vikram Mehra
And so there is the films business, there is the longer format content, which is sitting in the longer format content, you create content out there for digital platforms, you create content for TV channels and you also create content for Award platforms like YouTube, but you get brands involved in it rather than a platform paying you money. And then there is a short content that you are fitting on, which goes on channels like Instagram and YouTube shots. Again, brands start coming in, but there is also a phenomenon which is starting up right now called. So there are various kind of models there.
We are experimenting with all those models. What gives me a lot of comfort is that we have been able to get enough reputation in the market, which can be reflected by the revenue numbers that we people are showing. The — just because the video revenue numbers of are under the music part, they — if you start compare them right now with the revenue on a consistent basis, some of the bigger production houses are writing out here, we are right there. So we — what we are also very, very clear, we are not going to indulge in these one high-profile film, which is make it or break it, that’s not the business model that we are building in our system. We are more comfortable with sustainable kind of models right now where-is not too much of overdependence on any one video asset of ours.
Lokesh Manik
Right. And last one on the events, the INR300 crores in FY ’25, is this a one-off or do we expect growth from your events in 45 and ’26
Vikram Mehra
Unfortunately, these kind of — India has never seen this kind of event happening before. Yes. And as a company, we don’t want to get into events whereby maybe the top-line will be there, but the margins with us will be 1% and 2%. We prefer doing businesses out here which are the — because at the end-of-the year beyond our point, top-line is there only to go back and support the bottom-line. So that’s what we are constantly looking at. Right now, the focus is more on working with the Indian artists and releasing our own IP shows, but we are also seriously looking at that can in a profitable fashion, we also start getting some of the international art this year.
Lokesh Manik
So any guidance for FY ’25, 6 or seven?
Vikram Mehra
And too early, not on the even.
Lokesh Manik
Okay. Thank you so much for commenting. Thank you so much.
Vikram Mehra
Thank you. We will take our next question from the line of Akshay Jogani from Exponent. Please go-ahead.
Akshay Jogani
Thank you for the opportunity. I’m sorry if this question is completed, I joined a little too late. But last year, yeah, am I audible? Am I audible?
Vikram Mehra
You are audible, but your voice is not coming out very clear. So
Akshay Jogani
Is it better now? Better now.
Vikram Mehra
Bye-bye.
Akshay Jogani
Perfect. So I may be asking as a repeat, I joined a little late, but I just wanted to check that last year, the largest platform took a material price cut on a per stream basis, right, went from 10 to 50. Now do you expect that to further go down? What are the negotiations like this year? And should we assume that the new pricing is the base that will not further collapse of the growth from be volume levels?
Vikram Mehra
So one, I can’t which deals between us and any individual player. In general, our guidance is clear out here is that our one, we are holding on to our medium-term guidance of our music business growing at 22% to 23%. So there is no question of collapsing happening at all. Second, the dependence of the Saregama in specific and music in Indian music industry in general on free is coming down. We believe right now it’s a matter of another four to five quarters that you will see all of us growing in tandem right now on the back of growth on the subscription side. The good news on the subscription side is that even in case of Saregama, the revenue that Saregama made on a small base, but the revenue growth that Saregama has seen on the subscription side is very-high double-digit percentages this year. So we believe that of digitization and more-and-more Indian customer realizing that for digital content, they have to go out there and pay will ensure that subscription actually takes off in next four to five quarters.
Akshay Jogani
So you speak to OTT, they explicitly tell us that our gross margins are 10% or less and across-the-board versus 45 globally has a much higher gross margin. So we need to get to that. And if that has to happen, then the music buildings have to sort of wait before they can do. So is that something that we need to worry about because I think one of the reasons our growth has been lower is that shift in sort of the OTT expectations also, right, in terms of them not having to lose more money.
Vikram Mehra
So I will — so I’ll not to ask you which OTT platforms you are quoting here, but there are only two OTT platforms which have a free service left in this country. The rest of the people who are offering free of anyway shut-down and the other guys are all behind a pay one. Out-of-the two guys are offering a free service, one is the world’s biggest OTT platform, whose entire business model is built only on subscription. They are not built on free part of the business. The second is India’s biggest conglomerate who have kept who after the recent merger in their two media companies have been started putting almost all their content behind a paywall.
So I’d like to believe that both of them are equally motivated to go out there and start driving the subscription part of the business. Anyway, I believe that’s the only sustainable form in music, which will ensure right now that the platforms as well as labels and the content creators in terms of artists and film producers all can make a livelihood. Our business is a very short-term part out here where beyond a point, one of the three — all the partners is going to collapse. So yes, all this is great news for subscription coming out there maybe faster than we expect.
Akshay Jogani
Yeah. As a follow-up on this is that Quartify also recently launched a of ad platform, right? I mean, which kind of indicates that these things and ads is also a way which we can work, right? I mean, do you think that slows down subscription for India
Vikram Mehra
Listen, again, you’re getting into very specific. I will not talk about a specific platform. But in April, we are — these platforms also — both these platforms which are free platforms have seen a very decent growth at a — on a very small base, but I’m putting that rider out here. Yeah, very decent growth on the subscription side. All our conversations with us right now that they are very serious about growing and driving the subscription part.
Let me go out and say that devils aggregate. What’s the worst part, it’s not a subscription-based business, they run an advertising-based business. Our model is similar with them. If they can sustain a massive advertising-driven business the way YouTube does today, we are okay right now because we get the same share of money from advertising in that case. The only thing that cannot work is that a free business is going on where the platform makes no money and we try — and labels are getting some amount of money. That’s not a sustainable business. So we believe right now that platforms will take a call. I believe the things are going to be moving towards subscription side. You may have a belief on the advertising side. Both ways, we get a share on an average 50% of whatever they make.
Akshay Jogani
Sure. No, that’s helpful. Thank you so much. Thank you.
Operator
Thank you. We will take our next question from the line of Aman Singh from Profit Gates Capital. Please go-ahead.
Aman Singh
Hi, sir. Thank you for the opportunity. Firstly, our music license — licensing business, ex of artist Management and the Garwan business has grown just 3%, 4% for the full-year FY ’25. While the comparable peer has reported 27% 28% growth in the similar line-of-business. So can you help me understand the variance here?
Vikram Mehra
Obviously, there is no business, you are cutting a line right now where the line doesn’t exist. The way our music business is being built right now, primarily the entire non-film music business of art is being built on the back of artist management. We don’t — in our system right now when we look at the profitability analysis, it’s not done that songs like or artists like. Both the things go hand-in-hand. We are taking bets on artists who are signed onto us, putting money on those people and trying to make money from the same artist, not just the songs that the artists have made, but also use the forms to make the artist money from him.
So if you’re going to be slicing and dicing it in a way that we don’t run the business, it will be difficult for me to answer that question. Please look at this business right now always-on a complete basis, which is music means licensing plus artist management. The artists who create content and the content, they both go hand-in-hand here
Aman Singh
Sir, a clarification. So we had a — we had a good hit rate in this financial year-by like — and we have invested in content acquisition also. So the licensing business should have grown and so as you report in PPD and your investor presentation and the segmental reporting, we can get the music licensing business, tax of Artist Management and Karva. So that has not shown the growth that was — that’s what I was asking.
Vikram Mehra
Sir, I understand you are now — later you can go back and say why has Gujarati non-film business from a particular artis not grown? Becomes difficult right now. The business has not run that way. So you please when you look at the music business, our business is only the film music business is just licensing. The non-film business, which is a large part of our music business right now is completely connected to the artist management piece.
Let me repeat what I tried to explain to you is, if I’m create — taking an creating a new song, the team that is creating the new song is also responsible for identifying the artist and they are then evaluated based on the money that the song made on streaming platforms or YouTube or other digital platforms and also the money that the artists have made because of the song from a brand or a live event. So these globally, these two things are completely tied to each other. So strategically, that’s the approach we are following. We are not following the approach of just being a film music label.
Aman Singh
This is helpful. Secondly on dice media, can you — so you shared the outlook on profitability in next year — mid of next year. Can you also share what was the investment in content cost for FY ’25 and outlook for FY ’26, specifically for dice media?
Vikram Mehra
Sir, it’s not dice media. I think you’re talking about pocket, dice media,
Aman Singh
Pocket just land. Right.
Vikram Mehra
So the only thing at the Liberty I am out here to say right now, last year grew by 17%. We have not been able to reach that — we have cut-down our last losses a lot, but we are still little away right now, just a little away — a little away from a breakeven. This year, we will achieve a breakeven while continuing to grow at the — at a rate right now, hopefully, we should be upwards of 20%. On specific segments of theirs right now, they are all part of the largest Saregama company. Saregama company music business is going to be growing at 23%, while video business is going to be growing at 25% on a medium-term basis.
Aman Singh
Sure, sir. Thank you so much and good luck. Thank you.
Operator
Thank you. Ladies and gentlemen, in the interest of time, we will take this as our last question. I now hand the conference over to Mr Vikram Mehra for closing comments.
Vikram Mehra
Thank you. Thanks a lot. I’m very happy right now with the quality of questions and the level of interest I see. We as a company are — we look at — when we look at our India, we look at 750 million to 800 million people with a smartphone in their hands. If we start counting some of the other parts of the world where music that is coming from India or the video content coming from India is consumed, looking at a huge number of close to 1.8 bill to 2 billion people who consume our content. This makes us very excited about how Rosie the future is going to be.
We want to be the primary content company that fulfills every platform that is going out there and talking to these consumers who want to consume Indian native content, whether it’s in form of any form of audio or video or a live experience. The company is making all the investments on the content side, on the infrastructure side and technology side to keep itself as fit and profitable and on the number-one position 25 years from now onwards also. Thank you and seek all the blessings. Thank you.
Operator
Thank you. On behalf of JM Financial Institution Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.