Tips Music Limited (NSE: TIPSMUSIC) Q4 2026 Earnings Call dated Apr. 23, 2026
Corporate Participants:
Kumar Taurani — Chairman and Managing Director
Girish Taurani — Executive Director
Sushant Dalmia — Chief Financial Officer
Analysts:
Ayushi Gupta — Analyst
Kavish Parekh — Analyst
Avnish Sharma — Analyst
Akshay Kolekar — Analyst
Rohit Singh — Analyst
Ravi Naredi — Analyst
Vishal Mehta — Analyst
Unidentified Participant
Swaraj Mehta — Analyst
Akshay Jogani — Analyst
Rajit Aggarwal — Analyst
Shrenik Mehta — Analyst
Vansh Handa — Analyst
Yashvardhan Sinha — Analyst
Rohan Advant — Analyst
Makarand Bhosekar — Analyst
Yashowardhan Agrawal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q4 FY26 Earnings Conference Call of Tips Music Limited. 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Ayushi Gupta from MUFG Intime Private Limited. Thank you and over to you, Ms. Gupta.
Ayushi Gupta — Analyst
Thank you. Good evening, ladies and gentlemen. I welcome you to the Q4 and FY26 earnings conference call of Tips Music Limited. To discuss this quarter’s performance, we have from the management, Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish Taurani, Executive Director; and Mr. Sushant Dalmia, Chief Financial Officer.
Before we proceed with the call, I would like to mention that some of the statements made in today’s call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to investor presentation and other filings that can be found on the company’s website.
Without further ado, I would like to hand over the call to the management for their opening remarks and then we can open the floor for Q&A. Thank you and over to you, sir.
Kumar Taurani — Chairman and Managing Director
Thank you and good evening everyone. Welcome to the Q4 and FY26 earning call of Tips Music Limited. I would like to thank you all for joining us today. I am pleased to share that our strong growth was driven by both digital and non-digital segments. In FY26 we distributed a total dividend of INR166 crores to our shareholders. It is a source of joy for me. Looking ahead, we will continue to focus on building high-quality music content, strengthening our market position and driving sustainable long-term growth.
With that, I would like to hand over to Girish for his comments.
Girish Taurani — Executive Director
Thank you and good evening everyone. In Q4 FY26, we witnessed an encouragement engagement across platforms, supported by a healthy mix of new releases and continued strength in our catalogue. We released 66 new songs in the quarter, including 47 film songs and 19 non-film songs while continuing to prioritize quality over quantity in our strategy. On YouTube, the song Tu Jaane Hai Kahan by Luky Ali crossed 10 million views while the songs Tehzeeb and Jamuna Kinara recorded 2.4 million views each. Our YouTube subscriber base has grown to 153 million. On Instagram, a catalogue song Deewana Mujhe Kar Gaya from the movie Khuda Gawah generated 3 billion views while the song Daiya Daiya Daiya Re from the movie Dil Ka Rishta recorded 1.5 billion views.
I will now hand over the call to Sushant to take you through the financial performance in detail. Thank you everybody.
Sushant Dalmia — Chief Financial Officer
Thanks, Girish. Welcome to the Q4 FY26 earnings call. I’m pleased to present the financial highlights for the quarter, which reflect the company’s strong performance. The company recorded quarterly revenue of INR103.9 crore, delivering a YoY growth of 32%. Operating EBITDA for the quarter stood at INR76.9 crores, reflecting a YoY growth of 106%. Additionally, PAT for Q4 FY26 came in at INR59 crores, making a 93% YoY increase. Please note that during the quarter the employee cost increased by 78% YoY on account of provisions made for annual increments. For FY26 the revenue came in at INR375.5 crores, marking a 21% growth, while PAT amounted to INR216.6 crores, showing a YoY increase of 30%.
With this, I conclude my opening remarks and open the floor for Q&A.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Kavish Parekh from 360 ONE Capital. Please go ahead.
Kavish Parekh
Hi, team. Good evening and thank you for the opportunity. Congratulations on a great set of numbers. My first question is on your growth. Stellar show this quarter, 32% growth. What explains the performance, and what are your thoughts going into F27? What kind of growth do you envisage and what would be the key drivers for the same?
Kumar Taurani
See, I think this quarter as usual, I always maintain [Foreign Speech] our repertoire — ’90s repertoire is really doing exceptionally well. So that is the main advantage we have and that on continued basis is doing well. For next year performance, we expect — it’s too early, but our target is to achieve same numbers, like 20% on top line growth and 20% bottom line growth. That is our target and we will try and achieve that.
Kavish Parekh
Any one-off revenues or something to call out for this quarter because I understand that repertoire is growing at — my assumption was it was growing at somewhere around 16% to 18%-odd. But 32% is far beyond that. So any one-off that you may want to call out?
Kumar Taurani
I don’t think so. Sushant, [Foreign Speech]
Sushant Dalmia
No, nothing, Kavish. Nothing one-off over here.
Kavish Parekh
Understood. Second, on your views. So while I do understand that the decline in total views was on account of YouTube Shorts, what explains this continued decline in shorts views? And while I understand it does not contribute to revenues or profits yet in a sizable manner, the whole idea behind sustaining high views is that it provides you with some negotiating power with YouTube. I think the deal for YouTube Shorts is slated for renewal in a quarter or so. Do you envisage any impact on the same on account of this decline in views?
Kumar Taurani
Sushant?
Sushant Dalmia
Kavish, we don’t see any material impact of this declining views. And as we have said earlier, it happens in, let’s say, one quarter or half year, one of the shots goes viral and the views, let’s say, increase multiple. But underlying, let’s say, whatever views currently also they’re on a healthy run rate for us. So we don’t see, let’s say, any impact of this decline on view on our, let’s say, YouTube Shorts renewal deal.
Kavish Parekh
So would you — so are you suggesting or implying that the period when you were at your peak number of, say, somewhere around 56 million, 57-odd million that was on account of a few reels that may have gone viral and then this current rate is more of a normalized rate for you? Is that the way to read into it?
Sushant Dalmia
Yes, yes, that would be the right way, Kavish.
Kavish Parekh
And I think the — pertaining to the deal renewal in June ’26, what kind of a jump would you anticipate in this deal value? Here, I believe Mr. Hari Nair was instrumental in negotiating partnerships with Warner and YouTube Shorts. Now with him stepping down, what is the plan to take this forward and how — have you also managed to find a replacement for the position?
Kumar Taurani
Not yet, Kavish. We are estimating how much or how we handle this and we will start negotiating with them by this month end or next month beginning.
Kavish Parekh
Sure. But — understood. Okay. And lastly, could you lay down the content release or content slate that is planned for F27? What are the key movies expected both in India and regional and where would content spends range as a percent of top line for F27?
Kumar Taurani
Sushant, [Foreign Speech]
Sushant Dalmia
Kavish, you can refer to slide 8 which we have put onto our investor presentation in terms of the key slate.
Kavish Parekh
All right. I think there were a few movies, maybe three or four odd movies. But anything more than that?
Kumar Taurani
We are open to acquiring anything. But you know that market is very competitive. So we will — we are very cautious [Foreign Speech] what kind of a project and how we are recovering our money in stipulated time. So that is our criteria. So we will keep on acquiring.
Kavish Parekh
Understood. So as a percent of top line, we could range somewhere between 20% to 25%. Is that the —
Kumar Taurani
Yes, yes.
Kavish Parekh
Right way (ph) to work with? All right.
Kumar Taurani
Absolutely.
Kavish Parekh
Sure. Thank you so much and all the best. Thank you. Thank you, sir.
Operator
Thank you. We have next question from Avnish Sharma from JM Financial. Please go ahead.
Avnish Sharma
Yeah. Thank you for the opportunity. Firstly, congratulations on good set of numbers. My first question is on the revenue mix. Digital revenue for FY26 is around 70%. Whereas it was in the range of 71% to 75% in the last three quarters. So, there seems to be a slight dip in this quarter. Just wanted to understand what led to this decline. Also, could you briefly explain what is in the non-digital revenue and what drove the segment this quarter?
Kumar Taurani
Sushant?
Sushant Dalmia
On the revenue piece, the 70% is for the whole year. We had said at the start of the year, let’s say, a couple of platforms had closed down. So there were a couple of headwinds on the digital growth. On the non-digital piece, let’s say, particularly, let’s say, brand publishing and public performance have done well for us for the full year.
Avnish Sharma
Okay. Understood. My second question is on employee benefit expenses. We see a noticeable increase in the cost during the quarter even though the number of employees has gone down. I understand this increase is due to the provisioning of this annual hike, as you mentioned earlier. Just wanted to understand if this is the new run rate going forward.
Sushant Dalmia
No, no. This won’t be the new run rate. Let’s say this is — let’s say at the — every let’s say Q4 we make a provision for increment. So this quarter, let’s say, basis of performance the provisions is on the higher side. But otherwise, let’s say, if you see the overall count of employees has reduced from 105 to 98 and let’s say we would be at let’s say, the earlier Q3 or Q2 run rates only, in terms of the employee cost.
Avnish Sharma
Okay. Okay. Understood. Thank you. Thank you.
Operator
Thank you. Next question from the line of Akshay Kolekar from Dalal & Broacha. Please go ahead.
Akshay Kolekar
Thank you for the opportunity. So my first question is on basically the YouTube view has declined, like 7.8% in FY26. Yet your revenue has grown by 21%. So can you quantify the revenue per view trend has been year-on-year increasing? Or is it because of the short consumed screen time more so that — without proposal to monetize yet? So the reason I’m asking this question is because I just wanted to understand whether YouTube is paying more per stream due to subscription mix shift?
Kumar Taurani
Sushant, you only reply this.
Sushant Dalmia
On the decline on YouTube views, we have categorically mentioned that it’s primarily on account of YouTube Shorts which have — the views of which have declined. On the long videos, the growth has been there as per our expectation and that has been, let’s say, driving our revenue.
Akshay Kolekar
Okay, understand. So my second question is on the content cost basically. The content cost as a percentage of revenue is currently like 15.8% compared to 23% last year. So why there is sudden fall in content cost? Because you have mentioned that 18% of revenue will be the content cost.
Kumar Taurani
Can you please repeat this?
Akshay Kolekar
The question is basically the content cost as a percentage of revenue is currently 15.8%. When compared to last year it is 23%. So why there is a fall in year-on-year? And the target you are mentioning is around, I guess, 18% of revenue, like earlier call.
Kumar Taurani
See there is one movie called Hai Jawani Toh Ishq Hona Hai which was — actually was supposed to release in February, March theatrical and music was supposed to release in January. That got postponed to June. So that was a hit we have. Otherwise, we could have reached our target. And this happens in our business. Sometimes content goes here and there.
Akshay Kolekar
Okay. And one more last question. Could you just give the bifurcation of revenue, like how much is from YouTube and how much is from Warner non-digital revenue? Because [Speech Overlap]
Kumar Taurani
We can’t give you the —
Akshay Kolekar
Quantify how much revenue comes from Warner basically.
Kumar Taurani
Sorry, we can’t give you that. It’s a competition world. We can’t reveal that. Sorry about that.
Akshay Kolekar
Yeah, sure. No worries. Yeah, that’s it from my side. Thank you.
Operator
Thank you. Next question from Rohit Singh from Nvest Analytics Advisory LLP. Please go ahead.
Rohit Singh
Hello.
Kumar Taurani
Hello.
Rohit Singh
Hello. Am I audible, sir? Hello.
Kumar Taurani
Yeah.
Operator
You are audible.
Rohit Singh
So, good evening, sir, and congrats on the good set of numbers. I have one question regarding the outlook for FY27. Last con call, you upgraded the PAT guidance to 25% and delivered 30%. Due to the strong momentum, can we expect to achieve 30% top line and 30% bottom line growth for FY27?
Kumar Taurani
See our target actually mentally you ask me, yes, I want to achieve that. But for comfort of the people like you or investors, I don’t want to over promise. So let’s keep at present 20%, 20%. Let one, two quarters pass and then we’ll again tell you where we are moving this year.
Rohit Singh
Thank you, sir. That’s it. So all set.
Operator
Thank you. Next question from the line of Ravi Naredi from Naredi Investment Private Limited. Please go ahead.
Ravi Naredi
Thank you, Taurani Ji. Just want to ask, content cost lowest in March quarter since last two — few years. So we are preparing for new release movies in Hai Jawani Toh Ishq Hona Hai [Foreign Speech] Main Vaapas Aaunga releasing in quarter one financial year ’27.
Kumar Taurani
Yeah. Music is released. And I think [Indecipherable] both movies are releasing also in first quarter, 22nd May and 12th June and we will have both movies — will account for this quarter, first quarter.
Ravi Naredi
Okay. And how much music cost of all above — above two movies? Can you tell the amount?
Kumar Taurani
We can’t give you exact number.
Ravi Naredi
Okay. Okay. Understand.
Kumar Taurani
But total numbers — total number you will see in the first quarter.
Ravi Naredi
Yes, sir. How much is paid subscription revenue percentage in our overall top line?
Kumar Taurani
Yeah. Sushant, please clarify. [Foreign Speech]
Sushant Dalmia
Ravi Ji, paid subscription would be in the range of, let’s say, 10% to 15% of the digital revenue.
Ravi Naredi
15% of digital revenue. And from shorts, how much revenue we earned in financial year ’26?
Sushant Dalmia
From YouTube Shorts, it won’t be material, Ravi Ji. From YouTube Shorts, it won’t be material.
Ravi Naredi
Not so material. And what is the distribution of digital revenue and other revenue in our total figure?
Sushant Dalmia
Ravi Ji, we have given in the presentation around, let’s say, 70% now comes from digital and 30% is from non-digital. We have diversified our revenue base. Now, let’s say, publishing, public performance, brands are all contributing to the revenue.
Ravi Naredi
And Taurani Ji, Ramesh (ph) Ji, can you tell in next five years how much stream this revenue will be there that will be paid subscription revenue?
Kumar Taurani
Subscription industry estimates [Foreign Speech] minimum, I think, 7 crore, 8 crore people will be doing subscription
Ravi Naredi
In five years?
Kumar Taurani
Yes.
Ravi Naredi
Okay. Thank you very much. And nice result definitely you had given.
Kumar Taurani
Thank you. Thank you.
Operator
Thank you. Next question is from the line of Vishal Mehta from Oaklane Capital. Please go ahead.
Vishal Mehta
Hello. Sir, just wanted to clarify. So in case of Hai Jawani Toh Ishq Hona Hai, if the music release happens in quarter one, then the content cost for that is also accounted for in Q1 itself, right?
Kumar Taurani
Yeah.
Vishal Mehta
Okay. And, sir, one more thing. Would it be possible to share what is the percentage contribution of paid subscribers to our overall revenues?
Kumar Taurani
Sushant can — do we have that?
Sushant Dalmia
Vishal, on an overall basis, let’s say, 10% to 15% of the digital business.
Vishal Mehta
10% to 15% of the digital business.
Sushant Dalmia
Yes.
Vishal Mehta
And what would this number be for last year, approximately?
Sushant Dalmia
Last year, let’s say, it would be, let’s say, around that 10% to 12%. It has inched higher for us. Subscription business is growing at around, let’s say, 30% to 40% CAGR. So it has inched higher for us this year.
Vishal Mehta
Okay. Got it. And also just one question. There was this news article today about Warner Chappell Music setting up a publishing arm in India. How does something like that impact us? Would it be a benefit for us? Would it be a competitor for us? I mean, could you just explain to us what is the impact of this?
Kumar Taurani
Sushant?
Sushant Dalmia
It would be positive, Vishal. They setting up a business in India is a huge positive for us. We won’t be able to divulge more details, but, let’s say, it’s a good positive.
Vishal Mehta
Got it. Great. Thanks so much. We wish you all the best for the next year. Thank you.
Operator
Thank you. Next question is from the line of Sanidhya (ph) from Unicorn Assets. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
Operator
Yes, you are.
Unidentified Participant
Yeah. So first of all, great, sir. And secondly, I would really like to say to the management that I think you should clarify on the content cost part that, okay, we had some lags and — or shift in the movies release and therefore Q1 is where we’ll see most of the content cost being eventually expensed. So there might be some confusion with the market participants that, okay, Q1 if we show higher content cost in terms of percentage, so we should always look yearly content cost rather than just looking quarter-on-quarter. That should be the message. And secondly, could you give some sense around like we are seeing very good buzz around recent music that we published. And I think the revenues will compensate for all the content costs and much more than that. But how much should we expect from the like — not specifically two movies, but as a whole we shall remain within the target for the year, right? That should be the expectations.
Sushant Dalmia
Yes, that is true. The current, let’s say, whatever songs we have released for the upcoming two movies, they are doing great for us. Fingers crossed. I think they should do well. And it would help us to achieve our target.
Unidentified Participant
Yeah, yeah, yeah. Great. And lastly, so anything that we have already expensed, advance paid to Tips Films. This is just a question for compliance because, of course, it’s a related-party kind of thing. We don’t want any compliance issues. Of course, we trust the management. But have we expensed any advance in the balance sheet in some sort or created any liabilities for ourselves this quarter or this year? Or it will — everything will be paid next year to Tips Films by the Tips Music?
Sushant Dalmia
So I won’t be able to share the exact details, but, let’s say, it would be driven by the contractual terms between Tips Films and Tips Music and it would be at arm’s length and as per the industry practice.
Unidentified Participant
Yeah. That [Speech Overlap]
Sushant Dalmia
[Indecipherable]
Unidentified Participant
Yeah. For the balance sheet purpose because of course FY26 doesn’t show any revenue from the upcoming movies, and therefore, if the balance sheet has any stuff we can look forward and okay, we can understand that, okay, there must be some exception item that would be followed by the next week’s expenses — next year’s expenses.
Sushant Dalmia
So, let’s say, whenever, let’s say, the songs get released, we’ll expense it off, let’s say, primarily in first quarter.
Unidentified Participant
Have you made any provisions in the balance sheet already?
Sushant Dalmia
No, no, no, not. In terms of the cost, no.
Unidentified Participant
Okay. Nothing advance till —
Sushant Dalmia
See, we follow a clear policy — yeah, see we follow a very clear policy. Once the song is released of any movie album, we would expense it on that day, the entire album cost.
Unidentified Participant
In the P&L, right? Nothing goes through the balance sheet, even if it is with the Tips Films, even if it is a partner.
Sushant Dalmia
No.
Unidentified Participant
Great. That really helps. Thank you.
Operator
Thank you. Next question is from the line of Swaraj Mehta from Perpetual Capital Advisors. Please go ahead.
Swaraj Mehta
Congratulations on a good set of numbers. My question was for music streaming companies, can a telecom building — a company like Spotify with their packages, the Jio packages or V packages like Netflix is bundled, does that change or bring proportional growth for us? And is there a change in realization when we get it bundled through a recharge pack or versus buying directly? Thank you.
Sushant Dalmia
Primarily, let’s say, in terms of bundled, we don’t prefer any bundled services, honestly, in that the payout would be lesser. Primarily the pure play music platforms like Spotify is much more appreciated rather than, let’s say, any bundling services with the telecom players.
Swaraj Mehta
Okay. Got it. Thank you.
Operator
Thank you. Next question is from the line of Akshay Jogani from Xponent Tribe. Please go ahead.
Akshay Jogani
Thank you for the opportunity. Sir, you explained earlier in the call that your library worked and as a result the growth was higher. But, sir, over the last few quarters the growth rates have been much different from this quarter, right? And while I understand the business is not linear, given that it is a consumer-led business, there is — YoY numbers tend to not be dramatically off. Would you — is this growth partly because year-end adjustments with Warner or something like that? What changed this dramatic shift on growth rate? And what part of it was adjustment-led versus just linear behavior? And I know the CFO sir did say that there was nothing one-off, but I’m not able to get a hold of why the number was significantly higher versus compared to the last few quarters that have been around the [Indecipherable[.
Sushant Dalmia
Akshay, there was no one-off. I again reiterate there was no one-off. There was no adjustment. These are all recurring revenue which has flown to us.
Akshay Jogani
Sure, sure. Sir, so if I may, just to better understand this, our Warner arrangements would be in some form usage-based, right? So, for a given period you have expected certain number of streams. At what point — does it at every month-end or every quarter-end, you do some maths on so many number of streams consumed into so much revenue? Or is it on an annual basis?
Sushant Dalmia
We get, let’s say, a detailed, let’s say, operational data in terms of number of streams from Warner. So, let’s say, our revenue recognitions are based on that.
Akshay Jogani
Sure, sure. And we do not have — sorry, sorry, you were saying something?
Sushant Dalmia
No, no. Please continue on.
Akshay Jogani
So, this lead looks like a step change in the consumer behavior. And is that something — essentially, are you seeing some sudden change? Because you must have also — in the last call, you all obviously didn’t expect this or even if you all did, you all didn’t call it out, right? Which means that something came out of which was not expected. If you could point us out to that?
Kumar Taurani
[Foreign Speech] No, no. Last quarter, we told you, [Foreign Speech] yes, we are achieving 20% top line. And on the contrary, I told you [Foreign Speech] I’m doing — bottom-line will be 25% plus. I told this to you.
Akshay Jogani
Yes, sir. But [Foreign Speech]
Kumar Taurani
[Foreign Speech]
Akshay Jogani
[Foreign Speech] this quarter is very good. And now, while I said I completely understand that your aspirations are very high. But, I am trying to understand the underlying better.
Kumar Taurani
[Foreign Speech] Please understand [Foreign Speech] our repertoire is doing really good. If you go Instagram, our many, many songs are trending. [Foreign Speech] The trending, if it comes to YouTube and Spotify even [Foreign Speech]
Akshay Jogani
Yes, yes. Absolutely, absolutely. No, sir, that is great. I am glad to hear that it is not — that the business is — I mean, the repertoire is working really well. Best of luck for the next year.
Kumar Taurani
Noor Jehan ka — one old song Noor Jehan ka, Sanun Nahar Wale Pul [Foreign Speech] from — song from Jeet [Foreign Speech]. Suddenly, it got trending. And it’s doing very, very good on other platforms as well. So, these are — these things keep happening with the repertoire companies. [Foreign Speech] repertoire, as I have mentioned always [Foreign Speech] my repertoire is very fresh, still fresh. And it has the potential [Foreign Speech]. And we are also — recreate many of our songs. So that’s — majorly, it’s from our catalogue.
Akshay Jogani
Absolutely, sir. So, best of luck. Wishing you the best for the next year as well. Thank you.
Kumar Taurani
Thank you.
Operator
Thank you. The next question is from the line of Nikhil (ph) from TBF. Please go ahead.
Unidentified Participant
Hi, can you hear me?
Sushant Dalmia
Yes, you’re audible, Nikhil.
Unidentified Participant
Hi. Great. Congratulations for a great set of numbers, Mr. Taurani and the team. I have one question on the industry. The industry, as per one of the reports, has grown at 10% in 2025. But if you break down that growth, the digital licensing growth is only 2%. And as per that report, the YouTube growth is actually negative 8% even though the subscription has been picking up, while the growth is coming up more from the other licensing and other income. So, if you can, sir, explain us how the industry growth is shaping up in YouTube, particularly, and other parts would be very helpful. Thanks.
Kumar Taurani
Yeah, Sushant, [Foreign Speech].
Sushant Dalmia
Yeah, Nikhil, in terms of that industry report, we can’t comment much. But for us, let’s say, YouTube has grown as per our expectation. And we continue to see that growth going ahead, let’s say, primarily in terms of the digital ad spend also growing, and the subscription also picking up.
Unidentified Participant
Okay. But have you seen a slower growth in YouTube, particularly compared to Spotify or others?
Sushant Dalmia
No. No.
Unidentified Participant
Okay. Okay. Thanks.
Operator
Thank you. The next question is from the line of Rajit Aggarwal from Nilgiri Advisors. Please go ahead.
Rajit Aggarwal
Hello. Good evening, sir. Just a question on the strategy going forward. One is, you have your own repertoire. So, have you ever considered acquiring another label, some local regional label, to increase your song data?
Kumar Taurani
We have acquired one Gujarati — Kutchi channel, Kutchi music, Gujarati music, and — where we got 4,000 songs. So we have acquired that. We are open to that. And whenever we feel the price is right and we can do that, we will do that. Surely do that
Rajit Aggarwal
And the acquisition was done, sir?
Kumar Taurani
Sorry.
Rajit Aggarwal
When was this acquisition done on the Gujarati label or Gujarati channel?
Kumar Taurani
I think — last quarter we did — when we did this, Sushant?
Sushant Dalmia
Second quarter. That is somewhere in July, August.
Rajit Aggarwal
Okay. Okay. And any other transaction which you would be considering — actively considering now? Hello?
Sushant Dalmia
So we, let’s say — there is, let’s say, a lot of opportunities come on the table. But, let’s say, we are skeptical in terms of the valuations and what is there to offer. So anything which fits in our budget, we would definitely go for.
Rajit Aggarwal
Okay. Okay. And one quick clarification on the two movies that are coming up, they’re going to be released soon. The movie Main Vaapas Aaunga has just one song, right? Or did I get that wrong?
Sushant Dalmia
The song would get released. Let’s say, now only one song has released. Let’s say, as we come closer to the movie release date, there are a couple of songs more, which will get released.
Rajit Aggarwal
Okay. And their cost will be — will appear in Q1 then.
Sushant Dalmia
Yeah.
Rajit Aggarwal
Okay. Thank you. That’s helpful, sir. Thanks a lot.
Operator
Thank you. The next question is from the line of Shrenik Mehta from IndoAlps Wealth. Please go ahead.
Shrenik Mehta
Yeah. Can you hear me?
Operator
Yes. You are audible.
Shrenik Mehta
So, thank you for the fantastic results. I’ve been a shareholder for you for last several years, almost more than three years.
Kumar Taurani
Thank you.
Shrenik Mehta
I’m seeing a very clear consistency around your content cost. It has remained around INR60 crores, INR70 crores for the last three, four years. Now, this year in FY27, you will have this David Dhawan films and also the Imtiaz Ali’s A. R. Rahman project. Do you think this content cost may climb up back to the INR70 crores, INR71 crores that we had in FY25? Can we see that as an expected number or do you think it will be still in the INR60 crore range that we had this year?
Kumar Taurani
I feel our budget is more than that. I think we want to spend around INR80 crores, INR90 crores this year. And we are trying for that and hopefully we will achieve that.
Shrenik Mehta
Okay. So, with that INR80 crores, INR90 crores, you expect the profit growth to be over the 20% level that you’re mentioning?
Kumar Taurani
Yes, we maintain that. Yeah, absolutely. Yeah.
Shrenik Mehta
All right. Okay. Thank you.
Operator
Thank you. The next question is from the line of Yash Maheshwari from 7 Zero Capital (ph). Please go ahead.
Unidentified Participant
Hi, sir. Congratulations for a good set of numbers. So, first of all, actually, sir, I watched one of your interviews where you mentioned about the public performance segment that can grow tremendously in next five, 10 years. And you mentioned a figure of INR10,000 crores to INR20,000 crores. So, can you please shed some light on that? What’s your view on that? Do you think the growth is coming on that part? Hello?
Kumar Taurani
Yeah, Sushant.
Sushant Dalmia
On the public performance, Yash, what we believe there is an exponential growth which can come in this segment. Currently, let’s say, the industry size is roughly around INR500 crores. We expect at least to grow in next three years at least to INR3000 crores, just purely based on compliance. And also, let’s say, public performance licenses are now available online, let’s say, if you — there is a website where you can go and take the public performance license. So, that’s the key which has been created by the players in the market. So, let’s say, we are very excited about the public performance market growing at more than 50% CAGR.
Unidentified Participant
Okay. So do you believe that in next five or 10 years this could reach to INR10,000 crores, maybe INR20,000 crores as mentioned by Taurani sir in one of the interviews, actually?
Kumar Taurani
No, no. Actually, I told you [Foreign Speech] it can happen. But that then depends upon the government support. People are taking our contract. We have around — in India, we have 100,000 restaurants, only 1,000 restaurants take our license. So we have to really reach that figure and it is possible. It’s possible. In 10 years’ time we can achieve that much. In UK — UK do GBP1 billion business every year. So you can imagine [Speech Overlap].
Unidentified Participant
So, sir, do you believe the government — so do you believe the government would be — is pushing on that part and is supporting on that part also, currently talking about that?
Kumar Taurani
Yes, we are talking to government. And on the instance of government told us [Foreign Speech] do that online, all that, those systems. So we are putting that all in the place. And we expect [Foreign Speech] very positive about this business. You must have seen the artists performing INR8,000, INR10,000 per show ticket, maybe going up to even INR1 lakh. So it’s a really a great business and it’s now — people are ready to pay money and go for such a big, huge shows.
Unidentified Participant
Sure. And also sir, in last — past few con calls you mentioned that there would be a year where sudden jump would be there of around 40% or maybe 50%. So do you think like we are heading that stage right now?
Kumar Taurani
50%, what?
Unidentified Participant
As in few of your previous calls, you mentioned there might be — there might come a year where you might grow at 40% or 50% suddenly. So do you believe that stage —
Kumar Taurani
Yes, yes. I am waiting for that year. I think it will come. Let the subscription grow. It will come.
Unidentified Participant
Okay. Okay. Okay. And last question, sir, I was watching — I was reading in your annual reports where the revenue segment — in their notes to accounts, you are having 75% of revenue from international markets and 25% of domestic. So could you please explain that part also?
Kumar Taurani
I don’t think. It’s a reverse. I think — [Foreign Speech], Sushant.
Sushant Dalmia
Yes, that is primarily, let’s say, the receipts that is, let’s say, in foreign currency denominated. So annual report, let’s say, the breakup is primarily, let’s say, in terms of the receipt of foreign currency which we receive. So primarily it is due to, let’s say, YouTube, Warner. We receive it in international currency.
Unidentified Participant
Okay. Okay. So basically that revenue —
Sushant Dalmia
Otherwise the consumption, let’s say, 70%, 75% happens in India.
Unidentified Participant
Okay. Got it. So basically the revenue is domestic only. It’s just that currency is in USA, right?
Sushant Dalmia
Yes. The billing happens over there.
Unidentified Participant
Okay, okay, okay. That was it. Thank you so much, sir. Congratulations. Hoping for a good future for the company.
Kumar Taurani
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mr. Vansh from Serene Alpha. Please go ahead.
Vansh Handa
Thanks for the opportunity, sir. So my first question is, you’ve indicated 20% growth target for FY27. So should this be interpreted as a conservative target?
Kumar Taurani
For at present, you take this as conservative or bullish, whatever you want to do, you do that. We will tell you exactly in next one, two quarters.
Vansh Handa
Okay, sir. And so my second question is, now given that the strong cash generation and shareholder returns in terms of dividends and buybacks, what constraints or consideration are limiting incremental investment in content acquisitions or growth opportunities at this stage?
Kumar Taurani
We are really looking for more content we should acquire. And we can convince people like you [Foreign Speech] we can have maybe less PAT. But actually we are not getting content. I have to match the quality and the price of the content. So if I pay, say, tomorrow INR40 crore to a film producer and acquire six, seven songs of his film, and suddenly it is doing business of only INR2 crores, INR3 crores and there’s no future in that content, INR38 crores, INR37 crores going directly in the drain. So with our experience in that business, we don’t want to do that. It’s better [Foreign Speech] we should all take dividend and we should have some money to place somewhere else. So that is our main worry. And we are very cautious and careful about that.
Vansh Handa
Okay. Got it, sir. Thanks.
Kumar Taurani
Thank you.
Operator
Thank you. The next question is from the line of Yashvardhan Sinha from MIPL (ph). Please go ahead.
Yashvardhan Sinha
Hi, am I audible?
Operator
Yes, you are.
Yashvardhan Sinha
Hi. Congratulations on a great set of numbers. My only concern was similar to what you said earlier, Taurani sir, where ideally you would also like to spend more on content. But the market is currently overvalued. I wanted to understand how do you strategize what content to buy. How do you know when something is overvalued or undervalued? Because from the way I saw it, if we’re not spending more on content today, we are also sacrificing on future growth, right? Because like you said earlier, one of your old songs suddenly went viral and because of that you got a great growth quarter. So wanted to understand your thinking around this a bit better.
Kumar Taurani
Okay, okay. Let me take your only question as an answer. You said [Foreign Speech] other companies are buying. If they are growing with their content? Just see that. They are not growing. It’s a myth. So I think we have to be very, very cautious and what our strategy. Now if you see everybody is actually following that. They are acquiring film companies and they want constantly quality content to come to them. But it’s very tough, I think. And more or less — and plus we want only one or two outside producers’ film. We don’t want more content. So actually we are the best-placed in the music business today. So trust me, what we are doing is actually others are following us. And our policy is the best policy we are having.
Yashvardhan Sinha
Understood, Understood. Just one last follow up to that. An earlier participant mentioned that Warner is also going to be setting up a publishing practice in India. And the CFO sir mentioned that we will somehow be benefiting from that. If possible, could you maybe provide some color around that? And second order to that, are we expecting the market to cool down for content?
Kumar Taurani
Not immediately, but ultimately it will. 100% it will cool down, number one. Number two, as far as publishing — Warner Publishing is concerned, we are already with — we are doing business with Sony Publishing and they are really, really doing great job for us. We are really very happy with them.
Yashvardhan Sinha
Got it, got it. Okay, thank you so much for your responses. And once again, congratulations on a great set of numbers this quarter.
Kumar Taurani
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Rohan Advant from Prad Capital. Please go ahead.
Rohan Advant
Yeah. Thank you for the opportunity. Sir, I wanted to know in our Q4 quarterly revenue of INR104 crores what was the digital contribution and the non-digital contribution? Because in the PPT, you’ve given only for the full FY. So I wanted to know for Q4.
Kumar Taurani
That same is applicable. 70-30, do that.
Rohan Advant
Okay. Sir, [Foreign Speech] relative to the earlier quarters. So [Foreign Speech].
Kumar Taurani
[Foreign Speech] That’s a running business. [Foreign Speech] ultimately if you see as a consumer [Foreign Speech] music consumption [Foreign Speech]. I think that’s not a really worry. Sometimes [Foreign Speech]. So that is nothing. [Foreign Speech] really we are not worried or we are not even thinking of that.
Rohan Advant
Sir, [Foreign Speech] conversely [Foreign Speech] non-digital revenue Q4 [Foreign Speech].
Kumar Taurani
[Foreign Speech] we are doing well — we are doing well on publishing, public performance, brand side [Foreign Speech] we are getting good revenues.
Rohan Advant
Okay. And this is sustainable. [Foreign Speech]
Kumar Taurani
[Foreign Speech] you have to analyze us throughout the year wise. [Foreign Speech] compared to the first two quarters. And again, depending upon [Foreign Speech]. We don’t know how customers will behave and plus [Foreign Speech] It will take a lot of time. [Foreign Speech] What is our business? Our business is music [Foreign Speech] up to age of 40, 45 [Foreign Speech] from 15 to 40 [Foreign Speech] music consumption I think, repertoire wise, catalog wise we will be the number one company. [Foreign Speech] again catalog will bounce back and touchwood [Foreign Speech] compared to other labels, our catalog is the best performing now.
Rohan Advant
Understood, understood. Thank you, sir, and all the best.
Kumar Taurani
Thank you. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Makarand Bhosekar from Proinvest Nirmiti. Please go ahead.
Makarand Bhosekar
Hello, sir. Thank you for the opportunity. My questions have been answered, sir. Thank you.
Kumar Taurani
Thank you. Thank you.
Operator
Thank you. We have a follow-up question from Ravi Naredi from Naredi Investments Private Limited. Please go ahead, sir.
Ravi Naredi
Sir — Taurani sir, just I think since last few months to ask you, can we think like Binaca Geetmala one-hour music show song of Tips Industries, which one is at 1 to 15 number in this week and if it gives a good advertisement to our songs and library?
Kumar Taurani
Actually, Naredi [Foreign Speech].
Girish Taurani
Okay. Okay. Okay.
Kumar Taurani
Thank you.
Operator
Thank you. The next question is from the line of Yashowardhan Agrawal from IIFL Capital Asset Management Limited. Please go ahead, sir.
Yashowardhan Agrawal
Yeah. Hi, team. Am I audible?
Operator
You are. Yes.
Yashowardhan Agrawal
Thank you. Hi. Congratulations on good set of numbers. A few questions from my side. This is for this quarter. Would it be possible to give us volume growth and value growth in terms of how much growth would have come from increasing streams versus the premiumization rate?
Sushant Dalmia
Yash, we don’t share that data in terms of breakup of volume and value growth.
Yashowardhan Agrawal
Okay. So the reason why I was asking that in our presentation, it is mentioned that the industry is expected to grow at 8%. Whereas we have been doing far better growing at 20%, 25%, right? And historically, even whenever we discuss our growth levers, majority of them are linked to the industry as well. And the monetization of the industry is getting better. So I was just surprised that why is the industry growing at 8%? And of course, our repertoire is very good. That is leading to streaming growth as well. But what’s your thoughts on it that why such a huge difference between industry growth and our growth?
Sushant Dalmia
So, yeah, at the end of the day, it all depends on the catalog and what we have said earlier also, let’s say, we have one of the best catalogs in the industry.
Yashowardhan Agrawal
Okay. So still any kind of number that you would like to give on the volume growth that the majority of the growth is coming is it from the streaming growth? Would that be a fair assumption?
Sushant Dalmia
So primarily it would be more towards the streaming growth. That is right. But I won’t be able to divulge more details on that.
Operator
Thank you. Ladies and gentlemen, due to time constraints, this was the last question. I would now like to hand the conference over to Ms. Ayushi Gupta for closing comments.
Ayushi Gupta
I’d like to thank the management for taking the time out for the conference call today and also thank all the participants. If you have any queries, please feel free to contact us. We are MUFG Intime Private Limited, investor relations advisors for Tips Music Limited. Thank you so much.
Operator
[Operator Closing Remarks]
Kumar Taurani
Thank you.