Tips Music Ltd (TIPSMUSIC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Your passcode has been confirmed. Please wait while you are joined to the conference. The conference is now being recorded.
Moderator: Ladies and gentlemen, good day, and welcome to the Tips Music Limited Q2 FY '27 earnings conference call hosted by MUFG and time. As a reminder, all participants' lines will be in the listen-only
Moderator: and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Devanshi Dhadhich from MUFG InTime. Thank you, and over to you, ma'am.
Devanshi Dhadhich (Ernst & Young Private Limited): Thank you. Good evening, ladies and gentlemen. I welcome you to the Q2 & H1 FY '27 earnings conference call for 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. Shashank Dahima, 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 the investor presentations and other filings that can be found on the company's website. Over to you, sir.
Kumar Taurani (Tips Music Ltd): Good evening, everyone, and welcome to Q2 & H1 FY '27 earnings call of Tips Music Limited. Wishing all of you a very happy Navratri and a very happy Diwali in advance. We have successfully completed the buyback of shares amounting to INR44.44 crores through open market buyback. During this quarter, the board has declared an interim dividend of INR6.5 per share. With that, I will I would now like to hand over the call to Girish for his comments. Over to you, Girish.
Girish Taurani (Tips Music Ltd): Thank you, Kumar ji. Good evening, everyone. During the quarter, we continue to see strong engagement across our new releases as well as our catalog content, supported by both our digital and non-digital segments. During the quarter, we released 73 songs comprising of 40 film songs and 33 non-film songs. Our new release our new releases in general have received a strong response from the listeners. In particular, our Punjabi film music album, Ishq Naa Maane, has crossed 100 million views on YouTube. Our recreated song, Aankhon Se Tune 2.0, from our catalog released during the quarter and has crossed 66 million views on YouTube. We continue to witness sustained traction in our new releases with Chunari Chunari Let's Go, released in Q1 FY '27, which has now crossed 100 million views on YouTube. And the female version of Tere Paas Mein from the film album Main Wapas Aaunga continue to perform strongly on Spotify and all music streaming platforms. Our catalog track Tera Naam Doon from the movie Entertainment gained significant traction on Instagram and crossed 1 billion views on Instagram. Our YouTube subscriber base is now at 164.5 million and growing, and total views across our content library has surpassed 54.3 billion, demonstrating the growing popularity and reach of our content across platforms. With that, I would now like to hand over the call to Shashank to discuss the financial performance in greater detail. Wish you all a very happy Navratri and happy Diwali in advance. Thank you.
Shashank Dahima (Tips Music Ltd): Thank you, Girish, and welcome, everyone, to the Q2 and H1 FY '27 earnings call. I'm pleased to present the key financial highlights of the quarter gone by. Revenue for Q2 FY '27 stood at Rs. 120 crores as compared to Rs. 89.2 crores in Q2 FY '26, representing a year-on-year growth of 35%. Content cost for the quarter stood at Rs. 26.18 crores, which almost doubled as compared to last year. Operating EBITDA was Rs. 84.64 crores, reflecting a YoY growth of 25% with an EBITDA margin of 70.5%. Profit after tax stood at Rs. 65.5 crores, representing a growth of 23% over the previous year quarter, while PAT margin for the quarter was 54%. For the first half FY '27, revenue came at Rs. 227 crores, reflecting a growth of 28% over the corresponding period last year. Please note during the 6 months, the content cost was at Rs. 71 crores, which is front-loaded, and we expect the content cost for the full year to be in the range of 90 to 100 crores only. Profit after tax for the period stood at Rs. 109 crores, representing a YoY growth of 11%. With that, I conclude my opening remarks and open the floor for questions. Thank you.
Moderator: Thank you very much. We will now
Moderator: question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets 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 Kavish Parekh from 361 Capital. Please go ahead.
Kavish Parekh (361 Capital): Hi, Kumarji. Hi, Sushant. Thank you for the opportunity and congratulations on a very strong set of numbers. So, first question pertains to the growth. We have seen periods of strong growth in the past as well. Could you explain what drove growth this quarter? 35% YoY. Any break up in terms of contribution from digital versus non-digital revenues? How sustainable do you think this momentum is? And a follow-up question to growth is, on our platform deals, could you update us on negotiations with YouTube for Shorts monetization and Instagram Reels? Has the Warner partnership sort of strengthened our negotiating position particularly on the pricing front, which aided growth this quarter?
Shashank Dahima (Tips Music Ltd): Hey, Kavish. Hi. This is Sushant here. On the question of YouTube Shorts, the deal is still under negotiation. It's not been concluded. We'll update once the deal is done. On the Warner, the partnership continues as per our expectations. In terms of growth for this quarter, it was driven by both new releases and our catalog. And let's say both digital and non-digital platforms contributed. digital contribution for the first half was 73% as we have mentioned in the presentation.
Kavish Parekh (361 Capital): Understood. Understood. Second, on the content spend, you did allude that in your opening remarks that you maintain your full year guidance of about ₹90 crores. First half we've since seen spends of about ₹70 crores. Does that imply second half will again not really see any meaningful Hindi content releases and growth in 2H will have to depend on catalog? Is that a fair understanding?
134 more turns of this transcript: log in to Stocksigma to read the full call.