Tips Music Grows Revenue 35% In Q2 But Releases Fewer Film Songs
Tips Music put out 73 songs in the July to September quarter, the same as in Q1, but film tracks fell from 55 to 40 as content costs nearly doubled.
Tips Music reported revenue from operations of Rs 120.1 crore for the July to September quarter, up 35% from Rs 89.2 crore a year earlier. Profit after tax rose 23% to Rs 65.5 crore. The company set out the numbers in its investor presentation and discussed them on its Q2 FY27 earnings call this week.
Operating EBITDA came in at Rs 84.6 crore, a margin of 70.5%. For the first half of the financial year, revenue reached Rs 226.6 crore, up 28%, while profit after tax grew 11% to about Rs 109 crore.
Spending more on content
Content cost nearly doubled. Tips spent Rs 26.2 crore on content in the quarter, up 97% from Rs 13.3 crore a year earlier. Over the first half the total was about Rs 71 crore. On the call, the company said that spending was front-loaded and that it expects content costs for the full year to land between Rs 90 crore and Rs 100 crore.
Fewer film songs
Tips put out 73 songs in Q2, the same as in Q1. The mix was not the same. Film songs dropped from 55 to 40, and non-film releases rose from 18 to 33.
The quarter's biggest song was still a film track, "Aankhon Se Tune 2.0", a new version of the song from Ghulam (1998), recreated for the Hindi film Bhai Tera Star Hai. It reached the top ten of YouTube's music video chart for India.
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The founder's column
Tips founder and chairman Kumar Taurani has been making a related case in public. In a guest column for the Financial Times, written with his nephew Karan Taurani of Elara Capital, he described rising acquisition costs, fewer commercially attractive films and a small number of ways to earn money from music as a "structural challenge" for the industry.
"The challenge is that music acquisition costs are rising faster than the industry's ability to monetise content," the pair wrote. They called for closer collaboration between labels, production houses and streaming platforms.
Tips built its catalogue on Hindi film music. In Q1, film songs outnumbered non-film releases three to one. In Q2 the gap was seven.
(Source: Tips Music Q2 FY27 investor presentation and earnings call)
