Saregama India Limited (SAREGAMA) AI Stock Analysis

• Market Cap: ₹66.45B
• Dividend Yield: 2.59%
• Average Volume (3M): 11.22K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.53
• Revenue Growth: 26.97%
• EPS Growth: 8.03%
• Country: IN
• Employees: 332
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 2.68
• Shares Outstanding: 192,809,500
• 10 Day Avg. Volume: 9,647
• 30 Day Avg. Volume: 11,219
• PEG Ratio: 14.28
• Price to Book (P/B): 6.28
• Price to Sales (P/S): 8.48
• P/FCF Ratio: 58.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹355.00
• Price Target Upside: -0.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 11.18
• Revenue Forecast (FY): ₹11.51B

• Rating: 59 Neutral
• Price Target: ₹349.00 ▼(-2.42% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is supported by a strong, low-leverage balance sheet and solid profitability, but is pulled down by the sharp TTM revenue decline and weakened cash conversion/FCF. Technically, the stock remains in a downtrend (below major DMAs with negative MACD), while valuation looks somewhat expensive despite a moderate dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage and a solid equity base provide durable financial flexibility. This supports investment in new content, enables opportunistic M&A or catalogue purchases, and helps the company weather cyclical revenue shocks without forcing asset sales or aggressive cost cuts.

Healthy profitability and margins

Saregama’s multi-year track record of healthy gross and net margins indicates pricing power and cost control in core licensing and distribution. Sustainable margins support reinvestment in content, dividend payouts, and funding of production initiatives despite periodic revenue swings.

Diversified content monetization model

A business model that earns from licensing, streaming royalties, content production, and direct-to-consumer offerings creates multiple, partly recurring revenue streams. This diversification reduces single-channel dependency and supports long-term cash generation as consumption shifts.

Negative Factors

Significant TTM revenue decline

A near‑term ~19% drop in trailing revenues is structurally meaningful: it can erode catalogue monetization momentum and reduce bargaining leverage with platforms and licensees. Prolonged revenue contraction would limit content investment and weaken long‑term growth prospects.

Weak cash conversion / zero FCF

Material deterioration in cash conversion and zero free cash flow in the TTM hampers the company’s ability to self‑fund content acquisition, production, and dividends. Persistent weak OCF relative to earnings reduces financial resilience and raises funding risk for strategic initiatives.

Dependence on platform terms and consumption volumes

Revenue and royalties are structurally tied to third‑party streaming and platform contracts. Changes in platform payout policies, algorithmic distribution, or user engagement trends can durably compress revenues and margins, limiting predictability of long‑term cash flows.

Saregama India Limited Business Overview & Revenue Model

Company Description

Saregama India Limited engages in the sound recording and publishing business in India and internationally. The company operates through Music, Films/TV Serials, and Publication segments. The Music segment manufactures and sells music storage devices, such as carvaan, mini carvaan, music cards, audio compact discs, digital versatile discs, etc., as well as deals with related music rights. The Films/TV Serials segment produces, sells, telecasts, and broadcasts films, TV serials, and pre-recorded programs, as well as deals in film rights. The Publication segment publishes OPEN, a weekly current affairs magazine. The company was formerly known as Gramophone Company of India Ltd. The company was founded in 1901 and is headquartered in Mumbai, India. Saregama India Limited is a subsidiary of Composure Services Private Limited.

How the Company Makes Money

Saregama generates revenue through multiple streams, primarily from music licensing, digital streaming, and product sales. The company earns significant income from licensing its extensive music catalog to films, television shows, and advertisements. Additionally, SAREGAMA has a growing presence in the digital space, partnering with streaming platforms to provide its content, which contributes to its revenue through digital royalties. The sales of the Saregama Carvaan and other music-related products also form an essential revenue stream. Strategic partnerships with various digital platforms and collaborations with artists further enhance its earnings potential.

Saregama India Limited Financial Statement Overview

Summary

Balance sheet strength is a major positive (very low leverage; healthy ROE), but the latest TTM shows a ~19% revenue decline and materially weaker cash conversion (OCF to net income ~0.09; free cash flow at zero), which weighs on near-term performance quality.

Income Statement

Profitability remains a clear strength, with healthy TTM (Trailing-Twelve-Months) margins (gross profit ~44%, net margin ~20%). However, the latest TTM (Trailing-Twelve-Months) revenue is down ~19% versus the prior period, and margins are also lower than the strong FY2024 levels, pointing to a weaker near-term growth and profitability trajectory despite a generally solid multi-year track record.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (TTM debt-to-equity ~0.05; near-zero in recent annual periods) and a solid equity base. Returns on equity are consistently healthy (roughly ~12–14% in recent years), supporting strong financial flexibility; the main watch item is the recent uptick in debt in the TTM (Trailing-Twelve-Months), albeit still modest.

Cash Flow

Cash generation has been volatile. In the latest TTM (Trailing-Twelve-Months), operating cash flow is low relative to earnings (operating cash flow to net income ~0.09) and free cash flow is reported at zero, which is a meaningful deterioration versus FY2025 (free cash flow positive and ~51% of net income). Prior years also show swings, including negative free cash flow in FY2023, indicating less consistent cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.38B	11.71B	8.03B	7.37B	5.76B	4.33B
Gross Profit	4.13B	4.52B	4.73B	4.13B	3.57B	2.64B
EBITDA	3.06B	2.77B	3.10B	2.70B	2.30B	1.58B
Net Income	1.92B	2.04B	1.98B	1.85B	1.53B	1.13B
Balance Sheet
Total Assets	22.86B	20.95B	20.34B	17.04B	16.88B	7.84B
Cash, Cash Equivalents and Short-Term Investments	5.54B	1.81B	1.74B	2.55B	6.83B	1.33B
Total Debt	799.00M	27.00M	54.33M	7.13M	13.03M	11.02M
Total Liabilities	6.65B	5.08B	5.61B	3.59B	3.07B	2.75B
Stockholders Equity	16.17B	15.83B	14.69B	13.42B	13.78B	5.06B
Cash Flow
Free Cash Flow	0.00	1.70B	9.71M	-183.60M	217.12M	1.68B
Operating Cash Flow	528.30M	3.31B	932.45M	848.20M	944.25M	1.90B
Investing Cash Flow	-612.10M	-2.21B	165.94M	-1.41B	-6.30B	-1.36B
Financing Cash Flow	-1.24B	-987.30M	-848.64M	-756.00M	6.77B	-494.80M

Saregama India Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 357.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAREGAMA, the sentiment is Neutral. The current price of 357.65 is above the 20-day moving average (MA) of 335.90, above the 50-day MA of 340.33, and below the 200-day MA of 424.83, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SAREGAMA.

Saregama India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ZEEL	61 Neutral	₹69.96B	13.88	―	2.65%	-4.67%	43.27%
SAREGAMA	59 Neutral	₹66.45B	32.87	―	2.59%	26.97%	8.03%
BALAJITELE	55 Neutral	₹10.21B	-12.87	―	―	-50.42%	2921.37%
SHEMAROO	45 Neutral	₹2.63B	-1.32	―	―	-2.93%	-50.62%
RADAAN	43 Neutral	₹154.90M	-4.58	―	―	-79.97%	-219.35%
EROSMEDIA	37 Underperform	₹756.76M	―	―	―	-69.51%	71.68%

Saregama India Limited Corporate Events

Saregama Closes Trading Window Ahead of Q3 FY26 Results

Saregama India Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the company announces its unaudited financial results for the third quarter and nine months ended 31 December 2025. The move, taken under SEBI’s Prohibition of Insider Trading Regulations and the company’s own insider trading code, is a standard governance measure aimed at preventing insider trading ahead of earnings disclosure, signalling continued regulatory compliance and safeguarding fair market practices for investors.

Saregama Independent Director Santanu Bhattacharya Completes Final Board Term

Saregama India Limited has announced that independent director Santanu Bhattacharya has completed his second and final term on the board and ceased to be an independent director with effect from the close of business on 21 December 2025. The board has formally recorded its appreciation for Bhattacharya’s contributions, and the company has updated its official list of directors and key managerial personnel, signaling a routine governance transition in line with SEBI’s listing and disclosure regulations.

Saregama India Limited Releases Unaudited Financial Results for Q2 2025

Saregama India Limited has announced the approval of its unaudited financial results for the quarter and half-year ending on September 30, 2025. The results, which have been published in major newspapers, reflect the company’s financial performance and are accessible on both the stock exchanges and the company’s website. This announcement underscores Saregama’s commitment to transparency and provides stakeholders with important insights into its financial health.