Tips Music Reports 21% Growth in FY26, Powered By Catalogue Monetisation

Tips Music Limited has delivered a strong financial performance in FY26, reporting a 21% year-on-year increase in revenue to Rs 375.5 crore, alongside a 30% rise in profit after tax. The growth has been largely driven by the company’s extensive music catalogue, underscoring the strength of its asset-led business model in an increasingly digital ecosystem.

Unlike traditional music companies that rely heavily on new releases, Tips Music continues to benefit from consistent monetisation of its legacy catalogue, particularly tracks from the 1990s and early 2000s. Management highlighted that this catalogue remains a key growth engine, with an estimated lifespan of another two to three decades, offering sustained and recurring revenue streams.

A significant contributor to this growth has been the rising influence of digital platforms. Nearly 70% of the company’s revenue in FY26 came from digital channels, including streaming and licensing.

While short-form video formats such as YouTube Shorts have seen fluctuations in viewership, the company clarified that these do not materially impact revenues, as monetisation continues to be driven primarily by long-form content consumption.

Viral trends across platforms like YouTube and Instagram have further amplified catalogue performance. Older tracks frequently resurface and gain traction organically, contributing to periodic spikes in revenue. This dynamic was evident in the fourth quarter, which saw a notable surge driven by multiple catalogue tracks gaining popularity online.

Additionally, Tips Music has witnessed steady growth in subscription-based revenues, which now contribute 10–15% of digital income and are growing at a strong compound annual rate. The company’s YouTube subscriber base has also expanded significantly, reaching over 150 million users.

Beyond digital, non-digital revenue streams are also gaining momentum. Segments such as public performance, licensing, and publishing now account for nearly 30% of total revenues. The company sees strong potential in this space, particularly as demand for music usage across events, hospitality, and commercial establishments continues to grow. Management estimates that the public performance market alone could expand significantly over the next few years, supported by improved licensing frameworks and compliance systems.

Strategically, Tips Music has maintained a disciplined approach to content acquisition, focusing on quality over quantity. Despite rising content costs across the industry, the company has remained cautious, ensuring investments are directed toward projects with strong long-term potential. Content costs stood at 15.8% of revenue in FY26, with plans to moderately increase investments in FY27 while maintaining financial prudence.

Notably, Tips Music has outperformed broader industry growth rates, which are estimated at 8–10%, by consistently delivering over 20% growth. This divergence highlights the scalability of its catalogue-driven model, where existing assets continue to generate value over time.

Looking ahead, the company expects to sustain this momentum, projecting around 20% growth in both revenue and earnings in FY27. While new releases will contribute, the catalogue will remain central to its strategy. Tips Music is also exploring acquisitions to further strengthen its library, including recent additions in regional music segments.

Overall, the company’s performance reinforces the growing importance of music catalogues as long-term revenue assets, particularly in a digital-first landscape where consumption patterns continue to evolve.