Saregama MD Vikram Mehra Discusses ‘Dhurandhar’, AI, and More on Earnings Call

Why It Matters

The disciplined rights‑acquisition approach safeguards cash flow, and Saregama’s AI experiments could unlock new monetisation streams, positioning the label for sustainable growth in a rapidly digitising market.

Key Takeaways

• Saregama posted 19% YoY revenue growth for Q4 FY2026.
• “Dhurandhar” soundtrack generated 6M streams and 11M daily YouTube views.
• Company refused sequel rights, citing five‑year payback guideline.
• AI‑generated music seen as low‑value; Saregama explores AI‑enhanced legacy content.
• Short‑form video contracts are one‑year, limiting revenue upside.

Pulse Analysis

Saregama’s latest earnings reveal a label that is both expanding its cultural footprint and tightening financial discipline. The 19% revenue jump reflects not only a robust catalog but also strategic initiatives such as the UN40 music festival, which attracted 12,000 fans, and a diversified artist roster that now spans Hindi, regional, and comedic talent. By releasing nearly 1,200 original and premium recreations, the company is capitalising on India’s multilingual consumption patterns, reinforcing its claim of a 25‑30% market share in new music.

The decision to walk away from the "Dhurandhar: The Revenge" soundtrack underscores Saregama’s commitment to a five‑year payback model. While the sequel’s box‑office success was undeniable, the label judged the licensing price misaligned with projected streaming returns, especially after the original’s 6 million daily streams and 11 million YouTube views. This disciplined stance contrasts with competitors who may chase vanity deals, and it signals to investors that cash‑flow preservation remains a priority amid volatile content costs.

AI’s rise presents both a threat and an opportunity. Mehra warned that generic AI‑generated tracks dilute value, yet Saregama is piloting AI‑enhanced projects—such as reimagined videos for classic Hemant Kumar songs—to rejuvenate its back‑catalog. Simultaneously, the firm faces constraints from one‑year short‑form video contracts that cap earnings from platforms like TikTok and Instagram. By negotiating longer‑term, usage‑based agreements and leveraging AI licensing deals, Saregama could capture additional revenue streams, positioning itself as a forward‑looking player in India’s evolving music ecosystem.