Tips Music Limited

Tips Music Limited

716.20
INR
-5.00
(-0.69%)
16.22EPS
39.33P/E
81.56BMarket Cap
Jan 25Next Earn

Q3 FY2026 · Earnings Call TranscriptJanuary 19, 2026

Operator

Ladies and gentlemen, good day and welcome to the Q3 FY26 earnings conference call of Tips Music Limited. As a reminder, all participants' line will be in the listen-only mode, 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 star, then zero on your touchstone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Ayushi Gupta from MUFG InTime Private Limited.

Thank you, and over to you, Ms. Gupta.

Ayushi Gupta

Thank you. Good evening, ladies and gentlemen.

I welcome you to the Q3 and nine months FY26 earnings conference call of 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, Mr.

Hari Nair, Chief Executive Officer, and Mr. Sushant Dalmia, 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 presentation and other filings that can be found on the company's website.

Without further ado, I would like to hand over the call to the management for their opening remarks, and then we can open the floor for Q&A. Thank you, and over to you, sir.

Kumar Taurani

Happy New Year. Good evening everyone, and thank you for joining us for the Q3 and nine months FY26 earnings call of Tips Music Limited.

We truly appreciate your time and continued support. We are experiencing strong momentum of our content usage across all platforms.

These encouraging trends support our 20% revenue growth guidance and allow us to upwardly revise our PAT growth guidance to 25% for this year from 20% earlier. With these results, the board has approved a dividend of rupees 5 per share, amounting to rupees 63.91 crore, with a total payout of 166.18 crore in this year.

With this, the company has fulfilled its commitment to return 100% of last year's PAT to shareholders. With that, I would now like to invite our CEO, Mr.

Hari Nair, who will provide more details on our business. Hari, over to you.

Hari Nair

Thank you, sir. I wish everyone a Happy New Year.

Our cumulative YouTube channel subscriber base has grown significantly to 145.3 million. Due to virality of few catalog tracks on Instagram, we saw 100x spike in content creation, views and streams on respective platforms.

We are happy to announce our partnership with before you TV as our broadcast partner, enabling wider reach to our rich catalog among television audiences globally. I will now request Girish to share insights on the content business across platforms.

Thank you, everyone.

Girish Taurani

Thank you, Hari. Good evening, everyone.

Wish you all a very happy New Year. I am excited to share some key highlights from the quarter.

Our music content portfolio expanded by 108 new releases this quarter, comprising of 70 films and 38 non-film tracks. On YouTube, the performance was headlined by a new track from the film Soulmates, titled Sharegumawan, and also Halki Halki Sanam by Biprak, amassing a total of 7.1 million and 6.2 million YouTube views respectively.

Our catalog also maintained a significant momentum on Instagram. Soldier Soldier Miki Baatein Bolkar from the film Soldier generated 2.7 billion views, while Teri Liye from the film Bas Ek Pal, from Prince, reached 2.1 billion views, creations this quarter.

Meri Kahani, which was from an album, from Atif Aslam's song, became the personal anthem for many to express their young versions versus today. It was used by our MD, Mr.

Kumar Taurani, Virat Kohli, Ajay Devgn and many more on Instagram. Furthermore, as Instagram celebrated its 15th anniversary, we are extremely honored that Ghini Laga Hoon from the film Ramaiya Vastavaiya was recognized as the only Indian song in the top 10 most liked songs globally in the platform's history by an independent journalist.

I will now be handing over the call to Sushant to take you through the financial performance in detail. Thank you, everybody.

Sushant Dalmia

Thank you, Girish. Good evening, everyone, and welcome to the Q3 FY26 earnings call.

Let me walk you through the financial highlights for the quarter. Our revenue for the quarter stood at rupees 94.29 crore, compared to rupees 77.7 crore in Q3 FY25, reflecting a year-on-year growth of 21%.

Operating EBITDA for the quarter was rupees 74.5 crore versus rupees 55.6 crore in Q3 FY25, that is a growth of 34%. Operating EBITDA margin came in at 79% versus 72%.

Employee expenses reflect a one-time impact of rupees 96.7 lakh related to the implementation of the new labor code. Profit after tax for Q3 FY26 stood at rupees 58.7 crore, compared to rupees 44.2 crore in Q3 FY25, showing a healthy growth of 33%.

PAT margin for the quarter was 62%. For the nine-month period of FY26, revenue was rupees 271 crore, compared to rupees 232 crore in the same period last year.

That is a growth of 17%. PAT for nine months stood at rupees 127.5 crore versus rupees 136 crore previously, which is a growth of 16%.

With this, I conclude my opening remarks and open the floor for Q&A session.

Operator

Thank you very much. We will now begin the question and answer session.

Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2.

Participants are requested to use handsets 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 Patrick from BNK Securities. Please go ahead.

Kavish Patrick

Hi, very good evening. Thanks for the opportunity.

Sir, your guidance aspiration for the full year is about 20-odd percent. Now that implies an ask rate of about 28-29 percent for the fourth quarter.

Is it fair to assume that the full year will end at somewhere around 18-19 percent? Because I think the fourth quarter and even the third quarter did not really have any major Hindi releases.

Do we expect the year somewhere around 18-19-odd percent, or you still are confident of driving this 20% growth for the full fiscal year?

Kumar Taurani

As of now, I am not changing this. I think we will achieve this 20%, and we are very positive.

Even this quarter responded well, YouTube, Spotify, we are doing well. I feel 20% for yearly guidance, this maintained, we can achieve this, and we are really pushing hard and working very hard to achieve that.

Kavish Patrick

Sir, content spends were fairly low this quarter, 9% this time, and nine-month FY26 number stands at about 17%, which is lower than what we were guiding maybe at the start of the year. Is there any revision in the guidance for the full year, considering 4Q also does not have any major Hindi movie release?

Kumar Taurani

Content costs will be low this year. I think around 18% will be a content cost, and actually we want to spend 25%, but our one movie shifted to next year.

That's why we are feeling. In case content is not there, then also we are maintaining these numbers.

If that content should have come to, maybe we have surpassed 20% even. That's, in our business, that happens.

We presume this film will come this quarter, but sometimes it shifts to another quarter. These things happen, but we are okay with this.

We are not in hurry. As explained many, many times earlier, we don't want in a haste or in a panic mode, we are buying a wrong content.

We are extremely careful, and we are buying very cautiously whatever content acquisition we are doing.

Kavish Patrick

Could you lay out the content releases planned for FY27? This will help us get an idea of, say, the growth trajectory for the fiscal, because solely catalog and regional music will slightly different will drive, say, 20-22% plus growth solely on the back of catalog and regional.

Could you name or list the few Hindi movies that you plan to release on The next 15?

Kumar Taurani

We have Imtiaz Ali, Diljit Dosanjh...

Sushant Dalmia

(unclear), Shirvani, and A.R. Rahman's music.

Then there is a David Dhawan, Varun Dhawan movie, Hey Jawani Tu Ishq, only, then there is a movie Siddhant Chaturvedi and Mouni Roy, Vikas Bahl is the director, and then there is a movie Sunny Kaushal and many other actors, Kahani Metro's, and then Shanaya Kapoor-Abhay Verma movie, JC. It's called JC, and there is so many non-film music slated for 27.

I think in 27 we will achieve our target of that 20%, 25 to 28% what we target every year, we achieve that.

Kavish Patrick

About four to five mid-sized Hindi movies planned for the fiscal, is that the right understanding? Hindi movies we have.

Kumar Taurani

Hindi movies we have. I think two are pretty big, that David Dhawan, Varun Dhawan is a bigger movie, and that Diljit Dosanjh and Imtiaz Ali, A.R.

Rahman is a big movie. Three, you can say literally mid-sized movies.

These two are not very big, but pretty big, you can say. We have these plus apart from this, we have some regional films also.

We will be releasing those also plus non-film music.

Kavish Patrick

Sure. One last question from my side.

The presentation mentions that there has been a negative growth in total views on YouTube, which is on account of YouTube Shorts. Now, while I do agree that from a revenue standpoint, the contribution of YouTube Shorts will be fairly limited, could you throw some light on why this impact?

Is it on account of the high base in FY25, which I think had the impact of positive impact of Crew and Ishq resurgence? Is that the only reason why we have witnessed a decline in quarterly YouTube views, or is there something more to it on YouTube Shorts?

Kumar Taurani

These things happen. One quarter you will see it come down, next quarter you will see again there is a big jump.

These things happen. We are not actually bothered, and plus this short app, we are getting a lump sum monies.

We are not on a proper sharing basis. We are okay with this.

Kavish Patrick

when is the next step of negotiation due for YouTube Shorts? I believe that these things happen on a one- to two-year basis?

Kumar Taurani

Next year, next year. Coming year is due.

Kavish Patrick

All right. Thank you so much, sir.

All the best.

Operator

Thank you. Thank you.

The next question is from the line of Jyoti Singh from Arihant. Please go ahead.

Jyoti Singh

Thank you so much for the opportunity. Sir, earlier quarter, this quarter also we have reported good EBITDA margin.

Going forward, I wanted to understand as the competition intensifies, any kind of compression on the margin side we are seeing from here, and also what is the target content cost-to-revenue ratio over the medium term, and what levers that help to protect margin in this competitive market?

Kumar Taurani

Jyoti, you check our last, I think 13-14-15 quarters, we are maintaining our EBITDA, EBITDA impact. Going forward also we will maintain that.

I'm assuring you that. Plus, as told many times earlier, we are very focused on content.

We don't mind paying more, but our focus is on quality content. We are not in that mad rush.

Be assured, we are very careful and very focused, what we want to buy, and we are only targeting those and we are buying those movies, or non-film music, what we are doing.

Jyoti Singh

Okay. Sir, also globally, music companies, they are expanding.

Any, this is very hypothetically, but any chances that Warner can buy stake in tips going forward?

Kumar Taurani

See, you only said, hypothetical question. What I can say?

Everything is open, yeah. Anybody can talk anything, but at present there is nothing.

Jyoti Singh

Sir, given shorts currently drive high volume but low monetization, what structural changes are required for shorts to become a meaningful profit contributor for us?

Kumar Taurani

They should give us a proper sharing basis. They should start monetizing that service, maybe by way of subscription, or by way of doing more advertising, or maybe the way of that blue tick they are offering.

We must take some money from there. I think whatever is happening in the entire world, but touchwood we are doing better than many other companies.

Our majorly our content, whatever we have done from 88 till now, our entire content is selling very, very well. I think we are in a better zone, and we are very happy about it, and we'll maintain.

There's nothing major going to change, but we are making, we are pretty well, I think, in that sense. We are happy.

Jyoti Singh

Okay. Thanks.

Operator

Thank you. The next question is from the line of Ravi Naredi from Naredi Investments.

Please go ahead.

Ravi Naredi

Thank you very much, sir. Sir, yes, Spotify has increased subscription by 22-25%.

How much revenue our will be get benefited from this? Can you give the number?

Kumar Taurani

I can't share the exact number with you, but let me tell you, we are doing very well on Spotify, YouTube, and Instagram. ये तीन main apps हैं अभी, and तीनों पे हम बहुत अच्छा business कर रहे हैं.

And जो हमें growth की expectations हैं, we are achieving that.

Ravi Naredi

Okay.

Kumar Taurani

Spotify में आपको एक बात और बताऊँ कि Spotify जो बोल रहे थे बहुत दिनों से कि they want to increase their subscription, उनके subscription बहुत speed से बढ़ रहे हैं. I think last year की compare में इस साल 50% ज़्यादा उनके subscriber हो चुके हैं.

तो वो अगर इसी pattern से चले, तो जो हमारा जो पहले आपके साथ होता था कि 30% पे हमें आना है, तो very soon I think next four, six quarters हम लोग वापस 30% वाले target पे आ जाएंगे.

Ravi Naredi

Right. Fantastic.

Sir, please give detailed comments over paid subscription, when rises in next few years, how much revenue of tips may rise? जैसे अगर आज हम

Kumar Taurani

this year our target is to achieve three revenue topline, I think 372 हमारा target है. तो next year अगर हमारे next year भी I feel at present 20%, मैं सोच रहा हूँ और देख रहा हूँ, तो 370 पे 20, होगा 75.

तो 75, 370, 75, 350, 450. 450 का next year का target है हमारा 450-55, something like that, वैसा target होगा हमारा, जो मुझे लगता है कि हम achieve कर जाएंगे.

And उसके बाद मुझे लगता है कि उसके बाद के quarter में, क्योंकि क्या है ना percentage के साथ जो number हो रहा है, number बड़ा होता जा रहा है अभी. अभी वैसा नहीं है कि अगर आपने 200 पे 30% किया तो आपको 60 करोड़ करना है, और अगर साढ़े 400 पे अगर आपको 30% करना है तो मेरे ख्याल से 135 करना है.

तो वो थोड़ा number बड़ा हो जाएगा. वो base बढ़ गया है, base बढ़ जाएगा.

हाँ, base बढ़ जाएगा, तो उस पे कितना होगा, ये आपको हम next year जब आपसे बातें होंगी तब आपको बताएंगे.

Ravi Naredi

Sir, one more thing, how many design developers uses our songs, Abhinav Mishra and Manish Malhotra, for making their product popular? हम किसी को भी

Kumar Taurani

allow नहीं करते हैं as a marketing tool, but हम अपने fans को allow करते हैं कि वो भले use करें, वो हमारे content को use करें, reels बनाएँ, creation करें, use करें, जिस पे हमको पैसे भी मिलें, ताकि हम किसी भी commercial आदमी को allow नहीं करते हैं कि he promote his product, हम उसको नॉक डाउन कर देते हैं

Ravi Naredi

by using our songs, right?

Kumar Taurani

Yes.

Ravi Naredi

Okay. यहाँ पर हम उसको कहते हैं

Kumar Taurani

license. You take my license,

Ravi Naredi

right? Sir, this industry revenue rises 42-50% CAGR, it is you mentioned in the investor deck.

It is applicable for tips to rise 42-50% top line in our industry?

Kumar Taurani

40-50%, अगर कोई, कहने को तो कुछ भी हो सकता है. Please understand, जैसे industry का target है कि next 4-5 years में ये industry 10,000 करोड़ की होनी चाहिए, जो अभी at present साढ़े 3-4,000 करोड़ की है.

तो ऐसा कुछ, एक दो साल ऐसा बड़ा आएगा, एक दो साल ऐसा बड़ा बीच में आएगा जहाँ पर सीधा हम 400 से शायद साढ़े 500-600 पे भी पहुँच जाएँ. It is possible, हमारे business में वो possibility है.

Ravi Naredi

We wish that this time comes soon. Thank you very much, sir.

You are doing fantastic, and we wish all the best to you, and giving happy, handsome dividend, it is really nice.

Kumar Taurani

Thank you, thank you.

Operator

Thank you. The next question is from the line of Akshay Kolekar from Dalal & Brocha.

Please go ahead.

Akshay Kolekar

Thank you for your presentation. My first question is on industry side basically.

We see recently the music company has acquired, say, the Green Production House. Do you see any structural changes we have in the industry?

What are your views on this, and do you think for any opportunity in the near future?

Girish Taurani

You are Akshay, no? Yes.

Kumar Taurani

What's your good name?

Akshay Kolekar

Hello?

Girish Taurani

What's your good name?

Akshay Kolekar

Akshay Kolekar.

Girish Taurani

Akshay Kolekar. Yeah.

Kumar Taurani

Akshay, we are the first company which has our own film company. We don't have to acquire anything, any other company.

We are not tying up or we are paying big money and taking a partnership in that company. We are just acquiring, at arm's length we are acquiring only music rights.

In that zone, you can say we are the best, and we did this five years back. You can assume what kind of vision Tips has, that we long term we will have a setup, we have to have an arrangement with some of our own company or our own some understanding with some other companies.

Touchwood, we don't need anybody or any company whom we can tie up. There's no need.

Akshay Kolekar

Understand. My second question is, do you give a bifurcation of how much revenue is contributed from legacy business, new music content?

Is there any percentage kind of?

Kumar Taurani

As told you earlier, 85% of our business comes from legacy business catalog, and our catalog is really, really extremely doing well for last 4-5 years. Every year we are growing on the strength of our repertoire catalog, and I can assure you another next 15-20 years, we are very, very safe and having a very best position.

I feel still there is a lot of potential there. Our catalog can really progress very well and give us very big revenues.

Touchwood, 85% comes from there and 15% you can say from new releases.

Akshay Kolekar

Yeah. Cool.

Thanks.

Operator

Thank you. The next question is from the line of Robert Marshall-Lee from Cusana Capital.

Please go ahead.

Robert Marshall-Lee

Hello, can you hear me okay?

Girish Taurani

We can hear you. So

Robert Marshall-Lee

just a couple of questions. Firstly, on the impact of the labor cost, is there a significant one-off impact there, or is that expected to be a sustained level going forward?

Kumar Taurani

Robert, this would be a one-off impact, and recurring we don't see any substantial impact coming now.

Robert Marshall-Lee

Thank you. Secondly, just in terms of when you're thinking about market share, is market share something you're very mindful of, either by particular outlets, for example on YouTube, etc., but more broadly across the streaming space?

What are the trends that you're seeing in terms of market share?

Kumar Taurani

I think market share, we don't normally think too much about that, because what we see is that our metrics, what are we doing in our views, in our subscribers, in our streams. We measure ourselves with ourselves.

That's what we do. Having said that, on a revenue market share will be around 7-8%.

On the growth side, as you see our results, it's steadily growing every quarter.

Robert Marshall-Lee

Your market share is growing every quarter?

Kumar Taurani

Yes.

Robert Marshall-Lee

Okay. That was all.

Thank you.

Kumar Taurani

Thank you.

Operator

Thank you. The next question we have is from the line of Saket Mehrotra from Tusk Investments.

Please go ahead.

Saket Mehrotra

Thank you, sir. Congratulations on a fantastic set of numbers.

Just wanted to understand for this quarter, if you were to break down three or four reasons on the growth, just trying to understand what the growth bridge is. Is it our catalog content?

Is it any of the platforms? Is it PPL?

It would be great if we can understand कि हमारी growth जो वापस से it has turned, what would be the avenues of that?

Kumar Taurani

Saket, let me tell you, जब कोई music बिकती है ना तो सब जगह बिकती है. As told earlier कि हमारा repertoire, 90's का repertoire is really, really doing well.

हमारे कितने ही songs trend करते हैं, कभी suddenly हमको लगता है जो हमने गाना भूल चुके हैं, वो गाने भी हमारे trending में आ जाते हैं. Then we support those songs to have more revenue.

I can give entire credit to my repertoire. Because of that we are growing.

As said earlier, हमें लगता है कि ये अभी भी हमारा full potential में हम exploit नहीं कर पा रहे हैं. अभी भी हमारे catalog में इतनी जान है कि अगले 15-20 साल तक you will see the potential.

And अगले तीन-चार साल में तो आप really, really, really देखोगे कि we are on a different scale we are doing business. তো मुझे लगता है कि only reason is catalog.

अगर catalog चल रहा है, Instagram पे trend होता है तो Spotify पे numbers आते हैं. मैं आपको एक छोटा सा example देता हूँ.

अभी पंद्रह-बीस दिन पहले हमारा एक पुराना गाना है, सानू, क्या है नाम क्या है, सानू नेहर वाली पुल ते बुलाके. It's a very old song.

Suddenly Instagram पे किसी ने दो-चार reel बना दी, उससे बहुत trending होने लगा गाना suddenly. Spotify पे पहले हजार streams हुए, फिर next day छह हजार हुए, ऐसे करके within five-seven days एक लाख streams पे पहुँच गया.

And अभी वो ऐसे भी हो सकता है कि वो millions में पहुँच जाए. तो ये trend है, तो हमारे touchwood music इतनी अच्छी जो पुरानी मेहनत है, वो सब काम आ रही है.

I feel ऐसा catalog किसी के पास है नहीं, और हमारी जो youth, जो हमारी target है audience, वो हमारी है, हमारे catalog की है. I feel that's a big reason, so that's the major reason.

Saket Mehrotra

Okay. Sir, one of the...

Sorry? नहीं, sorry, sir.

आप कुछ कह रहे थे. एक हमारा गाना, दूसरा मेरी कहानी

Kumar Taurani

popular हुआ था, जो कि पहले गाना चला ही नहीं था, and suddenly लोगों ने reels बनाना चालू किए, even Virat Kohli ने उसका reel बनाया. Virat Kohli की क्या following है, आप जानते हैं.

Ajay Devgn, Virat Kohli, I think number one on Instagram. इन्होंने भी बनाई, मैंने खुद भी बनाई story.

तो वो गाना भी बहुत चला, उससे भी काफ़ी revenue आया. तो ऐसे करते हमारे कुछ न कुछ कोई ना कोई गाना हर quarter में हमारे पाँच-दस-पंद्रह गाने ऐसे trend हो ही जाते हैं, अपने आप होते रहते हैं.

तो that's... जो पुरानी मेहनत है, वो काम आ रही है, you can say.

हाँ जी, आप कुछ बोल रहे थे? जी जी.

Saket Mehrotra

Sir, two more questions on this. एक I think आपने अभी कोई participant को कहा हमारा 85% revenue catalog content से आ रहा है.

Did I understand that correct? हाँ,

Kumar Taurani

80-85 होगा.

Saket Mehrotra

Okay, 85.

Kumar Taurani

85 है, Sushant confirm करें 85.

Saket Mehrotra

Okay. Sir, next year का guidance, हम अपने 25 और 30

Kumar Taurani

mention किया था, वो sales पे है कि PAT पे? नहीं, हम अभी 20% top line का करते हैं.

ऐसे जो ये current year है हमने पहले ही बता दिया था कि 20-20% का हमारा guidance होगा. Next year अभी 20-20 तो आप लिख के चलो, but इस साल हमारा PAT is coming 25%.

मेरे को तो लगता है कि और भी ऊपर जाएगा, 25% से भी ऊपर जाएगा, but conservatively we are maintaining कि 25 तो होगा ही. तो but I feel कि शायद 28-30 तक भी पहुँच जाए.

At present आप 25 ले के चलो. Next year भी आप 20-20 फिलहाल ले के चलिए, फिर first quarter का क्या होता है और ये last quarter का इस साल का क्या होता है, we will keep on guiding you all.

Saket Mehrotra

Sir, next year का आपने content cost कहाँ है, should be towards the higher side, 25-30% की तरफ we should... नहीं, 25 to 28% वो हमारा

Kumar Taurani

maintain है, लेकिन मैंने आपको पहले भी जैसे बताया बहुत बार कि अगर हमें कोई opportunity अच्छी मिलेगी and 2.5% अगर content बढ़ भी जाएगा, तो we can explain you. क्योंकि हमारी देखो policy एक तो बहुत ही rigid policy है कि we write off entire content cost in the same quarter.

Saket Mehrotra

Correct. तो उसके

Kumar Taurani

profit तो अगले सौ साल तक कमाना है ना? तो फिर तो उसमें तो कुछ problem होना नहीं चाहिए.

खाली content मिलना चाहिए. We are very keen and eager to have a good content.

और content आता है तो उसकी कुछ तो revenue भी आएगी न? चलिए first year में अगर 20%, 30%, 40%, कुछ तो आएगा ही न?

और first year is a big year, आपको पता है कि नए content का पहले साल में बहुत बड़ा होता है revenue. I think we are very keen to acquire content, but correct price पे, correct content, वो मिलना है.

struggle है, but we are... माना हम मेहनत कर रहे हैं.

Saket Mehrotra

Okay. Sir, final question, housekeeping question.

Sushant, if you could tell us what's the cash balance as on December, cash plus investment जो कि liquid investments है, what would that amount be as on Q3?

Kumar Taurani

As on December end, it is around 303 crore.

Saket Mehrotra

Okay. Thank you and wish you all the best.

Kumar Taurani

Thank you.

Operator

Thank you. The next question is from the line of Rohit Singh from Invest Analytics Advisory LLP.

Please go ahead.

Rohit Singh

Hi, am I audible?

Kumar Taurani

Yeah.

Rohit Singh

Hello. Am I audible, sir?

Kumar Taurani

Yes.

Rohit Singh

Hi, good evening and congrats for a good set of numbers. Sir, just one question on next year outlook.

You mentioned about 20% top line and 20% bottom line. At the same time, we are saying we will be acquiring more content next year because this year we are falling short of our guided number.

If we are acquiring the content in next year, how are we sure on a 20% top line growth we will be maintaining the bottom line growth of 20%? Technically it should be fall, right?

There should be 15% kind of growth on account of higher acquisition, isn't it?

Kumar Taurani

Rohit, look at two things. One, let us all the content get acquired and get released.

Am I audible?

Rohit Singh

Yes, now you are.

Kumar Taurani

Also all the content get released during next year, let us we'll see more revenue from that and let us the revenue could be much more higher and let us PAT at least we'll get that 20%.

Rohit Singh

You are saying

Kumar Taurani

there would be all the content getting created on time and everything, that factors would play in.

Rohit Singh

Understood. Sir, how the revenue growth shaping particularly from the Warner partnership?

Like is it in the trajectory that we anticipated at the time of entering this partnership or maybe it is on an underperforming side? How do you look at that?

Kumar Taurani

It is going as per our expectation this year. And

Rohit Singh

in this quarter, what kind of revenue did we make from that deal, that partnership?

Kumar Taurani

We don't give, let's say, platform-wise or partner-wise breakup, but it is in line with our expectation.

Rohit Singh

Okay. I think that's it from my side and all the best for the future.

Operator

Thank you. The next question is from the line of Yeshwant Agarwal from IIFL Capital Asset Management Limited.

Please go ahead.

Yeshwant Agarwal

Hi. Am I audible?

Girish Taurani

Hello?

Yeshwant Agarwal

Hi, sir. Thank you for this opportunity.

Congratulations on a good set of numbers. A few questions from my side.

Is it possible to share the revenue growth from the paid subscribers versus revenue from advertisement?

Kumar Taurani

If you see the paid subscribers have grown more than 50% from last year, if you compare that. Advertisement revenues are on the similar trajectory.

Both are growing in the same one, but I think on the subscription side it is going faster. That is the only thing that we can say now.

Yeshwant Agarwal

Sir, overall subscriber base has grown by 50%, right? I'm talking about the revenue that flows to us, at what rate it has grown.

Kumar Taurani

It's family that revenue growing, let's say for the paid subscription, around that 40-50%. Let's say ad Google growing at a average pace.

Yeshwant Agarwal

Okay. Out of the total revenue, how much would be coming from the paid subscribers?

Kumar Taurani

paid subscription, let's say on an overall basis, would be roughly around 10% of the revenue.

Yeshwant Agarwal

10%, overall total revenue, 10% is coming from paid subscribers, and that is growing at more than 40%.

Kumar Taurani

Yes, in a range of,

Girish Taurani

yes.

Yeshwant Agarwal

Thank you. My second question is again on the profit margins for the next year.

You have clarified, I need a bit more clarity on it. Assuming 20% revenue growth for FY27, right?

It includes the new content that we are going to acquire in next year. This year our content acquisition cost is around 15%, which we have added earlier to be around 25% for next year, which leads to around 15% profit growth.

How are we guiding for 20% ad growth? Could you please elaborate more on that?

Kumar Taurani

Yes, I'll reiterate. Let's say if all planned movies get released as per schedule, we could see a higher revenue growth, and similarly, let's say the profit growth could be in that range of 20%.

I understand your question in terms of currently, let's say, the margins are higher given the low content cost. Let's say next year if all the movies get released as per the schedule, we could see a higher revenue growth and better profitability.

Yeshwant Agarwal

In that scenario, the content acquisition cost will be lower, even though in absolute terms it will grow. Is that the right way to think about that?

Kumar Taurani

Somewhat yes.

Yeshwant Agarwal

Sir. My last question would be on the monetization from Shorts.

In our presentation we have shared that monetization could grow, say, will migrate to share from advertising revenue. For YouTube, it is supposed to be renegotiated in second quarter of FY27.

Is it fair to assume that this statement is regarding our business and not a general statement on the industry side?

Kumar Taurani

Let's say in case of Shorts, we are saying over a medium to long term that model would move from a fixed fee to a revenue share. It won't happen on an immediate basis, but on a medium to long term it would happen.

Yeshwant Agarwal

Okay. Next year which is supposed to be renegotiated, for what period of time would it be happening, the tenure of the contract?

Sir, what would be... Yes, sir, please continue.

Kumar Taurani

Let's say we'll update once it gets renewed. This depends on the platform, and both the platform needs to decide when they will share the profits with us, and their revenues from the advertisement should also grow equally.

Till then the platforms may opt in for a fixed fee kind of model, and we may continue with that.

Yeshwant Agarwal

Sir, even if the deal should be fixed fee, do we anticipate a substantial growth in this number?

Kumar Taurani

Yes, definitely a very good growth on that.

Yeshwant Agarwal

Got it, sir. That's it for my side.

Thank you so much and good luck.

Kumar Taurani

Thank you.

Operator

Thank you. The next question is from the line of Bhargav from Ambit Asset Management.

Please go ahead.

Bhargav Buddhadev

Good afternoon and congratulations on a good performance. Sir, my first question is that in this revenue growth guidance, are we building in any monetization on YouTube Shorts, or that would be an additional kicker once we come to know?

Kumar Taurani

It is part of the growth plan. It is already captured in.

Bhargav Buddhadev

Okay. Secondly, sir, when we see this presentation of Saregama, we are seeing a significant growth in terms of YouTube views, but they are putting an asterisk saying that YouTube has changed methodology.

In our presentation, when we see that there is a decline for nine months, is there any base effect, or how should we read between you and Saregama in terms of presentation data?

Kumar Taurani

Bhargav, you just talk to us, we'll tell you. Let's not compare us with Saregama.

They'll reply. Now Sushant is replying you.

Sushant Dalmia

Bhargav, we are continuing with the old methodology in terms of YouTube reporting. Basically, let anyone view the 30 seconds, then only the view gets counted.

We are continuing with that old methodology. I think their report now YouTube has started reporting both the views, but we continue to do with the old methodology because we think that's fair.

Bhargav Buddhadev

Is it right to say कि अगर हमने भी नए methodology use कर ली तो हमारा भी growth काफ़ी अच्छा दिखेगा?

Girish Taurani

In terms of views, yes. Because

Kumar Taurani

then तो game ही change हो जाएगी ना. और बड़ा हो जाएगा ना.

हाँ वही sir, क्योंकि वो क्या है कि लोग फिर दोनों को compare करते हैं ना, तो वो

Bhargav Buddhadev

actually apple to apple नहीं है, वो कहना सही रहेगा, right? नहीं तो

Kumar Taurani

touchwood apple अपना है ना. बाकी क्या करते हैं उसको.

नहीं,

Bhargav Buddhadev

I understand. कि basically अगर हम भी नए methodology से करेंगे तो हमारा भी अच्छा growth दिखेगा.

That's what I wanted to understand. Lastly, sir, is it fair to say कि जब हम YouTube Shorts के monetization के तरफ जाएंगे, तो to start with it will be a fixed fee and then maybe revenue share अगली बार होगा कि किस तरीके से सोचना चाहिए?

Kumar Taurani

Yes, it will be the same. You are right on that.

पहले और दो साल या एक साल शायद fixed fee model रहेगा and then it will move to a revenue share model.

Bhargav Buddhadev

Is it fair to say that एक बार the monetization cycle starts, we will put in more efforts to increase our views on YouTube Shorts because then we obviously get paid in the subsequent revenue share cycle?

Kumar Taurani

Yes, you are absolutely right. We will definitely do that.

Bhargav Buddhadev

Because right now it doesn't make sense to put in effort because कुछ मिलेगा ही नहीं. There is no point in

Kumar Taurani

putting effort.

Bhargav Buddhadev

Great sir. Thank you very much and all the very best.

Kumar Taurani

Thank you.

Operator

Ladies and gentlemen, due to time constraints, this was the last question. I would now like to hand the conference over to Ms.

Ayushi Gupta for closing comments.

Ayushi Gupta

I would like to thank the management for taking the time for the conference call today and also thank all the participants. If you have any queries, please feel free to contact us.

We are M.A.S.T. Intime Private Limited, investor relation advisors for Tips Music Limited.

Thank you so much.

Operator

On behalf of Tips Music Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

Kumar Taurani

Thank you.

Girish Taurani

Thanks everyone.