Pictured: Kumar Taurani
India’s music industry, once a global growth leader, is now facing a slowdown. This shift has impacted Mumbai-based Tips Music, which reported softer revenue growth in its latest quarter. Still, the company remains confident that paid streaming, live music, and new revenue streams will drive future momentum.
Revenue Slows, But Profitability Holds
In Q2 of fiscal 2026 (calendar Q3 2025), Tips posted 11% year-over-year revenue growth, reaching INR ₹892 million ($10.2 million). This marks a decline from 19.1% growth in the previous quarter and 32% in the same period last year. Despite this, Chairman Kumar Taurani noted that revenue still grew around 15% YoY in the first half
Profitability remained strong. Operating EBITDA rose 14% to INR ₹678 million ($7.8 million), with margins expanding to 67.8%. After-tax profit reached INR ₹532 million ($6.1 million), up 10% YoY. The company also announced a second dividend of INR ₹4 ($0.045) per share, bringing total payouts to INR ₹1.023 billion ($11.7 million).
Market Challenges and Industry Warnings
India’s broader music market is cooling. According to IFPI, recorded music revenues grew just 3% in 2024. Only 20 million of the country’s 192 million streaming users pay for subscriptions. At the All About Music conference in Mumbai, IFPI CEO Victoria Oakley warned of risks including streaming fraud, misuse of generative AI, and the dominance of free platforms. “Music has worth, and paying for it sustains the artists and cultures we love,” she said.
Despite headwinds, Tips Music continues to expand. The company released 133 songs this quarter, including Telugu hit Vibe Undi. Its YouTube subscriber base grew to 134 million, up from 108 million last year. Tips also extended deals with Sony Music Publishing and Warner Music India. Additionally, it acquired Studio Radha’s catalog of 4,000 Gujarati and Kutchi tracks.
India’s music market may be slowing, but Tips Music is positioning itself for long-term success. With strong financials, global partnerships, and a growing digital footprint, the label is betting on paid streaming and live music to unlock the industry’s full potential.
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