India’s Tips Industries Ltd. (aka Tips Music) has reported another quarter of rapid revenue growth.
The Mumbai-headquartered company, which boasts a catalog of 31,000 songs across Indian languages and genres, reported revenue of INR ₹806 million (USD $9.62 million at the average exchange rate for the quarter) in its fiscal Q2, which ended on September 30.
That represents 32% YoY growth in quarterly revenue.
For the first half of Tips’ fiscal 2025, revenue came in at INR ₹1.545 billion ($18.44 million), up 36% YoY.
Tips also reported a 21% YoY increase in subscribers to its YouTube channels, reaching 108 million during the quarter.
“Our YouTube channels’ cumulative subscriber base [reflects] our growing influence and engagement,” Tips CEO Hari Nair said in an investor release on Wednesday (October 16).
“The market share on audio digital platforms like Spotify, Saavn, etc., is increasing steadily. Additionally, the new division of ‘Brands & Partnership’ has started clocking revenues; Motorola used our track Rangeela Re for launching its new set of colorful handsets.”
The company reported INR ₹482 million ($5.75 million) in after-tax profit for the quarter, marking a 21% increase year-on-year. The after-tax profit margin was 59.7%, compared to 65.2% a year earlier.
Operating EBITDA came in at INR ₹595 million ($7.10 million) for the quarter, representing a 73.8% EBITDA margin.
During the quarter, Tips Industries – which also has a film production and distribution business – launched 125 new songs, of which 39 were film songs, and 86 were non-film songs.
“Our relentless focus is on acquiring high-quality music content,” Chairman and Managing Director Kumar Taurani said.
Taurani announced the company’s second interim dividend this year, at INR ₹2 ($0.024) per share. So far in FY 2025 – which began on April 1 – the company has paid out INR ₹255.6 million ($3.05 million) in dividends. Combined with share buybacks, the total payout to shareholders this fiscal year has been INR ₹977.4 million ($11.67 million) so far.
“Our relentless focus is on acquiring high-quality music content.”
Kumar Taurani, Tips Industries
Tips’ sustained revenue growth comes amid a boom in Indian music, in terms of both domestic and global consumption.
In late 2023, EY India said music publishing revenues in the country grew 2.5-fold in three years, rising from INR ₹3.4 billion (USD $40.8 million) in 2019-2020 to INR ₹8.84 billion ($106.1 million) in 2022-2023.
And 2023 data from market monitor Luminate showed that India could be the world’s largest music streaming market, by volume, as soon as this year.
In 2023, India saw just over 1 trillion total on-demand music streams, including audio and video, compared to 1.454 trillion streams in the US. However, streams in India grew by more than 46% in 2023, compared to a growth rate of around 12.7% in the US.
“The surge in content consumption, facilitated by more affordable data, has been a key driver in the rapid expansion of the streaming audience,” Kumar Taurani told MBW in an interview earlier this year.
Outside India, Tips has seen the largest growth in demand in the US, Canada, UK, Gulf countries, Australia, New Zealand and Germany, “due to the increased popularity of Indian music and musicians,” Taurani said.
Taurani also expects rapid growth to continue within the domestic market.
“With projections indicating a 15-20% annual growth rate, we are anticipating an industry boom that could potentially elevate the market size to approximately USD $1.5 billion-plus, within the next four to five years,” he said.Music Business Worldwide