Saregama secures film music pipeline with Bhansali partnership

Saregama India Limited announced a strategic equity deal with Bhansali Productions Private Limited, investing an initial INR 325 crores, with potential additional payments by September 2028. This investment, funded internally, will result in Saregama acquiring between 28% and 49.9% stake, convertible from CCPS to equity in October 2028, based on Bhansali Productions’ financial performance over the next three years. Saregama also retains the right to increase its stake to 51% after March 2030.

A key aspect of the deal is Bhansali Productions' exclusive agreement to sell all its future film music to Saregama, eliminating competitive bidding for approximately 30-50% of Saregama’s Hindi film music content. This is expected to control music acquisition costs and improve Saregama’s music margins. Bhansali Productions reported revenues of INR 304 crores, EBITDA of INR 60 crores, and PAT of INR 45 crores in FY25.

Saregama plans a gradual exit from its own film production business over the next three to five quarters, releasing INR 150-175 crores in working capital. This capital will be redirected to the Bhansali Productions investment. The deal is projected to be EPS accretive for Saregama by FY27 and is intended to enhance profitability in both the video and music segments.