Tips Music Share: How Is Its Music Catalogue Powering Its 21% Revenue Growth?

Synopsis: Tips Music delivered 21% revenue growth in FY26, driven primarily by its strong music catalogue. With recurring revenue, rising digital monetisation, and viral trends boosting older songs, the company is leveraging long-life assets. Growth is further supported by non-digital segments, though sustainability depends on continued digital traction and content strategy. 

Tips Music Limited has demonstrated strong growth in FY26, with revenue rising 21% to Rs 375.5 crore, supported by its extensive music catalogue. Unlike traditional models dependent on new releases, the company benefits from recurring monetisation of older songs, amplified by digital platforms and viral trends. With nearly 70% revenue coming from digital channels and additional support from non-digital segments, Tips Music’s business model reflects a scalable and asset-light approach, positioning it well for sustained long-term growth. 

A Strong Year Backed by Consistent Growth

Tips Music Limited exhibited robust performance for FY26, where it grew revenues by 21% YoY to Rs 375.5 crore and profits after tax by 30%. It is worth mentioning that such achievements were made amid the volatility of the digital environment and shrinking volumes of short-form video consumption.

However, the critical part of the company’s success is that there are no onetime factors or exceptional occurrences involved. It was expressly stated by the management that all gains are of a recurring nature, and therefore the question arises about their sustainable drivers. The answer is quite obvious: the music library of Tips Music Limited.

The Power of a Strong Music Catalogue

At the heart of the Tips Music operation lies the company’s huge collection of songs, especially those made in the 1990s and early 2000s. The management consistently stressed that the company’s “90s catalogue is performing extremely well” and thus is the main reason for current success.

Contrary to traditional content-based businesses, which depend greatly on the introduction of fresh content, the catalogue of Tips Music provides the company with revenues for years after its launch. In other words, products developed decades ago can be widely used now, thus bringing stable revenues. According to the management, there are still about 20-25 years left in the life of the catalogue before the revenues end, making this model extremely sustainable.

Viral Trends Amplifying Catalogue Performance

One of the major reasons for the success of the catalogue lies in the advantage of tapping into virals on different platforms. Tracks from the catalogue become viral on social media platforms like Instagram and YouTube.

The management further added that these virals do not have a pattern. At times a few tracks might go viral, and at other times multiple tracks might go viral. The result can be a surge in revenues, like the 32% increase in revenues in Q4 FY26.

In addition, the virals are not limited to one platform. If a track becomes viral on Instagram, then its impact ripples through YouTube, streams, and even live performances, which ultimately boost the bottom line.

Digital Monetisation Driving Revenue Expansion

The digital platform has continued to be very important in the process of monetising the catalogue. During FY26, about 70% of the firm’s revenues have been generated through digital platforms such as streaming and licensing.

Although YouTube Shorts has seen some volatility in its viewership numbers, the management confirmed that this had no bearing on revenues, as Shorts are not yet monetised. In other words, the most important source of revenues continues to be long-form content, which has seen a consistent increase in consumption.

Moreover, the YouTube subscriptions base rose to 153 million. Revenue based on the subscription model has become an important source of income, accounting for 10–15% of digital revenues with a 30–40% compound annual growth rate (CAGR).

Non-Digital Segments Adding Incremental Growth

Despite digital being in the lead, non-digital segments have started adding to growth, with public performance, brand licensing, and publishing accounting for nearly 30% of the revenues generated.

Management has spoken well about the performance in this sector, especially with regard to public performance where, despite the size of the industry estimated at ₹500 crore now, it could be expanded up to ₹3,000 crore in three years.

Such performance will benefit directly due to strength in the catalogue, with popular songs being used in events, eating places, and other live performances. Ease of licensing through online portals will also increase compliance and the size of the market further. In the long run, managements estimate this sector could expand to reach anywhere between ₹10,000 and ₹20,000 crore.

Quality-First Content Strategy Supporting Margins

One important element in Tips Music’s strategy is its emphasis on quality over quantity while buying content. The company is always prudent in buying new content in an environment where valuations are inflated.

The management made it clear that the company should not overvalue content because it could incur major losses if the music performed badly. The company has continued to invest in projects that it is certain will be profitable for it.

This conservative trend is seen in the company’s cost of content, which stood at 15.8% of revenue in FY26, compared to the previous year. Although the company plans to spend more on content, ₹80-₹90 crore in FY27, it will continue to be very prudent. Tips Music’s ability to generate healthy profit margins comes from investing in its own content and acquiring quality projects in moderation.

Why Growth Outpaces the Industry

A particularly interesting point about Tips Music is how they have managed to perform considerably better compared to the industry. For example, while the overall growth in the music industry is expected to range anywhere between 8 and 10 per cent, Tips Music has been managing growth rates of 20 per cent and above.

According to management, the reason behind their better performance is based on their music catalogue. As opposed to other firms that depend mostly on new songs, Tips Music has a portfolio of songs that continue generating streams and popularity.

Tips Music has also emphasised that growth through streaming is an important part of their business model. The increase in popularity of their catalogue explains why this could be the case.

Outlook: Sustaining Growth Through Catalogue Strength

In terms of future outlook, management estimates that there will be a 20% growth in both revenues and earnings in fiscal year ’27. Whereas new products will continue to make their contributions, the main factor driving growth would be the company’s library. Management highlighted the point that the company should be assessed annually, not quarterly, due to the variability in performance results of content released in a quarter.

Further, management reiterated that the firm was receptive to acquisitions that could further enrich its library, and this is evident in its latest deal, where the firm acquired the rights of a 4,000-song library in Gujarati music.

Conclusion: Catalogue as the Core Growth Engine

Performance The FY26 financial performance of Tips Music demonstrates the power of having a successful catalogue-driven business. The fact that it has grown its revenues by 21%, enjoying good digital monetisation and exploring non-digital avenues prove that owning good music catalogues can be an efficient way to achieve sustainable growth.

The ability of its catalogue to earn continuous revenue through virality and changing consumption trends is what makes the company so unique in comparison to its peers. Going forward, its success in digital adoption and monetisation will likely make its catalogue even more important for the continued success of the company. Even though other factors matter too, the strategy adopted by the firm offers a promising outlook into the future.

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