Tips Music shares soar 11% after Q3 earnings beat; JM Fin upgrades target

Consolidated net profit of Tips Music jumped 32.63 per cent Y-o-Y to ₹58.65 crore, while revenue from operations increased 21.4 per cent to ₹94.28 crore during the quarter

Shares of Tips Music Ltd. surged over 11 per cent on Tuesday as analysts upped earnings estimates and stock target after it reported a beat in its third quarter performance for the current financial year (Q3-FY26). 

 

The company's stock rose as much as 11.5 per cent during the day to ₹578 per share, the steepest intraday rise since February 15, 2024. The stock pared gains to trade 7.8 per cent higher at ₹558.3 apiece, compared to a 0.63 per cent decline in Nifty 50 as of 12:39 PM. 

 

Shares of the company rose to the highest level since December 2 last year and currently trade at 88 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 0.05 per cent this year, compared to a 2.3 per cent decline in the benchmark Nifty 50. Tips Music has a total market capitalisation of ₹7,131.72 crore. 

 

Tips Music Q3 results 

Consolidated net profit of the company jumped 32.63 per cent year-on-year (Y-o-Y) to ₹58.65 crore, while revenue from operations increased 21.4 per cent to ₹94.28 crore during the quarter.

 

Operating Ebitda stood at ₹74.5 crore, marking a 34 per cent rise from ₹55.6 crore in the corresponding quarter last year. The operating Ebitda margin improved to 79.0 per cent in the December quarter from 71.6 per cent a year earlier.

 

During the quarter, the company released 108 songs, including 70 film songs and 38 non-film songs. Tracks such as "Sheher Ghumawa" and "Halki Halki Nami" performed well. The company’s YouTube subscriber base increased to 145.3 million.

 

Meanwhile, the board declared a third interim dividend of ₹5 per equity share of face value ₹1 each. The record date has been fixed as January 23, 2026, and the dividend will be paid on or before February 13, 2026.

JM Financial on Tips Music earnings

JM Financial said the company delivered an earnings beat in the December quarter, aided by strong top-line growth and margin expansion, though deferred new content releases could weigh on near-term guidance.

 

The brokerage said revenue growth was driven by a sharp increase in views for select catalogue tracks across digital platforms, along with a pickup in paid subscription revenue. Margin expansion was supported by lower new content spends during the quarter, which declined 39.1 per cent year on year and 33.1 per cent quarter on quarter (Q-o-Q), following the deferment of a new movie release to financial year 2027 estimates.

 

JM Financial said management continues to guide for around 20 per cent revenue growth in FY26, compared with 17 per cent growth in the first nine months of the year, and a similar growth rate in FY27 estimates. JM Financial said it has raised its earnings per share estimates for FY26 to FY28 by 3-4 per cent and increased its December 2026 target price to ₹580.

 

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