India's Bollywood music company Tips Music reported 21% year-on-year revenue growth for the quarter to 30 June 2026, its first quarter of fiscal 2027, but after-tax profit fell 4% as spending on new content surged 90%. The divergence matters because it signals the company is investing heavily in new releases even as this squeezes near-term margins, a trade-off the firm attributes to its accounting approach rather than weakening demand. Shares in Tips fell more than 12% following the results, reflecting investor unease, and the company remains without a permanent chief executive after Hari Nair's departure at the end of April.

Revenue reached ₹1.065 billion ($11.3 million), up from ₹881 million a year earlier, while content costs rose to ₹446 million ($4.7 million), up 90% year-on-year and 228% sequentially. After-tax profit came in at ₹439 million ($4.6 million), down from ₹457 million, and operating EBITDA margin dropped to 50.3% from 64.2% a year earlier, which Tips said reflects its policy of expensing new releases immediately while related revenue accrues over subsequent years. The company released 73 songs during the quarter, including the hit soundtrack Hai Jawani Toh Ishq Hona Hai, which passed 186 million YouTube views, and its cumulative YouTube subscriber base grew to 158.3 million. Chairman Kumar Taurani said the board has called a separate meeting to consider a share buy-back, while Girish Taurani and CFO Sushant Dalmia continue to jointly run the business on an interim basis pending a permanent CEO appointment.