Saregama to invest in Bhansali Productions, announces strategic partnership

Sanjay Leela Bhansali

Music label and entertainment company Saregama India Ltd, and Sanjay Leela Bhansali-promoted Bhansali Productions Private Limited announced a strategic partnership on December 16.

The partnership involves a significant equity investment by Saregama in Bhansali Productions.

The Board of Directors of Saregama India at its meeting held on Tuesday approved subscription of 9,960 number compulsory convertible preference shares (CCPS) by the company in Bhansali Productions Private Limited (BPPL) for a consideration of Rs 325 crore.

As part of the partnership, Bhansali Productions will exclusively sell all its future film music to Saregama, based on a pre-agreed formula. "This structure guarantees Saregama a steady pipeline of premium, marquee film music, eliminating competitive bidding, thereby securing long-term market share in new music and controlling acquisition costs," the company said in an exchange filing.

Saregama will gradually streamline its in-house film production activities over the next 1–2 years, focusing instead on such strategic partnerships. The investment is expected to be Earnings Per Share (EPS) accretive for Saregama by FY27, improving margins across both its music and video segments.

Bhansali Productions' immediate slate includes Love and War, directed by Sanjay Leela Bhansali, starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal; and Do Deewane Shehar Mein, a romantic drama directed by Ravi Udyawar, starring Siddhant Chaturvedi and Mrunal Thakur.

For FY25, Bhansali Productions reported revenue of Rs 304 crore, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 60 crore, and Profit After Tax (PAT) of Rs 45 crore.

Bhansali Productions will retain complete creative control, while Saregama will provide governance oversight and financial discipline.

Kotak Investment Banking acted as the exclusive financial advisor and banker to Bhansali Productions on this transaction