Saregama acquires equity stake in Bhansali Productions under strategic partnership

New Delhi: Saregama India has entered into a strategic partnership with Bhansali Productions through an equity investment in the Sanjay Leela Bhansali-promoted film production company.

Under the arrangement, Saregama will acquire a stake in Bhansali Productions, bringing together the music and live events business of Saregama with Bhansali Productions’ film and series output. The partnership also includes an exclusive agreement under which Bhansali Productions will sell all future film music to Saregama based on a pre-agreed commercial formula.

Bhansali Productions will continue to retain intellectual property rights and full creative control over its projects, while Saregama will provide governance oversight and financial discipline. The structure is intended to support long-term institutional growth while maintaining artistic independence.

Saregama said it would gradually streamline its in-house film production activities over the next one to two years, shifting focus towards strategic collaborations of this nature. The company added that the investment is expected to be earnings per share accretive by FY27, with margin improvement across its music and video segments.

Founded in 1996 by Sanjay Leela Bhansali, Bhansali Productions has delivered films including Hum Dil De Chuke Sanam, Devdas, Goliyon Ki Raasleela Ram-Leela, Bajirao Mastani, Padmaavat, Gangubai Kathiawadi, Rowdy Rathore, and the Netflix series Heeramandi. The studio has more than 10 feature films planned over the next three years.

Its immediate slate includes Love and War, directed by Sanjay Leela Bhansali and starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal, and Do Deewane Shehar Mein, directed by Ravi Udyawar and starring Siddhant Chaturvedi and Mrunal Thakur. For FY25, Bhansali Productions reported revenue of Rs 304 crore, EBITDA of Rs 60 crore, and profit after tax of Rs 45 crore.

Commenting on the partnership, Avarna Jain, Vice Chairperson, Saregama India, said, “This partnership underscores Saregama’s strategy of aligning with India’s finest creative minds while delivering long-term value to shareholders. Bhansali Productions’ excellence in storytelling and content creation perfectly complements our leadership in music and entertainment.”

Sanjay Leela Bhansali, Founder, Bhansali Productions, said, “For me, powerful and meaningful cinema requires time, trust, and a deep respect for the process. In Saregama, we have found a partner that understands this philosophy. We share a deep respect for art, music, and story telling that is both grounded in tradition and resonates with audiences across generations”.

Kotak Investment Banking acted as the exclusive financial adviser to Bhansali Productions on the transaction.