Kuku FM parent Kuku Technologies turned profitable in the financial year ended March 2026, as a sharp jump in subscription income lifted its operating revenue more than sixfold. The Mumbai-based audio and microdrama company reported operating revenue of Rs 1,484.2 crore in FY26, up from Rs 241.6 crore in FY25, according to its standalone financial statements filed with the Registrar of Companies.

Net profit came in at Rs 182.7 crore, a turnaround from a loss of Rs 152.6 crore in the previous year. Profit before tax stood at Rs 88.6 crore. The reported bottom line was helped by a deferred tax benefit of about Rs 98 crore. Without that one-off gain, profit would have been close to the pre-tax figure. The numbers were first reported by business outlets including Inc42 and MediaNama, which cited the RoC filings.

Where Kuku FM’s revenue came from

Subscriptions did almost all of the work. Subscription income contributed Rs 1,475.4 crore, or more than 99% of operating revenue. Pay-per-piece purchases, where users spend coins to unlock individual titles, added Rs 6.9 crore. Advertising brought in just Rs 1.9 crore.

India accounted for Rs 1,463.6 crore, roughly 99% of operating revenue, while international markets contributed Rs 20.5 crore. Interest on bank deposits added Rs 26.2 crore as other income, taking total income for the year to Rs 1,510.4 crore.

Marketing spend drove the growth

Marketing and advertising was the single largest cost at Rs 1,105.1 crore, up about four times from Rs 284.8 crore a year earlier and roughly 78% of total expenses. The spending backed the growth of Kuku TV, the microdrama platform the company launched in 2024.

Operational costs climbed to Rs 96.3 crore from Rs 8.7 crore, and employee benefit expenses rose 24% to Rs 74.1 crore. Total expenditure grew 3.5 times to Rs 1,421.8 crore. On an operating basis, Kuku posted EBITDA of Rs 82.9 crore at a 5.6% margin, against an EBITDA loss of Rs 159.8 crore in FY25. Cash and bank balance rose to Rs 293 crore.

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IPO plans and the SEBI nod

Kuku filed its confidential draft red herring prospectus with market regulator SEBI in June 2026. Press reports put the IPO size at Rs 2,500 crore to Rs 3,500 crore, with a targeted valuation of about Rs 15,000 crore. SEBI issued its observations in September 2026, clearing the way for a listing, and a confidential filer has up to 18 months to launch the offer.

The offer is expected to combine a fresh issue of shares with an offer for sale. The company plans to use the proceeds to upgrade its technology and AI infrastructure, fund content production and expand into new markets.

The AI bet on microdramas

Ahead of the listing, Kuku is building a 1,000-member AI-led content production unit covering writing, production, post-production, dubbing and localisation. The company says 60% to 70% of its content already uses AI tools at some stage of production. It makes more than 150 microdramas a month and works with a creator ecosystem of about 50,000 people.

Kuku claims more than 400 million app installs and over 10 million subscribers across its apps as of June 2026, with a library of 20,000-plus titles in seven languages.

Founders, funding history and background

Kuku Technologies was founded in 2018 by Lal Chand Bisu, Vikas Goyal and Vinod Meena. It runs the audio platform Kuku FM, the microdrama apps Kuku TV and StoRizz, the upskilling app Guru, and newer bets such as Filmy and FreeDrama.

The company has raised more than $156 million to date from investors including Fundamentum Partnership, Krafton, Vertex Ventures, IFC, 3one4 Capital and Granite Asia, which led an $85 million Series C round in October 2025. Google is also an investor in the firm.

What happens next

The turnaround carries clear risks. Microdrama content is expensive to produce, subscribers can switch platforms easily, and the market is getting crowded with Pocket FM, JioHotstar’s Tadka, Amazon’s Fatafat and newer entrants backed by Flipkart and gaming firms.

Kuku’s next phase will turn on whether AI-led production can improve the economics without pulling down content quality, even as the company prepares to test the public markets.