Zee Ent posts weak Q2; ad revenue dips for 6th straight qtr; buy or sell?

Zee Entertainment Enterprises Ltd on Thursday reported a sharp 63.46 per cent decline in consolidated net profit to ₹76.5 crore for the September quarter (Q2FY26), compared with ₹209.4 crore in the same period last year (Q2FY25).

 

The company’s total income fell 1.9 per cent year-on-year (Y-o-Y) to ₹1,995.6 crore from ₹2,034.4 crore, while total expenses rose 6.9 per cent to ₹1,880.3 crore.

 

During the quarter, Zee Entertainment’s advertising revenue dropped 10.6 per cent to ₹806.3 crore, marking the sixth consecutive quarter of decline, against ₹901.7 crore a year ago. Subscription revenue, however, rose 5.5 per cent to ₹1,023 crore, while other income increased 8.4 per cent to ₹139.9 crore.

 

 

On the operational front, the company said it remains on track to achieve breakeven through revenue growth and a balanced cost structure. ZEE5, its digital platform, reported its highest-ever quarterly revenue, crossing ₹3,000 crore, with stable growth in usage and engagement. The quarter saw 26 shows and movies released, including seven originals.  ALSO READ | Nestle Q2 review: Buy or sell? New MD, GST cuts sway analysts' views

Zee Entertainment stock: Buy or sell?

 

Analysts at Nuvama said Zee Entertainment posted weak Q2FY26 results, with revenue down 1.6 per cent, in line with estimates, while earnings before interest, tax, depreciation, and amortisation (Ebitda) plunged 51 per cent year-on-year due to a steep rise in ad spends and other expenses, including one-off costs related to the launch of two regional channels.

 

Ad revenue fell 11 per cent Y-o-Y, but analysts expect a gradual recovery as FMCG companies increase ad and promotional spends. Subscription revenue growth remained steady at 5.5 per cent.

 

Factoring in higher ad spending and increased content acquisition, Nuvama has cut its FY26E/27E/28E EPS estimates by 11.5 per cent, 7 per cent, and 7 per cent, respectively, and revised the target price to ₹155 (from ₹171). The brokerage maintained its ‘Buy’ rating on the ZEE stock.

About Zee Entertainment 

 

Zee Entertainment Enterprises is a leading Indian mass media and entertainment company with a global footprint. It offers a wide range of content, including television shows, movies, and digital series across multiple genres and languages. 

 

Established in 1982, Zee Entertainment was the first to introduce a private satellite TV channel in India. 

 

Today, it operates numerous domestic and international channels, the ZEE5 streaming platform, and a film production and distribution division, reaching over 1.3 billion viewers in more than 170 countries.