Zee Entertainment Enterprises Limited (NSE:ZEEL) reported FY26 operating revenue of INR 80,989 million compared with INR 82,941 million in FY25, reflecting a decline of 2 percent.

The company stated that advertising revenue increased to INR 40,796 million in FY26 from INR 39,261 million in FY25, while subscription revenue declined to INR 32,243 million from INR 35,911 million. Other sales and services revenue rose to INR 7,950 million from INR 7,769 million.

For Q4 FY26, operating revenue stood at INR 20,248 million, down 7 percent year-on-year and 11 percent quarter-on-quarter. The company attributed the advertising impact partly to the Middle East crisis during March 2026.

Source: Analysis by Kalkine 

Profitability Impacted by Higher Costs

FY26 expenditure increased 9 percent year-on-year to INR 77,526 million. EBITDA declined 71 percent to INR 3,463 million from INR 11,962 million in FY25. Adjusted EBITDA for FY26 stood at INR 7,547 million with an adjusted EBITDA margin of 9.3 percent. Profit after tax from continuing operations declined 61 percent to INR 2,713 million.

During Q4 FY26, the company reported EBITDA loss of INR 2,686 million, while adjusted EBITDA stood at INR 1,398 million with a margin of 6.9 percent. The company said higher advertising and promotional expenditure, increased legal costs, and changes in movie rights inventory amortisation and impairment impacted profitability during the quarter.

Digital Business Achieves Adjusted EBITDA Breakeven

The company stated that ZEE5 and other digital businesses delivered adjusted EBITDA breakeven during FY26. Digital business revenue reached INR 14,888 million during FY26, reflecting growth of 53 percent year-on-year.

Quarterly revenue for the digital business increased to INR 4,700 million during Q4 FY26 from INR 2,747 million in Q4 FY25. The company reported release of 127 shows and movies during FY26, including 34 originals.

Television Network Share Improves

The company’s all-India television network share increased to 17.4 percent during FY26, up 60 basis points year-on-year. The network share was supported by Hindi and regional language markets.

Zee Entertainment stated that total television reach and impressions remained stable during FY26. The company launched multiple programs during Q4 FY26 across channels including Zee TV, Zee Marathi, Zee Tamil, Zee Telugu, Zee Kannada, and Zee Sarthak.

Investments and New Business Initiatives Continue

Zee Entertainment announced plans to invest up to INR 1,160 million in Phantom Digital Effects Limited to expand capabilities in animation, visual effects, gaming, and comics. The company also plans to invest INR 200 million in Culture of Real Experiences Private Limited for live entertainment initiatives.

Its short-form video platform and children-focused content initiatives continued expansion during FY26. The company also highlighted syndication business growth and monetisation of content across platforms.

Balance Sheet and Cash Position

Cash and treasury investments stood at INR 27,595 million as of March 2026 compared with INR 24,063 million a year earlier. Content inventory and advances declined to INR 67.6 billion during FY26 from INR 70.5 billion in FY25.

The company stated that its ESG initiatives resulted in an S&P Global ESG score of 51 during 2025, placing it above the industry average for the media and entertainment sector.

Source: Company Filing

Key Risks

• Weak advertising demand may continue affecting revenue and profitability.
• Higher content and promotional spending may pressure operating margins.
• Digital business competition may impact subscriber growth and monetisation.
• Geopolitical disruptions may affect advertising revenue visibility across markets.

Summary

Zee Entertainment Enterprises Limited (NSE:ZEEL) reported lower revenue and profitability during FY26 amid higher expenditure and weaker advertising conditions. The company’s digital business achieved adjusted EBITDA breakeven, while ZEE5 revenue increased significantly.

Television network share improved across Hindi and regional markets. Zee Entertainment also continued investments in digital content, live entertainment, and animation-related businesses during the fiscal year.

FAQs

Q: Why did Zee Entertainment’s FY26 profitability decline significantly?
A: Higher expenditure, increased promotional spending, impairment charges, and movie rights amortisation changes impacted FY26 profitability.

Q: How did ZEE5 perform during FY26?
A: ZEE5 and related digital businesses achieved adjusted EBITDA breakeven with 53 percent annual revenue growth.

Q: What was Zee Entertainment’s television network share during FY26?
A: The company reported an all-India television network share of 17.4 percent during FY26 operations.