Shemaroo flags BARC blackout, deferred broadcaster deals amid digital growth

Shemaroo Entertainment’s traditional media business continues to face pressure from the prolonged Broadcast Audience Research Council (BARC) ratings blackout and deferred broadcaster content investments, even as its digital business grows, CEO Hiren Gada said during the company’s Q2 FY27 earnings call.

Shemaroo aspires to achieve EBITDA profitability in FY27 and cash-flow positivity in FY28, Gada said, clarifying that these are aspirations and not formal guidance. The company was marginally EBITDA-negative in H1 FY27. Gada said there was a good probability of achieving the FY27 aspiration if business conditions improved, particularly if television audience measurement resumed.

The continuation of the BARC ratings blackout remains a near-term challenge for the television industry and traditional media revenues, the company said. The absence of audience measurement data has affected advertiser sentiment, while some broadcasters have deferred content investments, delaying TV B2B licensing deals.


Shemaroo reported Q2 operating revenue of Rs 141 crore, down 2% year-on-year. EBITDA loss narrowed to around Rs 2 crore from Rs 55 crore in the year-ago quarter, while net loss declined to Rs 8 crore from Rs 45 crore. The company attributed the narrowing of losses to accelerated amortisation completed earlier, cost optimisation and investment initiatives.

Shemaroo incurred around Rs 20 crore in expenses on new initiatives during the quarter. Excluding this expenditure, EBITDA from existing operations would have been around Rs 18 crore, the company said.

Digital media revenue rose 26% year-on-year to around Rs 76 crore in Q2, while traditional media revenue declined 21% to around Rs 66 crore. Digital accounted for 54% of Q2 revenue. Gada attributed digital growth to B2B licensing, improved YouTube advertising and engagement.

For H1 FY27, revenue stood at Rs 273 crore and EBITDA loss was Rs 4 crore, compared with Rs 110 crore in H1 FY26. Net loss narrowed to Rs 16 crore from Rs 91 crore.

Gada said festive-season advertising demand across traditional and digital platforms was higher than in the previous year’s festive season. He also flagged geopolitical uncertainties and rising advertiser input costs as potential headwinds.

B2B digital licensing revenue can be uneven and should be assessed over a 12-month period, he said. Digital revenue crossing 50% of the company’s overall business could represent a margin tipping point.

Shemaroo’s core regional focus remains Gujarati content. Gada said the company had built consumer traction, brand recall and engagement through ShemarooMe Gujarati, describing it as a default digital entertainment destination for Gujarati audiences.

The bulk of investment and marketing focus remains on Gujarati content, while the Hindi library continues to be monetised through selective additions and refreshes.

The company began its South regional content journey around three years ago. Gada said it had associated with Lokah, which he described as the biggest Malayalam theatrical movie to date, and that the film continued to generate revenue through international platforms. Shemaroo will continue to expand in Malayalam at a measured pace, he said.

The company’s two new initiatives are television broadcasting and ShemarooMe. Gada said television operations had undergone portfolio, programming and content-strategy rationalisation. ShemarooMe spending remains controlled, with investments directed towards content, consumer proposition and brand engagement.