Zee posts Rs 104 crore net loss in March quarter

Zee Entertainment Enterprises reported a net loss in the March quarter and missed its FY26 profitability target by a wide margin, as weak advertising demand, higher investments in growth businesses and one-time accounting charges weighed on earnings.

The broadcaster posted a consolidated net loss of Rs 104 crore for the quarter ended March 31, compared with a profit of Rs 188 crore a year earlier. The loss was primarily due to a change in estimates for movie rights inventory amortisation and additional impairment charges recognised during the quarter.

The company posted EBITDA loss of Rs 269 crore compared to a profit of Rs 285 crore. Adjusted EBITDA dropped 51% yoy to Rs 140 crore translating to a 6.9% margin.


For FY26, Zee reported an adjusted EBITDA margin of 9.3%, well below its earlier guidance of 18-20%, underscoring pressure from a soft advertising market, elevated investments in growth initiatives and one-time accounting changes.

Adjusted EBITDA for the March quarter declined 51% year-on-year to Rs 140 crore, with margins shrinking to 6.9%. Operating revenue fell 7% to Rs 2,025 crore, while expenditure rose 21% to Rs 2,293 crore.

Advertising revenue declined 4% to Rs 808 crore as brands adopted a cautious approach to spending amid geopolitical tensions in the Middle East. Subscription revenue, however, rose 4% to Rs 1,025 crore.

The company said domestic advertising demand remained healthy in January and February but weakened in March due to geopolitical disruption in the Middle East.

For FY26, adjusted EBITDA stood at Rs 755 crore, excluding the impact of changes in movie rights inventory amortisation and additional impairment recognised in the fourth quarter.

Reported EBITDA plunged 71% year-on-year to Rs 346 crore in FY26, while net profit dropped 60% to Rs 271 crore. Operating revenue declined 2% to Rs 8,099 crore as advertising revenue fell 10% to Rs 3,224 crore. Subscription revenue rose 4% to Rs 4,080 crore, while expenditure increased 9% to Rs 7,753 crore.

Zee highlighted progress in its digital business, with ZEE5 and other digital operations reporting 53% revenue growth to Rs 1,489 crore in FY26, while posting an operating loss of Rs 49 crore due to the change in estimates for movie rights inventory amortisation. Excluding this impact, the company said ZEE5 achieved adjusted EBITDA breakeven.

In the March quarter, ZEE5 posted its highest-ever quarterly revenue, rising 71% year-on-year to Rs 470 crore, while EBITDA loss narrowed to Rs 8.4 crore.

The company also reported gains in television viewership, with its network share rising 60 basis points year-on-year to 17.4% in FY26, its highest level in three years, aided by stronger traction in Hindi and regional language markets.

Zee continued to invest in newer growth areas, including short-form content platform Bullet, children’s offering KidZ and live entertainment initiatives. It also announced investments of up to Rs 116 crore in animation and visual effects company Phantom Digital Effects and Rs 20 crore in live entertainment platform CORE.

Zee ended March with cash and treasury investments of Rs 2,760 crore.