Zee Entertainment Q2 profit drops 40% to Rs 46 crore as EBITDA margin contracts to 3.2%

Zee Entertainment Enterprises reported a 40% year-on-year decline in consolidated net profit to Rs 46 crore for the quarter ended September 30, 2026, despite a 13% increase in operating revenue to Rs 2,225 crore, driven primarily by growth in subscription revenue, aided by the FIFA World Cup 2026.

EBITDA for the quarter declined 52% to Rs 71 crore, as higher programming, advertising and promotional expenditure weighed on profitability. EBITDA margin contracted to 3.2% from 7.4% in the corresponding quarter last year.

Total expenditure rose 18% to Rs 2,154 crore during the quarter. Operating expenses increased 14% to Rs 1,225 crore, while advertising and promotion (A&P) expenditure surged 55% to Rs 571 crore.


The higher spending was primarily attributable to programming costs related to FIFA World Cup 2026 and investments in new initiatives, including Bullet and Music.

On the revenue front, advertising revenue remained flat at Rs 803 crore, while subscription revenue grew 30% to Rs 1,332 crore.

The company said domestic advertising revenue remained flat, supported by FIFA, marquee shows such as Sa Re Ga Ma Pa and a fresh slate of content launches. It expects the upcoming festive season to support growth in advertising revenue.

Subscription growth was driven by FIFA 2026 and a strong content pipeline, which helped improve digital average revenue per user (ARPU) and subscriber additions.

ZEE5, the company's streaming platform, continued to be its fastest-growing business. Revenue more than doubled, rising 101% year-on-year to Rs 626 crore. The digital business also reported positive EBITDA of Rs 42 crore, compared with an EBITDA loss of Rs 31 crore in the corresponding quarter last year.

The company said ZEE5 maintained stable usage and engagement metrics during the quarter. It released 34 shows and movies, including nine originals, and continued to deliver positive unit economics, supported by growth and operating leverage.

On the television front, Zee's network share stood at 20% in week 24 of 2026, its highest viewership share in more than seven years, according to the company's earnings presentation. The company said its network had gained share across Hindi and regional-language markets.

Television ratings, however, remain suspended following the Ministry of Information and Broadcasting's direction to the Broadcast Audience Research Council India to comply with the TV Ratings Guidelines 2026.

Zee Entertainment's cash and treasury investments stood at Rs 2,569 crore as of September 2026, providing financial flexibility as the company continues to invest in content, digital growth and other strategic initiatives.