Zee Entertainment Reports 40% Drop in Q2 Profit Despite Revenue Growth

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. The company had recorded a net profit of Rs 76.5 crore in the corresponding quarter last year.

Despite the decline in profitability, consolidated operating revenue increased 13% to Rs 2,225 crore, supported by strong subscription growth and the performance of its digital business.

Higher expenses related to the FIFA World Cup 2026 broadcast and investments in new initiatives affected the company's bottom line. The advertising environment was also impacted by the ongoing Middle East crisis.

Higher Expenses Impact Profitability

Zee's EBITDA declined 52% year-on-year to Rs 71 crore, while its EBITDA margin fell to 3.2%, compared with 7.4% in the same period last year.

Total expenditure increased 18% to Rs 2,154 crore. Operating expenses rose 14% to Rs 1,225 crore, while advertising and promotional spending increased 55% to Rs 571 crore.

The rise in costs was mainly driven by FIFA World Cup programming expenses and investments in new initiatives, including Bullet and Music.

Punit Goenka, CEO of Zee Entertainment Enterprises, described the quarter as a period of growth, strategic investments and creative decisions focused on improving consumer experience.

Advertising Revenue Remains Stable

Advertising revenue remained almost unchanged at Rs 803 crore, compared with Rs 806.3 crore in the year-ago quarter.

Domestic advertising performance received support from the FIFA World Cup, shows such as Sa Re Ga Ma Pa and new content launches.

The company expects the upcoming festive season to create further opportunities for advertising growth. It is also exploring new monetisation opportunities through strategic partnerships.

Subscription Revenue Grows 30%

Subscription revenue increased 30% year-on-year to Rs 1,332 crore. The growth was supported by FIFA World Cup 2026 and a strong content pipeline, which contributed to subscriber additions and improved average revenue per user on digital platforms.

ZEE5 Revenue More Than Doubles

ZEE5 continued to be Zee Entertainment's fastest-growing business, with revenue increasing 101% year-on-year to Rs 626 crore.

The streaming platform attributed its performance to multilingual content and improvements in user experience. During the quarter, it released 34 shows and movies, including nine original productions.

The digital business also reported a positive EBITDA of Rs 42 crore, compared with a loss of Rs 31 crore in the corresponding quarter last year.

Goenka highlighted ZEE5's growth and said its multilingual entertainment offerings and global sports content had supported subscription growth.

Television Business Records Strong Market Share

Zee's linear television network reported improved performance, reaching a 20% market share in Week 24, according to BARC data. This marked its highest share in seven years.

The company attributed the growth to its content strategy and new fiction and non-fiction programmes across different languages.

Its non-fiction portfolio continued to feature established franchises such as Sa Re Ga Ma Pa, while Jeena Isi Ka Naam Hain was announced as an upcoming offering.

FIFA World Cup Boosts Sports Business

The FIFA World Cup 2026 played an important role in Zee's sports performance during the quarter.

The tournament reached more than 400 million viewers across live and non-live platforms and generated approximately 50 billion minutes of watch time.

The event also supported engagement and growth on ZEE5 while creating opportunities for the company's Unite8 Sports initiative.

Zee Music Company Expands Its Reach

Zee Music Company recorded more than 59 billion video views during the quarter and crossed 179 million subscribers on YouTube.

The music business continued expanding its catalogue across multiple languages while maintaining healthy profitability.

Focus on Future Growth Initiatives

Looking ahead, Zee Entertainment plans to strengthen its existing businesses while investing in emerging content and entertainment formats.

Its growth initiatives include kids' entertainment, live experiences, animated content, micro-dramas and sports.

The company aims to develop these areas into additional growth drivers while improving its position across television, digital entertainment and music.