Zee Entertainment Enterprises Limited (ZEEL) reported its Q2 FY26 results, highlighting a 32% year-on-year revenue increase in its digital business (ZEE5). The company’s strategic focus on performance and profitability of ZEE5 is yielding results, with a tailored subscription plan in seven languages garnering positive user response. While content costs have increased, the company anticipates these investments will stabilize and accrue higher gains in advertising and subscription revenues.
Digital Business Growth
ZEE5 revenues increased by 32% Y-o-Y in Q2 FY26, driven by enhanced content offerings across 7 languages and a revised pricing strategy. The company registered its highest ever quarterly revenue, crossing INR 3,000 million, leading to more than 80% reduction in EBITDA loss to INR 312 million in Q2 FY26.
Linear TV Performance
Zee Entertainment’s network share reached 17.8%, a gain of 100 bps Q-o-Q. Flagship Hindi GEC Zee TV witnessed strong growth in GRP, with 4 shows featuring amongst the top 10 in recent weeks. Network share gain was 40 bps aided by language markets and the return to the free-to-air segment.
Financial Overview
Advertisement revenues were down 11% Y-o-Y but up 6% Q-o-Q. Subscription revenue grew by 6%, driven by growth in the digital business. The overall operating cost increased by 9% Y-o-Y due to higher programming and advertising costs. EBITDA margins were at 7.4%. Profit after tax for the quarter came in at 765 million INR. Cash and treasury investments as of September ’25 stood at INR 21.1 billion.
Strategic Initiatives and Outlook
The company expects revenues to see an uptick in the second half of FY26, with profitability and cash generation remaining a priority. Margins are expected to improve, driven by strategic initiatives. Zee Entertainment has also marked a strategic entry into new segments like short-form content and partnered with Ideabaaz Tech Private Limited for its upcoming content offering.
Source: BSE
