Zee Entertainment Enterprises (ZEEL) Q1 25/26 earnings summary

Executive summary

• Achieved 14% YoY growth in PAT from continuing operations, reaching INR 1,437 million, with EBITDA margin at 12.5%, despite macro headwinds and revenue declines.

• Launched a new brand identity and introduced tailored ZEE5 subscription plans in seven languages to boost digital revenue and subscriber growth.

• Improved network viewership, with linear share at 16.8% in Q1 FY26 and 17.8% in June, driven by strong performance in language markets.

• Welcomed two new board members and scheduled the 43rd AGM for September 15, 2025, via video conference.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with unmodified conclusions from statutory auditors.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 18,248 million, down from INR 21,305 million YoY and INR 21,841 million QoQ.

• EBITDA for Q1 FY26 was INR 2,280 million, margin at 12.5%, down 16% YoY and 20% sequentially.

• Profit after tax from continued operations was INR 1,437 million, up 14% YoY but down 24% sequentially.

• ZEE5 revenues grew 30% YoY, aided by digital syndication and language pricing strategies.

• Cash and treasury investments as of June 2025 were INR 21.9 billion, including INR 2 billion from FCCB proceeds.

Outlook and guidance

• Retained 8% advertising revenue growth guidance for FY26, expecting a back-ended recovery driven by new content and initiatives.

• Targeting 18%-20% EBITDA margin for the year, with investments in new initiatives already factored into guidance.

• ZEE5 breakeven targeted by year-end, with profitability driven by ARPU and subscriber growth from language packs.

• Management expects no material adverse impact from ongoing regulatory investigations or legal disputes.

• Anticipates improved advertising environment with healthy monsoon and festive season pick-up.