Zee Entertainment Enterprises (ZEEL) Q2 25/26 earnings summary

Executive summary

• Strategic investments in content and digital platforms drove market share gains and improved digital performance in Q2 FY26.

• ZEE5 digital platform revenue rose 32% YoY, with strong subscriber growth and a significant reduction in EBITDA losses.

• Linear TV maintained its position as India's #2 entertainment network, with network share increasing 100 bps QoQ to 17.8%.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved by the Board and reviewed by auditors with an unmodified conclusion.

• The company operates in a single segment: Content and Broadcasting.

Financial highlights

• ZEE5 revenues rose 32% YoY, reaching INR 3,108 million in Q2 FY26; consolidated revenue from operations for Q2 FY26 was ₹19,956 million.

• EBITDA margin stood at 7.4% for the quarter, with Q2 FY26 EBITDA at Rs 1,464 Mn.

• Profit after tax for Q2 FY26 was INR 765 million, down from INR 2,095 million YoY.

• Advertisement revenues were 11% lower YoY but up 6% sequentially; subscription revenue grew 6%, mainly driven by digital.

• Cash and treasury investments as of September 25: INR 21.1 billion.

Outlook and guidance

• Management expects a gradual recovery in ad revenues in H2 FY26, supported by festive season and policy tailwinds.

• Cost increases from content and channel launches are expected to stabilize, with margin improvement anticipated in H2.

• Expectation of sustained performance improvement in digital, driven by revenue growth and operating leverage.

• Management does not expect any material adverse impact from ongoing regulatory and legal matters.