Zee’s PAT fell to Rs 76.5 crore in Q2FY26, compared to Rs 209.4 crore in the corresponding quarter last year.
Revenue from operations during the same period also declined, registering a 2% YoY fall to Rs 1,996 crore.
Sequentially, the company’s performance also saw a downturn. The net profit dropped from Rs 144 crore in the first quarter of FY26 (Q1FY26), indicating pressure in both advertising and subscription segments.
The fall in revenue has been attributed to subdued advertising expenditure and a slow-paced recovery in the linear TV segment. However, on a sequential basis, Zee Entertainment reported a revenue growth of approximately 8%, rising from Rs 1,850 crore in Q1 to Rs 1,996 crore in Q2.
In terms of segmental performance, the advertising business witnessed a 12% YoY decline, with revenue falling to Rs 806 crore from Rs 902 crore in the same period last year. This dip was largely due to reduced advertising spend from FMCG clients.After reporting the Q2 results, Nuvama has maintained a “Buy” rating on Zee Entertainment, though it has revised the target price downward to Rs 155 from the earlier Rs 171.The brokerage noted that the company’s revenue declined 1.6% year-on-year (YoY), which was in line with estimates.
EBITDA for the company fell sharply by 51% YoY, impacted by higher advertising and other operating expenses. This includes one-time costs associated with the launch of two new regional channels.
Ad revenue dropped 11% YoY, continuing its downward trend for the sixth consecutive quarter. In contrast, subscription revenue witnessed growth, rising by 5.5% YoY during the same period.
Nuvama anticipates a gradual recovery in ad revenues, supported by an expected pickup in FMCG sector advertising expenditure. However, it has cut its earnings per share (EPS) estimates for Zee Entertainment by 11.5% for FY26, 7% for FY27, and 7% for FY28, reflecting the near-term challenges facing the company.
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