Zee Entertainment Enterprises (ZEE) reported a steep decline in profit for the second quarter of fiscal year 2026, as rising advertising and promotional expenses weighed on margins despite steady subscription growth.
The company’s consolidated net profit dropped 63 per cent year-on-year to Rs 76.5 crore in Q2 FY26, compared to Rs 209 crore in the same period last year. Sequentially, profit was down 45.5 per cent from Rs 143 crore in the previous quarter.
EBITDA for the quarter stood at Rs 146 crore, reflecting an EBITDA margin of 7.4 per cent. The decline in profitability was primarily attributed to elevated ad and promotion spending linked to new channel launches, movie releases, and content rollouts.
Advertising revenue fell 10.5 per cent year-on-year to Rs 806 crore, compared to Rs 901 crore in Q2 FY25. On the international front, the company posted Rs 51 crore in ad revenue, Rs 91 crore from subscriptions, and Rs 14 crore from other sales and services.
However, domestic subscription revenue showed resilience, increasing to Rs 1,023 crore in Q2 FY26 from Rs 969 crore in the same quarter last year.
Total advertising and promotional expenses surged to Rs 369 crore in the quarter ended September 30, 2025, up from Rs 253 crore a year earlier.
Meanwhile, Zee Music Company added 3.9 million new subscribers during the quarter, supported by the expansion of its content catalogue across digital platforms.
In a separate development, ZEE’s Board of Directors approved an additional investment of Rs 15 crore in Ideabaaz Tech Private Limited (ITPL), a media and entrepreneurship company. Following the investment, ZEE will hold a 20 per cent equity stake in ITPL on a fully diluted basis. |
