Zee Posts 5% Revenue Growth in Q1 FY27; Profit Dips 48% Amid Ad Headwinds

Zee Entertainment Enterprises Limited (ZEEL) kicked off fiscal year 2027 with a mixed performance, posting a 5% year-on-year increase in consolidated operating revenue to Rs 1,907.3 crore for the quarter ended June 30, 2026. However, profitability came under pressure as profit after tax (PAT) declined 48% to Rs 74.3 crore compared to Rs 143.7 crore in the same period last year.

The revenue growth was primarily fueled by a robust 16% rise in subscription revenue, which climbed to Rs 1,136.9 crore from Rs 981.7 crore in Q1 FY26. This uptick was attributed to higher linear subscription pricing, growth in digital subscribers, and improved average revenue per user (ARPU). Additionally, the company’s digital platform, ZEE5, emerged as a bright spot, registering a remarkable 58% year-on-year revenue surge to Rs 457.1 crore and turning profitable with an EBITDA of Rs 44 million.

On the flip side, the advertising segment faced significant headwinds, with ad revenue falling 11.5% to Rs 671.4 crore from Rs 758.5 crore in Q1 FY26. Management cited the impact of the Middle East crisis and competing cricket programming as key factors dampening advertiser sentiment. Consequently, earnings before interest, taxes, depreciation, and amortisation (EBITDA) plummeted 65% to Rs 78.9 crore, with the EBITDA margin narrowing sharply to 4.1% from 12.5% a year ago.

Total expenses for the quarter rose 12.8% to Rs 1,864.4 crore, reflecting higher investments in sports and content, which weighed on overall profitability. Despite the margin compression, Zee maintained a healthy balance sheet and expressed optimism about a recovery in advertising demand during the upcoming festive season, bolstered by improved network viewership share.

The results underscore Zee’s strategic pivot towards subscription and digital revenue streams to counter cyclical advertising volatility, even as it navigates a challenging macro environment.