Zee Entertainment reports Q2 FY26 earnings amid soft advertising

Zee Entertainment Enterprises Limited reported an 8% quarter-over-quarter growth in operating revenue for Q2 FY26, reaching Rs 19,692 million, despite a challenging advertising environment. However, EBITDA declined by 36% quarter-over-quarter to Rs 1,464 million, resulting in an EBITDA margin of 7.4%, impacted by increased content investment and higher advertising and promotion (A&P) expenses. Domestic advertising revenue saw a 12% year-over-year decline due to a slowdown in FMCG spending, though a pick-up is anticipated in the festive season.

Subscription revenue increased due to growth in both linear and digital segments. ZEE5 reported a 32% year-over-year revenue growth, reaching Rs 3,108 million in Q2 FY26, alongside an over 80% reduction in Q2 FY26 EBITDA losses year-over-year. The company released 26 shows and movies, including 7 originals, during the quarter.

The company's cash and cash equivalents stood at Rs 21.1 bn as of September 2025. Content inventory and advances continued to decline in H1 FY26, decreasing by Rs 0.6 bn, driven by optimized acquisition and releases.