Zee Entertainment’s digital business drives Q2 FY26 growth, narrows losses

Zee Entertainment Enterprises Limited reported a 32% year-over-year increase in ZEE5 revenues for Q2 FY26, driven by enhanced content across seven languages and a revised pricing strategy. This led to a substantial reduction in EBITDA loss for ZEE5, which fell to INR 312 million, reflecting the company’s focus on achieving breakeven in its digital business. The company's overall operating costs increased by 9% year-over-year due to higher programming, advertising, and publicity expenses, impacting EBITDA margins, which stood at 7.4%.

Despite an 11% year-over-year decrease in advertising revenues, a marginal uptick was observed quarter-on-quarter, largely attributed to increased spending by FMCG companies and the onset of the festive season. Overall subscription revenue grew by 6%, primarily due to the digital business and renewals of DPO contracts. The company aims for margins to improve in the second half of FY26, driven by strategic initiatives and stabilizing content costs.

Cash and treasury investments totaled INR 21.1 billion as of September 2025, including a cash balance of INR 3.8 billion, fixed deposits of INR 6.9 billion, and investments in liquid mutual funds of INR 10.5 billion. Content inventory advances and deposits declined by INR 600 million since March 2025, reaching INR 69.9 billion, indicating optimized acquisition. The company continues to expand its reach, with its network share at 17.8% in Q2 FY26.