Shemaroo’s revenue sees marginal dip in Q3 FY26

Shemaroo Entertainment reported a decline in consolidated revenue for both the December quarter and the nine-month period ended December 31, 2025, as sustained weakness in traditional media businesses continued to weigh on performance.

Revenue from operations declined 2.2% year-on-year to ₹160.7 crore in Q3 FY26, compared with ₹164.4 crore in the corresponding quarter last year. For the nine-month period, consolidated revenue fell 7.7% to ₹443.6 crore, from ₹480.8 crore in the same period of the previous financial year.

Shemaroo’s digital media segment continued to outperform its traditional business during the quarter and nine-month period. In Q3 FY26, digital media revenue rose 13.8% year-on-year to ₹80.7 crore, compared with ₹70.9 crore in Q3 FY25. In contrast, traditional media revenue declined 14.4% to ₹80.0 crore, from ₹93.5 crore a year earlier. 

During the quarter, total expenses rose to ₹228.1 crore from ₹206.7 crore a year earlier, leading to an EBITDA loss of ₹67.4 crore, compared with a loss of ₹42.3 crore in Q3 FY25. EBITDA margin deteriorated to -41.93%, from -25.72% in the year-ago period.

The company posted a net loss (PAT) of ₹54.9 crore for the quarter, widening from a loss of ₹36.5 crore last year. Earnings per share (not annualised) stood at -₹20.28, compared with -₹13.30 in Q3 FY25.

Shemaroo said its digital business grew 13.8% year-on-year during the quarter, while traditional businesses declined 14.4%, impacted by the re-entry of major broadcasters on DD FreeDish, a packed sports calendar, and continued softness in FMCG advertising spends across the industry.

Management noted that margins remain under pressure due to accelerated inventory charge-offs, a strategic accounting initiative undertaken eight quarters ago. The company clarified that these charge-offs are non-cash accounting adjustments and do not affect content monetisation or its ability to generate free cash flows.

For the nine-month period ended December 31, 2025 (9M FY26), the company reported an EBITDA loss of ₹177.6 crore, compared with a loss of ₹82.1 crore in the year-ago period, with EBITDA margin at -40.05%. Net loss for the period widened to ₹146.2 crore, from ₹79.5 crore in 9M FY25, while EPS (not annualised) stood at -₹53.60, versus -₹29.20 a year earlier.

On the content and digital front, Shemaroo continued to expand its portfolio. Its OTT platform ShemarooMe Gujarati released six new titles during the quarter, spanning movies, web series and plays. World digital premieres during the period included Jai Mata Ji Let’s Rock, Auntypreneur, Shubhchintak, and Vicki Ki Baraat (Hindi dubbed).

On YouTube, Shemaroo FilmiGaane crossed 74 million subscribers, while Shemaroo Entertainment surpassed 61 million subscribers during the quarter. The company said it garnered over 9.5 billion views across its portfolio of channels in the period.

Looking ahead, Shemaroo said it remains cautiously optimistic about a gradual recovery in FMCG advertising spends in the coming quarters as the impact of the GST rate cut stabilises. The company added that it continues to focus on strengthening its balance sheet and improving operational efficiencies, with the aim of unlocking long-term intrinsic value.