Zee Entertainment Q1: Operating revenue up 5% to Rs 1,907 crore

Zee Entertainment Enterprises reported consolidated operating revenue of Rs 1,907.3 crore for the quarter ended June 30, 2026, up 5% from Rs 1,824.8 crore in the corresponding quarter last year. The consolidated total income rose to Rs 1,938.5 crore in the June quarter from Rs 1,849.8 crore a year earlier. 

It reported a consolidated profit after tax of Rs 743 crore for the quarter ended June 30, 2026, down nearly 48% from Rs 1,437 crore in the year-ago period, even as subscription revenue grew strongly. The company’s advertising business remained under pressure. Advertising revenue declined to Rs 671.4 crore from Rs 758.5 crore a year earlier, a fall of about 11.5%. Subscription revenue, however, increased to Rs 1,136.9 crore from Rs 981.7 crore, an increase of nearly 16%. Other sales and services rose t o Rs 99 crore from Rs 84.6 crore.

The contrasting performance of advertising and subscription revenue comes as Zee continues to operate in what its financial statements describe as the single reporting segment of “Content and Broadcasting”.

Total expenses during the quarter stood at Rs 1,864.4 crore, against Rs 1,652.7 crore a year earlier. Operational costs rose to Rs 1,031.7 crore from Rs 971 crore, while advertising and publicity expenditure increased sharply to Rs 446.8 crore from Rs 275.2 crore. Employee benefit expenses, at Rs 212.6 crore, were lower than the Rs 220.1 crore recorded in the year-ago quarter.

Profit before exceptional items and tax stood at Rs 741 crore, compared with Rs 1,972 crore in the June 2025 quarter. After tax, profit attributable to shareholders was Rs 763 crore, against Rs 1,437 crore a year earlier.

Content and investment restructuring

The quarter also saw changes to Zee’s content and investment structure. The company said it invested Rs 115.7 crore in compulsorily convertible debentures issued by Phantom Digital Effects. The CCDs carry a 0.1% annual coupon and can be converted into equity shares of the investee company. Separately, Zee invested Rs 10 crore to acquire a 33.33% fully diluted stake in Culture of Real Experiences through compulsorily convertible preference shares.

Zee has also transferred its business of syndicating and licensing content, along with the related assets, liabilities and commercial rights, to wholly owned subsidiary ZI-IPR Enterprises through a slump sale effective April 1, 2026. The net assets transferred were valued at Rs 490.2 crore, with a corresponding receivable recorded in Zee’s books.

The restructuring follows a major inventory adjustment taken in the previous financial year. Zee had revised its estimates for the consumption of premiere-movie inventory to reflect changes in business strategy, utilisation, exploitation and monetisation patterns, resulting in an additional operational-cost charge of Rs 302.2 crore in the March 2026 quarter and financial year.

The company’s board met on August 10 to approve the June-quarter results. It also approved convening Zee’s 44th annual general meeting on September 17, 2026, through video conference or other audio-visual means.