ZEEL profit rises 21% to Rs 143 cr in Q1 FY26 despite 14% drop in income

The growth in profit came despite a broad-based revenue decline as total income for the quarter ended June 30, 2025

by e4m Staff
Published: Jul 22, 2025 4:12 PM | 1 min read

Zee Entertainment Enterprises Ltd (ZEEL) reported a 21 % year-on-year rise in net profit to Rs 143 crore for the first quarter of FY26, up from Rs 118 crore in the same quarter last fiscal. The growth in profit came despite a broad-based revenue decline as total income for the quarter ended June 30, 2025, dropped 14% to Rs 1,849.8 crore from Rs 2,149.5 crore in Q1 FY25, primarily due to sharp declines across advertising, subscription, and other revenue streams.

Advertising revenue fell 16.7% to Rs 758.5 crore from Rs 911 crore during the same quarter last year. Subscription revenue also dipped, though marginally, to Rs 981.7 crore from Rs 987 crore, marking a 0.5% decline. Revenue from other sales and services saw the steepest fall, down 63.5% year-on-year to Rs 84.6 crore from Rs 232 crore in Q1 FY25.

On the cost side, ZEEL managed to significantly rein in its expenditure. Total expenses declined 14.9% to Rs 1,652 crore from Rs 1,941 crore a year earlier. Operational costs were brought down 17.5% to Rs 971 crore, compared to Rs 1,177 crore in Q1 FY25.

Advertising and publicity expenses stood at Rs 275 crore, a 5% decrease from Rs 289.6 crore. Depreciation and amortization expenses reduced 22% to Rs 59 crore from Rs 75.6 crore. Employee benefit expenses saw a modest 2.2% drop to Rs 220 crore from Rs 225 crore in the corresponding quarter last year.