Audited Financial Results for the year ended March 31, 2025
Awaiting price reaction for this filing.
Zee Entertainment Enterprises (ZEEL) reported FY25 standalone revenue of ₹77,124M, down 4.5% from ₹80,750M in FY24. Despite the topline decline, profit before exceptional items and tax jumped ~36% to ₹10,121M from ₹7,443M, reflecting margin expansion. Standalone profit after tax more than doubled to ₹7,013M (vs ₹3,015M) and EPS rose to ₹7.30 from ₹3.14. On a consolidated basis, PAT surged to ₹6,795M from ₹1,414M. The results include exceptional items of ₹3,129M (standalone), mainly ₹884M provision for Margo Networks investments/receivables and ₹397M restructuring costs. The board recommended a dividend of ₹2.43 per share. Statutory auditor Walker Chandiok & Co LLP issued an unmodified opinion but flagged two emphasis of matters: ongoing SEBI/MCA investigation into certain vendor transactions (where an Independent Investigation Committee found no material irregularities and ZEEL has filed a settlement application with SEBI) and the Star India arbitration where Star has claimed damages of USD 940 million related to the ICC broadcast rights alliance, which ZEEL is contesting.
The strong PAT growth driven by margin expansion is a positive for shareholders, though the revenue decline and large exceptional items warrant attention. The Star India USD 940 million arbitration claim remains a significant overhang, and ongoing SEBI/MCA investigations, while not leading to any restatement, create regulatory uncertainty. The dividend announcement and clean audit opinion are reassuring signals.