Zee Entertainment Enterprises Q2 FY27 results: net profit down 79.3% to ₹45.60 crore, revenue down 41.4%

How did Zee Entertainment Enterprises perform in Q2 FY27?

Zee Entertainment Enterprises reported consolidated revenue of ₹2,225 crore for the September 2026 quarter, down 41.4% from ₹3,794 crore in Q2 FY26 and up 16.6% from ₹1,907 crore in Q1 FY27. EBITDA was ₹85.80 crore, down 78.4% year on year and down 13.9% sequentially, while the margin fell to 3.9% from 10.5% and 5.2%.

Consolidated profit before tax was ₹63.10 crore, down 79.8% from ₹312.40 crore in Q2 FY26 and down 14.8% from ₹74.10 crore in Q1 FY27. Net profit was ₹45.60 crore, down 79.3% year on year and down 38.6% sequentially; basic EPS was ₹0.50, compared with ₹2.29 and ₹0.79. On a standalone basis, revenue was ₹2,063.8 crore and PAT was ₹209.8 crore.

What changed in Zee Entertainment Enterprises' costs and profit?

Total expenses were ₹2,184 crore in Q2 FY27, down ₹1,349 crore from the year-ago quarter but up ₹319.70 crore from Q1 FY27. Employee cost fell ₹236.60 crore to ₹197.70 crore, finance costs fell ₹18.20 crore to ₹2.50 crore, and depreciation fell ₹73.40 crore to ₹42.80 crore; other expenses were ₹1,941 crore, down ₹1,021 crore year on year but up ₹346 crore sequentially.

Other income was ₹22.60 crore, down ₹28.80 crore from Q2 FY26 and ₹8.60 crore from Q1 FY27. Tax was ₹17.50 crore, down ₹74.90 crore year on year, and there was no exceptional item in either reported quarter. The filings do not provide further reasons for the changes in the cost lines.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹14,678.9 crore, compared with ₹14,215.5 crore at 31 March 2026, while total equity rose to ₹12,399.3 crore from ₹11,728.1 crore. Borrowings fell to ₹3 crore from ₹177.7 crore, and cash fell to ₹607 crore from ₹797.8 crore. Inventories were ₹6,633.5 crore, trade receivables ₹1,912.6 crore, and trade payables ₹1,499 crore.

For the first half of FY27, operating cash flow was negative ₹370.6 crore, compared with negative ₹25.9 crore in the first half of FY26. Investing cash flow was negative ₹97.3 crore against negative ₹39.8 crore, financing cash flow was positive ₹281.6 crore against negative ₹265 crore, and capital expenditure was ₹122.5 crore against ₹53.6 crore.

How has Zee Entertainment Enterprises done over the last 8 quarters?

Revenue peaked at ₹3,794 crore in Q2 FY26 and was ₹2,225 crore in Q2 FY27, after falling to ₹1,907 crore in Q1 FY27 and recovering sequentially. Net profit peaked at ₹220.20 crore in Q2 FY26, moved to a net loss of ₹103.7 crore in Q4 FY26, and was ₹45.60 crore in Q2 FY27. The EBITDA margin reached 10.5% in Q2 FY26, bottomed at negative 12.6% in Q4 FY26 and was 3.9% in Q2 FY27.

What else did the company announce?

The company’s same-day filing stated that Ashish Agarwal resigned as Company Secretary and Compliance Officer with effect from the close of business hours on 29 October 2026 for personal reasons. The Board approved the appointment of Sangeeta Shetty as Chief Compliance Officer and Company Secretary with effect from 2 November 2026. The filing described Shetty as a qualified Company Secretary and Associate Member of the Institute of Company Secretaries of India with over two decades of experience.

What did the auditors point out?

The auditors’ review report stated that nothing came to their attention causing them to believe that the standalone unaudited statement had not disclosed the information required under Regulation 33 or contained any material misstatement. The report drew attention to uncertainties from SEBI and MCA investigations concerning transactions with vendors of the company and a subsidiary, and said management did not expect a material adverse impact on standalone financial results.

The auditors also highlighted the JioStar dispute over broadcasting rights for ICC men’s global events, in which JioStar had claimed damages of USD 1,097 million. They said the final evidentiary hearing was completed and post-hearing briefs were filed. Management said the company was not in default and considered the claims unfounded and legally untenable; the auditors said their conclusion was not modified on these matters.

What did Zee Entertainment Enterprises' management say?

Management said ZEE5 revenue more than doubled year on year to INR6.3 billion, while digital subscription revenue rose 30%. FIFA exceeded 400 million viewers, and management said 35–40% of FIFA-acquired subscribers were retained. The company expects digital growth to continue in H2 FY27, supported by content renewals and customer retention.

Management said subscription growth is expected to accelerate versus normalised levels in Q3–Q4 FY27, but not at Q2’s 30% pace. It expects advertising revenue not to decline further in H2 FY27, citing festive-season indicators, and said content initiatives and festive-season demand may support revenue growth and profitability for the rest of FY27.

Management said sports and digital investments drove operating costs up 18% and held reported EBITDA margin at 3.2%. It identified high sports programming and marketing costs, new-business spending, uncertainty over linear-TV ratings measurement, possible normalisation of FIFA subscriber growth after the tournament, and uncertain timelines for ICC and LCIA legal matters as risks.

How did Zee Entertainment Enterprises shares react?

After the filing, ZEEL was down 0.8% after 5 minutes, down 0.7% after 15 minutes and up 0.2% after 30 minutes. The stock closed 6.9% lower on the reaction day from its pre-results close and was 6.6% lower by the next day’s close on a cumulative basis.

The industry median moved up 0.1% on the reaction day and 0.4% by the next day’s close, leaving ZEEL 7.1 percentage points behind the industry on both measures. Earlier reaction-day moves were negative on 10 August 2026, 19 May 2026, 16 October 2025 and 22 July 2025, and positive on 22 January 2026, 8 May 2025 and 23 January 2025.

How did other TV Broadcasting & Software Production companies do?

Nine other TV Broadcasting & Software Production companies had filed results for the quarter by 6 November 2026, with a median revenue growth of negative 3.7%. All 9 peers grew faster than Zee Entertainment Enterprises, while none grew more slowly, based on the supplied peer comparison fields. The company’s revenue declined 41.4% year on year.