Zee Entertainment Q3 results: Net profit falls 5% YoY to ₹155.3 crore

ZEE Ent Q3 results: Zee Entertainment Enterprises (ZEEL) on Thursday reported a 5% year-on-year (YoY) decline in consolidated net profit for the December quarter to ₹155 crore. The company had posted a net profit of ₹164 crore in the same period last year. The profit after tax (PAT) is attributed to the company's shareholders.

In Q3FY26, the company’s operational revenue reached ₹2,149 crore, marking a 15% YoY increase over ₹1,836 crore in the equivalent period of the previous financial year.

The PAT, however, surged by 103% quarter-on-quarter (QoQ) from ₹76 crore in Q2FY26. Meanwhile, the revenue grew by 9% compared to ₹1,969 crore in the July-September quarter of FY26.

For the quarter ended December, the company recorded total expenses of ₹2,087 crore, reflecting an 11% increase from ₹1,880 crore in Q2FY26 and a 20% rise compared to ₹1,735 crore in Q3FY25.

In Q3FY26, the company reported an Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹241 crore, representing a 24% decline compared to the same period last year and a 64% increase from the previous quarter.

The EBITDA margin rose sharply in Q3FY26 to 16.1%, in comparison to 7.4% in Q2FY26 and 10.5% in Q3FY25.

Revenue by Segment

ZEEL noted that a decline in FMCG expenditures affected domestic advertising revenue, which fell by 10% YoY, while the local advertising landscape continued to be weak. It expressed optimism about a potential recovery in spending on brand promotion. At the same time, a rise in digital revenue contributed to the increase in subscriptions.

The growth in revenue from other sales and services was primarily fueled by the sale of distribution rights for two major films. The company said:

1) Advertising revenue reached ₹852 crore, an increase from ₹806 crore in Q2FY26 but a decrease from ₹941 crore in Q3FY25.

2) Subscription revenue totalled ₹1,050 crore, rising from ₹1,023 crore in Q2FY26 and showing an increase from ₹983 crore in Q3FY25.

3) Revenue from other sales and services amounted to ₹378 crore, up from ₹140 crore in Q2FY26 but down from ₹557 crore in Q3FY25.

Zee Ent guidance

“We are pleased with the progress made during this quarter in the digital business. We released 39 shows and movies, including 11 original series. This enhanced content offering across seven languages, coupled with a revised pricing strategy, on our digital entertainment platform, Z5, has resulted in a 73% year on year increase in our digital revenue, to Rs. 4180 million. This marks our highest quarterly revenue so far in the digital business,” Mukund Galgali, deputy chief executive officer and chief finance officer, Zee Entertainment Enterprises Ltd said during the earnings call.

Galgali added that this is the first quarter that the digital business has clocked positive EBITDA. “On the advertising front, we continue to observe a gradual, and sequential pickup in the ad spend by advertisers. Although it declined on a Y-O-Y basis, largely led in FMCG spending, advertising revenues were up 6% quarter on quarter, reflecting a slow but steady pace of recovery.,” Galgali said. He added that the company is yet to see the full benefits of GST cut and a sustained pickup in FMCG advertising spends towards brand building.

Zee Ent share price today

Zee Entertainment share price today opened at an intraday low of ₹82.22 apiece on the BSE. The stock touched an intraday high of ₹86.31 per share. Following the Q3 results, the stock was trading over 3% higher.

According to Anshul Jain, Head of Research at Lakshmishree, after a sharp 45% decline over the last 29 weeks, Zee Entertainment Enterprises is showing early signs of stabilisation and a potential bounce back. Price action is attempting to carve out a weekly double bottom, signalling selling exhaustion rather than fresh distribution, he said, adding that the structure remains fragile, but momentum loss on the downside hints at a tactical reversal setup.

“If this level is reclaimed, a relief rally toward the 50-day EMA near 94 becomes highly likely as short covering and mean reversion kick in. This move should be treated as a corrective bounce, not a trend reversal. Failure to sustain above 88 would keep the broader downtrend intact and reopen downside risks,” said Jain.

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