Disney records $28 million loss from India JV in Q1 FY26

The Walt Disney Company reported a $28 million loss from its equity stake in its India joint venture with Reliance Industries during the first quarter of fiscal 2026. This compares with a $33 million loss in the same period last year.

In the corresponding quarter of fiscal 2025, Disney had also taken a $143 million restructuring and impairment charge related to the Star India transaction.

Disney’s overall revenue for the quarter rose 5% year on year to $26 billion, while income before taxes stood at $3.7 billion, largely unchanged from the previous year. Total segment operating income declined 9% to $4.6 billion.

The company said total segment operating income and diluted earnings per share, excluding certain items, are non-GAAP measures, with reconciliations provided in its financial statements.

The Entertainment segment saw revenue grow 7%, but operating income fell by $0.6 billion to $1.1 billion. Operating margins declined to 9.5%, reflecting higher programming, production, marketing, technology and distribution costs.

Subscription video-on-demand revenue increased 11% year on year, despite a one percentage point adverse impact from the inclusion of Star India revenue in the prior-year quarter. SVOD operating income rose $189 million to $450 million, with margins at 8.4%.

Advertising revenue declined 6%, driven by the inclusion of Star India and higher political advertising in the year-ago period. This was partly offset by the Fubo transaction in Q1 FY26.

The Sports segment reported operating income of $191 million, down $56 million year on year. Higher programming costs and lower subscription and affiliate fees offset a 10% rise in advertising revenue. The temporary suspension of YouTube TV carriage impacted operating income by around $110 million.

The Experiences segment posted quarterly revenue of $10 billion, with operating income of $3.3 billion. Domestic parks saw a 1% rise in attendance and a 4% increase in per capita spending.

Disney and Reliance formed their India joint venture, JioStar India, on 14 November 2024. Disney holds a 37% stake and accounts for its share under equity income, with Star India results consolidated until the transaction date.