Zee Entertainment Q1FY26 results: Revenue down 14% YoY; ad revenue declines 17%

Zee Entertainment reported a 14% year-on-year decline in consolidated revenue for the first quarter of FY26, with total income reaching ₹1,820 crore. The decline was largely attributed to continued pressure on advertising and subscription revenues.

Overall advertisement revenue dropped 17% year-on-year, with domestic ad revenue down by approximately 19%. The company cited a slowdown in FMCG ad spending and an extended sports calendar as contributing factors.

Subscription revenue was down 1% year-on-year at ₹980 crore. While digital subscriptions saw some growth, this was offset by a decline in linear TV subscriptions. Revenue from other sales and services fell 64% year-on-year, primarily due to lower movie and syndication income.

Operating expenses were down 14% compared to the same quarter last year, reflecting cost controls across content and production. EBITDA came in at ₹230 crore, marking a 16% decline year-on-year, with margins at 12.5%.

Zee5, the company’s OTT platform, posted a 30% year-on-year growth in revenue to ₹290 crore. Operating losses narrowed to ₹66 crore, from ₹180 crore in the year-ago period.

The company maintained its guidance of 8–10% annual revenue growth, 18–20% EBITDA margins, and breakeven for Zee5 by the end of FY26. Management noted early signs of a potential recovery in ad revenue, supported by the festive season and improving macro indicators.