ZEEL Q3 FY26: Digital Revenue Soars 73% to ₹418 Crore, Digital Business Turns Profitable
ZEEL's Q3 FY26 digital revenue surged 73% YoY to ₹418 crore, with ZEE5 achieving its first-ever positive EBITDA of ₹56.4 crore. Overall subscription revenue grew 7% YoY. Broadcast network share was 17.5%. Advertising revenue grew 6% QoQ. Profit After Tax doubled sequentially to ₹154.8 crore. Cash reserves stood at ₹2180 crore.
The significant turnaround in the digital business to profitability and strong revenue growth are material developments. Improvements in broadcast viewership share and positive financial metrics like sequential PAT growth indicate a substantial impact on the company's performance and investor outlook.
The company reported strong year-on-year growth in digital revenue, achieved profitability in its digital business for the first time, and showed sequential improvements in profit after tax. Positive commentary on future outlook for advertising and digital business also contributes to the positive sentiment.
Zee Entertainment Enterprises Limited (ZEEL) has announced its financial results for the quarter and nine months ended December 31, 2025. The company reported a significant 73% year-on-year increase in digital revenue, reaching ₹418 crore (INR 4,180 million) for the quarter. This growth was driven by the release of 39 shows and movies, including 11 original series, across 7 languages on its digital platform, ZEE5, coupled with a revised pricing strategy. For the first time, ZEEL's digital business achieved a positive EBITDA of ₹56.4 crore (INR 564 million), a substantial improvement from a loss of ₹136.2 crore (INR 1,362 million) in the same quarter last year. This turnaround was aided by syndication revenues and a revised pricing agreement with a telco player, along with improved advertising revenues.
Overall subscription revenue grew by 7% year-on-year, attributed to the digital business growth and successful contract renewals in the Broadcast segment. The broadcast business maintained its position as India's number 2 TV entertainment network, with a viewership share of 17.5%, a gain of 60 basis points year-on-year. Zee TV showed strong GRP growth, Zee Bangla regained leadership, and ZEE was the fastest-growing network in the South with a 17.7% share. Zee Marathi achieved a market share of 33.6%.
Advertising revenues saw a 6% quarter-on-quarter increase, though they declined 9% year-on-year, attributed to softness in FMCG spending. The company is optimistic about a gradual recovery in advertising spends. The Music business garnered over 51 billion total video views with more than 175 million subscribers on YouTube. The Studio business released 8 movies and acquired rights for 'Kantara Chapter 1' and 'Akhanda 2', contributing to a 7x year-on-year growth in other sales and services.
Overall operating costs increased by 12% quarter-on-quarter due to programming costs for the ILT20 cricket matches and movie acquisitions. Excluding these, operational costs would have declined by mid-single digits sequentially. EBITDA margin improved by 310 basis points to 10.5%, and Profit After Tax stood at ₹154.8 crore (INR 1,548 million), a 2x sequential growth. Cash and treasury investments were ₹2180 crore (INR 21.8 billion) as of December 2025. ZEEL also achieved a score of 51 out of 100 in the S&P Global Corporate Sustainability Assessment, ranking it among the top 5% of global players in the media and entertainment sector.
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