Zee Entertainment Enterprises Limited (ZEEL) announced its financial performance for the third quarter of fiscal year 2026 on Thursday, revealing a mixed set of results with declining profitability year-on-year but significant improvements in certain operational metrics. The media conglomerate reported a consolidated net profit of ₹155 crore for the December quarter, marking a 5% decrease compared to the ₹164 crore profit recorded in the same period last year. This profit after tax (PAT) is attributable to the company's shareholders.
Revenue Growth and Expense Analysis
Operational revenue for Q3FY26 reached ₹2,149 crore, demonstrating a robust 15% year-on-year growth from ₹1,836 crore in Q3FY25. On a quarter-on-quarter basis, the revenue increased by 9% from ₹1,969 crore in the July-September quarter of FY26. However, total expenses for the December quarter stood at ₹2,087 crore, reflecting an 11% increase from Q2FY26 and a substantial 20% rise compared to Q3FY25.
EBITDA Performance and Margin Improvement
The company reported Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹241 crore for Q3FY26. While this represents a 24% decline compared to the same period last year, it shows a remarkable 64% increase from the previous quarter. More notably, the EBITDA margin improved sharply to 16.1% in Q3FY26, compared to 7.4% in Q2FY26 and 10.5% in Q3FY25, indicating better operational efficiency.
Segment-Wise Revenue Breakdown
ZEE Entertainment provided detailed insights into its revenue streams across different segments. The company noted that domestic advertising revenue declined by 10% year-on-year, primarily due to reduced FMCG expenditures and continued weakness in the local advertising landscape. Despite this, management expressed optimism about potential recovery in brand promotion spending.
Advertising revenue reached ₹852 crore, showing improvement from ₹806 crore in Q2FY26 but declining from ₹941 crore in Q3FY25. Subscription revenue totaled ₹1,050 crore, rising from ₹1,023 crore in the previous quarter and showing growth from ₹983 crore in the year-ago period. The increase in subscription revenue was partly supported by growth in digital revenue.
Revenue from other sales and services amounted to ₹378 crore, significantly up from ₹140 crore in Q2FY26 but down from ₹557 crore in Q3FY25. This growth was primarily fueled by the sale of distribution rights for two major films during the quarter.
Quarterly Performance Comparison
While the year-on-year profit showed a decline, the quarter-on-quarter comparison revealed more positive trends. The PAT surged by 103% from ₹76 crore in Q2FY26, indicating a strong sequential recovery. This improvement suggests that the company's strategic initiatives may be beginning to yield results despite challenging market conditions.
Market Reaction and Analyst Perspectives
Following the Q3 results announcement, Zee Entertainment's share price showed positive movement on the stock exchange. The stock opened at an intraday low of ₹82.22 per share on the BSE and touched a high of ₹86.31 during trading. The stock was trading over 3% higher after the results were declared.
Anshul Jain, Head of Research at Lakshmishree, provided technical analysis of the stock's performance. He noted that after a sharp 45% decline over the previous 29 weeks, Zee Entertainment Enterprises is showing early signs of stabilization and potential bounce back. The price action is attempting to form a weekly double bottom pattern, which typically signals selling exhaustion rather than fresh distribution.
"The structure remains fragile, but momentum loss on the downside hints at a tactical reversal setup," Jain stated. "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."
The company's financial results come amid ongoing challenges in the media and entertainment sector, with shifting consumer preferences and evolving digital landscape creating both opportunities and obstacles for traditional media companies. Zee Entertainment's performance in the coming quarters will be closely watched by investors and industry observers alike as the company navigates these dynamic market conditions.
