1. At a Glance – Blink and You’ll Miss the Loss
Shemaroo Entertainment Ltd is currently trading around ₹98.6, with a market cap of ~₹269 crore, which is roughly the valuation of a mid-budget Bollywood film that never got a theatrical release. The stock is down ~16% in the last 3 months and ~30% over one year, so momentum traders have already ghosted it.
Latest Q3 FY26 numbers show revenue of ₹161 crore, down slightly YoY, but the real horror scene is the PAT loss of ₹55.4 crore for the quarter. Operating margins are sitting at -42%, which is not a typo — that’s the kind of margin you get when costs party harder than revenues.
Debt stands at ₹297 crore, ROE is -16.6%, ROCE -9.3%, and interest coverage is -5.4, meaning EBIT isn’t even invited to the interest payment meeting anymore.
Yes, the stock trades at 0.71× book value, but remember — cheap mirrors don’t make you handsome.
So the big question:
Is this a content-rich turnaround candidate… or just a nostalgia library burning cash in 4K resolution?
2. Introduction – From Cassette King to OTT Confusion
Once upon a time, Shemaroo was the undisputed king of physical media — VCDs, DVDs, movie rights, and that one shop outside every railway station. The company monetised Bollywood nostalgia before nostalgia became fashionable.
Then the world moved on.
Streaming arrived.
YouTube exploded.
OTT wars began.
Shemaroo did what any legacy media house would do — everything at once.
Broadcast channels? Yes.
OTT platform? Yes.
YouTube monetisation? Yes.
Devotional apps? Yes.
Metaverse? Also yes (because why not).
Fast forward to FY25–FY26, and we have a company with:
- 7,000+ hours of content
- Presence in 150+ countries
- Multiple channels, apps, platforms, verticals
…and yet, bleeding money like a daily soap villain in the final episode.
This isn’t a demand problem. India consumes insane amounts of content.
This is
a monetisation + cost structure + capital allocation problem.
Let’s break it down calmly — with sarcasm.
3. Business Model – WTF Do They Even Do?
Think of Shemaroo as a content wholesaler trying to cosplay as Netflix.
Broadcast
Channels like Shemaroo TV, Shemaroo Umang, MarathiBana, Chumbak TV target Hindi, regional, and family audiences. Ad revenue is cyclical, competitive, and brutally price-sensitive.
OTT – ShemarooMe
A niche OTT platform focused on:
- Regional content
- Devotional programming
- Kids + family entertainment
Problem?
Competing against JioCinema (free), Disney+ Hotstar, Amazon Prime, Netflix, and YouTube — all with deeper pockets and better tech.
Digital & YouTube
50+ YouTube channels. CPMs are volatile. Algorithm gods are cruel. One demonetisation wave and revenue evaporates.
Syndication & DTH
Licensing old content to TV channels and DTH operators. Stable, but low growth and price-negotiated to death.
In-Flight Entertainment
Sounds fancy. Revenue? Not fancy.
Studios, Restoration, Metaverse
Value-added services, but currently more PowerPoint potential than P&L contribution.
So yes, Shemaroo does a lot of things — just not one thing profitably at scale right now.
4. Financials Overview – The Table That Hurts
Quarterly Performance Table (₹ crore)
| Metric | Latest Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 161 | 164 | 143 | -1.8% | +12.6% |
| EBITDA | -67 | -42 | -55 | Worse | Worse |
| PAT | -55.4 | -37 | -46 | -52% | -20% |
| EPS (₹) | -20.29 | -13.32 | -16.57 | -52% | -22% |
