1. Opening Hook
After months of “ad market will revive next quarter” déjà vu, Zee Entertainment Enterprises Limited showed up with numbers that finally stopped bleeding—but didn’t exactly sprint either.
Q3 FY26 delivered revenue growth, digital EBITDA positivity, and a reminder that TV still pays the bills. Advertising, however, remains on a diet it didn’t sign up for. Management sounded confident, disciplined, and slightly tired of waiting for FMCG to loosen purse strings.
The stock market heard “growth + cash + cost control” and nodded politely. The fine print? Margins are thinner, profits softer YoY, and hope is doing some heavy lifting.
Stick around—because the real drama sits between subscription growth, digital breakeven dreams, and an ad recovery that’s always “around the corner.” Things get interesting later. 😏
2. At a Glance
- Operating revenue up 15% YoY (Q3): Subscription and movie rights did the heavy lifting. Ads took a nap.
- EBITDA margin at 10.5%: Better than last quarter, worse than last year—progress with mood swings.
- Digital EBITDA turned positive: ZEE5 finally stopped burning cash. CFO quietly smiled.
- 9M EBITDA down 33% YoY: Cost discipline works, but ads refused to cooperate.
- Cash at ₹21.8 bn: Balance sheet still flexing while profits jog behind.
3. Management’s Key Commentary
“We effectively
navigated a soft advertising environment through focused execution.”
(Translation: Ads were bad, we survived anyway.) 😏
“Subscription and other sales drove Q3 revenue growth.”
(Translation: Consumers paid; brands ghosted.)
“Digital business delivered positive EBITDA in Q3 FY26.”
(Translation: ZEE5 finally learned financial discipline.)
“We continue to invest selectively toward growth initiatives.”
(Translation: Spending money, but pretending it’s very calculated.)
“Cost optimization initiatives reduced EBITDA losses YoY.”
(Translation: Finance team earned their bonus.)
“We expect momentum in performance improvement to sustain.”
(Translation: Please let FMCG ad budgets come back.) 🙏
4. Numbers Decoded
| Metric | Q3 FY25 | Q3 FY26 | What It Really Means |
|---|---|---|---|
| Operating Revenue | ₹19,788 mn | ₹22,801 mn | Subscription + movies saved the quarter |
| EBITDA | ₹3,184 mn | ₹2,405 mn | Up QoQ, down YoY—mixed signals |
| EBITDA Margin | 16.1% | 10.5% | Growth came with higher costs |
| PAT | ₹1,636 mn | ₹1,548 mn | Revenue up, profit barely moved |
| Cash & Investments | — | ₹21,837 mn | Financial safety net intact |
One-liner: Zee is growing again, just not
