1. At a Glance
Zee clocked Q1 FY26 revenue at ₹1,825 Cr (down 8%), but somehow squeezed out ₹144 Cr in net profit. Meanwhile, Star’s $1B arbitration punch and SEBI’s ongoing investigation have turned the script into a full-blown OTT thriller. P/E at 16.8, trading close to book value.
2. Introduction with Hook
Remember when Zee was the king of family dramas? Now the family drama is inside Zee.
- Star vs Zee = ₹8,300 Cr legal fireball
- SEBI probe = Season 3 of “Zee ka Sach”
But despite the chaos, the company is still printing profits. The only media house where even losses are dubbed in 11 languages.
3. Business Model (WTF Do They Even Do?)
Core Segments:
- Broadcasting (TV Channels): Zee TV, Zee Cinema, Zee Marathi, & friends
- Digital: Zee5
- Music: Zee Music Co.
- Movies & Events: Production & distribution
Revenue Breakdown:
- ~65% from advertising
- ~30% from subscription
- ~5% from content sales + others
Diversified yes, but highly dependent on ad cycles and regulatory stability.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹8,294 Cr |
| Net Profit | ₹680 Cr |
| EBITDA | ₹1,212 Cr |
| EPS | ₹7.07 |
| Book Value | ₹120 |
| ROCE | 9.2% |
| ROE | 6.8% |
| Dividend Payout | 34.1% |
| Debt | ₹321 Cr |
| Market Cap | ₹12,844 Cr |
5. Valuation
EduFair Value Range: ₹105 – ₹165
- P/E Valuation:
Industry P/E ~20x × FY25 EPS of ₹7.07 = ₹141 - Book Value Anchor:
Book Value = ₹120. Zee trades at 1.11x — near fair - Risk-adjusted DCF with legal cloud discount:
₹105 (bear) to ₹165 (bull) is realistic
At ₹134 CMP, market is pricing in a courtroom win and audience loyalty.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results:
- Revenue: ₹1,825 Cr (down 8%)
- Net Profit: ₹144 Cr (up from ₹13 Cr YoY)
- Margins: 13% OPM, stable
- Star Arbitration:
- $1B claim pending
- Major threat to future cash
- SEBI Investigation:
- Alleged fund diversion
- Zee’s proposed settlement rejected
- Merger with Sony? DEAD.
- Dropped earlier this year
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹96 Cr |
| Reserves | ₹11,437 Cr |
| Borrowings | ₹321 Cr |
| Total Liabilities | ₹13,734 Cr |
| Fixed Assets | ₹1,005 Cr |
| Investments | ₹1,195 Cr |
| Other Assets | ₹11,533 Cr |
Key Insights:
- Zee has good reserves
- Minimal debt
- Legal contingencies might blow a hole in this
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹129 Cr | ₹-202 Cr | ₹-408 Cr | ₹-481 Cr |
| FY24 | ₹714 Cr | ₹-46 Cr | ₹-274 Cr | ₹395 Cr |
| FY25 | ₹1,186 Cr | ₹-1,604 Cr | ₹23 Cr | ₹-395 Cr |
What This Means:
- FY25 had a HUGE investing outflow
- CFO strong, but risky cash burn profile
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 0.5% | 1.5% | 6.8% |
| ROCE | 8% | 6% | 9.2% |
| OPM | 14% | 11% | 15% |
| D/E | 0.03 | 0.02 | 0.03 |
Verdict:
Not sexy. But recovering. You might swipe right… with a pre-nup.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹8,088 Cr | ₹1,107 Cr | ₹48 Cr | ₹0.50 |
| FY24 | ₹8,637 Cr | ₹911 Cr | ₹141 Cr | ₹1.47 |
| FY25 | ₹8,294 Cr | ₹1,212 Cr | ₹680 Cr | ₹7.07 |
Yes, PAT rebounded in FY25, but revenue is stagnating and legal landmines are still active.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | OPM % | Market Cap |
|---|---|---|---|---|---|
| Zee Ent. | 134 | 16.8 | 6.8 | 15% | ₹12,844 Cr |
| Sun TV | 586 | 13.2 | 15.7 | 53% | ₹23,105 Cr |
| Hathway Cable | 15.7 | 26.2 | 2.1 | 17% | ₹2,768 Cr |
| Den Networks | 39.2 | 9.1 | 5.6 | 10% | ₹1,879 Cr |
Zee is middle of the pack. Sun TV is the real profit beast, but Zee’s content library + OTT gives optionality.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun ’25 |
|---|---|
| Promoters | 3.99% |
| FIIs | 24.81% |
| DIIs | 16.75% |
| Public | 54.33% |
- Promoter stake is abysmally low.
- Public & FIIs are holding the bag
- Retail count = 6.38 lakh. That’s a fan club.
13. EduInvesting Verdict™
Zee has turned from soap-opera baron to legal-drama protagonist. The core business is stable, the brand is strong, but litigation overhangs + promoter drama are constant roadblocks. With Sony out of the picture and SEBI still in the credits, expect volatility.
Verdict:
Zee is a show that used to be prime-time. Now it’s hanging in the 9:30pm slot, still drawing TRPs — but one scandal away from a season finale.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Zee Entertainment, ZEEL, SEBI, Star India Arbitration, Media Stocks, EduAnalysis
