At a Glance
Zee Media’s Q1 FY26 results dropped like a bad headline – ₹141.5 Cr revenue with a ₹6.6 Cr loss. Operating margins swung to 10.8% (because cutting costs is easier than making news people watch). Promoter holding barely scrapes 3.9%, FIIs oddly hang around at 15.9%, and public investors shoulder the pain. The company is exploring capital raises while carrying ₹485 Cr contingent liabilities. In short, the only thing growing here is shareholder patience.
1. Introduction
Once a prime-time news warrior, Zee Media now battles falling revenues, rising losses, and identity crises. Channels are many, viewers are few, and advertisers treat it like a bad Tinder match. Despite its vast reach across TV and digital, financials keep bleeding. Q1 FY26 only reinforced this narrative – red ink flows, and the market yawns at ₹13.7 per share.
2. Business Model (WTF Do They Even Do?)
- TV Broadcasting: 15 channels, including WION globally.
- Digital News: Multilingual Zeenews.com in 9 languages.
- Advertising Revenue: Primary income driver, but in decline.
- Others: Some content syndication and miscellaneous revenues.
Roast: They broadcast the news, but their own financials are the breaking story.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹141.5 Cr (down YoY)
- Operating Profit: ₹19.8 Cr (OPM ~10.8%)
- Net Loss: ₹6.6 Cr
- EPS: -₹0.14
Comment: Operating profit offers a faint heartbeat; net profit flatlined.
4. Valuation
- P/E: Not applicable (loss-making).
- P/B: 3.9x – high for a company burning cash.
- Fair Value Range: ₹8 – ₹12.
Sarcasm: You’re not buying earnings here; you’re buying nostalgia.
5. What’s Cooking – News, Triggers, Drama
- Capital Raising Plans: Board exploring fundraising options.
- Management Rejig: Re-appointment of directors; shareholder approval pending.
- Regulatory Shadows: Contingent liabilities of ₹485 Cr.
Drama: The company covers scams, but investors fear being part of one.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 968 | 880 |
| Borrowings | 246 | 174 |
| Net Worth | 290 | 221 |
Auditor Joke: Assets shrinking faster than TRP ratings.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash | 146 | 77 | 64 |
| Investing Cash | -98 | 15 | -7 |
| Financing Cash | -93 | -92 | -48 |
Remark: Positive cash flow? Only in old press releases.
8. Ratios – Sexy or Stressy?
| Ratio | 2023 | 2024 | TTM |
|---|---|---|---|
| ROE | -46% | -46% | -45.6% |
| ROCE | -18% | -27% | -27% |
| OPM | -6% | -3% | -2% |
| D/E | 0.28x | 0.20x | 0.19x |
Verdict: Ratios scream distress louder than anchors at 9 PM.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | TTM |
|---|---|---|---|
| Revenue | 638 | 622 | 628 |
| EBITDA | -39 | -18 | -13 |
| PAT | -98 | -119 | -118 |
Observation: Losses remain the only consistent thing in this P&L.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Sun TV | 13.0 | 15.7% | 53% |
| Zee Entertainment | 14.9 | 6.7% | 14.7% |
| Den Networks | 8.7 | 5.6% | 10.2% |
| Zee Media | NA | -45.6% | -2.1% |
Comment: Peers broadcast profits; Zee Media broadcasts losses.
11. Miscellaneous – Shareholding
- Promoters: 3.9% (ouch)
- FIIs: 15.9% (speculating?)
- DIIs: 4.25%
- Public: 75.4%
Sarcasm: Promoters hold just enough to RSVP to AGMs.
12. EduInvesting Verdict™
Zee Media remains a turnaround story that never turns. Despite a vast channel portfolio, financial performance is chronically weak. Digital scaling hasn’t offset declining TV ad revenues. Contingent liabilities and low promoter holding add to investor headaches.
SWOT
- Strengths: Wide network reach, digital expansion.
- Weaknesses: Loss-making, poor governance, high liabilities.
- Opportunities: Possible revival via capital raise and restructuring.
- Threats: Competition, regulatory risks, and market irrelevance.
Final Word: Until Zee Media can turn TRPs into profits, it’s a risky bet better suited for adrenaline junkies.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Zee Media Q1 FY26, Zee Media Results, Broadcasting Industry, Loss Making Stocks
