Zee Entertainment Q3 Profit Slips 5% YoY to ₹155 Cr; Revenue Rises 15%
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- Last Updated: 23 Jan 2026 at 11:57 AM IST
Zee Entertainment Enterprises Ltd (ZEEL) has posted varied financial results for the third quarter ended December 31, 2025, with consolidated net profit decreasing despite a significant increase in total revenue.
Zee’s consolidated net profit fell about 5% year-on-year to ₹155 crore, down from around ₹164 crore in the same period last year. Although bottom-line earnings declined, the company increased aggregate revenue by approximately 15% YoY, driven by growth in subscription revenue and other services.
Revenue Growth Amid Advertising Weakness
Zee’s revenue growth was led by subscription and other sales and services, which together helped cushion the impact of a softer advertising space. While total revenue rose to ₹2,280 crore in Q3FY26 from around ₹1,979 crore a year ago, advertising revenue remained under pressure, reflecting weak FMCG ad spending.
Advertising income for the quarter stood at about ₹852 crore, up from ₹806 crore in Q2FY26 and down from ₹941 crore in Q3FY25. Despite subscription revenue increasing to ₹1,050 crore in Q3FY26, it rose from ₹1,023 crore in Q2FY25 and ₹983 crore in Q3FY25. Other sales and services rose to ₹378 crore, up from ₹140 crore in Q2FY26 and₹557 crore in Q3FY25.
The sale of distribution rights to two blockbuster movies drove revenue and other sales higher.
Cost Trends and Profitability Metrics
The total expenses for the quarter rose 20% from ₹1,735 crore in Q3FY25 to ₹2,087.40 crore. The money was spent on operations, employee benefits, and loan interest.
Meanwhile, the profit after tax (PAT) rose 103% from the previous quarter (QoQ) to ₹76 crore in Q2FY26. The topline also rose 9% from ₹1,969 crore in the July-September quarter of FY26.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) in Q3FY26 was ₹241 crore, a 24% decrease from the same period last year and a 64% increase from the previous quarter. The EBITDA margin was 16.1% in Q3FY26, up from 7.4% in Q2FY26 and 10.5% in Q3FY25.
The Key Takeaway
Zee’s Q3FY26 performance presents a nuanced outlook. While consolidated net profit declined 5, the 15% rise in total revenue demonstrates that the company is finding growth momentum beyond advertising. This observation is particularly important given the structural shifts in media consumption and pricing models.
On the other hand, the drop in ad revenue and the rise in operating costs of up to 17% indicate that margins remain under pressure. Moreover, Zee noted that a drop in spending on fast-moving consumer goods (FMCG) led to a 10% year-over-year decline in domestic advertising income, even as the domestic advertising market remains weak. It claimed that it is still hopeful that spending on brand building will come back.
If advertising headwinds persist, profitability could remain a concern unless cost efficiencies or higher-margin businesses scale sufficiently. Monitoring content cost trends and subscriber growth, especially on digital platforms, will be key for investors assessing Zee’s longer-term earnings potential.
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