ZEE profit sinks 40% YoY in Q2, but revenue rises on FIFA subscription growth

Zee Entertainment Enterprises witnessed a substantial 40% year-over-year drop in its consolidated net profit for Q2 2026, amounting to ₹46 crore. Despite this decline, the company's operating revenue surged by 13% to ₹2,225 crore, propelled by a substantial increase in subscription revenue, primarily driven by the FIFA World Cup 2026.

Ebitda experienced a sharp 52% decrease to ₹71 crore, causing the margin to contract from 7.4% to 3.2%. This was largely due to elevated programming and promotional expenses. Total expenditures rose by 18% to ₹2,154 crore, with operating expenses increasing by 14% to ₹1,225 crore. Advertising and promotion costs surged by 55% to ₹571 crore, fueled by FIFA-related programming and investments in initiatives like Bullet and Music.

Advertising revenue remained stagnant at ₹803 crore, while subscription revenue climbed by 30% to ₹1,332 crore. Domestic advertising was bolstered by FIFA, marquee shows such as Sa Re Ga Ma Pa, and fresh content releases. The company anticipates advertising growth during the upcoming festive season.

The FIFA 2026 event and a robust content lineup were instrumental in driving higher digital average revenue per user (ARPU) and subscriber growth. ZEE5's revenue more than doubled, reaching ₹626 crore, and Ebitda turned positive at ₹42 crore, marking a stark contrast to the previous year's loss of ₹31 crore. The platform launched 34 shows and movies, including nine originals, during the quarter, maintaining steady usage and engagement.

Zee's TV network share stood at 20% in week 24 of 2026, marking its highest share in over seven years. However, television ratings are currently suspended following the Ministry of Information and Broadcasting's directive to the Broadcast Audience Research Council India to adhere to the TV Ratings Guidelines 2026.