ZEE's Q2 Profit Drops 40% as Revenue Climbs on FIFA-Driven Subscriptions

what happened

According to Moody's, net profit at Indian media group Zee Entertainment Enterprises (ZEE) fell 40% year on year to 46 crore in the quarter ended September 30, 2026. Operating revenue, however, climbed 13% to 2,225 crore, largely thanks to subscriptions boosted by the FIFA World Cup 2026.

EBITDA dropped 52% to 71 crore, cutting the margin to 3.2% from 7.4% a year earlier as programming and promotion costs rose. Total expenses grew 18% to 2,154 crore, operating costs climbed 14% to 1,225 crore, and advertising and promotion (A&P) spending jumped 55% to 571 crore. Advertising income stayed flat at 803 crore, while subscription income rose 30% to 1,332 crore.

The streaming platform ZEE5 more than doubled its revenue, up 101% to 626 crore, and moved into positive EBITDA of 42 crore from a loss of 31 crore a year earlier. The company's TV network reached a 20% audience share in week 24 of 2026, its highest level in over seven years. Television ratings remain suspended, however, after the Indian ministry of information and broadcasting told BARC India to operate under the new 2026 rating rules.

why it matters

The key point for investors is that revenue growth did not translate into profit, as sports rights and marketing spending absorbed the gains from subscriptions. The company's festive-season advertising outlook is worth watching, though the suspension of ratings makes its broadcast business harder to assess.

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