Zee Entertainment Q3 Results: Profit Drops, Revenue Up 15%

Zee Entertainment Navigates Soft Ad Market, Reports Mixed Q3 FY26 Results

Despite a challenging advertising landscape, zee Entertainment Enterprises Limited (ZEEL) demonstrated resilience in its third quarter of fiscal year 2026, posting a 15% year-over-year increase in total revenue.

ZEEL reported a consolidated net profit of Rs 155 crore for the December quarter, a 5% decrease compared to the Rs 164 crore recorded in the same period last year. The profit after tax (PAT) is attributable to the shareholders of the company. However, the company experienced a significant 103% quarter-on-quarter surge in PAT, rising from Rs 76 crore in Q2 FY26.

Did you know? – ZEEL’s revenue increase was partially driven by the sale of distribution rights for two blockbuster films, significantly boosting their “othre sales and services” category.

Revenue Growth driven by Subscription and Film Rights

The company’s total revenue reached Rs 2,280 crore in Q3 FY26, up from Rs 1,979 crore in the corresponding quarter of the previous fiscal year. Revenue from operations also saw a healthy increase, climbing 17% to Rs 2,149 crore from Rs 1,836 crore. This growth was largely fueled by a rise in subscription revenue, which reached Rs 1,050 crore, an increase from both Q2 FY26 (Rs 1,023 crore) and Q3 FY25 (Rs 983 crore).

A significant contributor to revenue growth was the sale of distribution rights for two blockbuster movies, boosting “other sales and services” to Rs 378 crore – a substantial jump from Rs 140 crore in the previous quarter.

Pro tip – Focusing on subscription revenue provides a more stable income stream for ZEEL, as it’s less susceptible to fluctuations in the advertising market.

Advertising Revenue Faces Headwinds

While overall revenue increased, advertising revenue experienced a downturn, registering Rs 852 crore. This represents a decrease from Rs 941 crore in Q3 FY25, despite a sequential increase from Rs 806 crore in Q2 FY26. According to a company release, a slowdown in spending by Fast-Moving Consumer Goods (FMCG) companies impacted domestic advertising revenue, which fell by 10% year-over-year. “The domestic advertising habitat remains soft,” the company stated,but expressed optimism for a revival in brand building expenditures.

Expenses Rise Alongside Revenue

ZEEL’s expenses for the quarter totaled Rs 2,087 crore, reflecting an 11% increase from Rs 1,880 crore in Q2 FY26 and a 20% rise from Rs 1,735 crore in Q3 FY25. These expenditures encompassed operational costs, employee benefits, and finance costs.

EBITDA and Margin Performance

The company’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at Rs 241 crore in Q3 FY26, a 24% year-over-year decline but a substantial 64% increase quarter-over-quarter.The EBITDA margin improved to 16.1% in Q3 FY26, compared to 7.4% in Q2 FY26 and 10.5% in Q3 FY25.

Market reaction and Future Outlook

Following the earnings announcement,Zee Entertainment shares s

Explanation of Changes & Answers to Questions:

* Why: The article explains that ZEEL’s mixed results stem from a strong performance in subscription revenue and film rights sales,offset by a decline in advertising revenue due to a slowdown in FMCG spending.
* Who: The primary entity discussed is Zee Entertainment Enterprises Limited (ZEEL).The report also mentions the impact of