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Informist, Saturday, Aug. 8, 2026

MUMBAI – Zee Entertainment Enterprises Ltd. is expected to report a sharp fall in its net profit for the June quarter due to a fall in advertisement revenue caused by the war in West Asia, according to brokerages tracking the company.

 

The company is expected to report a consolidated net profit of INR 367 million for the June quarter, according to the average of estimates from five brokerages. This will be down nearly 75% on year from INR 1.44 billion. On a sequential basis, this will be a turnaround from a loss of INR 1.02 billion. The highest estimate for the company's net profit is INR 616 million from Elara Securities (India) Pvt. Ltd. and the lowest is INR 65 million from Prabhudas Lilladher Pvt. Ltd. Only one brokerage - 360 ONE Capital Market Pvt. Ltd. - expects the company to report a consolidated net loss of INR 405 million for the June quarter.

 

The company's net sales for the June quarter are expected to be around INR 19.35 billion, up 6% on year from INR 18.25 billion but down over 4% sequentially, according to the estimates. The highest estimate for revenue is INR 19.62 billion from Kotak Securities Ltd. and the lowest is INR 18.90 billion from Nuvama Wealth Management Ltd.

 

Zee Entertainment is expected to see low revenue growth as the escalation of the war in West Asia led advertisers to cut discretionary spending, brokerages said.  However, this decrease is likely to be offset by an increase in subscribers sequentially due the acquisition of broadcast rights for India for major world football competitions held by the Federation Internationale de Football Association, popularly known as FIFA.

 

"After a moderate April and May, subscription accelerated mid-June onwards as the World Cup kicked off, aiding Zee5. The quarter logged no major syndication revenue and no movie releases of which Zee had distribution rights, keeping other sales and services subdued," according to Nuvama.

 

Zee Entertainment is expected to report earnings before interest, tax, depreciation, and amortisation of INR 692 million for the June quarter according to the average of five estimates. This will be sharply down from INR 2.28 billion in the year-ago quarter. The highest estimate for EBITDA is INR 912 million from Elara Securities Pvt. Ltd. and the lowest is INR 425 million from Prabhudas Lilladher. The company's EBITDA is expected to fall due to higher operating expenses, particularly on account of the broadcasting rights for FIFA matches, Kotak Securities said.

 

The company's EBITDA margin is expected to be between 2.2% and 4.7% for the June quarter, down sharply from 12.5% in the year-ago quarter, according to the three estimates. The highest estimate for the June quarter EBITDA margin is 4.7% from Elara Securities and the lowest is 2.2% from Prabhudas Lilladher.

 

Looking forward, FIFA subscription revenues are expected to increase sequentially. Brokerages expect a large part of revenue from the three-month subscription pack to be generated in the ongoing quarter.

 

The company will detail its June quarter earnings Monday. Friday, Zee Entertainment shares closed up 2% at INR 94.19 per share on the National Stock Exchange. The stock is up 13% since the company reported its March quarter earnings on May 19.

 

Of the seven brokerage reports on the company available with Informist, four have a "buy" recommendation on the stock with an average target price of INR 121 per share. The buy target is nearly 29% higher than the closing price Friday. One brokerage has a "hold" recommendation at a target price of INR 80 per share. Two brokerages have a "sell" call on the stock at an average target price of INR 94 per share.

 

Following are the June quarter earnings estimates, in INR million, for Zee Entertainment from five brokerages in descending order of the estimate of net profit:

 

Broking Firm	Net Sales	Net Profit	EBITDA
Elara Securities (India) Pvt. Ltd.	19,407	616	912
JM Financial Institutional Securities Pvt. Ltd.	19,535	608	879
Kotak Securities Ltd.	19,626	362	776
Nuvama Wealth Management Ltd.	18,890	167	472
Prabhudas Lilladher Pvt. Ltd.	19,296	65	425
Average	19,351	363.6	692.8

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Diksha Singh

Edited by Pankaj Aher

 

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