Shemaroo Entertainment reports 2.25% revenue decline and 52.4% higher losses in Q3 FY26

New Delhi: Shemaroo Entertainment Limited reported a flat financial performance for the quarter ended December 31, 2025, as growth in its digital business was outweighed by continued pressure on traditional media segments and higher expenses linked to new initiatives.

For the December quarter, Shemaroo’s consolidated revenue from operations stood at Rs 160.7 crore, compared to Rs 164.4 crore in the same quarter of the previous year, reflecting a 2.25% annual decline. On a sequential basis, revenue improved from Rs 143.4 crore reported in the September quarter, driven largely by digital media traction.

The company reported a net loss of Rs 55.4 crore in the December quarter, significantly higher than the Rs 36.4 crore loss recorded in the same quarter last year. Sequentially, losses widened from Rs 45.3 crore in the preceding quarter. 

Segment-wise, Shemaroo’s digital media revenue rose to Rs 80.7 crore, up from Rs 70.9 crore in the same quarter last year, registering 13.8% annual growth. Digital media accounted for just over 50% of total quarterly revenue, underscoring the company’s gradual shift toward digital platforms. 

In contrast, traditional media revenue declined sharply to Rs 80 crore, down from Rs 93.5 crore in the same quarter last year, marking a 14.42% drop. Management attributed the weakness in traditional businesses to multiple industry headwinds, including the return of major broadcasters on FreeDish, an overcrowded sports calendar, and prolonged softness in FMCG advertising spends. 

The company noted that while traditional entertainment segments remain under pressure, it expects a gradual recovery in FMCG advertising in the coming quarters as the impact of the GST rate cut stabilises.

On an annual basis, Shemaroo reported revenue from operations of Rs 443.6 crore, compared to Rs 480.8 crore in the same period of the previous year, translating into a 7.75% decline. Digital media revenue for the year rose to Rs 208.2 crore, from Rs 195.2 crore earlier, while traditional media revenue fell to Rs 235.4 crore, from Rs 285.6 crore.

The company’s net loss for the year widened to Rs 146.5 crore, compared to a loss of Rs 79.8 crore in the same period last year.

Annual results were also impacted by expenses linked to new initiatives, amounting to Rs 98.8 crore, net of revenue. Shemaroo emphasised that these expenses are accounting adjustments related to accelerated inventory charge-offs, and do not affect content monetisation or the company’s ability to generate free cash flows.

Total expenses during the December quarter rose to Rs 228.1 crore, compared to Rs 206.7 crore in the same quarter last year. For the year, total expenses increased to Rs 621.2 crore, from Rs 562.9 crore, reflecting investments in content, platforms, and operational restructuring.