Zee Entertainment’s ad revenue falls 17% to Rs 759 crore in Q1 FY2026

New Delhi: Zee Entertainment Enterprises (ZEEL) reported a 22% year-on-year increase in consolidated net profit at Rs 144 crore for the quarter ended June 30, 2025 (Q1FY26), even as revenues declined amid advertising weakness and a soft linear TV environment. 

The media conglomerate posted consolidated revenue of Rs 1,825 crore in Q1FY26, down 14% from Rs 2,131 crore a year ago. 

The decline was attributed primarily to a drop in advertising revenue, which fell by 17% YoY to Rs 759 crore. Its ad revenue was Rs 911.3 in Q1 FY2025. 

The company cited a challenging macro environment, an extended sports calendar, and reduced FMCG ad spends as key headwinds.

Subscription revenue came in at Rs 981 crore, broadly stable on a sequential basis but impacted by lower PayTV subscribers. Digital subscription gains helped offset some of the linear decline, the company said.

The digital business, including ZEE5, continued its positive trajectory with revenue of Rs 290 crore, while the Zee Music Company added 4.4 million subscribers in the quarter, reaching a total of 168 million on YouTube. 

Despite the tough environment in the first quarter, ZEEL said it expects advertising demand to pick up in the coming quarters, driven by festive season spending and a favourable monsoon. The company reiterated its focus on profitable growth and digital expansion.