Zee Entertainment’s Q2 FY26 profit drops to Rs 76.5 crore as ad revenue slips 12%

New Delhi: Zee Entertainment Enterprises (ZEEL) reported a softer consolidated quarter year-on-year as weak advertising and higher promotional spends weighed on earnings, even as subscription and syndication aided a sequential uptick. Operating revenue for Q2 FY26 stood at Rs 1,995.6 crore, down 2% from Q2 FY25 but up 8% over the previous quarter.

Profit after tax was Rs 76.5 crore, down from Rs 209.4 crore in the same quarter of the previous fiscal, as investments in programming and launches compressed margins.

Within the quarter’s mix, advertising revenue came in at Rs 806.3 crore, subscription revenue at Rs 1,023.0 crore, and other sales and services at Rs 139.9 crore. According to the exchange filings, “domestic advertising revenue declined by 12% YoY due to a slowdown in FMCG spending.”

The split underscores a cautious ad market against steadier subscription growth and a rebound in syndication. These components together form the reported operating revenue base for the quarter.

Costs rose in step with content and channel activity. Advertising and promotion expenses increased to Rs 369.1 crore, reflecting network-wide launches, a heavier movie slate, and new campaigns.

Operating costs stood at Rs 1,078.0 crore, personnel costs at Rs 214.2 crore, and other expenses at Rs 161.5 crore. The company termed the spend “selective” and aimed at strengthening the pipeline for the second half.

The half-year picture reflects similar pressure. For H1 FY26, ZEEL reported operating revenue of Rs 3,794.0 crore (–8% YoY), EBITDA of Rs 374.4 crore (margin 9.9%), and PAT of Rs 220.2 crore (–34% YoY), indicating that the ad slowdown more than offset gains from subscription and digital during the period.

The international segment contributed a small share in Q2. The company disclosed advertising revenue of Rs 51.0 crore, subscription revenue of Rs 91.9 crore, and other sales and services of Rs 14.4 crore from international markets for the quarter.

ZEEL said the quarter’s margin compression was largely a function of timing and investment mix. The company increased promotional outlay to back launches and new formats across Hindi and regional markets, while continuing to optimise its cost structure.

As ad sentiment improves through the festive window, the business expects the strengthened programming slate and higher network share to aid pricing and yield in the second half.