ZEEL Q3FY26 revenue rises 16% on-quarter to Rs 2,280 crore

New Delhi: Zee Entertainment Enterprises (ZEEL) reported a strong sequential recovery in revenue for the December quarter, led by higher subscription income and a sharp jump in other sales and services, even as the company continued to face a weak advertising environment.

For Q3 FY26, ZEEL’s consolidated operating revenue came in at Rs 2,280.1 crore, up 16% compared with Rs 1,969.2 crore in the September quarter (Q2 FY26). The company also reported a 15% rise over the year-ago quarter, when operating revenue stood at Rs 1,978.8 crore.

The quarter’s revenue performance was supported by stronger subscription collections and a significant rise in other sales and services. Subscription revenue rose to Rs 1,050.2 crore in Q3 FY26 from Rs 1,023 crore in Q2 FY26, reflecting a 3% increase on a sequential basis. Compared with the year-ago quarter, subscription revenue grew 7% from Rs 982.5 crore.

Other sales and services revenue surged to Rs 378.4 crore in Q3 FY26, up sharply from Rs 139.9 crore in Q2 FY26, marking a 170% sequential increase. On an annual basis, this line item jumped 579% from Rs 55.7 crore in Q3 FY25. ZEEL said the rise in other sales and services was “largely driven by sale of distribution rights of two blockbuster movies,” which provided a meaningful boost to the quarter’s topline.

Advertising, however, remained under pressure. The company noted that domestic advertising revenue declined 10% on an annual basis due to slower FMCG spending. “Domestic advertising environment remains soft; hopeful of revival in brand building spends,” ZEEL said in its commentary.

While revenue improved, profitability was impacted by higher costs. Total expenditure for Q3 FY26 stood at Rs 2,039.6 crore, up 12% compared with Rs 1,822.8 crore in Q2 FY26. Against the year-ago quarter, expenditure rose 23% from Rs 1,660.4 crore.

The company attributed the cost increase to a rise in programming expenses and continued investments in select growth initiatives. It also pointed to higher costs due to acquisition of movie rights, as well as a shift in ILT20 league matches, along with new content launches across platforms.

Profit for the quarter stood at Rs 154.8 crore, up sharply from Rs 76.5 crore in Q2 FY26, reflecting a 102% sequential increase. However, it was marginally lower than Rs 163.6 crore in Q3 FY25.

Alongside the linear business, ZEEL highlighted improving trends in its digital operations. The company said ZEE5 revenues grew 73% during Q3 FY26, and added that the digital business delivered positive EBITDA during the quarter.

ZEEL also underlined that effective cost management remained a focus area, while it continued to invest in content and growth initiatives across markets. It said it released 39 shows and movies during the quarter, including 11 originals, to strengthen its entertainment slate.