Zee Media H1 EBITDA falls 43.6% as expenses outpace revenue

Zee Media Corporation Limited reported H1FY27 operating profit before interest, tax, depreciation and amortisation (EBITDA) of Rs 20.8 crore, down 43.58% year-on-year, as operating expenditure increased 8.42% to Rs 351.5 crore while reported operating revenue rose 3.11% to Rs 372.3 crore for the half year ended September 30, 2026.

What happened to Zee Media's H1FY27 profitability?

Zee Media's H1FY27 EBITDA declined because expenditure grew faster than reported operating revenue. EBITDA fell from Rs 36.9 crore in H1FY26 to Rs 20.8 crore in H1FY27, while expenditure increased by Rs 27.3 crore to Rs 351.5 crore and operating revenue increased by Rs 11.2 crore to Rs 372.3 crore.

The second quarter accounted for much of the weaker half-year outcome. Q2FY27 EBITDA was Rs 4.5 crore, compared with Rs 17.1 crore in Q2FY26 and Rs 16.3 crore in Q1FY27. Operating revenue in Q2FY27 was Rs 181.4 crore, down 4.9% sequentially from Rs 190.9 crore in Q1FY27, while expenditure increased 1.2% sequentially to Rs 176.9 crore.

On a year-on-year basis, Q2FY27 operating revenue increased 1.5% from Rs 178.7 crore, but total expenditure rose 9.5% from Rs 161.6 crore. That difference left Q2FY27 EBITDA 73.5% below the Rs 17.1 crore reported a year earlier, compared with the 43.58% decline for the full H1FY27 period.

Why did expenses rise faster than revenue?

Zee Media's higher operating costs were the principal expense increase in H1FY27. Operating costs rose 42.07% to Rs 98 crore from Rs 69 crore in H1FY26, an increase of Rs 29 crore that was larger than the Rs 11.2 crore increase in total operating revenue over the same comparison.

Employee benefits expenses moved in the opposite direction, declining 2.46% to Rs 127 crore from Rs 130.2 crore, while other expenses increased 1.07% to Rs 126.5 crore from Rs 125 crore. In Q2FY27, other expenses rose 21.7% sequentially to Rs 69.4 crore, even as employee benefits expenses fell 8.67% from Q1FY27 to Rs 60.6 crore.

The quarterly cost pattern also differed by category. Q2FY27 operating costs were Rs 46.8 crore, up 33.4% from Rs 35.1 crore a year earlier, while other expenses rose 11.5% from Rs 62.3 crore. Employee benefits expenses declined 5.5% from Rs 64.2 crore, but this reduction did not offset the increase in the other two expense lines.

How did advertising and the revenue mix change?

Zee Media reported 29.5% year-on-year growth in core linear television advertising revenue to Rs 265.4 crore in H1FY27, from Rs 204.9 crore in H1FY26. Management said this reflected the performance of its core business, while its reported consolidated revenue table recorded total advertising revenue of Rs 354.2 crore, up 21.62% from Rs 291.3 crore.

Advertising revenue in Q2FY27 was Rs 174.5 crore, up 2.9% from Rs 169.6 crore in Q2FY26 but down 3.01% from Rs 179.7 crore in Q1FY27. The sequential decline in advertising revenue occurred alongside the 4.9% quarter-on-quarter decline in total operating revenue to Rs 181.4 crore.

The comparison in total operating revenue was affected by a prior-year contribution that did not recur. H1FY26 included Rs 50.6 crore of content sales and other linear revenue, compared with Rs 10 lakh of other sales and services in H1FY27. Excluding the Rs 50.6 crore contribution from the prior period, Zee Media said like-for-like operating revenue increased 19.9% to Rs 372.3 crore from Rs 310.5 crore.

Digital advertising revenue was Rs 88.8 crore in H1FY27, a 2.9% increase, according to the release. Subscription revenue, however, declined 6.83% to Rs 17.9 crore from Rs 19.3 crore a year earlier. In Q2FY27, subscription revenue was Rs 6.8 crore, down 25.4% year-on-year and 38.88% from Rs 11.1 crore in Q1FY27.

What business initiatives did Zee Media disclose?

Zee Media said it relaunched Zee Bharat in a new format aimed at younger and more aspirational audiences during H1FY27. The company also identified automobiles and lifestyle, alongside business-to-business sectors including defence technology, space technology and information technology, as categories for specialised content partnerships and industry conversations.

Zee Media continued to develop event properties, including Architects of Viksit Bharat and selected Chief Minister-led engagements under the Samriddhi Samwaad platform. WION, Zee Media's global English news platform, added shows on defence and tokenisation and launched WION World Conferences, beginning with the India-EU FTA Summit and followed by the Digital Sri Lanka Summit in Colombo.

The WION portfolio also includes the Iconic Travel and Tourism Summit & Awards, WION Health Pulse, Bond Tokenisation Summit and WION World Is One Golf Invitational. Zee Media presented these event and content properties as platforms for brand reinforcement, stakeholder engagement and business development during the H1FY27 period.

How is Zee Media changing its digital and newsroom operations?

Zee Media said it is standardising website uniform resource locators, or URLs, across its digital properties to improve consistency and discoverability. The company described its digital priorities as content-led engagement, audience growth, discoverability and monetisation, alongside H1FY27 digital advertising revenue of Rs 88.8 crore.

Zee Media also disclosed deployment of artificial intelligence-led newsroom tools intended to speed editorial turnaround, streamline workflows and improve operational efficiency. The release did not quantify savings, investment costs or the expected financial effect of these tools, so their contribution to future expenditure or EBITDA remains undisclosed.

Conclusion

The H1FY27 figures show that Zee Media's core advertising activity expanded while reported profitability contracted. Linear television advertising rose 29.5% to Rs 265.4 crore and like-for-like operating revenue grew 19.9%, but the absence of Rs 50.6 crore in prior-year content sales and other linear revenue, combined with a Rs 29 crore rise in operating costs, reduced EBITDA to Rs 20.8 crore.

The next point to watch is execution of the initiatives management disclosed, including the Zee Bharat relaunch, the focus on advertising categories, Samriddhi Samwaad engagements, WION World Conferences, URL standardisation and artificial intelligence-led newsroom deployment. The release provides no quantified targets or timetable for their revenue, cost or profitability effects beyond the half year ended September 30, 2026.