Zee Media Q2 Loss Nearly Doubles as Costs Outrun Revenue

Zee Media Corporation Limited reported a consolidated net loss of Rs 25.59 crore for the quarter ended 30 September 2026, nearly double the Rs 13.53 crore loss a year earlier, because total expenses rose to Rs 213.74 crore while total revenue increased only to Rs 182.43 crore.

Why did Zee Media’s Q2 loss widen?

Zee Media’s loss widened because expense growth exceeded the increase in revenue in the quarter ended 30 September 2026. Total revenue increased by Rs 2.47 crore year on year to Rs 182.43 crore, but total expenses increased by Rs 20.49 crore to Rs 213.74 crore. This produced a loss before tax of Rs 31.31 crore, compared with a loss before tax of Rs 13.29 crore in the quarter ended 30 September 2025.

Zee Media reported a net loss of Rs 25.59 crore, 89% higher than the Rs 13.53 crore loss in the year-earlier quarter. A deferred-tax credit of Rs 5.72 crore reduced the latest post-tax loss, while the comparable quarter included a deferred-tax charge of Rs 0.24 crore. Basic and diluted loss per share were each Rs 0.39 for the September 2026 quarter, against Rs 0.25 in the prior-year quarter.

How did Zee Media’s revenue and expenses change in Q2?

Zee Media’s revenue from operations rose to Rs 181.44 crore from Rs 178.72 crore a year earlier, while other income declined to Rs 0.09 crore from Rs 1.24 crore. Consequently, total revenue rose modestly to Rs 182.43 crore from Rs 179.96 crore. The group reports one identifiable business segment, News Publishing and Broadcasting Business, so the filing does not provide a split between separate operating segments.

Zee Media’s expenses exceeded total revenue by Rs 31.31 crore in the latest quarter, compared with a Rs 13.29 crore gap in the corresponding quarter of 2025. On a sequential basis, total revenue was lower than Rs 192.51 crore in the quarter ended 30 June 2026, while the net loss increased from Rs 12.12 crore. The September-quarter result therefore deteriorated from both the prior-year and immediately preceding quarters.

Which Zee Media expense lines increased most?

Zee Media’s operating costs recorded the largest increase among the disclosed cost lines, rising by Rs 11.71 crore to Rs 46.84 crore in the September 2026 quarter. Other expenses increased by Rs 7.13 crore to Rs 69.43 crore, while depreciation and amortisation rose by Rs 4.01 crore to Rs 30.77 crore. Finance costs increased by Rs 1.21 crore to Rs 6.08 crore.

Zee Media’s employee-benefit expense was the only disclosed major line to decline year on year, falling by Rs 3.57 crore to Rs 60.62 crore from Rs 64.19 crore. The reduction did not offset the combined Rs 24.06 crore increase in operating costs, other expenses, depreciation and finance costs. Other expenses were the largest September-quarter cost at Rs 69.43 crore, followed by employee benefits and operating costs.

What does Zee Media’s first-half result show?

Zee Media recorded a consolidated loss of Rs 37.71 crore for the half year ended 30 September 2026, compared with a Rs 24.34 crore loss before tax in the corresponding period a year earlier. First-half total revenue rose by Rs 11.87 crore to Rs 374.94 crore, but total expenses increased by Rs 31.70 crore to Rs 419.50 crore. The resulting loss before tax was Rs 44.56 crore, against Rs 24.73 crore a year earlier.

Zee Media’s September-quarter loss of Rs 25.59 crore accounted for more than two-thirds of the first-half loss of Rs 37.71 crore. In the preceding June 2026 quarter, revenue was Rs 192.51 crore and the net loss was Rs 12.12 crore. The two-quarter comparison shows that the first-half revenue gain did not prevent the pre-tax loss from widening by Rs 19.83 crore year on year.

How is Zee Media addressing its losses and funding needs?

Zee Media said it had significant accumulated losses and negative working capital at 30 September 2026, although it had met debt and interest obligations to lenders and retained positive net worth. Consolidated equity rose to Rs 240.75 crore from Rs 223.77 crore at 31 March 2026, while current liabilities increased to Rs 593.99 crore from Rs 560.30 crore. Total assets increased to Rs 987.03 crore from Rs 873.12 crore over the same period.

Zee Media said it is implementing cost-rationalisation measures and pursuing new sustainable revenue streams, including new brand and intellectual-property properties and monetisation of content archives. The holding company recognised Rs 80.19 crore from licensing content archives in the year ended 31 March 2026. Management said its Board-approved plan for the current financial year targets higher revenue and improved operating cash flows.

Zee Media’s holding company allotted 14 crore fully convertible warrants to three foreign portfolio investors on 25 June 2026 for an amount not exceeding Rs 119 crore. It received Rs 29.75 crore, representing 25% of the warrant issue price, and one holder converted 3 crore warrants into equity shares on 30 June 2026. The warrants carry an issue price of Rs 8.50 per share and may be converted within 18 months of allotment.

Zee Media’s holding company also issued foreign currency convertible bonds, or FCCBs, worth Rs 37.18 crore during the quarter after receiving regulatory approvals. The Board had approved issuance of 5% coupon, unsecured and unlisted FCCBs of up to Rs 400 crore, with a 10-year maturity, through private placement. The group also expects balance money on 13.5 crore promoter-group warrants, subject to required orders and approvals.

Conclusion

Zee Media’s September 2026 quarter shows that a Rs 2.47 crore rise in total revenue was outweighed by a Rs 20.49 crore increase in expenses. Operating costs, other expenses, depreciation and finance costs all rose, resulting in a consolidated net loss of Rs 25.59 crore and a first-half loss of Rs 37.71 crore.

The next disclosures to watch are management’s execution of its Board-approved plan for higher revenue and operating cash flows, the stated cost-rationalisation measures, and the progress of funding actions. Zee Media has issued Rs 37.18 crore of FCCBs against a Rs 400 crore approved programme, while future warrant-related receipts remain subject to the conditions disclosed in the filing.