Zee Q2 FY27 revenue rose 13% while EBITDA margin fell to 3.2%

Zee Entertainment Enterprises Limited reported Q2 FY27 operating revenue of Rs 2,224.6 crore, up 13% year on year, as subscription revenue increased 30% to Rs 1,332.4 crore. EBITDA nevertheless fell 52% to Rs 70.8 crore and the margin declined to 3.2%, with higher FIFA 2026 programming and advertising-and-promotion spending.

Why did Zee’s Q2 FY27 revenue increase 13%?

Zee’s Q2 FY27 operating revenue rose 13% year on year and 17% quarter on quarter to Rs 2,224.6 crore. Revenue was Rs 1,969.2 crore in Q2 FY26 and Rs 1,907.3 crore in Q1 FY27, while the company attributed the quarterly growth to its digital business.

Subscription was the main source of growth, increasing 30% year on year to Rs 1,332.4 crore from Rs 1,023 crore and 17% from Rs 1,136.9 crore in Q1 FY27. Zee said FIFA 2026 and a strong content pipeline drove higher digital average revenue per user, or ARPU, and subscriber growth.

Advertising revenue was Rs 803 crore, compared with Rs 806.3 crore in Q2 FY26, making domestic advertising flat year on year, though it rose 20% from Rs 671.4 crore in Q1 FY27. Zee said FIFA, Sa Re Ga Ma Pa and other launches aided domestic advertising, and management said the upcoming festive season should aid advertising-revenue growth.

Why did Zee’s EBITDA margin fall to 3.2%?

Zee’s EBITDA margin fell to 3.2% in Q2 FY27 from 7.4% in Q2 FY26 and 4.1% in Q1 FY27 because expenditure rose faster than revenue. Total expenditure increased 18% both year on year and quarter on quarter to Rs 2,153.8 crore, against 13% year-on-year operating-revenue growth.

Operating cost was Rs 1,224.7 crore in Q2 FY27, up from Rs 1,078 crore in Q2 FY26 and Rs 1,031.7 crore in Q1 FY27. Zee said programming expense increased because of FIFA 2026 and an expanded content offering across platforms, while it continued selective investment in KidZ, Bullet and Live.

Advertising and promotion, or A&P, expense reached Rs 571 crore, against Rs 369.1 crore a year earlier and Rs 446.8 crore in Q1 FY27. Zee attributed the increase to FIFA 2026 and investment in Bullet and Music; personnel cost declined to Rs 197.7 crore from Rs 214.2 crore a year earlier but did not offset higher operating and A&P costs.

The lower EBITDA reduced Q2 FY27 profit after tax by 40% year on year to Rs 45.6 crore from Rs 76.5 crore. Profit before tax declined 45% to Rs 63.1 crore, although finance cost fell to Rs 2.5 crore from Rs 13 crore and depreciation declined to Rs 42.8 crore from Rs 57.1 crore.

Which Zee revenue streams changed most in Q2 FY27?

Zee’s subscription revenue changed most in Q2 FY27, rising by Rs 309.4 crore year on year, while advertising declined by Rs 3.3 crore and other sales and services fell by Rs 50.7 crore. Subscription represented Rs 1,332.4 crore of total quarterly operating revenue of Rs 2,224.6 crore, compared with Rs 1,023 crore of Rs 1,969.2 crore a year earlier.

Other sales and services declined 36% year on year to Rs 89.2 crore in Q2 FY27 from Rs 139.9 crore in Q2 FY26. The category also fell 10% from Rs 99 crore in Q1 FY27, and Zee said the year-on-year decline reflected a lower number of movies produced and released.

Zee disclosed Q2 FY27 international revenue of Rs 44.7 crore from advertising, Rs 118.9 crore from subscription and Rs 15.1 crore from other sales and services. Subscription was therefore the largest disclosed international revenue component, as it was in the company-wide quarterly revenue mix.

What does Zee’s H1 FY27 performance show?

Zee’s H1 FY27 results show that revenue growth was accompanied by a larger decline in profitability over six months. Operating revenue rose 9% to Rs 4,131.9 crore from Rs 3,794 crore in H1 FY26, while EBITDA fell 60% to Rs 149.7 crore from Rs 374.4 crore and margin contracted to 3.6% from 9.9%.

Subscription revenue increased 23% to Rs 2,469.3 crore in H1 FY27, while advertising declined 6% to Rs 1,474.4 crore and other sales and services declined 16% to Rs 188.2 crore. Advertising was flat year on year in Q2, but remained lower for H1, in the advertising environment identified by Zee.

H1 expenditure rose 16% to Rs 3,982.2 crore from Rs 3,419.6 crore, including A&P expense of Rs 1,017.8 crore versus Rs 644.3 crore and operating cost of Rs 2,256.4 crore versus Rs 2,049 crore. Zee said the Middle East crisis affected the advertising environment and that investments in new initiatives lowered profitability.

H1 FY27 profit after tax was Rs 119.9 crore, down 46% from Rs 220.2 crore in H1 FY26. The six-month result included other income of Rs 53.8 crore, depreciation of Rs 86.3 crore, finance cost of Rs 15.7 crore and a Rs 35.7 crore fair-value-through-profit-and-loss charge.

Conclusion

Zee’s Q2 FY27 revenue increase was led by subscription growth, which added Rs 309.4 crore year on year, while advertising was flat and other sales and services declined. The accompanying increase in operating costs and A&P expense reduced quarterly EBITDA to Rs 70.8 crore, leaving the EBITDA margin at 3.2% despite Rs 2,224.6 crore of operating revenue.

The next disclosed factors to watch are management’s expectation that the festive season will aid advertising revenue, continued FIFA 2026-related programming and A&P spending, and selective investment in KidZ, Bullet, Live and Music. Zee reported cash and treasury investments of Rs 2,569.4 crore as of September 2026, while content inventory and advances increased by Rs 290 crore during H1 FY27.