Zee Entertainment Enterprises Limited (ZEEL) reported a sharp decline in profitability for the fourth quarter and full year ended March 31, 2026, as weak advertising demand and higher spending impacted margins.
The company posted a consolidated net profit of Rs 271 crore for FY26, down 60% year-on-year from Rs 680 crore in FY25. Revenue from operations declined 2% to Rs 8,099 crore, compared to Rs 8,294 crore in the previous financial year.
For the March quarter, ZEEL slipped into a loss of Rs 104 crore, compared to a profit of Rs 188 crore in the same period last year. Quarterly revenue from operations fell 7% year-on-year to Rs 2,025 crore.
Advertising revenue remained under pressure during the quarter, declining to Rs 808 crore from Rs 838 crore a year earlier. For the full year, advertising revenue dropped to Rs 3,224 crore from Rs 3,591 crore in FY25. The company attributed the decline in part to the ongoing Middle East crisis, which affected ad demand in March despite relatively strong traction in January and February.
In contrast, subscription revenue saw growth across both the quarter and the full year. Quarterly subscription revenue rose to Rs 1,025 crore from Rs 987 crore, while FY26 subscription revenue increased to Rs 4,080 crore from Rs 3,926 crore in FY25.
ZEEL also reported a significant increase in advertising and promotional (A&P) expenditure. These costs rose to Rs 1,425 crore in FY26 from Rs 1,147 crore in FY25. In the March quarter alone, A&P spends increased to Rs 432 crore from Rs 300 crore a year earlier. The company said the higher spending was driven by increased content offerings on ZEE5, the launch of KidZ, and higher legal costs.
The company’s digital business continued to show momentum, with ZEE5 reporting a 53% year-on-year increase in revenue to Rs 1,489 crore in FY26. ZEEL added that the platform achieved adjusted EBITDA breakeven during the year, marking a key milestone in its digital growth strategy.
