Zee Ent slips to Rs 102-crore net loss in Q4, revenue falls 7%

Zee Entertainment reported a consolidated net loss of Rs 102 crore in Q4FY26 as weak advertising demand, rising operational costs and higher spending on content and legal expenses weighed on earnings.

Despite pressure on ad revenues, Zee5 achieved operational profitability for the second consecutive quarter in FY26, supported by strong digital growth and rising subscription revenue.

Zee Entertainment (Zee) reported a quarterly loss on Tuesday for the January-March period, as weak advertising demand and higher expenses hurt earnings. Zee, which runs channels including ZeeTV, ZeeCinema and streaming platform Zee5, reported a consolidated net loss of Rs 102 crore for Q4FY26, from a profit ‌of Rs 188.4 crore a year ago.

Zee’s advertising revenue, which accounts for nearly 40% of total revenue, fell 3.5% in Q4, as the Middle East crisis hurt ad spending in March. But Zee’s subscription revenue rose nearly 4% in Q4, supported by user growth in its digital platform (Zee5) and higher average revenue per user. Zee said that Zee5 achieved break-even in FY26 and remained operationally profitable for the second consecutive quarter, with 53% year-on-year growth during the year.

In Q4, revenue from operations declined 7.3% to Rs 2,025 crore, compared to Rs 2,184 crore in the corresponding quarter of the last fiscal. For FY26, ZEEL reported a consolidated net profit of Rs 271.3 crore, down from Rs 679.5 crore in FY25. Revenue from operations for the year declined to Rs 8,098.9 crore from Rs 8,294.1 crore reported in FY25.

Muted demand

Muted demand likely kept Zee’s ad revenue under pressure during the quarter, sector analysts said, even as Zee continued investing in content and digital platforms. Speaking during an investor call on Tuesday, CEO Punit Goenka said the company’s strategy has focused on “judicious, long-term investments”. The company also outlined steps to build an integrated monetisation model to tap new revenue streams.