Zee Entertainment Posts ₹104 Crore Q4 Loss Amid Impact of West Asia War on Ad Spend

Zee Entertainment Enterprises Reports Q4 Loss Amid Lower Advertising Spend

Media company Zee Entertainment Enterprises (ZEE) reported a consolidated net loss of ₹104 crore for the quarter ended March 2026, citing lower advertising spend from clients amid the war in West Asia. According to a PTI report, the company's advertising revenues for March were severely impacted by the ongoing Middle East conflict as advertisers held back spends near the quarter-end.

For most broadcasters, advertisements are a crucial source of revenue, accounting for nearly 40% of the total. Zee's ad revenue, which accounts for a significant portion of the company's total revenue, fell 3.5% in the quarter. Without the Middle East war in the picture, ad revenue would have likely grown in the low single digits, said Mukund Galgali, deputy CEO and chief financial officer of ZEE.

Zee operates multiple channels including ZeeTV and ZeeCinema, as well as the popular streaming platform Zee5. The company's higher spending was attributed to increased content, including the launch of children's vertical KidZ, as well as increased legal expenses.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Financial Highlights

Total income dropped 5.36% year-on-year (YoY) to ₹2,101.1 crore in the quarter under review, while total expenses stood at ₹2,341.8 crore against ₹1,958.4 crore in the fourth quarter of FY25. This was up on account of higher A&P (advertising and promotion) spends due to increased content offering on Zee5, launch of KidZ, and higher legal costs.

Revenue from Advertising was down 3.5% at ₹808 crore impacted by the West Asia crisis in March, following a healthy traction in January and February. However, its subscription revenue increased 3.87% to ₹1,024.7 crore in the fourth quarter, aided by subscriber additions in digital and higher Average Revenue Per User (ARPU). Revenue from other sales and services was down 46.65% at ₹192 crore in the quarter, on account of syndication offset by studios business.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

In the entire FY26, ZEEL's net profit dropped 60% to ₹271.3 crore. Total income remained nearly flat at ₹8,245 crore.

Dividend Recommendation

In a separate filing, ZEEL informed stock exchanges that its board, in a meeting held on Tuesday, recommended a dividend of ₹2 per equity share of Re 1 each for financial year 2025-26. Shares of ZEEL settled at ₹87.68 apiece on the BSE, up 3.58% from the previous close.