Zee Entertainment Q1 results: Net profit jumps 14% YoY to ₹144 crore, revenue down 14% — Check details

Mumbai, July 22, 2025 — Zee Entertainment Enterprises Ltd (ZEEL) announced its financial results for the first quarter of the fiscal year 2025, reporting a 14% year-on-year (YoY) increase in net profit to ₹144 crore, even as total revenue fell 14% YoY to ₹1,727 crore. The performance reflects ongoing cost optimization initiatives and cautious ad spends amid a weak macroeconomic and industry-specific environment.

Key Highlights:

• Net Profit (Q1 FY25): ₹144 crore, up 14% YoY

• Revenue (Q1 FY25): ₹1,727 crore, down 14% YoY

• EBITDA: ₹273.3 crore, up 12.8% YoY

• EBITDA Margin: Improved to 15.8% vs 12.4% in Q1 FY24

• Advertising Revenue: ₹910.3 crore, down 3.8% YoY

• Subscription Revenue: ₹692.7 crore, down 1.8% YoY

• Total Expenses: Reduced by 18.6% YoY to ₹1,454.4 crore

Advertising Pressures, Cost Cuts Drive Bottom Line

While the company saw a drop in topline due to subdued ad spends in a still-recovering media and entertainment environment, the bottom line was supported by strategic cost-cutting efforts, especially in content costs and marketing expenses.

"The advertising environment continues to be challenging, especially in the Hindi GEC segment, but we have managed to improve profitability by rationalizing our content investments and driving operational efficiencies," said Punit Goenka, MD & CEO of Zee Entertainment.

Advertising revenue declined 3.8% YoY, while subscription revenue saw a marginal fall of 1.8% as pricing adjustments continued under the New Tariff Order (NTO) 3.0 framework. Domestic subscription revenue was ₹663.5 crore, while international subscriptions stood at ₹29.2 crore.

Segment Performance & Operational Metrics

• Broadcast Business: Witnessed muted traction with lower content spends and tepid viewership recovery in the Hindi-speaking market (HSM).

• Zee Studios: Had a relatively quiet quarter in terms of big releases but focused on digital-first content development.

• Digital (ZEE5): Continued to see improved engagement, but revenue remained subdued as monetization stabilizes.

EBITDA improved to ₹273.3 crore, aided by lower programming costs and marketing rationalization, resulting in a margin expansion to 15.8%, a significant improvement from 12.4% in Q1 FY24.

Analysts’ Take: Mixed Bag with a Focus on Turnaround

Market analysts gave a cautious thumbs-up to Zee’s Q1 results, emphasizing the improved profitability but also flagging concerns about sustained revenue pressure.

"Zee has managed to protect margins in a difficult quarter. The positive surprise was in cost control. However, ad revenue recovery remains sluggish and will be key for long-term performance," said Ritesh Patel, Senior Analyst, Elara Capital.

Another analyst from Motilal Oswal remarked, "The outlook for subscription revenue is neutral, but content-led recovery and resolution of merger uncertainty are essential to unlock value."

Merger Overhang and Strategic Outlook

Zee continues to face investor scrutiny following the collapse of the proposed merger with Sony’s Indian unit earlier this year. The regulatory tussle and arbitration proceedings have raised uncertainty over future strategic alliances.

However, the company reiterated its commitment to pursue growth independently, focusing on original content for both TV and digital, regional market expansion, and cost-efficient operations.

"We are confident of a recovery in the second half of the year, with major sporting events and festive season boosting ad spends," said Goenka.

Stock Market Reaction

Following the Q1 results, Zee Entertainment shares ended the day up by 1.5% at ₹168.75 on the NSE, reflecting a moderately positive investor sentiment on improved margins and profit beat.

Market participants are expected to closely track Zee's next moves on the content front, subscriber additions in OTT, and advertising trends in Q2 and Q3, which historically have shown seasonal strength.

Investor Outlook: Recovery Hinges on Ad Revival & Strategy Clarity

The company has shown resilience in maintaining profitability amid revenue headwinds, which is commendable. However, sustained improvement will depend on broader industry recovery, clarity on strategic direction post-Sony merger fallout, and content strategy execution.

Key triggers to watch ahead include:

• Festive season advertising trends

• OTT monetization ramp-up (ZEE5 performance)

• Developments in merger-related litigation/arbitration

• New show launches in regional and Hindi GEC

• Content investments in movies and digital originals