MUMBAI: Just when you thought the drama was reserved for primetime, Zee Entertainment’s first quarter of FY26 delivered its own plot twist, a cocktail of climbing profits, flat revenues, and a billion-dollar legal cliffhanger.
For the quarter ended 30 June 2025, Zee posted a standalone profit of Rs 1,115 million, up from Rs 469 million in Q4 FY25. Revenue from operations stood at Rs 16,839 million, a steep drop from Rs 20,042 million in the previous quarter and Rs 20,007 million a year ago. Yet, the bottom line perked up thanks to lower operational costs (Rs 9,574 million), subdued ad spends (Rs 2,531 million), and a positive fair value gain of Rs 185 million.
Consolidated numbers tell a slightly flashier story: Zee clocked Rs 18,498 million in revenue and a net profit of Rs 1,437 million from continuing operations, despite a decline from Rs 22,203 million in the previous quarter. No surprises ad revenue dipped to Rs 7,585 million from Rs 8,375 million, while subscription revenue held steady at Rs 9,817 million.
Zee managed to tame the finance cost dragon just Rs 77 million this quarter and depreciation remained under Rs 600 million. Tax outgo was Rs 535 million on a consolidated basis, including Rs 473 million current tax.
What’s missing from this quarter? Exceptional items. After a Rs 2,024 million pre-tax profit in Q4, Zee reported no one-offs this time, a marked shift from the Rs 361 million in restructuring costs and write-offs reported in the same quarter last year.
Still, the real cliffhanger lies in the 1,003 million dollars legal dispute with Star India. Star claims the termination of their Alliance Agreement was valid and now wants damages that have ballooned from 940 million dollars to over a billion dollars as of April 2025. Zee’s defence? A robust counterclaim and demand to recover 8 million dollars plus interest with arbitration hearings slated for November.
Meanwhile, Zee has been busy spinning off new stories. It incorporated two new entities lbullet Enterprise Limited and Advance Media Distribution Limited in June 2025 to bolster distribution and vertical synergies.
And for those keeping score on compliance subplots: the Securities Appellate Tribunal (SAT) overturned SEBI’s order against one of Zee’s KMPs last October, although investigations continue. For now, it’s one less legal plotline to follow.
With the company’s consolidated EPS at Rs 1.50 and a market bracing for the November arbitration climax, Zee seems to be scripting a cautious yet intriguing comeback.
Zee may be facing more than just viewer fatigue but for now, it’s dodged the ratings dip where it matters most: the bottom line.