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Prior to these discussions, Nuvama Research estimated the company’s ad revenue to to recover from its 13 per cent dip in FY25 by the second half of FY26. | Photo Credit: Umesh Negi
Zee Entertainment’s ad revenue is expected to improve in the second half of FY 26, according to analysts, even as the company’s board plans to meet next week on June 16 to review plans for the next 3-5 years, including fundraising options.
A meeting of the Company Board of Directors will be held at noon on Monday, wherein an investment banker will apprise the board of its review of ZEE’s business plans and future growth initiatives.
“They may suggest any risk mitigation thoughts for the execution of such plans. They may also recommend potential fund-raising options, if any. A separate Board meeting will be held on the same day at 4 pm to deliberate on the recommendations of the investment banker and adopt them in part or full.” as per a stock exchange filing by ZEE.
Prior to these discussions, Nuvama Research estimated the company’s ad revenue to to recover from its 13 per cent dip in FY25 by the second half of FY26.
“We reckon ad spends for FMCG companies shall improve with a better outlook on demand and benign RM prices. In FY25, EBITDA surged 31 per cent YoY while margin improved 390 bp to 14.4 per cent. Zee5’s EBITDA losses reduced to ₹5.5 billion (₹11.1 billion loss in FY24) and we forecast a further strong reduction in losses in Zee5 in FY26,” said Nuvama.
The company is gunning for a growth of 8–10 per cent for FY26 along with an EBITDA margin of 18–20 per cent through cost control and by reducing EBITDA losses up to 60 per cent in Zee5 after a 50 per cent YoY reduction in FY25. As on March 31, 2025, cash and cash equivalents were up 102 per cent at ₹24.1billion.
The current TV viewership of ZEE is around 16.8 per cent and it plans to reach about 17.5 per cent. Dividend payout shall be in the range of 25–30 per cent of consolidated net profits. ZEE’s partnership with Bullet has also caused a buzz for its new-age content. ZEE5 will launch Bullet within its ecosystem, leveraging its existing user base and regional language library.
The wife and son of CEO Punit Goenka earlier bought a 0.47 per cent stake through the open market over the last three months, bring their stake to 4.46 per cent. Nuvama said this adds to the confidence of minority investors.
Published on June 12, 2025
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