SHEMAROO - Shemaroo Entert.

📊 NSE: SHEMAROO 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 13:12

💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1-FY26 was INR 282.9 Cr, a decline of 10.61% YoY. Digital Media grew by 2.57% YoY to INR 127.5 Cr, while Traditional Media declined by 19.13% YoY to INR 155.4 Cr due to slower traction in B2B syndication and lower ad spend.

Geographic Revenue Split

Not disclosed in available documents, though the company operates in India and has a wholly-owned subsidiary in the USA (Shemaroo Media & Entertainment LLC).

Profitability Margins

Net Profit Margin for H1-FY26 was -32.19% compared to a net loss of INR 91.1 Cr. Profitability is heavily impacted by accelerated inventory amortisation and new initiative costs which totaled INR 64.9 Cr in H1-FY26.

EBITDA Margin

EBITDA Margin for H1-FY26 was -38.98% (EBITDA of INR -110.3 Cr). This represents a significant decline from previous periods where PBILDT margins were targeted above 9-15% for rating upgrades.

Capital Expenditure

The company invested heavily in content, with inventory increasing from INR 715 Cr in FY22 to INR 735 Cr in FY23. Debt was primarily availed to fund these acquisitions.

Credit Rating & Borrowing

Downgraded to CARE BB; Stable in March 2025 from CARE BB+; Stable. Previous ratings included CARE BBB-; Negative in 2023. The downgrade reflects moderated financial performance and uncertainty in cash flow generation relative to debt obligations.

⚙️ Operational Drivers

Raw Materials

Content Inventory (Movie and Digital Rights) represents the primary 'raw material' cost, with inventory levels at INR 735 Cr as of FY23.

Import Sources

Primarily sourced from India through content aggregation, acquisition, and film production.

Key Suppliers

Not specifically named, but involves various film producers and content creators for aggregation.

Capacity Expansion

Current operations include 1 OTT platform (ShemarooMe) and 4 broadcasting channels. Expansion is focused on digital scaling rather than physical capacity.

Raw Material Costs

Content acquisition costs are high; new initiative costs (net of revenue) were INR 64.9 Cr in H1-FY26, representing approximately 23% of revenue.

Manufacturing Efficiency

Measured by content monetization; YouTube channels garnered over 11 billion views in Q2-FY26, showing high digital asset utilization.

Logistics & Distribution

Distribution is primarily digital (YouTube, OTT, DTH) and satellite-based, reducing traditional physical logistics costs.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Achieved through scaling the ShemarooMe OTT platform (8 new titles in Q2-FY26), expanding YouTube presence (73.5M subscribers on FilmiGaane), and transitioning from a B2B-heavy model (80% traditional pre-2018) to a balanced Digital/B2C model (37% digital in FY25).

Products & Services

OTT subscriptions (ShemarooMe), YouTube content, Satellite Channel broadcasting, Digital Syndication, and preloaded devotional devices.

Brand Portfolio

Shemaroo, ShemarooMe, Shemaroo FilmiGaane, Shemaroo Entertainment, Shemaroo Gujarati.

New Products/Services

Released 8 new titles on ShemarooMe Gujarati in Q2-FY26; new initiative costs of INR 64.9 Cr in H1-FY26 are expected to drive future B2C revenue.

Market Expansion

Focus on regional markets (Gujarati) and international digital distribution via the US subsidiary.

Market Share & Ranking

FilmiGaane is a top-tier YouTube channel in India with 73.5 million subscribers.

Strategic Alliances

Partnerships with DTH operators, Telecom companies for B2B2C distribution, and YouTube/Facebook for ad-revenue sharing.

🌍 External Factors

Industry Trends

Rapid shift from linear TV to OTT and short-form digital content; Shemaroo is positioning itself by increasing digital revenue contribution from 20% to 37%.

Competitive Landscape

Intense competition from global OTT giants (Netflix, Amazon) and domestic broadcasters (Zee, Star) in the syndication and digital space.

Competitive Moat

Moat is built on a large, diverse content library (aggregation model) and massive YouTube subscriber base (133M+ across top channels), which are difficult to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to corporate ad-spend budgets which fluctuate with GDP growth and consumer demand.

Consumer Behavior

Shift toward regional language content and digital-first consumption, prompting the release of 8 regional titles in a single quarter.

Geopolitical Risks

Minimal, as operations are primarily domestic, though digital content is subject to global platform (YouTube/Meta) policy changes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Ministry of Information and Broadcasting regulations and GST compliance for content rights transfers.

Environmental Compliance

Not applicable for a media/content company.

Taxation Policy Impact

Standard Indian corporate tax rates apply; however, the company faces significant tax-related legal challenges.

Legal Contingencies

Significant pending CGST matter involving a demand for inadmissible Input Tax Credit (ITC) of INR 70.26 Cr, plus interest and penalties totaling over INR 200 Cr (including a specific penalty of INR 133.61 Cr). Also a GST DRC-07 order for INR 30.61 lakh.