ZEEMEDIA - Zee Media

📊 NSE: ZEEMEDIA 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 15:22

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: News Publishing and Broadcasting. Total Operating Income (TOI) for FY25 was INR 622 Cr, a marginal decline of 2.5% YoY. However, Q2 FY26 revenue showed a significant recovery to INR 178.72 Cr, representing a 36.7% increase compared to INR 130.70 Cr in Q2 FY25. H1 FY26 revenue reached INR 361.08 Cr, up 17.7% from INR 306.66 Cr in H1 FY25.

Geographic Revenue Split

While specific percentage splits by region are not disclosed, the company operates a diverse portfolio of 14 news channels across India in languages including Hindi, English, Urdu, Marathi, Bangla, Punjabi, Gujarati, Tamil, Telugu, Kannada, and Malayalam. It has also incorporated 'Zee Media Inc' in Delaware, USA, to expand its international footprint, though no investment was made as of September 30, 2025.

Profitability Margins

The company has incurred PAT losses for the past three years and through Q1 FY26. PBILDT loss narrowed to INR 18 Cr in FY25 from a loss of INR 39 Cr in FY24, driven by cost rationalization. Standalone loss before tax for H1 FY26 was INR 33.02 Cr, an improvement of 57.2% compared to a loss of INR 77.11 Cr in H1 FY25.

EBITDA Margin

Operating profitability has been under pressure with a PBILDT loss of INR 18 Cr in FY25. This follows a significant deterioration from a PBILDT profit of INR 66 Cr in FY23 to a loss of INR 39 Cr in FY24, primarily due to a 17% drop in advertisement revenue following the exit from BARC ratings.

Capital Expenditure

The company acquired intangible assets, including trademarks, worth INR 170 Cr in FY24 under a settlement with Diligent Media Corporation Limited. Management has stated there are no major upcoming capex plans for the medium term, which is expected to keep free cash flows positive.

Credit Rating & Borrowing

CARE Ratings reaffirmed the long-term bank facilities rating at 'CARE BB' in August 2025, revising the outlook to 'Stable' from 'Negative'. This revision reflects improved liquidity and reduced debt repayment obligations. Previous ratings were 'CARE BB; Negative' (July 2024) and 'CARE BB+; Stable' (July 2023).

⚙️ Operational Drivers

Raw Materials

The primary operational costs are 'Operating Costs' (satellite, content, and production) which accounted for INR 68.96 Cr in H1 FY26 (19.1% of revenue) and 'Employee Benefits' which are a major fixed cost component.

Import Sources

Not disclosed in available documents; however, satellite transponder services and technical equipment are typically sourced from global providers.

Capacity Expansion

The company maintains a network of 14 news channels. Expansion is focused on digital platforms rather than physical capacity, with a strategy to build a 'robust digital ecosystem' to counter the 1.6% decline in traditional subscription revenues.

Raw Material Costs

Operating costs for H1 FY26 were INR 68.96 Cr, up 5.9% YoY from INR 65.11 Cr. These costs represent the core expense of news gathering and broadcasting, which the company is attempting to optimize through cost rationalization measures.

Manufacturing Efficiency

Not applicable as a service-based media entity; however, the company is focusing on 'cost rationalization' to narrow operating losses.

Logistics & Distribution

Marketing and distribution costs are described as 'elevated' by rating agencies, impacting the overall leveraged capital structure.

📈 Strategic Growth

Expected Growth Rate

10.80%

Growth Strategy

Growth will be driven by a 'digital-first' strategy as digital media grew 12.6% in 2024, overtaking TV. The company plans to raise up to INR 400 Cr through Foreign Currency Convertible Bonds (FCCBs) and has issued 13.5 Cr share warrants to a promoter group entity to infuse capital for settling liabilities and funding operations.

Products & Services

News broadcasting services, digital news publishing, and advertisement slots sold to corporate and government clients.

Brand Portfolio

Zee News, Zee Business, Zee Bharat, Zee 24 Taas, Zee 24 Kalak, Zee Uttar Pradesh Uttarakhand, Zee Bihar Jharkhand, Zee Madhya Pradesh Chhattisgarh, and WION.

New Products/Services

Launched a refreshed and unified brand identity in May 2025, reimagining the 'Z' symbol to represent clarity and trust across all flagship and regional channels.

Market Expansion

Expansion into the US market via the incorporation of 'Zee Media Inc' in April 2024, targeting the Indian diaspora.

Market Share & Ranking

Not disclosed; however, the company identifies as a leader in regional segments like Zee 24 Taas (Marathi) and Zee 24 Kalak (Gujarati).

Strategic Alliances

Settlement agreement with Diligent Media Corporation Limited (DMCL) for the acquisition of trademarks and intangible assets worth INR 170 Cr.

🌍 External Factors

Industry Trends

Digital media became the largest segment of the M&E sector in 2024, growing 12.6% while TV grew only 2.4%. Subscription revenue in the industry fell by 1.6%, forcing a shift toward ad-supported digital models.

Competitive Landscape

Intense competition from other news broadcasters and digital news aggregators. The industry is highly regulated, particularly regarding content and distribution pricing.

Competitive Moat

The company's moat lies in its established brand 'Zee' and its diversified portfolio of 14 channels in multiple languages. However, this moat is currently challenged by low promoter holding (4.34%) and the lack of BARC viewership data.

Macro Economic Sensitivity

Highly sensitive to corporate ad-spend, which is influenced by GDP growth and inflation. In 2024, high inflation and fiscal challenges dampened global growth, affecting advertising budgets.

Consumer Behavior

Shift in consumer preference from linear television to digital ecosystems and on-demand news consumption.

Geopolitical Risks

The company faces risks related to international broadcasting regulations as it expands its global footprint through Zee Media Inc.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Ministry of Information and Broadcasting (MIB) and TRAI regulations regarding channel pricing, distribution bouquets, and landing page issues which led to the BARC exit.

Environmental Compliance

Not disclosed as a significant cost factor for this industry.

Taxation Policy Impact

Not specifically disclosed; the company is currently reporting losses, which may provide tax carry-forward benefits.

Legal Contingencies

The company is subject to orders from the Hon'ble Debt Recovery Tribunal (DRT) and other courts regarding the receipt of balance monies for 13.5 Cr share warrants issued to a Promoter Group entity.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to continue as a 'going concern' given three years of consecutive losses and a significant erosion of net worth. Auditors have noted delays in payment of undisputed statutory dues.

Geographic Concentration Risk

Revenue is primarily concentrated in the Indian market, though regional diversification across states provides some hedge against localized economic downturns.