Zee Entertainmen Q1 FY27 Results (NSE: ZEEL)
Signal: Growth reaccelerated
The read
The quarter marks a revenue recovery to ₹17,809 million, +5.9% YoY, but reverses the recent profitability trajectory: PAT fell 57.6% YoY to ₹473 million as expenses grew 12.1%, other income dropped 88.8% to ₹21 million and finance costs rose 79.2% to ₹129 million; the core earnings inflection remains unconfirmed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,780.9 Cr | +5.9% | -5.6% |
| Net profit | ₹47.3 Cr | -57.6% | |
| EPS | ₹0.49 | -57.8% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹17,809 million, +5.9% YoY but -5.6% QoQ, yet total expenses rose 12.1% YoY to ₹17,353 million and finance costs increased 79.2% YoY to ₹129 million, driving PBT down 56.3% YoY to ₹677 million and PAT down 57.6% YoY to ₹473 million.
Key positives
- Revenue from operations increased 5.9% YoY to ₹17,809 million despite a 5.6% QoQ decline.
- Employee benefits expense fell 5.8% YoY to ₹1,774 million and advertisement and publicity expense fell 10.8% YoY to ₹2,257 million.
- Basic EPS of ₹0.49 declined 57.8% YoY versus PAT decline of 57.6%, indicating no material PAT-to-EPS dilution divergence.
Key concerns
- PAT declined 57.6% YoY to ₹473 million even as revenue grew 5.9% YoY, with total expenses growing 12.1% YoY.
- Other income fell 88.8% YoY to ₹21 million, exposing the decline in underlying reported profitability after non-operating support.
- Finance costs rose 79.2% YoY to ₹129 million, despite the company redeeming outstanding FCCBs subsequent to quarter-end.
Research and educational content only. Not investment advice.