Zee Media Q1 FY27 Results (NSE: ZEEMEDIA)
Signal: Loss widened
The read
The Q1FY27 inflection is negative: consolidated revenue grew 4.7% YoY to ₹19,085 lakh, but EBITDA margin contracted 190bps to 9.4% and PAT loss widened 37.6% to ₹1,212 lakh; the prior quarter's ₹2,653 lakh loss narrowed sequentially, but the business has not sustained the Q3FY26 profit of ₹5,300 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹190.85 Cr | 4.7% | +21.0% |
| EBIT | ₹-8.16 Cr | -22.9% | |
| Net profit | ₹-12.12 Cr | -37.6% | |
| EPS | ₹-0.19 | -35.7% | |
| EBIT margin | 9.4% |
P&L walk
Consolidated revenue increased to ₹19,085 lakh, +4.7% YoY and +21.0% QoQ, but EBITDA declined 12.8% to ₹1,792 lakh as operating costs rose 51.3% YoY; the group therefore remained loss-making at PAT of ₹1,212 lakh versus ₹881 lakh loss a year ago.
Segments
The filing reports only one identifiable segment, News Publishing and Broadcasting; the material divergence is between standalone revenue of ₹13,233 lakh, down 6.5% YoY, and consolidated revenue of ₹19,085 lakh, up 4.7% YoY, indicating subsidiaries contributed the group-level growth while consolidated EBITDA still fell 12.8% YoY.
Key positives
- Consolidated revenue increased 4.7% YoY to ₹19,085 lakh and 21.0% QoQ, while standalone revenue increased 17.6% QoQ to ₹13,233 lakh.
- Employee benefits expense was nearly flat YoY at ₹6,637 lakh, up only 0.5% versus consolidated revenue growth of 4.7%.
- The company is developing new brand and IP properties and monetising content archives; content archive licensing had contributed ₹8,019 lakh in FY26.
- The ₹1,212 lakh consolidated loss narrowed 54.3% sequentially from ₹2,653 lakh, although it remained worse YoY.
Key concerns
- Consolidated EBITDA fell 12.8% YoY to ₹1,792 lakh and EBITDA margin contracted 190bps to 9.4%, despite revenue growth of 4.7%.
- Operating costs rose 51.3% YoY to ₹5,119 lakh, materially outpacing revenue and driving the margin decline.
- Standalone revenue declined 6.5% YoY and standalone PAT loss widened 33.2% to ₹882 lakh, while subsidiaries caused consolidated revenue to grow but left the group loss at ₹1,212 lakh.
- The company disclosed significant accumulated losses and negative working capital and is relying on capital infusion, cost rationalisation and new revenue streams to settle liabilities as they fall due.
- The issuance and conversion of 3 crore shares, alongside 14 crore outstanding convertible warrants and FCCBs, creates a material future dilution risk.
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