Highest Upside

ZEEL’s advertising revenue declined 9.4% QoQ/16.8% YoY, impacted by the IPL and weak FMCG spending. However, management commentary suggests early signs of stabilisation, with potential recovery supported by festive tailwinds and improving rural demand.

We cut our FY27E EPS estimates by 4% as we account for dilution impact resulting from issuance of ~169.5mn fully convertible warrants at a price of Rs132 on a preferential basis to entities forming part of the promoter group. Out of the total preferential proceeds of ~Rs22.4bn, Z IN plans to deploy ~Rs10bn towards building new businesses, ~Rs7.1bn towards inorganic expansion while the balance will be utilized for general & corporate purposes. Post warrant conversion, promoter stake will increase to 18.3% lending better execution comfort on achieving 1) TV viewership share of ~17.5%, 2) adrevenue growth of ~8-10% and 3) EBITDA margin of ~18-20% in FY26E. We...

Top line decreased 14.3% YoY: Revenue decreased by 14.3% YoY to Rs18,248mn (PLe Rs19,733mn). Domestic ad-revenue declined 19.2% YoY to Rs7,025mn, primarily due to extended sports calendar and slowdown in spending by FMCG companies. However, total subscription revenues remained flat at Rs9,817mn (PLe Rs10,268mn). Meanwhile, other sales and services revenue declined sharply by...

Quarterly Update Q4FY25

The company logged a decline in revenue for the quarter, mainly due to macroeconomic headwinds faced in the advertising segment. Despite the challenges faced, ZEEL remains optimistic about the future with rising viewership, cost reduction and higher profitability. The upcoming festive season is expected to drive revenue in the advertising segment. With efficient execution in programming and technology as well as continuous cost optimisation in ZEE5, the company's...

Quarterly Update Q2FY26