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Zee Entertainment Shares Surge 7% Ahead of Q2 Results; Analysts Project Profit Drop

· · 2 min read

Zee Entertainment Enterprises Ltd (ZEEL) shares climbed over 7% on Wednesday, marking their biggest jump in 20 weeks. The surge comes as the media firm prepares to announce its Q2 FY2027 results, with analysts largely forecasting a year-on-year decline in net profit despite expected revenue growth.

Zee Entertainment Shares See Significant Rise

Shares of Zee Entertainment Enterprises Ltd (ZEEL) experienced a notable surge of over 7% in Wednesday's trading session, reaching a high of Rs 69.19 apiece on the BSE. This marks the media company's most substantial single-day gain in 20 weeks, occurring just days before its board is set to consider and approve the financial results for the quarter ended September 30, 2026.

Analyst Expectations for Q2 FY2027

As the Q2 FY2027 earnings announcement approaches, market analysts are providing varied forecasts for Zee Entertainment's performance. According to Bloomberg data, a consensus of 10 analysts projects a 20.34% year-on-year (YoY) drop in net profit, estimating it at Rs 60.94 crore for the September quarter. Despite this, net sales are expected to see an 8.96% YoY rise, reaching approximately Rs 2,145 crore. EBITDA is estimated to decline by 34.59% to Rs 95.75 crore.

Brokerage Specific Forecasts

  • Elara Securities: This brokerage anticipates that ZEEL's advertising revenue will remain flat YoY but could see a 20% sequential (QoQ) increase, largely attributed to the FIFA World Cup. Subscription revenue is projected to grow by 21% YoY. However, Elara Securities forecasts a 17.2% YoY fall in Q2 profit, settling at Rs 52.90 crore, citing elevated advertising and promotion (A&P) spends as a factor for potential EBITDA margin decline.
  • ICICI Securities: Their analysis suggests a marginal 0.6% YoY fall in net profit, or a 15% sequential rise, arriving at Rs 76 crore. Net sales are pegged at Rs 2,195 crore, an 11.5% YoY increase. ICICI Securities expects EBITDA to rise 20.5% YoY to Rs 95.10 crore, with a margin of 4.3%, down 310 basis points. They also highlight a significant 25% YoY growth in subscription revenue (12.5% QoQ) driven by the FIFA World Cup, while advertising revenue in broadcasting is expected to remain muted.

Impact of FIFA World Cup on Revenues

Several analysts point to the FIFA World Cup as a key driver for sequential growth in both advertising and subscription revenues for Zee Entertainment. While this major sporting event is expected to boost top-line figures, the associated marketing and promotional expenditures are also noted as factors that could influence overall profitability and EBITDA margins for the quarter.

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