Shemaroo cuts quarterly loss as expenses fall 27.54% YoY
Revenue slipped 1.49%, but operating margin improved 36.55 percentage points; digital growth partly offset continued weakness in the traditional business.
Filed 02 Nov 2026, 17:44 IST · after market close · SHEMAROO (SHEMAROO)
Key takeaways
- Expenses fell 27.54% year on year, lifting operating margin by 36.55 percentage points to -1.65%.
- Revenue declined 1.49% year on year, while management said digital revenue grew 25.60% on B2B licensing and higher YouTube advertising revenue.
- Net loss narrowed to Rs 7.27 cr from Rs 45.53 cr, although interest expense rose 14.66% year on year.
Cost reduction sharply narrows the consolidated loss
Shemaroo's consolidated revenue declined 1.49% year on year, but expenses fell 27.54%, turning the operating loss into a much smaller Rs 2.33 cr. Net loss narrowed to Rs 7.27 cr from Rs 45.53 cr in Q2FY26. The improvement came mainly from the lower expense base rather than revenue growth.
Operating recovery was partly offset by higher interest
The lower cost base improved operating margin by 36.55 percentage points to -1.65%. Interest expense increased 14.66% year on year, limiting the benefit of the operating improvement. Other income was Rs 0.84 cr and represented -7.68% of pre-tax profit because pre-tax profit remained negative; the tax-rate change of 5.80 percentage points was not the main reason for the narrower loss.
Digital growth contrasts with a subdued traditional business
Management said digital revenue grew 25.60% year on year, driven by B2B licensing deals and higher YouTube advertising revenue. It also said the traditional business remained subdued because the prolonged BARC ratings blackout weakened advertiser sentiment and broadcast revenues, while delayed content investment deferred television B2B licensing deals. Management said the company is pursuing cost rationalization in the traditional business and increasing investment and focus in digital. It said the upcoming festive season is expected to support advertising demand, but geopolitical uncertainty and higher advertiser input costs may weigh on spending, while continuation of the BARC blackout may pressure television revenues.
Results were filed after market close
The consolidated results were filed after market close on 2 November 2026. The quarter therefore has no market reaction to assess in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹141 cr | -1.49% |
| Other income | ₹1 cr | +90.91% |
| Expenses | ₹144 cr | -27.54% |
| Operating profit | ₹-2 cr | +95.75% |
| Operating margin (%) | -1.65% | — |
| Interest | ₹8 cr | +14.66% |
| Depreciation | ₹1 cr | -18.95% |
| Profit before tax | ₹-11 cr | +82.64% |
| Tax | ₹-4 cr | +78.99% |
| Net profit | ₹-7 cr | +84.03% |
| EPS (₹) | ₹-2.59 | +84.37% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Digital revenue grew 25.6% year on year, driven by B2B licensing deals and higher YouTube advertising revenue.
- The company released nine new titles on ShemarooMe Gujarati during the quarter.
Guidance & outlook
- The upcoming festive season is expected to boost advertising demand.
- Geopolitical uncertainties and rising advertiser input costs may dampen advertising sentiment and spending.
- Continuation of the BARC ratings blackout is likely to further weigh on television industry revenues.
New orders
- The company became the worldwide digital and satellite distribution partner for the Telugu movie Ramba Oorvasi Menaka.
New products
- ShemarooMe Gujarati released the movies Laalo–Krishna Sada Sahaayate and Jindagi Once More.
- ShemarooMe Gujarati released the web series Chaskela S1, Sada Che Ni Bus, Tuition and Ok Boss.
New initiatives
- The company is implementing cost rationalization across its traditional business.
- The company is increasing investment and focus across its digital business.
Problems & risks
- Traditional business performance remained subdued because the prolonged BARC blackout dampened advertiser sentiment and broadcast revenues.
- Broadcasters delayed content investments, resulting in deferred television B2B licensing deals.
- Geopolitical uncertainties and higher input costs faced by advertisers may reduce their advertising spending.
What to watch
- Operating margin versus -1.65% as the company's cost-rationalization measures progress.
- Digital revenue growth versus +25.60% year on year.
- Interest expense versus its +14.66% year-on-year increase.