Zee's costs outpaced revenue, sending operating margin down to 3.86%
Revenue rose +16.64% QoQ, but faster expense growth and a 28.00-point tax-rate increase cut net profit by -38.63%.
Filed 30 Oct 2026, 15:41 IST · after market close · Zee Entertainment Enterprises Ltd (ZEEL)
Key takeaways
- Consolidated revenue grew +16.64% QoQ, but expenses grew faster at +18.32%, reducing operating profit by -13.86%.
- Operating margin fell 1.36 percentage points to 3.86% as costs outpaced revenue, while the tax rate rose 28.00 percentage points.
- Other income contributed 35.82% of pre-tax profit, making the Rs 45.6 cr net profit less reflective of operating earnings.
Price around the results
Revenue rose, but operating profit fell
Consolidated revenue increased +16.64% QoQ to Rs 2,224.6 cr, but operating profit declined -13.86% to Rs 85.8 cr.
Higher tax and other income shaped reported profit
The tax rate rose 28.00 percentage points QoQ, from -0.27% to 27.73%, reversing the prior quarter's tax benefit and contributing to the -38.63% decline in net profit. Other income was Rs 22.6 cr and represented 35.82% of pre-tax profit, so reported earnings included a material non-operating contribution.
Margin remains below the consumer-discretionary median
Zee's 3.86% operating margin was 9.23 percentage points below the 13.09% median for the 129 Consumer Discretionary peers that had reported the same quarter. The available quarterly trend shows margin falling from 5.22% in Q1FY27 to 3.86% in Q2FY27.
No post-results market reaction yet
The consolidated results were filed after market close on 30 October 2026.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,225 cr | ₹1,907 cr | +16.64% |
| Other income | ₹23 cr | ₹31 cr | -27.56% |
| Expenses | ₹2,139 cr | ₹1,808 cr | +18.32% |
| Operating profit | ₹86 cr | ₹100 cr | -13.86% |
| Operating margin (%) | 3.86% | 5.22% | — |
| Interest | ₹3 cr | ₹13 cr | -81.06% |
| Depreciation | ₹43 cr | ₹44 cr | -1.61% |
| Profit before tax | ₹63 cr | ₹74 cr | -14.84% |
| Tax | ₹18 cr | ₹-0 cr | — |
| Net profit | ₹46 cr | ₹74 cr | -38.63% |
| EPS (₹) | ₹0.50 | ₹0.79 | -36.71% |
Operating margin of 3.86% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 3.86% after falling 1.36 percentage points QoQ.
- Whether expense growth slows from +18.32% QoQ to below revenue growth of +16.64%.
- Whether other income's 35.82% share of pre-tax profit declines.