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ICICI Securities Report
Zee Entertainment Enterprises Ltd. is in focus after ICICI Securities downgraded the stock to Add from Buy following its Q1 FY27 results and cut the target price to Rs 105 from Rs 120.
The revised target implies around 12% upside from the report's cited market price of Rs 94.
The brokerage flagged persistent weakness in advertising revenue and an earnings miss as key concerns, even as subscription revenue remained strong and ZEE5 delivered another profitable quarter.
Zee's consolidated revenue grew 4.5% YoY to Rs 1,910 crore, with revenue growth in subscription offsetting continued ad weakness. Ad revenue shrank 11.5% YoY to Rs 670 crore, constrained by West Asia-led advertiser caution, although management flagged green shoots in Jun'26 post the FIFA rights win.
Subscription revenue grew 15.8% YoY to Rs 1,140 crore, led by ZEE5 and linear TV. Ebitda turned positive at Rs 78.9 crore (4.1% margin vs a loss in Q4 FY26), with consolidated profit of Rs 74.3 crore.
Zee also entered sports via FIFA rights (till 2034). Earnings miss and recent regulatory challenges may dampen investor confidence. However, upside from the FIFA World Cup 2026 could be a near-term trigger.
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