Zee Entertainment shares zoom 10%, hit 10-month high on plans to achieve EBITDA loss breakeven

Synopsis

Zee Entertainment shares surged over 10% after the company outlined plans to achieve breakeven in its digital arm Zee5, boost ad revenue by 8–10%, and raise operating margins. Strategic initiatives include improving viewership, strengthening liquidity, and issuing warrants to enhance capital.

The shares of Zee Entertainment zoomed as high as 10.4% to touch their intraday and a 10-month high of Rs 146.80 on the BSE today after the company announced its plans to achieve breakeven in Z5 (Zee 5) from EBITDA losses of Rs 548 crore in FY25.

The company is setting an ambitious agenda for the current financial year, with a focus on achieving breakeven in its digital business, Z5 or Zee5, which posted an EBITDA loss of Rs 548 crore in FY25.

The company is also targeting a TV viewership share of 17.5%, up from 16.8% in the previous fiscal.

In a bid to recover from an 11% drop in stock value last year, Zee is aiming for an 8–10% increase in advertising revenue during FY26. The broadcaster also expects operating margins to improve, setting a guidance range of 18–20%, compared to the 14.6% margin recorded in FY25.

Additionally, Zee intends to unlock further value through its music and syndication business.

The company is also strengthening its financial position through increased liquidity. As of March 2025, Zee's cash and reserves stood at Rs 2,406 crore. To enhance its capital base further, the board has approved the issuance of fully convertible warrants worth Rs 2,237 crore.

Zee Entertainment has also identified the following strategic priorities for the financial year 2025–26:

• Full execution of business plans: Zee plans to intensify its focus on executing its business strategy to achieve 100% of its operational targets.
  
• Strengthen human capital: Efforts will be made to augment human resource capabilities to effectively support the company's business objectives.
  
• Ongoing competitive and market assessment: The company will regularly and systematically evaluate competitive scenarios and market opportunities.
  
• Enhance risk-free treasury income: Maximizing income from risk-free treasury operations will be a key part of Zee’s financial strategy.
  

Around noon today, the shares of Zee Entertainment were trading 9.6% higher at Rs 145.75 on the BSE.

Also read: HDB Financial Services GMP at 6.3% ahead of IPO. What should investors do?

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