Zee Entertainment shares soar 10% today: What's the reason?
What's the story
Zee Entertainment's shares skyrocketed by over 10% today, hitting a 10-month high of ₹146.80 per stock on the BSE. The surge comes after the company revealed its plans to break even in its digital arm, Zee5. The firm also aims to increase ad revenue by 8-10% and improve operating margins as part of its strategic initiatives.
Strategic goals
Zee aims to increase TV viewership share
Zee Entertainment has set an ambitious goal for the current fiscal year, with a focus on achieving breakeven in its digital business, Zee5. The company recorded an EBITDA loss of ₹548 crore in FY25. It also aims to increase its TV viewership share to 17.5%, up from 16.8% in the previous fiscal year.
Financial targets
Targeting ad revenue increase to improve operating margins
To recover from an 11% decline in share value last year, Zee Entertainment is targeting an 8-10% increase in advertising revenue for FY26. The broadcaster also expects its operating margins to improve, with a guidance range of 18-20%, in comparison to the 14.6% margin recorded in FY25. The firm plans to unlock further value through its music and syndication business.
Financial stability
Company is also improving its financial position
Zee Entertainment is also bolstering its financial position with improved liquidity. As of March 2025, the company's cash and reserves stood at ₹2,406 crore. To further strengthen its capital base, the board has approved the issuance of fully convertible warrants worth ₹2,237 crore.