Zee Entertainment Surges 10% on FY26 Growth Outlook, Zee5 Breakeven in Sight

Shares of Zee Entertainment Enterprises climbed as much as 10% to its intraday high of ₹146.40 on the National Stock Exchange on June 23, today, after the company shared its growth plans for the current financial year.

For the ongoing financial year, Zee Entertainment targets to have a television viewership share of 17.5%, compared to 16.8% share it had in the previous financial year. The company aims to achieve breakeven in its digital business ‘Zee5’ this financial year, it said in the investor presentation. The digital business had reported an earnings before interest, tax, depreciation and amortisation loss of ₹548 crore for FY25.

The company targets for margins of 18-20% this year, compared to the 14.6% reported in FY25. The company also aims to unlock value via its music and syndication business. Zee Entertainment is creating a significant cash reserves, which was ₹2,406 crore as of March 2025. Additionally, the board also approved the issuance of fully convertible warrants worth ₹2,237 crore.

Recently, the company’s promoters decided to infuse ₹2,237.44 crore via subscribing to fully convertible warrants. The board has agreed to issue 169.50mn fully convertible warrants to promoter group entities on a preferential basis, at ₹132 per warrant. Post-transaction, the shareholding of the promoter entities will climb to 18.4% from over 4%.

“The infusion of funds from the promoters will enable the company to further fortify its core business segments and strengthen its financial foundation to explore value-accretive growth opportunities in the evolving Media & Entertainment landscape,” the company had earlier said in an exchange filing.

At its intraday high, the stock was 64% over its 52-week low level, while nearly 11% below its 52-week low level. The stock has lost 5% in the last one year, but has gained 21% in 2025 so far. Zee Entertainment shares have gained 15% in the last one month.