Zee Q1 FY27 earnings

Separately, Nuvama Institutional Equities said Zee reported a decent first quarter of FY27, with revenue rising 4.5 per cent year-on-year (YoY), in line with its estimate.

"The quarter was shaped by the FIFA World Cup, which ran from June 11 to July 19, so some fell inside Q1 FY27 and a significant portion shall be booked in Q2 FY27," Nuvama said.

The brokerage noted that Zee's FIFA rights run through 2034 across 39 events, with payments staggered over eight years and a larger outgo linked to the 2030 World Cup. Zee has also signed rights for Bundesliga and Serie A, Nuvama said, adding that the management highlighted a longer monetisation runway for both properties.

Subscription revenue increased 16 per cent YoY to Rs 1,140 crore, while Zee5 revenue rose 58 per cent YoY to Rs 460 crore, according to Nuvama. The brokerage attributed the growth in both segments to the tournament.

However, sales and distribution (S&D) expenses increased 43 per cent YoY, while advertising revenue declined 11.5 per cent YoY.

Nuvama retained its 'Buy' rating on Zee Entertainment and raised its 12-month target price to Rs 117 from Rs 112 earlier.