ZEE5, the digital entertainment business of Zee Entertainment Enterprises, reported a 53% year-over-year increase in revenue to ₹1,489 crore in FY26, marking a significant improvement in the streaming platform’s financial performance. The business also achieved adjusted EBITDA breakeven during the year, signaling a major improvement from the losses recorded in previous periods as Zee continued to focus on cost discipline, monetization and operating leverage.
The improvement came even as the company’s movie business grew only 3% during FY26, highlighting the increasing importance of digital operations within Zee’s broader media portfolio. ZEE5 recorded its highest-ever quarterly revenue of ₹470 crore in Q4 FY26, up 71% year over year, while the company’s FY26 earnings presentation said the digital business delivered positive adjusted EBITDA after excluding the impact of a change in movie-rights inventory amortization estimates.
ZEE5 Revenue Jumps 53% In FY26
ZEE5 and Zee’s other digital businesses generated revenue of ₹1,488.8 crore in FY26, compared with ₹976 crore in FY25. The 53% growth represents a sharp acceleration from the relatively modest 6% increase recorded in FY25.
The turnaround is particularly important because Zee has spent several years investing in its streaming platform while attempting to reduce losses and establish a sustainable business model.
ZEE5 Financial Performance
| Metric | FY25 | FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹976 Cr | ₹1,489 Cr | +53% |
| EBITDA | -₹548 Cr | Adjusted breakeven* | Major improvement |
| Q4 Revenue | — | ₹470 Cr | +71% YoY |
| Q4 EBITDA | — | -₹8.4 Cr | Loss narrowed |
| FY26 shows & movies | — | 127 | — |
*Zee said the digital business achieved adjusted EBITDA breakeven after excluding the impact of the change in movie-rights inventory amortization estimates.
The figures indicate that ZEE5 has moved substantially closer to becoming a self-sustaining digital business.
Digital Business Moves Toward Profitability
The most significant development is not simply the revenue increase but the improvement in profitability.
Zee’s FY25 annual report had shown that ZEE5 and other digital operations generated ₹976 crore in revenue while reducing EBITDA losses by roughly 50% to ₹548 crore.
In FY26, the business moved to adjusted EBITDA breakeven.
Zee’s earnings presentation showed reported FY26 EBITDA of a negative ₹49 crore, but said the business would have delivered positive EBITDA after accounting for the change in estimates related to movie-rights inventory amortization.
ZEE5 Profitability Journey
FY24
EBITDA Loss: ₹1,105 Cr
↓
FY25
EBITDA Loss: ₹548 Cr
↓
FY26
Adjusted EBITDA: Breakeven
↓
Next Phase
Sustainable Positive EBITDAThis progression suggests that Zee’s strategy has shifted from prioritizing subscriber and content expansion toward balancing growth with financial discipline.
Q4 Revenue Hits Record ₹470 Crore
ZEE5’s fourth-quarter performance provided another strong indicator of momentum.
Revenue reached ₹470 crore in Q4 FY26, representing a 71% year-over-year increase and the highest quarterly revenue recorded by the digital business.
The company attributed the performance to stable usage and engagement metrics, along with a strong content slate.
Q4 FY26 ZEE5 Performance
| Metric | Q4 FY26 |
|---|---|
| Revenue | ₹470 Cr |
| YoY revenue growth | +71% |
| EBITDA | -₹8.4 Cr |
| Content releases | 45 shows & movies |
| Originals | 11 |
| Quarterly revenue status | Highest ever |
The narrowing EBITDA loss in the quarter suggests that the platform is getting closer to positive operating economics even at the quarterly level.
Movie Business Revenue Rises 3%
While digital operations grew rapidly, Zee’s movie business recorded a much more modest performance.
Movie business revenue increased 3% during FY26, according to the company’s reported financial performance. This follows a decline in FY25, when movie revenue fell 30% to ₹443.8 crore from ₹637.4 crore in FY24.
The FY25 decline was partly linked to a strong comparison base created by films such as Gadar 2, Bro and King of Kotha.
Movie Business Performance
| Financial Year | Movie Revenue |
|---|---|
| FY22 | ₹361 Cr |
| FY23 | ₹417 Cr |
| FY24 | ₹637 Cr |
| FY25 | ₹444 Cr |
| FY26 | Up 3% YoY |
The modest FY26 increase suggests that the movie business stabilized after the sharp decline in the previous year, but its growth rate remained well below that of ZEE5.
ZEE5 Is Becoming A More Important Growth Engine
The contrasting growth rates between the digital and movie businesses highlight Zee’s changing revenue mix.
ZEE5’s 53% revenue growth means the digital business is expanding considerably faster than traditional movie-related operations.
This shift is strategically important because streaming platforms can potentially provide recurring and scalable revenue through subscriptions, advertising and transactional video-on-demand offerings.
Zee’s annual report has previously described its digital business as a major growth segment, with investments focused on content, technology, viewing experience and monetization.
Growth Comparison
ZEE5 / Digital Business +53%
██████████████████████████
Movie Business +3%
██The difference illustrates why Zee is increasingly focused on improving ZEE5’s economics.
Content Remains Central To ZEE5’s Strategy
Despite the push toward profitability, Zee continues to invest in content.
ZEE5 and the broader digital business released 127 shows and movies during FY26, including original productions. In Q4 alone, 45 shows and movies were released, including 11 originals.
The challenge for streaming platforms is to strike a balance between content investment and profitability.
Too little content can reduce engagement and subscriber retention, while excessive spending can prevent the platform from generating sustainable cash flows.
ZEE5’s FY26 results suggest Zee is attempting to achieve greater operating leverage from its content investments.
Zee Is Targeting Positive Unit Economics
Zee’s FY26 earnings presentation said it expects to sustain positive unit economics through growth and operating leverage.
This is an important shift in the company’s approach to streaming.
Instead of measuring success primarily through audience growth, management is increasingly emphasizing whether each additional customer, content investment and digital transaction contributes positively to the economics of the platform.
Key Drivers Of ZEE5’s Improving Economics
| Driver | Potential Impact |
|---|---|
| Revenue growth | Expands operating scale |
| Content monetization | Improves return on content investment |
| Cost discipline | Reduces operating losses |
| Advertising | Adds revenue beyond subscriptions |
| Subscription revenue | Provides recurring income |
| Operating leverage | Allows fixed costs to be spread over higher revenue |
| Engagement | Supports retention and monetization |
If ZEE5 can maintain strong revenue growth without proportionately increasing content and operating costs, profitability could improve further.
ZEE5’s FY26 Performance Comes During A Broader Zee Turnaround
The improvement at ZEE5 is taking place against a broader restructuring of Zee Entertainment’s financial performance.
For FY26, Zee Entertainment reported operating revenue of approximately ₹8,099 crore, down 2% year over year. Reported EBITDA fell sharply because of exceptional accounting and movie-rights-related impacts, while adjusted EBITDA stood at ₹755 crore.
The company has therefore been attempting to improve profitability across its businesses while protecting its core television network and investing in digital growth.
ZEE5’s move toward adjusted breakeven is consequently one of the more important positives in the company’s FY26 performance.
Traditional Television Remains Important
Despite ZEE5’s rapid growth, television remains a major component of Zee’s business.
Zee said its TV network share reached 17.4% in FY26, an increase of 60 basis points year over year and the company’s highest level in three years.
This gives Zee a diversified media portfolio spanning television, streaming and movies.
The challenge is to ensure that the digital business grows without weakening the economics of its established television operations.
Zee’s FY26 Business Mix
| Business Area | FY26 Trend |
|---|---|
| ZEE5 / Digital | Revenue +53% |
| Television | Network share 17.4% |
| Movies | Revenue +3% |
| Digital Q4 | Revenue +71% |
| Digital profitability | Adjusted EBITDA breakeven |
The combination gives Zee multiple platforms through which it can monetize content and audiences.
Competition In India’s Streaming Market Remains Intense
ZEE5 operates in one of the world’s most competitive streaming markets.
It competes for viewers and content with platforms including Netflix, Amazon Prime Video, Disney+ Hotstar and JioCinema, among others.
The market has increasingly shifted toward profitability as streaming companies face pressure to justify large content investments.
For ZEE5, the ability to reach adjusted EBITDA breakeven could provide an important competitive advantage because it demonstrates that the platform can grow without indefinitely relying on heavy investment.
The Bigger Picture
ZEE5’s FY26 performance marks a significant change in the economics of Zee Entertainment’s digital business. Revenue grew 53% to ₹1,489 crore, while adjusted EBITDA reached breakeven after accounting for the impact of changes in movie-rights inventory amortization. The platform also delivered its highest-ever quarterly revenue of ₹470 crore in Q4.
The contrast with the movie business is equally important. Movie revenue increased only 3%, while ZEE5 expanded more than 17 times faster on a percentage basis. This suggests that digital streaming is becoming an increasingly important growth engine for Zee as the company looks to build a more diversified and financially sustainable entertainment business.
Looking Ahead
ZEE5’s next challenge will be converting its adjusted EBITDA breakeven into sustained positive profitability. Maintaining revenue growth while controlling content costs, technology spending and customer-acquisition expenses will be critical. The record Q4 revenue and narrowing quarterly EBITDA loss provide a stronger starting point, but the platform will need consistent performance across multiple quarters to establish that the turnaround is durable.
For Zee Entertainment, the growing contribution from ZEE5 could gradually reshape the company’s business profile. If the streaming platform can sustain double-digit revenue growth and generate positive cash economics, it could become a more meaningful contributor to overall earnings alongside television and movies. The FY26 results suggest that Zee’s long-running investment in digital is moving closer to the point where growth and profitability can coexist
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