'Traditional media pressures negated digital growth in Q3,' says Shemaroo MD Hiren Gada

Shemaroo Entertainment Limited’s third-quarter results underscored the divergent fortunes of its digital and traditional media businesses, as the company posted a marginal decline in revenue and widened losses.

Digital media revenues grew 14% year-on-year to approximately Rs 81 crore, while traditional media revenues fell 14% to around Rs 80 crore, reflecting pressures from a congested sports calendar, soft FMCG advertising, and the re-entry of major broadcasters on free-to-air platforms.

Revenue from operations for Q3 stood at Rs 161 crore, down 2% year-on-year. The company reported an EBITDA loss of Rs 67 crore and a net loss of Rs 55 crore. For the first nine months of FY26, revenue declined 8% to Rs 444 crore, with cumulative EBITDA and net losses of Rs 178 crore and Rs 147 crore, respectively. Inventory write-offs of Rs 35 crore in Q4 further weighed on results.

Hiren Gada, vice chairman and managing director, described the quarter as challenging, noting that growth in digital was offset by pressures on the traditional business. “We are cautiously optimistic about a gradual recovery in FMCG advertising spend in the coming quarters,” he said.

The company’s debt stood at Rs 310 crore, up from Rs 295 crore in H1 FY26. Chief Financial Officer Amit Haria noted that higher utilisation of cash credit and overdraft facilities reflected increased cash requirements amid operational losses.

Looking ahead, Shemaroo is prioritising investment in its digital and OTT businesses. Chief Operating Officer Arghya Chakravarty said the company is focused on expanding YouTube content and strengthening OTT offerings, particularly in Gujarati content and Hindi originals. Established animation properties such as Bal Ganesh and Ghatothkach will remain a key monetisation driver.