Shemaroo Ent Q1FY26 revenue dips 9.6% YoY; Digital grows 17.7%, traditional business slumps 25.7%

With a net profit of Rs 458 million in Q1 FY 2026 and a total revenue of Rs 1,395 million, Shemaroo Entertainment saw an income decline of 9.63% year-on-year in the period.

In Q1 of FY25, its income from operations stood at Rs 1,544 million.

For the full fiscal year 2025, the revenue from operations stood at Rs 6,851 million, versus Rs 7,072 million in FY24.

Read more: Shemaroo suffers loss of Rs 36.5 crore amid ad crunch

"Recognizing the evolving dynamics of the broadcasting market, the company is implementing a range of strategic measures, rationalizing costs for select channels, repositioning others, and reinforcing its investment strategy across the portfolio," the company said in the statement.

Traditional TV declines; uptick in digital

While the company's revenue declined by 9.6% year-on-year led by traditional businesses declining 25.7% year-on-year, its digital business grew by 17.7% in the same period.

Its YouTube channel 'Shemaroo Filmi Gaane' crossed 72.5 million subscribers in this quarter and the company garnered more than 10 billion views during the quarter across its portfolio channels.

Meanwhile, the re-entry of major broadcaster channels (Star Utsav, Colors Rishtey, Zee Anmol, Sony Pal) on the Free Dish platform led to a redistribution of viewership within FTA, impacting existing GECs and Hindi movie channels.

Read more: From Margins to Mainstream: India’s OTT boom turns regional to capture Bharat’s diverse viewers

Along with the above, a packed sports calendar and continued softness in FMCG advertising further intensified headwinds across all traditional entertainment businesses.

The company said that it is hopeful of a seasonal uptick in advertising spends in the upcoming quarters, driven by the festive period and strong viewership momentum on digital platforms.

"The company’s margins are expected to remain under pressure due to the ongoing accelerated inventory charge-offs—a strategic initiative undertaken six quarters ago

These charge-offs are accounting adjustments with no effect on content monetization or the company’s ability to generate free cash flows, " it said.

Read more: Shemaroo Entertainment hires Saurabh Srivastava as chief operating officer, digital business

Looking ahead, the company remains committed to strengthening its balance sheet and enhancing operational efficiencies, positioning itself to unlock substantial long-term intrinsic value.