Shemaroo losses widen as advertising slowdown hits core media business

Shemaroo Entertainment’s December-quarter performance remained under pressure as a slowdown in its traditional media businesses continued to outweigh gains from digital operations.

The company reported a 2.2% year-on-year decline in revenue from operations to ₹160.7 crore in Q3 FY26, while consolidated revenue for the nine months ended December 31, 2025 fell 7.7% to ₹443.6 crore.

Digital media once again emerged as the stronger-performing segment during the quarter, with revenue rising 13.8% to ₹80.7 crore. However, this growth was insufficient to offset a 14.4% contraction in traditional media revenue, which dropped to ₹80.0 crore amid a tougher broadcast environment and muted advertising demand.

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Higher expenses further weighed on profitability. Total costs climbed to ₹228.1 crore in the quarter, resulting in an EBITDA loss of ₹67.4 crore, compared with a loss of ₹42.3 crore in the same period last year. EBITDA margins deteriorated sharply to -41.93%.

Net loss for the quarter widened to ₹54.9 crore from ₹36.5 crore a year earlier, while earnings per share (not annualised) declined to -₹20.28.

For the nine-month period, losses deepened further. EBITDA loss more than doubled to ₹177.6 crore, while net loss expanded to ₹146.2 crore, reflecting sustained pressure on margins even as the company continued to invest in content and digital platforms.

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The performance also reflects the impact of accelerated inventory write-downs and a challenging advertising environment, particularly in FMCG, which has remained soft across the industry.

On the digital side, Shemaroo continued to add content to its OTT and online video portfolio during the quarter, while its YouTube channels saw subscriber additions and high viewership volumes. However, these gains have yet to translate into overall profitability.