Zee Entertainment Enterprises (Z IN) – Q4FY26 Result Update – Margins hit due to change in movie amortization policy – Downgrade to ‘ACCUMULATE’
Published on 20 May 2026
We cut our EPS estimates by 20%/18% for FY27E/FY28E and downgrade Z IN to ACCUMULATE (earlier BUY) with a TP of Rs91 (10x FY28E EPS; earlier 11x) as we fine tune our domestic ad-revenue growth forecast and operating cost assumptions given change in movie amortization policy. Z IN reported weak operational performance with EBITDA loss of INR2,686mn (PLe EBITDA profit INR2,219; CE INR2,183mn) due to an accelerated charge of INR4,084mn arising from a change in movie amortization policy. Nonetheless, ad-revenues showed some signs of recovery with growth hovering around the low single digit mark adjusting for crisis ridden March. We expect revenue CAGR of 4.0% over FY26-FY28E with EBITDA margin of 12.9%/14.4% in FY27E/FY28E. Z IN trades at 11x/9x our FY27E/FY28E EPS. Downgrade to ACCUMULATE with a TP of Rs91 (10x FY28E EPS).
