Citi has reiterated its Sell rating on Zee Entertainment Enterprises Ltd and assigned a target price of ₹110 per share, indicating a 17% downside from the current market price of ₹133.00.
The brokerage flagged a broad-based revenue decline in Q1FY26, with total revenue falling 14% year-on-year. Advertising revenue dropped 14%, while subscription revenue slipped 1% YoY. Other income saw a sharp 64% fall, primarily due to a weak movie slate during the quarter.
Despite some cost control measures, EBITDA declined 16% YoY, and the margin came in at 12.5%, reflecting overall pressure on the company’s financial performance.
Citi remains cautious on Zee’s near-term prospects, citing continued challenges in its core broadcasting and content businesses.
Disclaimer: The brokerage views expressed above are those of Citi. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
