Shemaroo Entertainment Reports 11.5% Revenue Decline in Q2 FY26 Amid Market Challenges

Shemaroo Entertainment Limited , a prominent player in the Indian media and entertainment industry, has reported its financial results for the second quarter of fiscal year 2026, revealing a challenging period for the company amidst market headwinds.

Revenue and Profitability

For Q2 FY26, Shemaroo Entertainment reported a consolidated revenue from operations of INR 1,434.00 million, marking an 11.5% year-on-year decline from INR 1,621.00 million in Q2 FY25. The company's financial performance was significantly impacted, resulting in a net loss of INR 453.00 million for the quarter, compared to a net loss of INR 262.00 million in the same period last year.

Segment Performance

The company's performance across its business segments reflected the overall market challenges:

Digital Media: Revenue declined by 10.29% year-on-year to INR 602.00 million, primarily due to the deferment of syndication deals.
Traditional Media: Revenue fell by 12.40% to INR 831.00 million, with the broadcast business remaining under pressure.

Key Financial Metrics

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	1,434.00	1,621.00	-11.5%
EBITDA	-548.00	-265.00	-106.9%
EBITDA Margin	-38.20%	-16.33%	-2187 bps
Net Loss	453.00	262.00	-72.6%
EPS	-16.57	-9.59	-72.7%

Market Challenges and Impact

The company attributed the decline in performance to several factors:

Muted festive-season advertising, particularly impacting the broadcast business.
Subdued FMCG spending on television.
Reallocation of advertiser budgets towards sports properties due to a packed sports calendar.

Strategic Initiatives and Outlook

Despite the challenges, Shemaroo Entertainment continues to focus on strengthening its market position:

Launch of Shemaroo Josh: A new Hindi movie channel introduced on September 1, 2025, available on major DTH, cable, and DD Free Dish platforms.
Digital Growth: The company's YouTube channels showed strong performance, with Shemaroo FilmiGaane surpassing 73.5 million subscribers and Shemaroo Ent crossing 60 million subscribers.
Content Expansion: ShemarooMe Gujarati released 8 new titles during the quarter, including movies, web series, and plays.

The company remains cautiously optimistic about a gradual recovery in FMCG advertising spends in the coming quarters as the impact of the GST rate cut stabilizes and supply chain efficiencies improve.

Management Commentary

While specific management quotes were not provided, the company indicated its commitment to strengthening its balance sheet and enhancing operational efficiencies. These efforts are aimed at positioning Shemaroo Entertainment to unlock substantial long-term intrinsic value.

As Shemaroo Entertainment navigates through these challenging times, investors and industry observers will be keenly watching the company's strategic moves and their impact on future financial performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.12%	-1.92%	-1.24%	+11.53%	-32.48%	+104.15%

Shemaroo Entertainment Limited , a prominent player in the Indian media and entertainment industry, has announced significant leadership changes and released its financial results for the second quarter of fiscal year 2026. The company has made key appointments in its compliance team and approved a new employee stock option grant amidst challenging financial performance.

Leadership Changes

Shemaroo Entertainment has undergone a transition in its compliance leadership. The company announced the resignation of Namrata Shinde as Compliance Officer, effective November 4, 2025, citing personal reasons. To fill this crucial role, the board has appointed Meenakshi A. Pansari as the new Company Secretary and Compliance Officer, starting November 5, 2025.

Meenakshi Pansari brings a wealth of experience to her new position, with 12 years of overall post-qualification experience, including 9 years specifically in secretarial and compliance functions. Her qualifications as a Company Secretary and Cost Accountant, coupled with her multi-industry exposure across telecommunication, engineering, and service sectors, position her well for the role.

Employee Stock Option Grant

In a move to align employee interests with company performance, Shemaroo's board has approved a significant employee stock option (ESOP) grant. The company will issue a total of 590,485 stock options under its existing ESOP scheme, divided into two tranches:

480,485 options at Rs. 67 per share (40% discount to market price)
110,000 options at Rs. 100 per share (10% discount to market price)

This grant aims to incentivize and retain key talent within the organization.

Financial Performance

Shemaroo Entertainment's financial results for Q2 FY2026 reflect the challenging environment in which the company is operating. Key financial highlights include:

Metric	Q2 FY2026 (Rs. lakhs)	H1 FY2026 (Rs. lakhs)
Consolidated Revenue	14,338.08	28,289.72
Consolidated Net Loss	4,525.79	9,106.72
Standalone Revenue	13,521.16	26,624.72
Standalone Net Loss	4,633.29	9,325.64

The company's consolidated net loss for the quarter ended September 30, 2025, stood at Rs. 4,505.75 lakhs, while the half-year period saw a net loss of Rs. 10,083.25 lakhs.

Market Response

Despite the challenging financial results, Shemaroo's proactive approach to leadership changes and employee incentives demonstrates its commitment to strengthening its corporate governance and aligning employee interests with company performance. The market's response to these developments will be closely watched in the coming days.

As Shemaroo Entertainment navigates through this period of transition and financial pressure, stakeholders will be keen to see how the new leadership in compliance and the ESOP grant will contribute to the company's efforts to improve its financial performance and market position in the competitive media and entertainment landscape.