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:

1. 480,485 options at Rs. 67 per share (40% discount to market price)
2. 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:

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.

Shemaroo Entertainment Limited , a prominent player in the Indian media and entertainment industry, has reported its financial results for the first quarter, revealing significant challenges in its traditional business segments while showcasing growth in its digital media operations.

Financial Performance

The company reported a total revenue of ₹140.00 crores for Q1, marking a 10% year-on-year decline. The quarter ended with an EBITDA loss of ₹56.00 crores and a net loss of ₹46.00 crores, highlighting the pressures faced by the company in the evolving media landscape.

Segment-wise Performance

Shemaroo's performance showed a stark contrast between its traditional and digital media segments:

• Digital Media: Revenues grew by 18% year-on-year to ₹67.00 crores, demonstrating the company's successful pivot towards digital platforms.
• Traditional Media: Revenues fell by 26% to ₹72.00 crores, reflecting the challenges faced in the broadcast and syndication businesses.

Factors Impacting Performance

The company attributed the decline in traditional media revenues to several factors:

1. Re-entry of Major Broadcasters: The return of channels like Star Utsav, Colors Rishtey, Zee Anmol, and Sony Pal to the Free Dish platform led to a redistribution of viewership, impacting advertising revenues across channels by 15-25%.
2. Sports Calendar: A packed sports schedule diverted audience attention and advertising spend.
3. FMCG Advertising Softness: Ongoing weakness in FMCG advertising further pressured the traditional entertainment business.

Strategic Initiatives and Investments

Despite the challenging quarter, Shemaroo continues to invest in its future:

• The company spent ₹32.00 crores on new initiatives during Q1.
• It maintains an accelerated inventory charge-off of approximately ₹35.00 crores quarterly, with a total planned charge-off of ₹140.00 crores.

Digital Growth Highlights

Shemaroo's digital platforms showed strong performance:

• ShemarooMe Gujarati released six new titles, including blockbuster films and web series.
• The company's YouTube channel, Shemaroo Filmi Gaane, crossed 72.5 million subscribers.
• Across its digital portfolio, Shemaroo garnered more than 10 billion views during the quarter.

Financial Position and Outlook

• Current debt stands at ₹306.00 crores, a slight increase of ₹5.00 crores from March.
• Management expects continued pressure on broadcast revenues but anticipates slower decline rates going forward.
• A seasonal pickup in advertising spend is expected during the upcoming festive season.

Management Commentary

Hiren Gada, CEO of Shemaroo Entertainment, stated, "We remain cautiously optimistic about a seasonal pickup in advertising spend in the upcoming quarter, supported by the festive season and strong viewership momentum in our digital platforms. However, margins are expected to remain under pressure due to the ongoing accelerated inventory charge-offs."

Shemaroo Entertainment continues to focus on strengthening its balance sheet, driving operational efficiencies, and positioning the company to unlock long-term value in the evolving media landscape.