ZEEL Share Price: Is There More Steam to the Rally?

In the past few trading sessions, Zee Entertainment Enterprises (ZEEL) share price has moved up following a big development.

The company’s board recently approved the issuance of convertible warrants to its promoter group entities on a preferential basis, thereby raising close to Rs 2,200 crore. 

This move is aimed at strengthening the media company’s financial base and accelerating its strategic ambitions in the content and technology sectors.

In a month, the stock price has smartly climbed from Rs 120 odd levels to Rs 140.

ZEEL Share Price in 2025 so far

Source: Google

Let’s understand whether the stock has enough steam left or will the momentum die down.

Promoter Infusion

Earlier this week, the board of directors of Zee Entertainment Enterprises approved the issuance of up to 16.95 crore fully convertible warrants to promoter group entities on a preferential basis at Rs 132 per warrant.

With this, the company raised a total of Rs 2,237.4 crore. 

Following this preferential allotment, which is subject to shareholder approval, the promoter group’s stake will rise to 18.39%. As of March 2025, promoter holding in ZEEL stands at 3.99%.

After conversion of the warrants, the stake of mutual funds, which is 9.49% at the end of the March 2025 quarter, will reduce to 8.1%; insurance companies will decline to 5.2% and foreign portfolio investors’ stake will come down to 19.4% from 22.8%. 

Retail investors will see their stake fall to 28.6% from 33.6%, according to data from the BSE.

Commenting on this stake hike, ZEEL’s chairman R Gopalan said the promoter stake enhancement is part of its broader strategy with regard to the firm’s future growth plans. Last month, Zee announced that it was transforming to a content and technology company as it sought to get future-ready.

A Close Look at ZEEL’s Financials

For the financial year ended March 2025 (FY25), ZEEL clocked a revenue of Rs 8,294 crore and net profit of nearly Rs 680 crore. 

While its revenue was down 4% for the year amid tightening of ad budgets by advertisers, net profit rose four-fold as the company pruned costs and workforce in a bid to improve earnings.

In FY24, ZEEL had clocked a profit of Rs 140 crore and Rs 48 crore a year before that.

In the past few quarters, ZEEL has increased its focus on improving margins and giving a push to content and technology initiatives after it failed to merge with Sony amid consolidation in the domestic media market.

At the end of March 2025, ZEEL had a cash & cash equivalent balance of Rs 2,406 crores.

Source: Investor Presentation

What Next for ZEEL?

For FY26, Zee Entertainment has ambitious plans to boost its revenue and improve margins to 18% from the current 15%.

In FY25, ad revenues had declined by 11% YoY due to a weak ad environment, a busy sports calendar, and a high base in the previous year.

However, ZEEL is targeting double digit growth in revenue for the advertisement segment in FY26. The company also plans to ramp up efforts and unlock value via music and syndication segments.

It is set to channel 40% of its free cash flow into building up its regional content, music business, digital platforms, and international presence.

The company is also widening its content reach through Free-to-Air TV, connected TV, and FAST channels. To boost the reach and monetisation of ZEE5, Zee has tied up with telecom players.

By FY28, the goal is to double advertising contributions and share the gains with investors, setting aside 25-30% of net profits as dividends.

Conclusion

Going by the recent developments, ZEEL is poised for major growth if all goes according to the plan. Nevertheless, the media sector is highly regulated and any changes could materially impact the company’s performance.

Investors should also remember that the sector is highly sensitive to shifts in consumer preferences and advertising cycles – both of which can impact growth and profitability.

For more details, check out ZEEL’s complete share price analysis on our website.

Happy Investing.

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