Motilal Oswal has maintained a Neutral rating on Zee Entertainment with an unchanged target price of ₹100 in its research report dated August 10, 2026. According to the brokerage's analysis, the target price is based on approximately 14x September 2028 estimated P/E ratio. The stock is currently trading at ₹91.56 as of August 11, 2026, with nearest price targets of ₹90.78 on downside and ₹94.72 on upside.
Zee Entertainment delivered another subdued quarter with advertisement revenue declining approximately 11.5% year-on-year and EBITDA slumping around 65% year-on-year, representing a 7% miss against estimates. However, the company showed resilience in subscription revenue, which grew robust 16% year-on-year (partly benefiting from FIFA'26), as reported by Motilal Oswal. The stock closed at ₹91.56 on August 11, 2026, marking a -3.03% decline from the previous close of ₹94.42.
Zee5 delivered strong performance with robust 58% year-on-year revenue growth and achieved adjusted EBITDA profitability for the third consecutive quarter. This digital platform turnaround has been a key positive for the company's overall performance, according to Motilal Oswal's analysis. The digital transformation continues to provide a strong foundation for the company's diversified revenue streams.
Despite the digital success, the continued decline in linear TV profitability remains a concern. Linear TV revenue declined 5.5% year-on-year while EBITDA fell 75% year-on-year, as reported by Motilal Oswal. This decline continues to offset the positive momentum from Zee5's turnaround efforts, highlighting the ongoing challenges in traditional TV operations.
Motilal Oswal projects a CAGR of 4% in revenue over FY26-29E, while expecting FY29 EBITDA and PAT to remain below FY25 levels. The brokerage has reiterated its Neutral rating based on the company's mixed performance across different business segments and the ongoing challenges in traditional TV operations. Recent market performance shows the stock moving within a range of ₹90.00-₹93.94 with significant trading volumes, indicating active investor interest despite the current challenges.
