Buy Zee Entertainment Enterprises; target of Rs 120: ICICI Securities

ICICI Securities is bullish on Zee Entertainment Enterprises has recommended buy rating on the stock with a target price of Rs 120 in its research report dated January 23, 2026.

Broker Research

January 23, 2026 / 15:01 IST

Buy

ICICI Securities's research report on Zee Entertainment Enterprises

In Q3FY26, subscription revenue grew 7% YoY, driven by Zee5 and the renewal of B2B broadcast contracts. Zee5 turned EBITDA positive this quarter, reporting EBITDA of INR 564mn. Other sales and services grew 6x YoY, driven by distribution income from Kantara 2 and Akhanda 2. TV market share gain of 60bps YoY remained a key positive for the linear TV segment. Advertising revenue declined 9% YoY, primarily due to continued FMCG softness, though it improved 6% QoQ. Management expects advertising recovery to be gradual driven by GST cuts and a pickup in brand-building initiatives by FMCG players. While the stock remains inexpensive at current market prices, we believe a tangible recovery in advertising income is crucial for re-rating.

Outlook

We maintain BUY with a revised TP of INR 120 (INR 185), based on an 18x one-year forward P/E multiple (FY27E). Key risks: Slower recovery in ad/subscription revenue; and slower execution of cost optimisation measures.

For all recommendations report, click here