Financial Performance Highlights (Q1 FY27)

  • Revenue from operations: ₹132 crores (6% year-on-year decline)
  • EBITDA loss: ₹2 crores (significantly narrowed from ₹56 crores loss in Q1 FY26)
  • Net loss: ₹8 crores (materially reduced from previous year)
  • Investment in new initiatives: ₹20 crores
  • Adjusted EBITDA for existing operations (excluding new initiatives): ₹18 crores
  • Digital media revenues: ₹56 crores (17% year-on-year decline)
  • Traditional media revenues: ₹76 crores (5% year-on-year growth)
  • Debt position: ₹311 crores as of quarter end
  • Inventory position: ₹348 crores as of quarter end

Operational Highlights

Digital Business Performance:

  • Digital revenue decline attributed to deferred B2B syndication deals due to geopolitical uncertainty
  • Healthy growth in consumer business driven by fresh content, stronger audience engagement, and improved advertising monetization
  • ShemarooMe Gujarati platform acquired OHO Gujarati catalogue in April 2026, adding over 22 Gujarati original web series
  • Released 10 new titles during the quarter across movies, web series and plays
  • Key releases included original web series Kajodu, world digital premiere of Jalebi Rocks, Vitthal Teedi Season 1, Kadak Meethi Season 1 and 2, and Cutting Season 1

YouTube Performance:

  • Shemaroo Filmi Gaane: 74.7 million subscribers
  • Shemaroo Entertainment: 61.9 million subscribers
  • Total portfolio views: Approximately 9 billion views during the quarter

Syndication and Recognition:

  • Became worldwide digital and satellite distribution partner for Malayalam action thriller Kattlan
  • AI-powered campaign "Kindness Badhaye Goodness" received industry recognition:
  • Baby Blue Elephant at Kyoorius Creative Awards 2026
  • Bronze at Good Ads Matter Awards

Management Commentary and Outlook

Revenue Guidance:

  • Aiming for double-digit plus growth rate
  • Intending to outperform industry digital media growth (recent industry growth roughly low double digit)
  • Digital media expected to show double-digit growth
  • Traditional media expected to be flat to flattish
  • Blended growth target: Healthy double-digit growth rate

Profitability Outlook:

  • Expect EBITDA positivity for the current year
  • Confident of bottom-line profitability next year
  • Margin aspiration: Upwards of 20% EBITDA in 2-3 year perspective
  • Every quarter should show quarter-on-quarter improvement

Debt and Investment Strategy:

  • Debt reduction plan for the year (specific amount not quantified due to geopolitical uncertainty and BARC blackout impact)
  • New initiative investment reduction target: More than 50% in FY27 compared to FY26
  • Investment focus pivoted toward digital media and reduced from traditional media
  • Significant operational efficiency drive ongoing

Business Segment Analysis

Content Monetization Strategy:

  • Library content fully utilized with strong digital traction (9 billion quarterly views)
  • Legacy content margins: 80%-90% (underlying cost written off)
  • New content acquisition margins: Variable (could be zero, minus, or marginally positive)
  • Traditional media monetization steadily reducing over last 2-3 years
  • Digital monetization on growth trajectory across YouTube, Meta, subscription platforms, international platforms

ShemarooMe OTT Platform:

  • Focus on Gujarati entertainment market
  • Offers two-year subscription plan (unique in Indian market)
  • Route to profitability: Build significant permanent subscriber base and minimize churn
  • Timeline to profitability: Approximately 2 years away
  • Not disclosing DAUs, MAUs, paid subscribers, or platform-specific revenue at this time
  • Strong double-digit revenue growth trajectory maintained

Traditional TV Business:

  • Channels include Shemaroo TV, Shemaroo Umang, MarathiBana, Shemaroo Josh
  • Monetization completely dependent on advertising
  • Advertising market remained subdued over long period
  • Some channels not at break-even due to advertising environment
  • Investments being pared down significantly

Market Challenges

  • BARC ratings blackout impacting traditional media revenue
  • Geopolitical uncertainty affecting B2B syndication deals
  • Ongoing macroeconomic pressures
  • Subdued advertising environment for traditional business
  • Structural shift in media industry from traditional to digital business models

Technological Initiatives

  • FAST channels: Operating two channels (Shemaroo Bollywood and Shemaroo Filmi Gaane)
  • FAST ecosystem globally degrowing in last 12-18 months
  • Connected TV focus: Better monetization through long-form content
  • YouTube Shorts: Monetization still not significant despite content investments
  • Micro-drama capability: Technologically ready but waiting for monetization clarity