Shemaroo Entertainment Ltd (SHEMAROO) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 H1 FY 2027 conference call of Shemaroo Entertainment Limited, hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you.
Purvangi Jain (Valorem Advisors): Thank you. Good afternoon, everyone, and a warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the investor relations of Shemaroo Entertainment Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the second quarter and the first half of the financial year 2027. Before we begin, a quick cautionary statement. Some of the statements made in today's concall may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now, I would like to introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Hiren Gada, CEO, and Mr. Ashish Gupta, CFO. Without any delay, I request Mr. Ashish Gupta to start with his opening remarks on the financial highlights. Thank you, and over to you, sir.
Ashish Gupta (Shemaroo Entertainment Ltd): Thank you, Purvangi. And good afternoon, everyone. And welcome to our earnings call for the second quarter and the first half of the financial year 2027. Let me first start by giving you some of the key financial highlights, after which, our CEO, Mr. Hiren Gada, will give you some operational highlights for the quarter under review. For the second quarter of the financial year 2027, revenues from operations stood at approximately INR 141 crores,
Ashish Gupta (Shemaroo Entertainment Ltd): year-on-year decline. The company significantly narrowed its EBITDA loss to around INR2 crores compared to INR55 crores in the corresponding quarter last year. Net loss also reduced materially from INR45 crores in quarter two FY '26 to approximately INR8 crores in quarter two FY '27. Now, for the first half of the year ended 2027, the revenue from operations stood at around INR273 crores. The company significantly narrowed its EBITDA loss to around INR4 crores compared to INR110 crores in the H1 of FY 2026. Net loss also reduced materially from 1- INR91 crores in H1 FY '26 to approximately 16 crores in FY in H1 FY '27. The reduction in losses was primarily attributable to the completion of accelerated amortization two quarters ago, along with the benefits of strategic cost optimization and investment initiatives undertaken by the company. With regards to the new initiative, the expenses in the second quarter of financial year 2027 amounted to INR20 crores. Adjusting for these investments, the EBITDA from existing operations for the quarter would have been around INR18 crores. The same expenses for first half of the financial year 2027 amounted to INR40 crores. Adjusting for these investments, the EBITDA from existing operations for the first half of the financial year 2027 would have been around INR35 crores. The Digital Media revenue for the second quarter stood at approximately INR76 crores, registering an year-on-year growth of 26%. Traditional Media revenues for the quarter were around INR66 crores, down by 21% year-on-year. For the first half of the financial year 2027, Digital Media revenues grew by 3% year-on-year to INR131 crores, while Traditional Media segment saw a degrowth of 9% year-on-year to INR142 crores. Now, I would request our CEO, Mr. Hiren Gada, to give you the operational highlights for the period under the review.
Hiren Gada (Shemaroo Entertainment Ltd): Thank you, Ashish. And good afternoon, everyone. Let me take you through the key operational developments and business performance for the quarter. To begin with, just to add to what Ashish just mentioned, Q2 FY '27 marks another quarter of progress in our ongoing transformation journey. While the overall operating revenue declined marginally by 2% year-on-year, we have continued to make meaningful progress on profitability, with EBITDA improving by 96% compared to the corresponding quarter last year. Improvement this improvement reflects our continued focus on operational efficiencies, cost rationalization, and a disciplined approach towards investments. Coming to the segment-wise performance, our Digital Media business delivered a strong performance, registering a year-on-year growth of 26% during the quarter. This growth was primarily driven by B2B licensing deals and improved YouTube advertising revenues, supported by healthy consumer engagement across our digital platforms. On the other hand, our Traditional Media business continued to face challenges, registering a 21% decline year-on-year. The prolonged BARC ratings blackout has impacted advertiser sentiment and weighed on television advertising revenues. Additionally, certain broadcasters have deferred their content investments, resulting in delays in the closure of television-related B2B licensing deals. Looking ahead, we remain cautiously optimistic about the business outlook. The coming festive season is expected to support advertising demand. However, persistent geopolitical uncertainties and increasing input costs faced by advertisers may continue to influence their spending decisions. Furthermore, the continuation of the BARC ratings blackout remains a near-term challenge for the television industry, and therefore, the Traditional Media revenues. In this environment, our focus remains on strengthening the digital business, rationalizing costs across the traditional business, and maintaining disciplined content investments. We are also continuing to drive operational efficiencies across the organization with the objective of improving profitability and building a more sustainable business model.
Hiren Gada (Shemaroo Entertainment Ltd): We released nine new titles during the quarter spanning movies, web series, and plays. Some of the key releases included movies: Lallu, Krishna Sada Sahaayate, and Zindagi Once More, along with web series such as Sab Khela Season 1, Chhada Chhani Bus, Tuition, and Ok Boss. These additions reflect our continued focus on strengthening our regional content library and delivering relevant entertainment to our audiences. YouTube. Coming to our YouTube business, we continue to achieve strong audience engagement across our channel portfolio. Our flagship channel, Shemaroo Filmi Gaane, surpassed 75 million subscribers, which was a very big milestone for us, while Shemaroo Entertainment crossed a milestone of 62.3 million subscribers during the quarter. Across our entire portfolio of channels, we garnered approximately 9.6 billion views during the quarter, demonstrating the continued reach and popularity of our content across digital platforms. On the syndication front, we continue to strengthen our distribution partnerships and expand the reach of our content. During the quarter, we became the worldwide digital and satellite distribution partner for Telugu film Rambha Urvasi Menaka. To conclude, while the operating environment continues to remain challenging, particularly for traditional media, we believe that the structural opportunity in digital entertainment remains encouraging. Over the last few quarters, we have been consciously realigning our business towards digital opportunities while rationalizing investments in traditional media and strengthening our operational efficiencies. Our focus remains on driving sustainable growth, improving profitability, and ensuring that our investments generate meaningful long-term returns. We remain confident in the strength of our content library, our distribution capabilities, and the digital platforms we have built. With that, with that, I now open the floor for question-answer session.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator: Ladies and gentlemen, to ask a question, please press star and one on your phone now.
Moderator: We'll take our first question from the line of Gaurav Patel, an individual investor. Please go ahead.
Gaurav Patel: Hello, sir. Can you hear me?
Hiren Gada (Shemaroo Entertainment Ltd): Yeah, I can hear you.
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