Zee Entertainment Enterprises' stock has surged 20% over the past five sessions, reaching a nearly six-month high of Rs 99.44 per share on Monday morning. This rally has increased the company's market capitalisation to Rs 9,551 crore.
The surge is attributed to speculation that Zee is close to securing India media rights for the 2026 FIFA World Cup after Reliance Industries' JioStar exited the race. Zee confirmed in an exchange filing last week that it is in discussions with FIFA to broadcast and stream the World Cup in India, as part of its strategy to enhance its sports content offering.
The 2026 FIFA World Cup is scheduled to take place from June 11 to July 19 in the United States, Canada, and Mexico. Sources told The Economic Times that JioStar had made a final offer of approximately $15 million before withdrawing, citing limited time for monetisation due to the narrow window between the agreement signing and the tournament start.
Zee had previously exited sports broadcasting in 2016 after selling Ten Sports to Sony Pictures Networks India for $385 million. However, the company re-entered the sports arena in 2021 by acquiring long-term global media rights for the International League T20 (ILT20) in a deal estimated at $100-150 million. Zee is now focusing on sports with plans to launch four channels: Unite8 Sports 1 and Unite8 Sports 1 HD in Hindi, and Unite8 Sports 2 and Unite8 Sports 2 HD in English.
Zee's shares have gained over 20% in one week and 11% in one month, although they have declined nearly 24% over the past year, 48% in three years, and 53% in five years. The stock currently has a P/E ratio of more than 32x.
Earlier in May, Zee reported a consolidated net loss of Rs 104 crore for the January-March quarter of FY26, compared to a net profit of Rs 188 crore in the same period the previous year. Operating revenue declined 7% to Rs 2,025 crore in Q4 FY26, down from Rs 2,184 crore in the corresponding quarter of the previous financial year. The EBITDA loss stood at Rs 269 crore versus Rs 285 crore in Q4 FY25 and Rs 240 crore in Q3 FY26. The adjusted EBITDA declined 51% YoY and 42% QoQ.
Background
Zee's re-entry into sports broadcasting marks a significant shift in its strategic direction, aiming to capture a larger share of the sports content market.
Investors will be closely watching Zee's negotiations with FIFA and its potential impact on the company's financial performance and market position.
