Event Participants
Executives
3 Arghya Chakravarty, Ashish Gupta, Hiren Uday Gada
Analysts
6 Akshay Darji, Chirag Maroo, Dhwanil Desai, Rehan Saiyyed, Ronak Pathak, Unknown Analyst (360 ONE Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹132 crores | Down 6% YoY; digital decline partially offset by traditional media growth |
| Digital Media Revenue | ₹56 crores | Down 17% YoY; select B2B syndication deals deferred on geopolitical uncertainty and lumpy B2B nature, partially offset by healthy consumer business growth |
| Traditional Media Revenue | ₹76 crores | Up 5% YoY; closure of select B2B licensing deals more than offset subdued advertising environment |
| EBITDA (Reported) | -₹2 crores | Sharp improvement from -₹56 crores in Q1 FY26; loss materially narrowed |
| EBITDA excl. New Initiatives | ₹18 crores | Normalized ~14% margin; reflects core operating profitability before growth investments |
| Net Loss | ~₹8 crores | Materially reduced YoY |
| New Initiative Expenses | ~₹20 crores | Investments in digital initiatives; guided >50% reduction for FY27 vs FY26 |
| Total Debt | ₹311 crores | Closing quarter debt; FY27 debt reduction plan in place, quantum not quantified |
| Content Inventory | ₹348 crores | Post charge-off completion, now in normal amortization/charge-off cycle |
| Portfolio YouTube Views | ~9 billion | Sustained digital engagement across entire channel portfolio for the quarter |
| YouTube Subscribers | Filmi Gaane: 74.7M; Shemaroo Ent: 61.9M | Both flagship channels crossed subscriber milestones during the quarter |
Geographic & Segment Commentary
Digital Media: Revenue of ₹56 crores, down 17% YoY. Decline driven by deferred select B2B syndication deals on geopolitical uncertainty, partially offset by healthy consumer business growth from fresh content, stronger audience engagement, and improved advertising monetization. Portfolio generated ~9 billion views in the quarter, reflecting strong content traction on digital platforms.
Traditional Media: Revenue of ₹76 crores, up 5% YoY, driven by closure of select B2B licensing deals. Advertising outlook expected to remain subdued in the near term given ongoing BARC blackout, macroeconomic pressures, and geopolitical tensions. Free Dish channels remain fully ad-dependent, with some channels not yet at EBITDA breakeven.
ShemarooMe Gujarat (OTT): Acquired OHO Gujarati catalog in April 2026, adding 22+ Gujarati original web series. Released 10 new titles during the quarter across movies, web series, and plays, including original web series Kajodu and World Digital Premier of Jalebi Rocks. Platform on strong double-digit revenue growth trajectory; management not disclosing subscriber/revenue data; profitability estimated ~2 years away.
Company-Specific & Strategic Commentary
Inventory Charge-off Completion: Quarter marks the first full period following the successful completion of the 10-quarter inventory charge-off initiative; company now operates in a normal charge-off cycle, with content inventory at ₹348 crores and no residual write-down risk.
Content Library Monetization: Management asserts no under-monetization of library - ~9 billion quarterly views demonstrate strong digital traction. Charged-off legacy content yields 80-90% margins; fresh acquisitions yield variable margins (0% to negative to marginal) depending on acquisition economics and competitive bidding. Marquee titles (Welcome, Jab We Met, Phir Hera Pheri) are top performers on YouTube and other platforms.
Digital Pivot & New Initiative Rationalization: New initiative spends of ₹20 crores in Q1; FY27 guided reduction of >50% vs FY26 and on track. Traditional new initiatives being scaled down via channel rationalization and reduced content creation, while digital content acquisition is being dialed up; focus shifted toward digital media over the last ~3 quarters.
ShemarooMe Differentiation: Platform offers a unique 2-year subscription plan - virtually unseen among Indian OTT platforms - with decent uptake, signaling consumer brand trust and willingness to commit long-term.
FAST Channels & Connected TV: FAST channel portfolio scaled down to 2 channels (Shemaroo Bollywood, Shemaroo Filmi Gaane) as the global FAST ecosystem has degrown over the last 12-18 months; remains experimental. Strategic focus shifting toward connected TV long-form consumption, which carries significantly better monetization than short-form.
Micro Dramas / Short Form: Company is technically ready on OTT backend to accommodate micro dramas and is investing in experiments, but will not go full throttle on content acquisition until monetization clarity emerges.
AI & Creative Recognition: First AI-powered brand campaign "Kindness Badhaye Goodness" won Baby Blue Elephant at Kyoorius Creative Awards 2026 and Bronze at Good Ads Matter Awards.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Overall Revenue Growth | Healthy double-digit growth for FY27 | Digital expected to grow double-digit (industry growth + ~2pp); traditional flattish, not degrowth |
| EBITDA | Positive for FY27 (aim) | Quarterly QoQ improvement expected; driven by revenue growth, cost reduction, and favorable revenue mix; management cautious given BARC blackout and geopolitical uncertainty |
| Bottom Line | Positive in FY28 | Management "very confident" of P&L profitability next year |
| New Initiatives Spend | >50% reduction in FY27 vs FY26 | Well on track; driven by channel rationalization and scaled-down traditional content creation |
| Debt Reduction | Plan in place for FY27 | Quantum not specified; quarterly ups/downs possible due to geopolitical situation and BARC blackout impact |
| EBITDA Margin | 20%+ aspiration over 2-3 years | Structural shift to digital is changing industry margin profiles; operational efficiencies and legacy content mining expected to drive expansion |
| ShemarooMe Profitability | ~2 years away | Route to profitability: build large permanent live base, minimize churn; renewing customers carry no acquisition cost |
Risks & Constraints
| Risk | Context |
|---|---|
| BARC Ratings Blackout | Ongoing ratings blackout negatively impacting traditional media syndication revenue and ad sales, with secondary effects on television-linked businesses; management expects subdued traditional advertising outlook in the near term |
| Geopolitical Uncertainty | Deferred select B2B syndication deals, causing 17% YoY decline in Q1 digital revenue; also creating quarterly variability in debt reduction trajectory |
| Structural Decline of Traditional Media | TV/linear monetization has been steadily degrowing over 2-3 years; Free Dish channels are fully ad-dependent with some not at EBITDA breakeven; industry-wide structural shift is compressing legacy margin structures |
| Subdued Advertising Environment | Macroeconomic pressures keeping advertising market weak; channel monetization steady but insufficient for breakeven on some traditional channels |
| Emerging Format Monetization Risk | YouTube Shorts monetization needle has not moved despite expectations; FAST ecosystem globally degrowing - both formats remain experimental with unclear monetization paths |
Q&A Highlights
Normalized EBITDA & Margin Run-Rate
- Question: Excluding the ₹196 million new initiatives investment, what would have been the normalized EBITDA margin, and what revenue threshold is required for positive EBITDA? (Rehan Saiyyed)
- Answer: Excluding investments, EBITDA would have been a gain of ₹18 crores vs. reported loss of ₹2 crores. No single revenue threshold exists - margin improvement depends on revenue growth, cost reduction, and revenue mix, as all revenues carry different margins. (Hiren Gada, Ashish Gupta)
Content Library Monetization
- Question: How much of the library remains commercially under-monetized? (Rehan Saiyyed)
- Answer: There is no under-monetization - 9 billion views in the quarter prove strong digital traction. Traditional media monetization is degrowing, but digital monetization across YouTube, Meta, subscription, and international platforms is on a growth trajectory with strong predictability. (Hiren Gada)
FY27 Growth & Revenue Breakup
- Question: What is the revenue breakup and growth guidance for FY27, and when will P&L profitability arrive? (Unknown Analyst, 360 ONE Capital)
- Answer: Digital to grow double-digit, traditional flattish, leading to overall double-digit top-line growth. EBITDA-positive for FY27 is the aim; bottom-line positive expected next year, "very confident." Debt reduction plan exists but quantum not committed given quarterly variability. (Hiren Gada)
Digital Growth Aspiration vs. Prudent Capital Allocation
- Question: Given FY24-26 digital growth of ~19%, isn't 20%+ growth fair to aspire to? (Dhwanil Desai)
- Answer: Growth must be at the right cost - ShemarooMe could scale up faster with more burn, but the company balances growth with profitability within available cash flow and balance sheet constraints. Industry digital growth itself is in low double-digits; company aims to outdo it by ~2pp. (Hiren Gada)
Margin Hierarchy Across Platforms
- Question: Is YouTube the highest-margin business, followed by syndication and pre-approved work? (Dhwanil Desai)
- Answer: Margins depend on content ownership and charge-off status, not platform. Legacy/charged-off content yields 80-90% margins regardless of platform; freshly acquired content margins depend on competitive acquisition pricing and IRR assumptions. (Hiren Gada, Arghya Chakravarty)
New Initiatives Reduction - Channel Shutdowns?
- Question: How will the >50% new initiatives reduction be achieved - are channels being shut down? (Dhwanil Desai)
- Answer: Traditional new initiatives are being scaled down via channel rationalization and significantly reduced content creation, while digital content acquisition is being dialed up. Reduction is well on track for FY27. (Ashish Gupta, Hiren Gada)
ShemarooMe Breakeven Timeline
- Question: How long before the OTT platform reaches normalized tech/employee spends and breakeven? (Chirag Maroo)
- Answer: Tech and team costs are ongoing variable OpEx, not one-time CapEx. Two largest costs are customer acquisition and content. Unique 2-year subscription plan uptake shows strong consumer trust. Profitability is ~2 years away, similar to most OTT platforms; route is building a permanent live base and minimizing churn. (Hiren Gada, Ashish Gupta)
YouTube Views & Shorts Monetization
- Question: YouTube views look flat - is that a concern? And any update on Shorts monetization policy changes? (Chirag Maroo)
- Answer: Views fluctuate with seasonality and external events; viewership share remains very strong across categories, and new content will convert to revenue in coming quarters. No movement on Shorts monetization - YouTube's focus appears to be on connected TV and long-form, which carries better monetization; revenue per view matters more than raw views. (Ashish Gupta, Arghya Chakravarty, Hiren Gada)
ShemarooMe Disclosure & Data Transparency
- Question: Will subscriber/MAU/DAU or OTT revenue data be disclosed at a certain scale? (Chirag Maroo, Akshay Darji)
- Answer: No subscriber/ARPU/revenue data will be shared at this point; platform is on a strong double-digit revenue growth trajectory. Too early to speculate on disclosure thresholds; management open to discussing incremental disclosure offline. (Hiren Gada, Ashish Gupta)
FAST Channels & Micro Dramas
- Question: How are FAST channels performing, and are there plans to enter short dramas given 400% ad spend surge? (Ronak Pathak)
- Answer: FAST ecosystem globally degrowing over 12-18 months; company scaled down to 2 channels, currently at experimental monetization stage. Micro dramas: technically ready on OTT backend, investing in experiments, but not pressing the pedal on content acquisition until monetization clarity emerges. (Hiren Gada, Arghya Chakravarty)
TV Channel Breakeven
- Question: Have Shemaroo TV, Shemaroo Umang, MarathiBana, and Shemaroo Comedy reached individual breakeven? (Ronak Pathak)
- Answer: No - Free Dish channels are fully ad-dependent, and with a persistently subdued advertising market, some channels are not at EBITDA breakeven. Traditional new initiative investments have been pared down significantly. (Arghya Chakravarty)
Balance Sheet - Inventory & Debt
- Question: Are there any remaining inventory write-down risks, and what is current debt and inventory? (Akshay Darji)
- Answer: No write-down risk - now in normal charge-off cycle per consumption policy. Debt closed at ₹311 crores; content inventory at ₹348 crores. (Hiren Gada, Ashish Gupta)
Key Takeaway
Shemaroo reported Q1 FY27 revenue of ₹132 crores (-6% YoY) as digital revenue fell 17% to ₹56 crores on deferred B2B syndication deals amid geopolitical uncertainty, partially offset by 5% traditional media growth to ₹76 crores. EBITDA loss narrowed sharply to ₹2 crores from ₹56 crores YoY, with net loss at ₹8 crores; excluding ₹20 crores of new initiative investments, core EBITDA was ₹18 crores (14% margin). The quarter marked the first full period after completing the 10-quarter inventory charge-off, with debt at ₹311 crores and content inventory at ₹348 crores. Management aims for healthy double-digit revenue growth in FY27 (digital outpacing industry by ~2pp, traditional flattish), an EBITDA-positive year, and bottom-line profitability in FY28, with ShemarooMe profitability ~2 years away. Watch points include BARC blackout impact on traditional advertising, execution of the >50% new initiatives spend reduction, and progress toward the 20%+ EBITDA margin aspiration.