JioStar Q2 profit drops 13% as ad slowdown offsets revenue growth
JioStar, the entertainment arm of Reliance Industries, reported a 13% year-on-year drop in Q2 profit to ₹1,147 crore, even as revenue rose 10% to ₹6,806 crore. The decline reflects pressures from a sluggish ad market and ongoing challenges in shifting linear TV ad revenue to digital platforms.
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30 SEC SUMMARY
- JioStar’s Q2 profit fell 13% year-on-year to ₹1,147 crore.
- Revenue grew 10% to ₹6,806 crore, driven by subscriptions and streaming.
- Ebitda dropped 14% to ₹1,502 crore, with margins shrinking to 14.4%.
- JioHotstar’s MAUs dipped to 440 million from 530 million in Q1 but stayed above year-ago levels.
- International expansion launched in the UK, Canada, and Singapore.
TABLE OF CONTENTS
KEY HIGHLIGHTS
- Q2 profit declined 13% year-on-year to ₹1,147 crore.
- Revenue increased 10% to ₹6,806 crore, supported by subscriptions and streaming.
- Ebitda fell 14% to ₹1,502 crore, with margins contracting to 14.4% from 17.5% a year ago.
- JioHotstar’s monthly active users (MAUs) dropped to 440 million from 530 million in Q1 but remained above the 400 million recorded in the year-ago quarter.
- Sports advertising grew due to cricket events, including the England-India series in July.
- Zee Entertainment Enterprises Ltd reported a 40% year-on-year decline in profits after tax.
Profit decline contrasts with revenue growth
JioStar’s profit after tax for the September quarter fell 13% year-on-year to ₹1,147 crore, despite a 10% increase in revenue to ₹6,806 crore. The company attributed the mismatch to a weak advertising environment and higher costs tied to content and international expansion.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) dropped nearly 14% to ₹1,502 crore. Margins shrank to 14.4% from 17.5% a year earlier, reflecting lower ad yields and the drag of transitioning linear TV ad revenue to digital platforms.
User base dips but holds above year-ago levels
JioHotstar’s monthly active users (MAUs) fell to 440 million in Q2 from 530 million in the previous quarter, a seasonal drop the company framed as temporary. The figure remained above the 400 million MAUs recorded in the same quarter last year.
The decline followed strong engagement in Q1, which included marquee cricket tournaments. JioStar’s marquee reality show, Bigg Boss, launched in six languages simultaneously and drew 90 million streaming viewers in its first three weeks.
Advertising pressures persist across formats
While overall ad revenue struggled, sports advertising grew during the quarter, boosted by the festive season and cricket events such as the England-India bilateral series. However, linear TV ad revenue continued to face structural challenges as advertisers shift budgets to digital platforms.
For the first half of fiscal 2026-27, JioStar’s revenue rose 12% year-on-year to ₹20,743 crore, while profit after tax declined nearly 5% to ₹1,812 crore. The gap underscores ongoing cost pressures in content and distribution.
International expansion begins in three markets
JioStar launched JioHotstar in the UK, Canada, and Singapore during the quarter, marking its first move beyond India’s borders. The expansion targets the Indian diaspora and aims to diversify revenue streams beyond domestic advertising and subscriptions.
Competitor struggles amplify sector challenges
Zee Entertainment Enterprises Ltd reported a larger profit decline of 40% year-on-year for the quarter, with ad revenue flat. The sharper drop suggests that JioStar’s scale and diversified revenue mix—including subscriptions and sports rights—may have softened the impact of the ad slowdown.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
JioStar’s results reveal the tension between growth and profitability in India’s digital entertainment sector. The 10% revenue increase, driven by subscriptions and streaming, shows steady demand for content, but the 13% profit decline exposes the difficulty of monetizing that demand amid an ad slowdown and rising costs. For founders and operators, the takeaway is clear: scale alone does not guarantee margins, and ad-dependent models remain vulnerable to macroeconomic shifts. The launch of JioHotstar in three international markets also signals Reliance’s broader ambition to build a global streaming footprint, which could reshape competitive dynamics in markets with large Indian diaspora populations.
Key takeaways
- JioStar’s mixed results signal persistent challenges in monetizing digital audiences at scale during an ad slowdown.
- The 10% revenue growth amid a 13% profit decline underscores cost pressures in content acquisition and international expansion.
- Competitor Zee Entertainment’s steeper profit drop highlights industry-wide strain on ad-dependent business models.
- Founders in digital media and advertising should note the fragility of linear TV ad transitions and the need for diversified revenue streams.
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Sources
- Mint (Technology) · 2026-10-30
JioStar's Q2 profit falls 13% amid weak ad environment
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
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