Zee Entertainment Enterprises Ltd Management Discussions

Management Discussion and Analysis

INDIAN MACROECONOMIC OUTLOOK

Indias economy, as per the January 2025 World Economic Outlook update by the International Monetary Fund (IMF), is projected to grow at a robust 6.5% in both FY26 and FY27. This growth is primarily driven by increased investment and private consumption, particularly in rural areas, positioning India as the fastest-growing major economy over the medium term. Poised on this trajectory, India is expected to become the worlds third-largest economy in market exchange rate terms by FY29, surpassing Japan around FY27 and Germany by FY29. Indias nominal GDP is projected to reach US$4.3 trillion in FY26, constituting 3.7% of the global GDP, while its purchasing power parity (PPP) already stands as the third-largest globally at US$17.4 trillion.

	GD Projections 2025
Country	Nominal (US$ billion)	Rank	PPP (US$ billion)	Rank
United States	30,337	1	I 30,337	2
China	19,535	2		1
Germany	4,922	3	; 6,175	6
Japan	4,389	4	6,768	5
India	4,272	5	17,365	3
United Kingdom	3,730	6	i 4,426	10
France	3,283	7	4,485	9

(Basic data): IMF World Economic Outlook October2024

INDIAN MEDIA AND ENTERTAINMENT INDUSTRY

The Media and Entertainment (M&E) sector contributes about 0.73% to Indias GDP. Its performance in 2024, however, presented a complex and nuanced picture. Historically, this sector has outpaced Indias nominal GDP growth, reflecting its inherent dynamism and consumer appeal. Yet, being a discretionary expenditure category, the M&E sector exhibits heightened sensitivity to broader economic fluctuations, often experiencing sharper slowdowns during periods of decelerating GDP growth. While past trends up to FY22 (excluding the anomaly of the COVID-19 pandemic) indicated consistent growth exceeding nominal GDP, the current year has witnessed a divergence from this pattern.

In 2024, the M&E sector recorded a growth of 3.3%, falling significantly short of the nominal GDP growth rate of 6.5%. This underperformance can be attributed to a confluence of macroeconomic factors impacting consumer spending and sector-specific dynamics. Key contributors to this subdued growth include a concentration of income growth among the upper and lower echelons of the New Consumer Classification System (NCCS) pyramid, potentially limiting discretionary spending on M&E for a significant portion of the consumer base. Furthermore, the proliferation and widespread availability of free or ad-supported content alternatives have undermined the growth of subscription- based revenue models. Other external and structural challenges, such as the writers strike in the US, the expansion of unregulated offshore betting and gaming platforms, and the less-than-anticipated theatrical success of major film releases in India, have collectively compounded the sectors muted growth during the reporting period.

The Indian M&E sector grew 3.3% in 2024 to reach Rs.2.5 trillion

	2019	2022	2023	2024	2025E	2027E	CAGR 2024-2027
Digital media	308	571	686	802	903	1,104	11.2%
Television	788	726	711	679	676	667	(-)0.6%
Print	296	250	259	260	262	267	0.9%
Online gaming	64	222	236	232	260	316	10.8%
Filmed entertainment	191	172	197	187	196	213	4.3%
Animation and VFX	95	107	114	103	113	147	12.5%
Live events	83	73	88	101	119	167	18.2%
Out-of-home media	51	48	54	59	66	79	10.2%
Music	15	46	54	53	60	78	13.4%
Radio	31	21	23	25	27	30	6.6%
Total	1,922	2,237	2,422	2,502	2,682	3,067	7.0%
Growth		23.3%	8.3%	3.3%	7.2%

Source: EY FICCI Report I All figures are gross of taxes (fin billion) for calendar years IEY estimates

The post-pandemic recovery of Indias M&E sector has been noteworthy, with the overall sector size surpassing its 2019 pre-pandemic levels by a substantial 30% This aggregate growth, however, masks divergent trends across the sectors various segments. While the sector has rebounded strongly, traditional media formats, including television, print, and radio, are navigating their recovery, and yet to regain their pre-pandemic revenue levels of 2019. This divergence underscores the shifting patterns of media consumption and the ongoing transformation within the M&E ecosystem.

As per the EY FICCI report, 2024 marked a significant milestone for digital platforms, which emerged for the first time as the single largest revenue-generating segment, contributing 32% to the overall M&E revenue, thus surpassing televisions contribution of 27% This shift underscores the accelerating trend in the adoption of digital media and the increasing prominence of online content consumption. Despite these structural shifts, however, the overall growth momentum of the M&E sector experienced a significant deceleration during 2024, with an increment of Rs.81 billion only, which is in marked contrast to the substantial Rs.185 billion growth recorded in 2023. The primary drivers of this growth during the year were digital media, live events, and out-of-home (OOH) media. Within the new media category, which encompasses digital media and the online gaming sector, revenues grew by 12% YoY to Rs.113 billion. In contrast, core traditional media segments, namely television, print, radio, and music, collectively experienced a contraction in revenues by 3%, amounting to Rs.30 billion. The outside-the- home media segment, comprising filmed entertainment, live events, and OOH media, registered a combined growth of 3% The animation and visual effects (VFX) segment faced a downturn of 9.4% primarily attributed to disruptions in global supply chains, notably in the US, where events such as the writers strike significantly impacted content creation and delivery.

Furthermore, the M&E sector is projected to touch revenues of Rs.3.07 trillion (US$36.1 billion) by the year 2027, indicating a sustained compound annual growth rate (CAGR) of 7% in the medium term, driven by the growth potential and the increasing prominence of digital platforms. Additionally, other segments like live events, music, animation and VFX, online gaming and out-of-home media are also expected to register a double-digit CAGR, thereby contributing to the sectors overall momentum.

TELEVISION

Television continues to remain the dominant medium in Indias M&E space in terms of viewership. According to BARC India, in FY25,553 million Indians tuned in daily to watch Linear Television or broadcast television available through satellite or cable services, with an average viewing time of 3 hours and 42 minutes per day (rising to 4 hours in urban India). In contrast, average daily time spent on the internet was significantly lower at just 1.5 hours (Source: IAMAI, Kantar).

Notably, time spent viewing linear television has remained largely consistent over the years, with only a marginal dip in reach, which can be primarily attributed to evolving industry dynamics such as churn in subscribers due to implementation of the New Tariff Order (NTO) and the growing presence of Connected TVs and digital streaming platforms.

As per EY FICCI, television revenue is projected to remain in the range of Rs.660-680 Bn for the next 3 years. In 2024, the television segment experienced a degrowth of 4.5%, touching Rs.679 billion as against Rs.711 billion in 2023. This decline was primarily driven by a reduction in both advertising and distribution revenues. Distribution revenue alone has declined by 3% due to households shifting from pay television subscription to free-to-air DD Free Dish platform. These figures, however,

represent only linear television. The overall impact of the degrowth is expected to be mitigated by the rapid growth of connected television, which has already demonstrated a growth of 40 per cent this year and is projected to continue growing in the coming years.

Television Revenue ( Rs. billion)	2022	2023	2024	2025E	2027E
Advertising	334	312	294	298	305
Distribution	392	398	385	377	362
Total	726	711	679	676	667

EY FICCI/ Rs. billion (Gross of taxes)/EY estimates

TELEVISION CONSUMPTION

Viewership patterns reveal that General Entertainment Channels (GEC), and movies continue to command a substantial share of audience attention, accounting for approximately 75% of total viewership. This distribution has remained remarkably consistent over the past seven years, highlighting the enduring popularity of these genres. News viewership in 2024 experienced a notable 13% increase, driven by high-interest events such as the general and state elections. In contrast, sports viewership declined by 27% despite marquee events like the T20 Cricket World Cup and the Indian Premier League (IPL). This decrease is largely attributable to the growing prevalence of free streaming options on OTT platforms, the expansion of connected TV penetration, and a relatively lighter sporting calendar, with fewer ICC cricket tournaments in 2024, as compared to the previous year.

Fast-Moving Consumer Goods (FMCG) remained the leading advertiser on television, constituting 63% of ad volume in 2024. Flowever, its share declined by 3 percentage points from last year. Building and industrial materials was the

fastest growing advertising category in 2024, followed by telecommunications and the banking, financial services and insurance (BFSI) sector.

FMCG sector contributed 63% of ad volumes

TV PENETRATION IN INDIA: ROOM FOR CONTINUED GROWTH

Television in India remains a dominant medium, deeply embedded in the daily lives of millions of households, serving as a primary source of entertainment and information. Its influence extends beyond mere content delivery as television plays a pivotal role in shaping societal transformation and fostering cultural integration by broadcasting stories of resilience, aspiration, and hope across Indias diverse cultural landscape.

According to BARC data, 210 million Indian households possess an active TV connection. However, about 90 million households, predominantly located in rural Hindi-speaking states like Uttar Pradesh, Bihar, and Madhya Pradesh, are yet to gain access. While television remains an aspirational medium, its affordability remains a key barrier for its broader adoption. However, numerous Government initiatives aimed at expanding access to television, coupled with favourable macroeconomic trends - such as rising purchasing power, a rapid decline in multidimensional poverty, increase in rural electrification and improved access to microcredit - are expected to stimulate increased adoption, particularly in underpenetrated rural areas.

REGULATORY REFORMS: NTO 4.0 AND MARKET FLEXIBILITY

The introduction of New Tariff Order (NTO) 4.0 is poised to provide greater pricing flexibility to Distribution Platform Operators (DPOs). The removal of fixed ceilings allows DPOs to adjust Network Capacity Fees (NCF) in alignment with regional market dynamics, including channel numbers,

and customer demographics. Notably, the recommended increase in the maximum permissible discount - from 15% to 45% - could facilitate the creation of affordable channel packages and attractive customer deals, particularly in the Tier-Ill and Tier-IV markets. These changes also enhance the scope of targeted offers for Free Dish-to-Pay TV conversions, potentially expanding the reach of linear television.

ADVERTISING IMPACT: TELEVISION DELIVERS STRONGER ENGAGEMENT

While television advertising revenues in India witnessed a decline partly due to the reduced number of active brands on TV, neuroscience research - commissioned by Zee Entertainment with a leading applied neuroscience company 5^th Dimension Neuromarketing - demonstrates that Linear TV significantly outperforms social and user-generated content (UGC) digital video platforms available on mobile devices in terms of consumer attention and engagement metrics. The research study findings found that viewers were 115% more attentive to advertisements on Linear TV as compared with advertisements on UGC digital video sharing and social platforms. Similarly, linear television generated 15% higher engagement levels amongst consumers as compared with viewing advertisements on social platforms. This demonstrates that while digital media offers advanced targeted advertising capabilities, television advertisements remain a critical component of a well-balanced media strategy - enhancing brand recall, building brand trust and increasing purchase intent. Linear TVs unmatched immersive, distraction-free environment enables brands to deliver measurable impact for advertisers, which reinforces televisions indispensable role in the media mix.

ITS AN WORLD: RISE OF HYBRID VIEWERSHIP

While connected TV and digital platforms continue to grow, traditional linear TV remains dominant. According to the report of the Internet and Mobile Association of India (IAMAI), nearly 50% of media users are hybrid viewers - actively engaging with content on both linear TV and digital platforms. This coexistence challenges the narrative of digital overtaking traditional media. Interestingly, there are 19 million more exclusive linear TV users than exclusive digital-only users, thus underscoring the continued relevance and loyalty commanded by linear TV. In todays fragmented media landscape, the debate is no longer about television versus digital but rather about a complementary world where both mediums play a vital role in reaching diverse audiences.

Televisions enduring strengths - its established brands, valuable intellectual property, and loyal audiences - remain significant strategic assets. Rather than a single model supplanting others, the industry is poised for an evolution in which Free-to-Air, Pay TV, Connected TV, and OTT services coexist in a complementary and integrated ecosystem, addressing the diverse preferences and consumption habits of Indian audiences.

HD

Access to HD television has been growing at 17% CAGR and during FY25, over 91 million households had access to HD television, an increase of more than 8 million households year- on-year.

CONNECTED TV: RAPID EXPANSION & IMPLICATIONS FOR AD SPEND

Indias connected TV (CTV) user base has grown rapidly to around 50 million unique devices accessing the internet monthly - a 40 per cent year-on-year increase since last year, surpassing all previous expectations. Of this, 30 million sets engage weekly. This expansion has been primarily driven by the growth in fixed broadband infrastructure. YouTubes CTV views in India have quadrupled over the past three years, demonstrating the growth of this platform. For Samsung, 82 per cent of its total streaming hours are generated from ad-supported video on demand (AVOD) and Free Ad-supported TV (FAST) products.

Critically, CTV penetration is not limited only to metro cities, and increasingly prevalent among affluent households, a trend which is expected to impact pay linear TV, by increasingly diverting its advertising revenues towards connected TV. This shift is likely to accelerate the growth in use of connected TV, especially when OTT platforms become more affordable and achieve price parity with traditional linear TV subscriptions.

TOTAL TV TRENDS

TV viewership is up 3% from two years ago, a growth that is being led by young viewers (30 years and under). Yet, the dip in TV viewership from last year can be attributed to marquee events like the Cricket World Cup in FY24.

VIEWERSHIP BY LANGUAGE

With 44% viewership share, Hindi continues to be the most consumed language on TV in India. Among major languages, Bhojpuri has seen the highest growth of 22% in consumption in FY25. This has been on the back of several movie premieres from multiple Bhojpuri channels including Zee Biskope. Further, Z has the largest viewership share amongst the emerging languages - Bhojpuri, Odia & Punjabi.

DOMESTIC BROADCAST BUSINESS

‘T NETWORK HAS THE SECOND-HIGHEST REACH IN THE ENTERTAINMENT SEGMENT NATIONWIDE

Z continues to maintain its position as one of Indias leading television networks with a strong presence and the second- highest reach across the entertainment segment. With 855 million viewers tuning into the Z network this year, the gap with the leading network has narrowed to just 2% despite Z operating with slightly more than half the number of channels. Furthermore, despite the Increase In competition Z has maintained Its network share of -17% 30bps decline In Z network share YoY can be attributed to key events during the year such as the general and state elections and growth of Free- to-air (FTA) channels.

With a diverse bouquet of 50 channels in 11 languages - the highest among all private networks - Z remains the preferred entertainment choice for viewers across the country. In FY25, the Z network achieved a leadership position in several key language markets including Kannada GEC, Odia GEC, Punjabi and Marathi movies, besides lifestyle genres.

Zs strong presence in language markets continues to be a major driver for Zs network viewership share. In FY25,57% of Zs viewership originated from non-Hindi language markets.

The widespread regional presence through these channels has contributed to the growth of these language markets, enabled by the increased availability of high-quality localised content in different languages.

NEW CHANNEL LAUNCHES

Since FY19, Z has launched eight new channels including Zee Anmol Cinema 2 (Hindi Movies), Zee Keralam (Malayalam GEC), Zee Punjabi (Punjabi GEC), Zee Picchar (Kannada Movies),

Zee Thirai (Tamil Movies), Zee Biskope (Bhojpuri Movies), Zee Chitramandir (Marathi Movies) and Zee Zest (Lifestyle).

Except for Zee Anmol Cinema 2 and Zee Zest, all these recently launched channels cater to the language markets. While Zee Punjabi and Zee Zest have emerged as category leaders. Zee Chitramandir, the largest FTA Marathi Movies channel, has helped in making Zs Marathi Movies cluster the leading network cluster in that genre. The other new channels have all proved strong challengers in their respective genres, with Zee Keralam improving its rank to climb from fourth to second position in FY24 and maintaining its position in FY25.

The strategic implementation of Zs design and deploy approach, have driven the success of these new channels, which have contributed an incremental 20 bps to the networks total market share.

•T\ THE FASTEST GROWING MAJOR NETWORK IN SOUTH INDIA

SOUTH INDIA LEADERSHIP AND REGIONAL GROWTH

The success of Zs southern language channels has positioned it as the fastest growing network in South India with an all-time high market share. Zee Kannada strengthened its position as the clear market leader in the Kannada General Entertainment Channel (GEC) segment with an all-time high market share. Zee Tamil also demonstrated robust growth and achieved its highest market share in six years.

Z - A LEADER ACROSS MOVIE GENRES

In FY25, Zs movie channels constituted 24 per cent of movie channel viewership in urban markets. This success is attributed to Zs massive portfolio of movie channels - 25 movie channels across 8 languages, supported by an expansive multi-lingual movie library, built gradually with the acquisition of latest blockbusters and timeless classics. Z also holds leadership in the Marathi movies segment and ranks second in the Hindi and Bangla movie genres.

HINDI GENERAL ENTERTAINMENT

i_ TV

Zee TV has maintained its position as the fourth-largest Hindi Pay GEC, driven by evergreen shows like Bhagya Lakshmi and Kumkum Bhagya, along with successful new launches like Jagriti, Vasudha and Jaane Anjaane Hum Mile.

&.TV

&TV continued to engage viewers in the Hindi heartland with evergreen content like Bhabhiji Ghar Par Hain and Happu Ki Ultan Paltan complemented by fresh offerings like Bhimaa, curated for regional appeal.

Zee Anmol is poised to return to DD Free Dish after a three- year hiatus, which would help the network to tap into the platforms expanding subscriber base.

BIG MAGIC

Big Magic, a free to air (FTA) channel, continues to engage Free Dish viewers with archived content like Guddan Tumse Na Ho Payega, Jodha Akbar and Pavitra Rishta.

HINDI MOVIES CLUSTER

Zs Hindi Movie cluster, comprising 10 channels - Zee Cinema, &pictures, Zee Bollywood, Zee Action, Zee Classic, Zee Anmol Cinema, Zee Anmol Cinema 2, Zee Cinema HD, &pictures HD, and &Xplor HD - offers a broad spectrum of cinematic content, making it the second-largest network in the Hindi Movies genre with a 150 bps growth in market share from FY24. This year witnessed Zee Cinema premiere numerous blockbuster titles such as Singham Again and Kalki 2898 AD.

REGIONAL ENTERTAINMENT CHANNELS

Zee Marathi registered a strong growth in FY25 with a 25 per cent increase in viewership, leading to a 6-percentage point gain in market share. This channels growth was fuelled by successful fiction launches like Lakshmi Nivas, Saavlyachi Janu Savali and Lakhat Ek Amcha Dada alongside the highly rated existing shows like Paaru and Shiva. Additionally, innovative and differentiating non-fiction shows like Chal Bhava Citit further bolstered performance. The World Television Premiere (WTP) of Dharmaveer 2 was the highest- rated WTP on the channel in over two years. Zee Marathi is continually evolving and remains a strong challenger in this regional language segment with an assortment of content in fiction and non-fiction categories.

Zee Bangla retained its leadership in the key Kolkata market It had several successful launches like Parineeta, Chirodini Tumi Je Amar, Mittir Bari, Amar Sangi and Anondi alongside evergreen fiction shows like Phulki and Jagadhatri. Zee Bangla remains the number one non-fiction channel with iconic properties like Sa Re Ga Ma Pa, Dance Bangla Dance and Didi No. 1, besides cookery shows like Ranna Ghar. The WTP of Pradhan was the biggest Bangla language WTP during the year.

Zee Sarthak remained the market leader in the Odia GEC space in FY25, for the fourth consecutive year. Programming highlights included evergreen fiction shows like Suna Jhia and Tu Khara Mu Chhai; new launches like Tuma Bina and Bhagya Rekha; and non-fiction shows like Dance Odisha Dance and Didi No. 1. The WTP of Bohuku Lagichi Reels Bhuta was the biggest WTP event on the channel in over four years.

Zee Punjabi emerged as the most-watched channel across all languages and genres in the Punjab/Chandigarh market in FY25, despite its strategic business decision to exit DD Free Dish in FY25 to focus on subscription revenue growth. The channels successful launches included Mannat Ek Sanjha Parivar, Jawai Ji and Heer Tey Tedhi Kheer, while the premiere of Nigah Marda Ayi Ve was the biggest Punjabi language WTP during the year.

Zee Kannada strengthened its dominance as the number one channel in the Kannada GEC genre, with a 240 bps gain in market share over the previous year, setting a new all-time high. The channels success is driven by engaging fiction and non-fiction shows. Its fiction content slate includes evergreen shows such as Lakshmi Nivasa, Puttakana Makkalu, and Shravani Subramanya and new launches like Naa Ninna Bidalaare and Annayya. Non-fiction iconic shows like Dance Karnataka Dance and innovative concepts like Bharajari Bachelors also contributed to the channels success. The WTP of Kaatera on April 07,2024 was the biggest Kannada language WTP in the year.

Zee Telugu maintained its leadership in the key Hyderabad market in the Telugu GEC genre, anchored by its successful, long-serving shows such as Jagadhatri, Padamati Sandhyaragam and Ammayi Garu alongside new launches like Meghasandesam and Chamanthi. The WTP of Sankranthiki Vasthunam on March 01,2025 was the biggest Telugu language WTP in over two years.

Zee Tamil increased its market share to a six-year high in the Tamil GEC genre with a 150 bps gain over the previous year. This growth was underpinned by successful evergreen shows like Karthigai Deepam, Anna and Sandhyaragam alongside non-fiction shows like Saregamapa Lil Champs and Dance Jodi Dance. The WTP of The Greatest of All Time was the biggest movie premiere on the channel in over three years.

Zee Keralam sustained its position as the Number 2 channel in the Malayalam GEC genre. It continued to engage viewers with enduring fiction shows like Kudumbashree Sharada and Mangalyam alongside new launches like Madhura Nombara Kaattu and Manathe Kottaram. The WTP of Turbo was the biggest WTP on the channel in FY25.

Zee Cafe, &flix, &prive HD and Zee Zest, continued to deliver premium English language entertainment content to varied audiences with movies and shows from across the world. Zee Zest, launched in 2020, emerged as the #1 channel in the lifestyle genre in urban India with its innovative mix of culinary and travel shows.

INTERNATIONAL BROADCAST BUSINESS

Zs international business operations remain a significant growth engine for the company, delivering culturally relevant entertainment to audiences across the globe. With a footprint in 120+ countries, our content reaches more than 470 million viewers outside India, comprising 75 million from the South Asian diaspora and over 400 million local viewers via regional and language-dubbed channels.

With a portfolio of 50+ dedicated channels, 75+ pass-through feeds, and a rapidly expanding presence across linear and digital platforms,

Z is established as the clear leader in South Asian entertainment worldwide. Zs international operations have expanded to include Free Ad- Supported TV (FAST) channels, ZEE5 ad sales and B2B partnerships, sports monetisation, syndication, co- production, and local intellectual property (IP) development.

BUSINESS PERFORMANCE HIGHLIGHTS-FY25

Channel Leadership and Market Expansion

• Zee TV MENA reaffirmed its leadership as the

#1 Hindi GEC in the UAE for the 8^th consecutive year, commanding a substantial 29% viewership share in FY25

• Zee Zonke, our isiZulu-language channel launched in South Africa in September 2023, became the #1 Pay TV channel within 7 months of launch - a testament to the power of Indian storytelling supported by strong brand equity. This channel has continued to retain its no. 1 ranking among pay TV channels in South Africa for more than a year

• Zee World (Nigeria), Zees flagship English-dubbed general entertainment channel, continues to be a mass favourite, maintaining its rank as the #1 channel in Nigeria, from a cluster of 500+ channels, for the 5^th consecutive year, with a monthly reach of 19 million viewers

• Zee One (Germany), our German-dubbed FAST channel launched in September 2023 consistently ranks in the top 3 FAST channels on leading digital platforms - underscoring our capability to successfully scale content across language and platform boundaries

• Strategic Channel Launches on Linear TV

• Zee Duniya (Kenya): Swahili language FTA (Free-to- Air) channel launched in Kenya in March 2025, made Z the first South Asian network to establish a dedicated local language television presence in this country. Z also became the first multi-national corporation to launch an exclusively owned FTA channel in Kenya

• Zee Punjabi (UK): Tapping into the sizeable Punjabispeaking diaspora in the UK the launch of Zee Punjabi channel met with a positive reception and served to expand our South Asian content portfolio in the region

Digital and FAST Expansion

FY25 marked a transformative year for Zs presence in the Free Ad-Supported TV (FAST) ecosystem, demonstrating significant growth in both content offerings and platform distribution partnerships:

• Zs FAST channel portfolio has expanded from the presence of only 2 channels in just 4 countries and 2 platforms last year to 12 channels in 8 languages, across 21 countries (spanning EMEA, APAC, America and LATAM), and 8 major global and regional platforms primarily targeting local diaspora audiences

• In a pioneering initiative, Z launched the first-ever cricket FAST pop-up channel, offering live coverage of ILT20 Season 3 across Europe, thus creating a new category of live sports experiences within the FAST ecosystem

• Z has leveraged Artificial Intelligence (Al) to optimise content workflows for one of our FAST channels, thus delivering substantial cost efficiencies while maintaining high production standards

Co-Productions, Local shows and Strategic initiatives

• Our core proposition of Indian storytelling adapted for global audiences continues to drive engagement and monetisation across platforms. This endeavour is supported through a combination of dubbed Indian programming, localised content and strategic acquisitions that have successfully enabled the development of scalable business models across linear and digital platforms

• Co-Production Growth

• Seven co-production projects completed in FY25 delivered 2x revenues as compared to FY24. Among these, Aghmed Aynak (an adaptation of Aap Ki Antra) was sold to 12+ broadcasters and received 2 prestigious awards in the MENA region

• Z ventured into Spanish-language content production with a co-produced drama series, centred on autism, and targeted at mainstream international markets. The show garnered strong interest across global content buyers and festival circuits, marking a significant milestone in Zs ambition to be a truly global content producer

• Local IP Creation: Z produced 5 original local IPs across Nigeria and South Africa in FY25. Apart from Season 3 of Dance Naija Dance and Kelloggs SuperStar Quiz, we have produced 3 new shows across culinary themes and social awareness genres, reflecting our commitment to creating meaningful content for the local audiences

• 3^rd Party Representation & Ad solutions:

Z has expanded its third-party partnership representation portfolio, now managing ad sales for external TV channels, cinema chains and digital publications, thereby unlocking synergies across our media offerings

• Holistic advertising solutions - With an evolving advertising industry, Z now delivers 360-degree integrated media solutions across various platforms, including Linear TV, FAST Channels and ZEE5 OTT. Customised solutions were strategically crafted for our clients through Advertiser funded Programming (AFP), in-content brand integrations and social media promotions

• Integrated Programming: In January 2025, Z executed a groundbreaking cross-platform initiative by integrating Sa Re Ga Ma with Rewind: Queens of the 90s show, a first-of-its-kind collaboration which culminated in a unique live concert performance by the shows winners at the prestigious Wembley Arena stage, creating a globally resonant moment in entertainment

DIGITAL VIDEO

Digital Revenue ( Rs. billion)	2021	2022	2023	2024	2025E	2027E
Advertising	383	499	597	700	784	957
Subscription	56	72	89	102	119	147
Total	439	571	686	802	903	1,104

Source: EYFICCI/in f billion gross of taxes j EY estimates

As per the EY FICCI report, digital media emerged as the fastest-growing segment within Indias Media & Entertainment (M&E) sector in 2024, registering a robust 17% growth. For the first time, it surpassed television to become the largest segment, achieving a market size of Rs.802 billion. This milestone represents a significant digital inflection point, with digital media now accounting for 32% of the total M&E industry revenues. Despite its rapid expansion, however, subscription-based revenue contributed only 13% of the total revenues as the market remains heavily driven by advertising, led by tech giants like Google and Meta, alongside rising ad spends from e-commerce platforms.

DIGITAL REVENUE COMPOSITION: DOMINATED BY SEARCH, SHORT-FORM VIDEO AND SOCIAL MEDIA

In 2024, search engines and social media platforms contributed Rs.488 billion, accounting for 61% of total digital media revenues. E-commerce platforms followed with an 18% share, largely driven by ad revenues, drawn primarily from sales and promotional budgets that exceeded those of entertainment and sports platforms. The latter, including key players like ZEE5, Netflix JioHotstar, Prime Video, and Sony LIV collectively accounted for 17% of the revenues from this segment. In contrast, online news and music platforms continued to lag, collectively contributing just 4% of digital media revenues. Notably, online news still needs a sustainable and scalable business model.

GROWTH OF INTERNET IN RURAL MARKETS

During 2024,97% of internet users accessed broadband services, with 5% using wired broadband and the remainder relying on wireless connections. Although urban areas accounted for 58% of total internet subscriptions, rural subscriptions grew by 4% during the same period. Rural subscriptions now exceed two-thirds of urban subscription volumes, highlighting the growing need for development of content tailored for both urban and rural audiences.

Internet subscription (in million)	Dec-22	Dec-23 1	Dec-24E
Narrowband (a)	34	32	26
Broadband (b)	832	905	945
Urban (a)	516	548	568
Rural (b)	350	388	403
Total (a+b)	866	936	971

Source: EYFICCI

Era of four important distribution methods

With 46 million households connected through wired broadband, the potential for large screen content consumption over broadband is now at par with DTH, cable, and Free TV. This development marks a pivotal shift, establishing four major and equally significant methods of content distribution to large screens across India.

TV and broadband connections (Dec-24)

GROWTH IN VIDEO VIEWERSHIP DRIVEN BY RISING ADOPTION OF SMART DEVICES

India added 15 million new video viewers in 2024, marking a 3% year-on-year growth, and bringing the total viewership to 551 million - representing nearly 98% of all active smartphone users. This upward trend is expected to continue, driven by the steady rise in smartphone penetration, increasing per capita income and the ongoing transition from feature phones to smartphones. By 2027, the video viewing audience is projected to reach around 625 million, fuelled by the growth of both new and second-hand smartphone usage.

Platforms continued to invest in regional language content

In 2024, regional language content remained a key area of focus, accounting for 48% of all content production during the year. Leading platforms adopted a strategic eight- language content framework, to ensure the availability of original programming across major linguistic markets. As regional content continues to gain traction across language barriers and opens monetisation opportunities, there shall be growing potential - and need - for increased investment in content quality and production standards.

Further, micro dramas, or micro episodic content (MEC), are professionally produced short-form videos typically ranging from 30 to 120 seconds per episode, with series often spanning 60 to 100 episodes. Unlike traditional TV or OTT platforms, MECs are designed for vertical viewing and offer a faster, more engaging storytelling experience. Although, this format is still in its nascent stage in India, it is gaining traction as platforms experiment with new content delivery models.

DIGITAL SUBSCRIPTION: GROWTH DRIVERS AND MARKET TRENDS

Digital subscriptions grew by 15% in 2024, driven by investments in film, music, episodic, and news content. Approximately, 50 million Indian households now subscribe to one or more digital content services. Video subscriptions accounted for 90% of the total revenue, while audio and news subscriptions brought in 7% and 3% respectively. These figures highlight the critical importance of exclusive video content in sustaining and driving subscription-based revenue models.

Digital subscription revenue (Rs. billion)	2021	2022	2023 2024	2025E	2027E
Video	54	68	83 92	106	126
Audio	2	2	3 7	9	15
News	1	1	2 3	4	6
Total	56	72	89 102	119	147

Source: EY FICCI/ Rs. billion (gross of taxes)/EY estimates

Digital subscriptions are projected to grow significantly driven by factors such as increasing per capita income, the transition to connected TVs (expected to rise from 30 million now to over 70 million by 2030), and sustained investments in high-value content like blockbuster films, premium sports events, and exclusive offerings behind paywalls.

According to the EY FICCI report, video subscriptions will continue to dominate the market, growing at a CAGR of 11% through 2027 and accounting for approximately 86% of total subscription revenue.

ZEE5 INDIA

ZEE5 is Indias and Bharats largest homegrown video streaming platform of choice and a multilingual storyteller for millions of entertainment seekers across urban and rural India. ZEE5, as a venture of Zee Entertainment Enterprises Limited (ZEEL), a global content powerhouse, offers an expansive and diverse library comprising 4,071+ films, 1,800+ TV shows, 350+ originals and movies, 4,492+ music videos, and over 1.35 lakh hours of on- demand content. This diverse content offering, spread across 12 languages (English, Hindi, Bengali, Malayalam, Tamil, Telugu, Kannada, Marathi, Oriya, Bhojpuri, Gujarati, and Punjabi), includes the best of Originals, Indian and International Movies, TV Shows, Music, Kids shows, Edtech, Cineplays, News, Live TV, and Health & Lifestyle.

ZEE5s technology infrastructure, built in collaboration with global technology leaders, supports us to deliver a seamless and hyper-personalised content viewing experience in 12 navigational languages across multiple devices and ecosystems. We have introduced regional content packs, that cater to the culturally specific preferences of regional audiences, especially in Tier-2 and Tier-3 cities. This localisation enhances viewer engagement, increases monetisation via subscriptions and advertising, and ultimately fortifies the platforms competitive position in a fragmented market. LIVE Streaming of Ground Events in front of large physically present audiences is a unique first-of-its-kind innovation by ZEES that leverages the broadcast strength of our linear platforms and reinforces our digital presence.

ZEE5: CONTENT FOCUS AND AUDIENCE INSIGHTS

ZEE5s regional-first strategy has engaged wide audiences and yielded high-impact outcomes:

1. Our first launch in Kannada surpassed the viewership of high-budget blockbusters like Vikrant Rona and Kaatera despite being produced at a fraction of the cost.

2. High-quality rooted narratives like Aindham Vedham, Sankranthiki Vasthunam, Ayyana Mane, Vikkatakavi: The Chronicles of Amaragiri and Bhaiyyaji have resonated deeply with audiences. These storylines have offered authentic narratives based in Indias small towns, in styles that are real, raw, and rooted, nuanced with emotional depth and mass appeal.

ZeePlex our Transactional Video on Demand (TVOD) platform, launched in 2020, allows viewers the flexibility to pay for specific content ZEES became the first OTT platform in the country to launch the TVOD option for consumers. In FY25, ZEE5 continued to expand its TVOD library and released several movies that received an overwhelming response.

1ZEE5 GLOBAL: EXPANDING LEADERSHIP AND PROFITABILITY

n FY25, ZEE5 Global, the international digital arm of Z, Itrengthened its growth momentum and market leadership through a combination of compelling content, strategic pricing interventions and targeted grassroots outreach. These inilatives, along with cost optimisation measures resulted in a BO% reduction in operational expenses besides enabling the nternational digital business to reach the significant milestone of EBITDA breakeven during the year.

Positioned as the sole streaming service for the South Asian diaspora, ZEE5 Global closed the year as the No. 1 South Asian including the USA Europe, the Middle East and major Asia Pacific 1 markets (App Annie, March 2025; available in 170+ countries, with J a growing base of active users).

The business continued to drive notable subscriber growth while enhancing cost efficiencies. Breakout original titles such as Mrs set new subscription and viewership benchmarks while other hits like Hisaab Baraber, Gyaarah Gyaarah, Sankranthiki Vasthunam, Despatch, Aidham Vedham resonated with global audiences, reflecting the platforms strong storytelling appeal. Our largest market, the USA continues to drive strong growth powered by community- level activation and on-ground marketing initiatives.

MOVIES: TRENDS AND OUTLOOK

As per the EY FICCI report, the Indian film industry in 2024, recorded a total of 1,823 theatrical releases across various languages - including 204 dubbed film versions - compared to 1,796 releases in 2023. The highest volumes of film releases were in Telugu (323), Tamil (252), Kannada (242), Hindi (221), and Malayalam (204). While South Indian language film releases declined marginally by 3% other language segments grew by 11% Notably, more than 100 English-language films were released, which underscores Indias significance as a key international market for Hollywood.

Movie segment revenue (J billion)	2022	2023	2024	2025E	2027E
Domestic theatricals	105	120	114	119	129
Overseas theatricals	16	19	20	21	23
Digital/OTT rights	33	35	31	33	36
Broadcast rights	14	15	13	14	14
In-cinema advertising	5	8	9	9	10
Total	172	197	187	196	213

Source: EY FICCI/Rs. billion (gross of taxes) I EY estimates

Despite volumes, the Indian film industry experienced a downturn in 2024 as per EY FICCI, with gross box office collections dipping to Rs.114 billion from Rs.120 billion in 2023. This decline was largely attributed to the underperformance of several large-budget Hindi and South Indian films, resulting in a skewed market where a small number of successful films accounted for a disproportionately large share of revenue. Industry estimates suggest that the top 10 film releases accounted for over 70% of total box office earnings, highlighting a winner-takes-all market dynamic. During 2024,36 films (11 Hindi, 2 English, and 23 other languages) surpassed the Rs.1 billion revenue collection mark, with South Indian films leading in monetisation. Additionally, both digital and satellite rights values declined by 10% in 2024 as broadcast and OTT platforms focused on profitability.

Looking ahead as per the EY FICCI report, the industry is expected to grow at a 4.3% CAGR to reach Rs.213 billion by 2027E, driven by the resurgence of big-star releases and mass-appeal films in 2025, which is expected to boost both domestic and international theatrical revenues. The moviegoers base is also projected to expand from under 100 million to 120 million by 2027, supported by rising per capita disposable incomes and an increase in affluent households, estimated to grow from the current 45-50 million to approximately 55 million.

ZEE STUDIOS: POWERING IMPACTFUL STORYTELLING ACROSS PLATFORMS

Zee Studios, the film production and distribution arm of the company, produces differentiated and high-impact content for films and digital platforms across multiple languages and formats. Leveraging its expertise and deep understanding Indian audiences. Zee Studios has not only augmented box office success but also driven viewership for the companys broadcast, digital, and music business verticals. With a portfolio of over 120 films, Zee Studios has consistently produced and distributed some of Indian cinemas most-watched and highest-grossing titles. During FY25, Zee Studios released over 20 films across 7 languages, demonstrating strong synergy with the companys linear and digital businesses.

MUSIC

Indians have continued to demonstrate a strong engagement with music vis-a-vis global audiences. Indian consumers spent about 26.7 hours/week listening to music, which is 29% higher than the global average of 20.7hrs/week.

Time spent listening to music by Indian consumer (hours/week)

Music is a powerful tool that plays an integral role in daily life, and positively impacts mood, intellect, body and general health.

Users listened to music while engaging in various activities, like working (41%), at the gym (40%), browsing online (35%), commuting to work or school (34%), in the car (30%), running (30%), walking (27%), social media (24%), studying (22%) and reading (8%). India reported the highest percentage of people (26%) just listening to music.

All data has been provided by IPRS and has not been independently verified by EY. Streamer counts and genre analysis are as of September 2024. Stream counts have been extrapolated for Q4 of CY2024. IPRS relies on stream data provided by various platforms to it. Language classification is on a best effort basis.

Film music remains a dominant choice, although its share in the total music consumption has declined from approximately 80% to 63% in the last four years, indicating a significant shift toward an artist-led ecosystem, according to the EY FICCI report. In 2024, Hindi music accounted for 64% of digital music consumption, South Indian languages comprised 18% while other regional languages, led by Punjabi (7%) and Bhojpuri (3%), made up the remaining 18%. Notably, independent artists are increasingly collaborating with the mainstream film industry, as seen in recent prominent projects like Diljit Dosanjhs work on Bhool Bhulaiyaa 3,

Crew, Kalki 2898 AD, and Baby John, besides Karan Aujlas collaboration on Old Money.

Music Revenue ( Rs. billion)	2022	2023	2024	2025E	2027E
Music segment revenues	46	54	53	60	78

Source: EY FICCI/f billion (gross of taxes)/EY estimates

Looking forward, the Indian music segment is poised for significant expansion, according to the EY FICCI report, and projected to achieve a 13% Compound Annual Growth Rate (CAGR) over the next three years, reaching a market size of Rs.78 billion by 2027. Key growth drivers of music consumption are identified as the continued rise in smartphone penetration, bringing online access to the next 100 million users, which will expand the potential audience; growth in the Subscription Video on Demand (SVOD) base, fuelled by industry initiatives; heightened compliance leading to higher publishing and performance royalty

revenues; besides enhanced reach of social media platforms, particularly YouTube, which will amplify music distribution and engagement.

Furthermore, the increasing global appeal of Indian music on international streaming platforms presents a substantial opportunity for export revenue generation. By 2027, global consumption of Indian music is expected to contribute Rs.9 billion to the market revenues. This international expansion, coupled with domestic growth drivers, positions the Indian music industry for a period of robust and sustained growth.

ZEE MUSIC COMPANY: STRENGTHENING PAN- INDIA PRESENCE

Established in 2014, the Zee Music Company (ZMC), has become the second-most-listened-to Indian music label in the country. ZMCs extensive catalogue encompasses music in 22 Indian languages, making it a truly pan-Indian music label.

ZMC, today, leads with a cumulative subscriber base of 164 million across all its channels and an aggregate of over 195 billion streams annually across various platforms. Earlier this year, Zee Music Company (YouTube channel) was awarded the prestigious YouTube Ruby Button, for being one of only two music channels globally, to have surpassed 100 million subscribers.

Looking ahead, ZMC will strategically increase its focus on key high-consumption languages such as Punjabi and Telugu, a move which is expected to accelerate growth in domestic and international markets.

SPORTS: SURGING VIEWERSHIP AND DIGITAL TRANSFORMATION

Sports is one of the leading engaging live contents for the massive reach to Indian TV audience. With viewership across socioeconomic, language and age boundaries, sports aids the growth of the entire ecosystem, including TV broadcasters, digital platforms, advertisers and distributors.

According to the EY FICCI report, the sector recorded revenues of Rs.196 billion in 2024, reflecting a 5% year-on-year increase. Cricket continues to be the primary revenue driver, contributing 85% of the total revenue, though this marks a slight decline from its peak of 88% in 2021. While cricket remains central to the industrys interactivity and gamification efforts, other sports are starting to gain ground. Stable audience bases for sports like kabaddi, wrestling, football, and tennis indicate that these emerging sports could trigger the next wave of gamification and fan engagement

In 2024,687 million viewers watched sports content on TV, consuming a total of 1,005 billion minutes. Although this represents a 6% decline from 2023, largely due to the absence of the ODI World Cup. Cricket still dominates, 457 million viewers tuned in to watch sports beyond cricket, highlighting a growing interest in alternative sports as their fanbases continue to expand.

HUMAN RESOURCES

OUR PEOPLE, OUR STRENGTH, OUR FUTURE

At "T, the ethos of being Extraordinary Together is deeply embedded into our organisational culture. Our people are the cornerstone of our success. Human capital at Z plays a pivotal role in driving innovation and delivering compelling, creative stories across platforms. In an industry as dynamic and fast- paced as Media and Entertainment, our teams consistently bring ideas to life, pushing creative boundaries, to foster meaningful connections with viewers and audiences worldwide.

As the business landscape of content creation and audience engagement continues to rapidly evolve, the strategic role of human resources has become even more crucial for our success. From embracing new technologies to responding to shifting consumer demands, HR at Z plays a strategic role in attracting, nurturing, and retaining talent that powers our growth. Our people - supported by strong HR practices - enable us to stay agile, innovative, and ahead of the curve.

FY25 at Z was all about sustainable growth, and our people were the strategic differentiator that set us apart. This year, our people philosophy centred on talent development and empowerment. Teams were equipped with the resources, tools and the support they needed to succeed. Through targeted investment in learning and upskilling we fostered an environment of continual growth, aimed at unlocking the full potential of our employees, and reinforce our long-term success.

STRENGTHENING OUR HUMAN ASSETS

Our HR philosophy is built on the belief that the well-being, development, and growth of our people are the foundation of our success. With strategic guidance from our Management and Board, we recognise the power that comes from the collective strength of the individual and the team. As an equal-opportunity employer, we promote a culture that is fair, transparent, and driven by performance. We are committed to fostering an inclusive and empowering work environment designed enable every employee to thrive. We actively translate these values into action through a comprehensive set of HR policies and initiatives that prioritise the growth and success of our people.

HR POLICY

Our core commitment to investing in our people, attract and retain top talent is supported by global best practices in human resources management. At Z, our HR policies promote building people capabilities and encourage employees to drive innovation. We foster an environment where new ideas are celebrated and supported through a variety of platforms designed for learning, growth, feedback, and creative exploration. Our HR framework is anchored in the principles of excellence, compliance and employee-centricity and encompasses the following key pillars that empower our employees to contribute to the companys ongoing success.

a. Board Oversight Our Board-led Nomination & Remuneration Committee (NRC) ensures that our remuneration practices and terms of engagement are competitive and aligned with the Companys strategic goals that serve to attract, retain, and motivate high-performing talent, to achieve growth targets, support organisational success and foster long-term value creation for all stakeholders.

b. Regulatory Compliance: Our HR policies are meticulously crafted to ensure full compliance with applicable laws and regulations. These policies address critical areas including maternity leave, sabbatical leave, prevention of sexual harassment, besides occupational health and safety protocols. We strictly adhere to the guidelines set forth by regulatory authorities, to ensure that our workplace remains safe, respectful, and fully aligned with industry standards.

c. Performance Management: We foster a performance- driven culture underpinned by clearly defined evaluation metrics and consistent review processes that are fair and just. These processes are designed to encourage employee engagement and feedback on platforms such as Samwad that foster open communication, and idea-sharing opportunities. This approach ensures that employees feel valued, heard, and actively involved in decision-making.

ENCOURAGING TRANSFORMATIVE CAREER GROWTH

Our dynamic team of dedicated professionals is committed to delivering excellence and create substantial value for our key stakeholders. As an established change-maker in the industry our performance and talent management systems place employees at the heart of our success. These systems focus on providing ample opportunities for continual learning and development, coupled with a comprehensive rewards and recognition program designed to motivate the workforce.

PERFORMANCE OWNERSHIP

At Z, our performance management approach is a continual discussion driven process. We believe in fostering open dialogue and collaboration through our proprietary platform, Samwad, which serves as the cornerstone of our corporate culture. Samwad is not only a platform for continual feedback but also a guiding tool in our pursuit of high performance and ethical practices. It fosters transparent communication between employees and senior leadership, supporting ethical practices and high performance. Fully digital and intuitive, the system allows employees to leverage strengths and define their own goals, track progress and access feedback in real time.

Our performance management process is thus designed to foster a culture of ownership, empowering individuals to take responsibility for their performance and outcomes.

The appraisal process is entirely digital, facilitated through Samwad (Dialogue to A.C.H.I.E.V.E) and our dedicated FIRMS platform.

iGROW: INTERNAL MOBILITY

At Z, we are committed to nurturing and developing our internal talent. Our iGrow Policy promotes internal career progression by enabling employees to explore new roles, advance their careers, and expand their skill sets within the organisation. Backed by structured development programmes and mentorship initiatives, iGrow empowers employees to take charge of their career trajectory and grow alongside the company.

CULTIVATING SUCCESS WITH LEARNING

A strong culture of learning is central to Z future-readiness.

We conduct a comprehensive Training Need Analysis (TNA) to identify the specific training requirements of our employees, which enables us to design tailored learning intervention programmes that address skill enhancement besides technical and behavioural competencies. Our comprehensive Learning and Development strategy focuses on functional expertise, leadership development and innovation readiness. By investing in the personal and professional growth of our employees, we ensure that our team remains at the forefront of industry advancements and content creation needs. Our commitment to

OUR LEARNING FRAMEWORK - EMPOWERING GROWTH, INNOVATION, AND SUCCESS

At the core of our commitment to continual growth and development, our learning academies are the cornerstone of our talent development strategy and capability-building efforts. With a strong emphasis on inclusivity, equity, and professional growth, we empower individuals to thrive, innovate, and contribute to our collective success.

Our academies are designed to nurture and empower talent at every stage of their professional journey, aligning with the evolving needs of our workforce and the dynamic demands of our industry. The Compliance Academy, Digital Learning Academy, Lead-Your-Ship Academy, and Techno-Functional Academy, each offer specialised tracks that equip employees with the knowledge and skills necessary to excel in their respective fields. These academies ensure that our people are not only prepared to meet todays challenges but also poised to lead and innovate in the future.

Through this comprehensive framework, we foster a culture of continual learning, enabling our employees to stay ahead in a rapidly changing world, while building a workforce that is both skilled and adaptable. Together, these academies form the foundation of our ongoing journey toward excellence.

ZEECADEMY

ZEECADEMY: EMPOWERING A FUTURE-READY WORKFORCE

Zeecademy, our Al-powered-learning-platform, is central to Zs agenda for talent development. Built on real-time insights into business needs and industry skill gaps, the platform delivers personalised, business-aligned learning programmes through a learner-centric, continually improving experience.

Content is thoughtfully curated and regularly updated to reflect evolving priorities, with Al-driven recommendations guiding each learners journey. The platform hosts premium content from leading providers like Cornerstone, Coursera, Udemy, Forbes, HBR, McKinsey, Deloitte, and more - ensuring relevance and quality.

With an intuitive interface and mobile accessibility,

ZEEcademy champions the Unlearn, Learn, Relearn ethos - democratising learning and driving continual upskilling across 1,000+ critical skills across business, technology, leadership and creativity.

Performance Metrics of ZEEcademy in FY25:75.1% active learner engagement

• 93.9% completion of assigned learning pathways

• Net Promoter Score (NPS) of 70; 4.9/5 average content rating

• 9.38 million total learning hours; 560,000 course completions

ZEEcademy continues to play a pivotal role as a catalyst in strengthening Zs competitive edge and growth momentum in a dynamic media landscape.

KPI	Z FY25
Adoption Rate	99.6%
Monthly Active Users	75.1%
Repeat Monthly Active Users	99.2%
Mobile Adoption	25.8%
Social Expression	57.8%
Content Completion	93.9%

LEAD-YOUR-SHIP ACADEMY

Our leadership development interventions under the Lead- Your-Ship pillar have strengthened the leadership pipeline by cultivating skills at multiple levels, preparing leaders for the future.

ARISE: BUILDING A FUTURE-READY LEADERSHIP PIPELINE

In FY25, Zs flagship leadership development initiative, ARISE, continued to drive deep capability building and leadership readiness across the organisation. With over 22,700 man-hours and 2,840 man-days of structured learning, the programme reflects Zs strong engagement and investment in its people.

ARISE is structured across three progressive tracks:

• ARISE 101: For new hires and early-career professionals

• ARISE 102: For experienced professionals and first-time managers

• ARISE 103: For mid to senior-level leaders

This tiered structure enables targeted skill development - from foundational to advanced leadership capabilities. The curriculum blends workshops, mentorship, and project-based learning, equipping emerging leaders with the tools to thrive in a dynamic media landscape.

The ARISE 103 curriculum was developed in collaboration with the Drucker Institute and Korn Ferry, grounded in cutting-edge research on critical leadership qualities in high- performing senior executives. The programme curriculum focuses on leadership development:

• Strategic thinking and decision-making

• Leading change and driving adaptability

• Data fluency and content innovation

• Behavioural excellence in communication and collaboration

Key outcomes achieved in FY25:

• Net Promoter Score (NPS): 95.8; Average Feedback rating: 4.86/5

• Seat Utilisation: 109.1% reflecting high demand and learner engagement

• Female Participation: 24.4% underscoring our commitment to inclusive leadership development

The ARISE programme was launched during a time of significant organisational transformation. It was powered with a clear mandate: to empower leaders to navigate change, drive innovation, and inspire teams. Each intervention was thoughtfully designed to address identified capability gaps and align with Zs broader strategic objectives.

By fostering agility, adaptability, and transformation readiness, ARISE continues to strengthen Zs leadership pipeline - preparing executives for the evolving demands of the media and entertainment industry, while reinforcing our position as a future- ready organisation.

KEY SESSIONS

Developmental Themes of ARISE Journey

• Leading Multigenerational Teams

• Radical Candor: Feedback to Feedforward

• Mitigating Unconscious Bias

• Becoming Effective Performance Managers

• Adaptive Thinking and Agile Mindset

• Generative Al

• Strategic Negotiation

• Time Management

• Business Storytelling

• Presentation Skills

• Samwad

• Behavioural Event Interviewing (BEI)

• Storytelling

• Communication Skills

• Presentation Skills

• Design Thinking

• Emotional Intelligence

• Generative Al

• Excel and Dashboarding

• Typo Design

• BARC/YUMI

• Samwad

• Leading Multigenerational Teams

• Networking and Collaboration

• Ethical Leadership

• Growth and Entrepreneurial Mindset

• Systems Thinking

• Crisis Management

• Radical Candor: Feedback to Feedforward

• Becoming Effective Performance Managers

• Generative Al

• Samwad

• BEI

ASPIRE: SHAPING ZS NEXT-GENERATION LEADERS

Zs ASPIRE program is a cornerstone component of Zs leadership ecosystem, focused on preparing high-potential talent for their first managerial roles. It enables the transition frorr individual contributor to effective first-time manager through immersive practice-based learning.

In FY25, ASPIRE demonstrated significant impact:

• 44,431 man-hours and 5,554 man-days of learning

• Average Feedback rating of 4.78, reflecting high participant satisfaction

• 72 female participants (24% of the cohort), underscoring Zs commitment to gender diversity in leadership

The ASPIRE program blends evidence-based learning with a dynamic, flexible delivery model - combining in-person sessions with digital learning via ZEEcademys, personalised coaching and practical action learning projects. Participants develop core managerial capabilities in:

• Leadership and behavioural effectiveness

• Strategic thinking and team management

• Communication and influence

Beyond the structured learning in the classroom, ASPIRE fosters sustained development through a peer and mentor community, encouraging knowledge-sharing, reflection, and continual improvement.

As a launchpad for emerging leaders, ASPIRE is aligned with Zs broader strategic priorities of driving innovation, agility, and operational excellence across the organisation. By nurturing a cadre of future-ready managers, the program directly contributes to Zs mission of becoming a leading knowledge hub in the media and entertainment industry.

Through ASPIRE, Z not only invests in its people but also in its own future leadership - ensuring long-term competitiveness in an ever-evolving landscape.

KEY SESSIONS

Developmental Themes of ASPIRE Journey

• Transitioning to and AD/Director role

• Developing Self-awareness through assessment reports

• Identifying projects to work on during the journey

• Being a HERO - Managing Emotions using the HERO framework

• Managing Millennial and Gen Z

• Understanding different team members and how to motivate them

• Coaching & Nurturing Talent

• Ownership of people and problems

• Communication Styles

• Influencing & Managing Stakeholders

• Innovative Problem-Solving

• Adopting a Digital Mindset

• Change Management and Drivers

• Handling Resistance

• Understanding Collaboration

• Importance of Networking and its benefits

ASPIRE OVERVIEW

12

Batches

• 11 Batches launched in India - Mumbai (6), Noida (2), Bengaluru (3)

• 1 International Batch launched in Dubai

302

FTMs covered

• IC3 and PM with teams are being trained as a part of the ASPIRE Journey

147

Managers Coached

• Managers of the FTMs are being trained to effectively lead their teams and support them in the ASPIRE Project

WE ARE COMPLIANT

Z is committed to upholding the highest regulatory standards of corporate governance and ethical conduct across the organisation. In FY25, with an unwavering focus on compliance, we achieved 100% completion rates for critical modules such as Digital Induction, Prevention of Sexual Harassment (POSH), Code of Conduct, Information Security, and Data Privacy, which ensures a safe, respectful, and secure workplace for all employees.

ACCOLADES AND RECOGNITION

Our people-first culture, innovative practices and commitment to excellence have garnered widespread acclaim, with Z receiving numerous prestigious awards on global platforms, validating our continued pursuit of excellence.

Brandon Hall
Gold - Best Competencies and Skill Development	ARISE and ASPIRE
Silver - Best Advance in Learning Management Technology	ZEEcademy
Bronze - Best Custom Content	Digital Induction and Compliance Modules
TISS CLO
Gold - Best Skill Development Initiative	ARISE
Gold - Best Leadership Development Program	ASPIRE
Gold - Best Digital Learning Transformation Program	ZEEcademy

TEAM COLLABORATION AND IDEATION WORKSHOPS

Our Team Collaboration and Ideation Workshops are designed to dismantle silos and foster seamless communication and innovation between departments.

These workshops bring together diverse skill sets and perspectives to co-create innovative solutions. Dynamic workshop sessions not only encourage brainstorming and idea generation from participants but also explore real- world insights from different markets. The focus is on understanding the hits and misses of similar formats across regions, followed by collaborative ideation that can transcend markets and resonate with a global audience. By combining strategic insights with creative collaboration, we aim to craft solutions that are both impactful and scalable across markets.

RECOGNISING AND CELEBRATING EMPLOYEE EXCELLENCE

At Z, we take immense pride in the accomplishments of our employees. Recognising excellence and exceptional performance is a cornerstone of our work culture. We believe in celebrating both individual and team achievements, as it fuels engagement, nurtures a sense of purpose and drives our collective progress, thus reinforcing our commitment to a positive and inclusive workplace.

To foster a culture of recognition and appreciation, we have established platforms that spotlight outstanding performance and reinforce our corporate ethos.

ZEELOMPICS: A Celebration of Values and Belonging

ZEELOMPICS, our flagship recognition program has evolved into a powerful expression of our people-first culture. What began as a metric-based quarterly program has been reimagined in 2024 to align with our core values under the ACHIEVE framework. This transformation has enabled us to honour not only those who deliver results but also the spirit and values that define Z.

To foster deeper connection and engagement, we transitioned from virtual to in-person felicitation ceremonies this year. Held across 14 offices located globally, these events achieved an incredible 90%+ participation rate, fostering renewed energy, pride, and a stronger sense of belonging among teams across geographies.

Cheers 4 Peers: Appreciation in Real Time

Cheers 4 Peers (C4P), our peer-to-peer instant recognition platform, continues to thrive as a vibrant channel for acknowledging and celebrating day-to-day excellence. With an 89% unique engagement rate in FY25, it remains one of our most-loved platforms - driving positivity, motivation, and stronger team bonds across the organisation.

ENHANCING HOLISTIC ENGAGEMENT

AtT, we go beyond transactional role-based, work interactions by celebrating the diverse strengths and backgrounds of our people. Our continually evolving employee value proposition reflects our commitment to developing a progressive, inclusive and people-centric organisation. We extend our appreciation not just to individual employees but also to their families, recognising their invaluable support to our collective success. This holistic approach reinforces our commitment to fostering a supportive, inclusive, and healthy workplace culture that values every aspect of our employees lives. We prioritise the physical and mental wellbeing of our employees by offering resources and initiatives that support a balanced lifestyle. Our focus on a culture of open communication, ensures that employees remain aligned with organisational goals while feeling deeply connected to our mission and values.

1. NURTURING HOLISTIC WELL-BEING

IT STARTS WITH YOU

- Stronger Minds, Healthier Bodies, Happier Teams

At Z, well-being is rooted in daily habits. This is the philosophy underlying SHIELD - our integrated platform for mental and physical wellness.

We have partnered with Trijog - Know Your Mind to offer expert-led sessions on resilience, stress management, mental health awareness and even to de-stigmatise therapy. Over 250 employees accessed confidential counselling sessions to support their mental wellness.

Physical fitness was prioritised through our collaboration with Cult. Employees were provided with complimentary home passes to encourage a living culture of fitness and self-care. This commitment to our employees health and wellbeing earned us recognition as a First Mover in Championing Mental Health Care.

As a symbolic and functional gesture, we gifted every employee a desk plant with a QR code - that linked directly to wellness resources on SHIELD - enabling our people with quick and easy access to wellbeing.

2. BELONGING AND CULTURE

At Z, celebration of ideas, people, diverse cultures, or traditions are the norm. They go beyond occasions to become big expressions of our shared identity and unity.

We believe that when we come together, we grow together. Through the year, we created moments that brought our teams closer - through festive gatherings, cultural rituals, and global observances - each one strengthening our sense of community and belonging.

We extended this spirit to employees homes, to their families through personalised letters and curated gift boxes. A small, yet meaningful gesture of appreciation and inclusion just to say; were proud of you, and we want your loved ones to know it too.

3. DIVERSITY & INCLUSION

Inclusivity is foundational to Z and at the core of who we are. We strive to create an environment where all voices are heard and valued. On Mens Day, for instance, we challenged stereotypes through a powerful comic-style video that sparked open conversations about mens mental and physical health.

On International Womens Day, we celebrated the incredible women atT with handwritten postcards and specially curated custom badges on our recognition platform Cheers 4 Peers.

In line with the global theme, Accelerating Action, we offered complimentary health check-ups to all our employees on International Womens Day in partnership with Thyrocare, along with discounted packages for their families. We additionally initiated financial literacy sessions on Taxation to ensure that our people are empowered personally and professionally.

4. EMPOWERING COMMUNITIES: GIVING BACK WITH PURPOSE

Our commitment to impacting others positively reaches beyond the workplace walls through meaningful social initiatives. On World Blood Donor Day, nearly 250 employees participated to support the cause with 99 eligible donors stepping up to help save approximately 300 lives through our collaboration with Quantum that conducts voluntary blood donation programmes.

We celebrated Thanksgiving in November 2024 by hosting a multi-faceted donation drive, in partnership with Goonj and Smile Foundation. Employees were invited to contribute through donating items, volunteering their time, or offering financial support to uplift underserved communities.

At Z, we remain committed to fostering a workplace where people feel they belong, thrive and grow together.

EMPLOYEE HEALTH AND SAFETY

At Z, we are committed to fostering a safe, healthy and productive working environment for all our employees. Our comprehensive Health and Safety policy is applicable to all employees, including outsourced staff, contract staff, as well as guests, and visitors across our facilities.

The Facilities & Infrastructure team plays a pivotal role in implementing the health and safety measures atT, which are designed not only to meet regulatory compliances but also to promote the overall wellbeing and safety across all our workplaces.

HEALTH MEASURES

To promote a healthy and safe work environment, a series of initiatives were implemented across all office locations. These included the provision of in-house medical services, periodic testing of drinking water samples to ensure its quality, and the planned preventive maintenance of HVAC systems to maintain optimal air circulation. Routine air quality checks were also conducted, alongside continual efforts to uphold the highest housekeeping standards. Regular inspections were conducted to monitor food safety and hygiene, and systematic waste disposal practices were adopted to support a clean and sustainable workplace.

SAFETY MEASURES AND COMPLIANCE

At Z, our approach to workplace safety is both proactive and preventive, aimed at fostering a secure environment across all our operations. We have in place a structured incident management process, focused on prevention, systematic tracking, and thorough root cause analysis. Regular health check-ups and inspections of critical electrical infrastructure - including fire and smoke detection systems, as well as fire alarm systems - are conducted by authorised service providers to ensure ongoing compliance, functionality and safety. Fire safety readiness is further reinforced through the provision of adequate and appropriate firefighting equipment such as fire extinguishers, sprinkler systems, automatic fire suppression systems, and fire hydrants, all of which are routinely tested and maintained by certified professionals. Flammable and combustible substances are stored safely and in full regulatory compliance, with added measures in place to prevent leaks, spills, tampering, or unauthorised access. An effective preventive maintenance programme supports the reliability of all fire protection systems through regular inspection, testing, and servicing. Emergency preparedness is strengthened through periodic fire evacuation drills, ensuring swift and coordinated responses when needed. Additionally, all Z contractors undergo comprehensive internal fire safety training to align with the companys safety protocols.

Z adheres to all relevant statutory safety requirements, including securing Fire NOC and maintaining Form B, thereby ensuring that our infrastructure and safety practices are aligned and compliant with mandated norms.

FINANCIAL PERFORMANCE OVERVIEW

Consolidated Financials

( Rs. million)	FY25	FY24	Growth
Operating revenue	82,941	86,372	-4%
Expenditure	(70,979)	(77,300)	-8%
EBITDA	11,962	9,072	32%
Add: Other income	1,234	1,293	-5%
Less: Depreciation	(2,785)	(3,091)	-10%
Less: Finance cost	(327)	(721)	-55%
Less: Fair value through P&L	159	38
Exceptional items	(986)	(2,784)
Add: Share of Profit of Associates	4	4
Profit Before Tax (PBT) from continuing operations	9,261	3,811	143%
Less: Provision for Tax	(2,387)	(1,819)	31%
Profit after Tax (PAT) from continuing operations	6,874	1,992	245%
Loss from discontinuing operations	(79)	(578)
Less: Minority interest	-	-
Profit after Tax (PAT)	6,795	1,414	381%

All figures for FY25 and FY24 are for continuing operations except when otherwise stated.

Z consolidated revenues for the year ended March 31,2025 stood at Rs.82,941 million, compared to Rs.86,372 million in the previous year - a decline of 4% due to low Advertising revenue and moderation in other sales and services, which was partially offset by increase in subscription revenue.

Advertising revenues for the year ended March 31,2025 declined by 11% and stood at Rs.35,911 million, as linear ad spending environment continued to remain soft during the year, especially for general entertainment. Subscription revenue during the year grew by 7% YoY to Rs.39,261 million led by NTO 3.0 implementation and growth in digital subscription revenue.

Zs total operating expenses declined by 8% to Rs.70,979 million, from Rs.77,300 million in the previous year. This decline was primarily driven by various cost saving initiatives taken by the company during the year. Despite this, we have increased our library strength of the digital business by releasing over 59 shows and movies (including originals) during the year. A&P and other expenses for the year declined by 1% YoY to Rs.16,541 million. EBITDA for the year stood at Rs.11,962 million, an increase of 32%

YoY. EBITDA margins for the year ended March 31,2025 improved by 390 bps and stood at 14.4% compared to 10.5% for the year ended March 31,2024.

Depreciation and amortisation expenses declined by 10% YoY to Rs.2,785 million. The exceptional expenses incurred during the year was majorly related to restructuring and litigation. Consolidated income tax expense of Rs.2,387 million and Consolidated profits after taxes from continuing operations stood at Rs.6,874 million and consolidated profit after tax stood at Rs.6,795 million.

LIQUIDITY AND FUNDING

As on March 31,2025, Zs cash & treasury investments was Rs.24,064 million. Consolidated long-term debt (excluding FCCB) stood at Rs.47 million. Consolidated cash flow from operations stood at Rs.11,860 million for the year ended March 31,2025, compared to Rs.7,144 million in the previous year. The increase in cashflow from operations was largely driven by improved operating performance.

RISK FACTORS

CONSUMER EXPECTATIONS IN A COMPETITIVE LANDSCAPE

The M&E space is becoming increasingly saturated with a growing volume of high-quality content, thereby increasing consumer expectations, which can potentially impact the networks viewership share and consequently revenues.

EMERGENCE OF ALTERNATE ENTERTAINMENT PLATFORMS

The evolving content preferences of consumers are fundamentally altering the advertising revenue landscape for media companies. Traditional linear models - based on scheduled programming, broad demographic targeting, and static ad placements - are being challenged by the rise of digital platforms, mobile-first content, personalised viewing experiences, and user-driven media consumption.

INTELLECTUAL PROPERTY INFRINGEMENT

Despite measures to protect intellectual property, it is hard to identify and combat piracy-led content consumption that encompasses intellectual property infringement, unauthorised use of copyrighted material, or misrepresentation, which can lead to an adverse impact on revenues and legal complexities.

FREE-TO-AIR (FTA)/FREE DISH

The popularity of FTA platforms in a saturated market, and particularly during a cost-of-living crisis, could lead to budgetconscious consumers re-evaluating their subscription choices, serving the popularity of FTA. Aided by original content offerings, the FTA universe has witnessed accelerated growth, potentially impacting the subscription revenue of the Pay TV ecosystem.

RISK DUE TO MARKET CONSOLIDATION AND MERGERS

The ongoing market consolidation among media companies through mergers and acquisitions can lead to heightened competition, potential loss of market share and increased pricing pressures, further resulting in the emergence of competitor with vast content libraries and distribution capabilities.

OPERATIONAL RISKS DUE TO CALAMITIES AND GEOPOLITICAL TENSION

Geopolitical tensions and natural disasters like floods, quakes, etc. and/or power outages and technical issues across on-ground and satellite infrastructure could impact the Companys channel availability and revenues. For example, the COVID-19 pandemic disrupted business operations, created a volatile macroeconomic environment, and impacted content production. Any future breakout can affect our ability to produce and monetise content.

CYBERSECURITY THREATS

Digital dependency increases cyber risks. Our IT systems are crucial to operations and digital transformation. However, the integrity of these systems is increasingly vulnerable to a spectrum of IT security threats, ranging from conventional hacking techniques, and sophisticated phishing and ransomware attacks to more advanced threats emerging from the widespread use of Generative-AI tools.

Any breach and/or compromise to our IT systems can have serious consequences, including operational disruptions, exposure of sensitive data, legal liabilities, and significant damage to our reputation.

DATA PROTECTION AND PRIVACY

With the enactment of Indias Digital Personal Data Protection Act (DPDPA) to govern the protection of personal data and the privacy rights of individuals, the penalty for any non- compliance may include heavy fines or legal action imposed by regulatory authorities, making robust data governance essential.

REGULATORY UNCERTAINTY

Frequent regulatory changes in the M&E industry in the domestic and international markets can materially impact operations, compliance costs and revenue models.

UNPREDICTABLE COMMERCIAL SUCCESS

Z is continually making investments to expand its content portfolio, encompassing original shows, TV series, films, music, and innovative formats across various genres.

While we believe that exclusive and original content is a key differentiator that attracts and retains subscribers, the commercial success of creative endeavours remains inherently uncertain. If content investments fail to meet expected outcomes, particularly in terms of costs, viewership, and popularity, our operating performance and brand perception may be negatively impacted.

ICC CRICKET RIGHTS

In 2022, the Company had entered into an agreement with Star India Private Limited (Star) for setting out the basis on which Star would be willing to grant sub-license rights in relation to television broadcasting rights of the International Cricket Councils (ICC) Mens and Under 19 (U-19) global events for a period of four years (ICC 2024-2027) on an exclusive basis (Alliance Agreement). The Company/Board had identified this acquisition of strategic importance ensuring the Company is present in all 3 segments of the media and entertainment business. The performance of the Alliance Agreement was subject to certain conditions precedent including submission of financial commitments, provision of bank guarantee and corporate guarantee and pending final ICC approval for sub-licensing to the Company.

During the previous year, the Company terminated the Alliance Agreement on account of certain repudiatory breaches by Star of the Alliance Agreement Star has initiated arbitration proceedings against the Company before London Court of International Arbitration (LCIA) and has inter alia, sought to declare that the Alliance Agreement between Star and the Company has been validly terminated by Star and also filed for damages to be determined as of the date of the Tribunals award (with such damages quantified, as at August 31, 2024 as proxy date of the award, at US$940 million) along with costs, expenses and applicable interest until full payment.

The Company is taking necessary steps to defend Stars claim in the Arbitration. Currently, the arbitration is at its initial stage, and the LCIA Arbitral Tribunal is yet to determine if the Company is liable in any manner. The Company will, on merits, continue to strongly contest all claims by Star and reserves all its rights.

INTERNAL CONTROLS

Our internal control systems are designed to align with our business needs and scale. The organisation has implemented robust internal controls, procedures, and policies that ensure the smooth operation of its business, including adherence to policies, protection of assets, detection and prevention of fraud and errors, accurate and complete accounting records, and timely preparation of reliable financial information. These are routinely tested and certified by Statutory and Internal Auditors. Significant observations and follow-up actions are reported to the Audit Committee, which evaluates the adequacy and effectiveness of the internal control processes and monitors the implementation of audit recommendations, including those to strengthen the organisations risk management policies and compliance systems.