Shemaroo FY26 loss widens as revenue drops and costs surge

MUMBAI: The reels kept rolling, but the numbers refused to play along. Shemaroo Entertainment Limited reported a sharply wider loss for FY26 as falling revenues and rising operational costs weighed heavily on the media company’s balance sheet, underlining the growing pressure on content businesses navigating a rapidly shifting entertainment market. The company posted a consolidated net loss of Rs 21,861.58 lakh for the year ended 31 March 2026, significantly higher than the Rs 8,495.91 lakh loss reported in FY25. Revenue from operations also slipped 14.89 per cent year-on-year to Rs 58,306.24 lakh from Rs 68,510.19 lakh a year earlier.

For the March quarter, the company reported revenue of Rs 13,948.36 lakh compared to Rs 20,427.26 lakh in the corresponding quarter last year. Quarterly consolidated net loss widened dramatically to Rs 7,211.99 lakh against Rs 511.73 lakh in Q4 FY25.

While revenues shrank, expenses moved firmly in the opposite direction. Annual operational costs climbed to Rs 66,757.80 lakh from Rs 57,915.43 lakh, pushing total FY26 expenses to Rs 88,394.91 lakh. Finance costs stood at Rs 3,009.44 lakh for the year, while employee benefit expenses rose marginally to Rs 13,026.50 lakh.

The company’s earnings per share slipped deeper into the red at negative Rs 79.96 for FY26 compared to negative Rs 31.14 in FY25.

The year also saw Shemaroo undertake a promoter-led capital infusion exercise. In March 2026, the company allotted 14.10 lakh equity shares on a preferential basis at Rs 110 per share, aggregating Rs 1,551 lakh, to promoter and promoter group entities through conversion of unsecured debt.

On the balance sheet front, total assets declined to Rs 68,578.04 lakh from Rs 86,608.98 lakh a year ago, reflecting tighter liquidity and pressure on receivables. Cash and cash equivalents improved modestly to Rs 350.87 lakh at the end of FY26 compared to Rs 117.53 lakh in FY25.

One shadow continuing to loom over the company remains its ongoing GST litigation. Shemaroo noted that the matter relating to alleged inadmissible input tax credit worth Rs 7,025.61 lakh, along with associated penalties and interest under the CGST Act, remains under legal review. The company’s writ petition before the Bombay High Court continues, with the court directing that no further coercive action be taken while the matter is being considered by a larger bench.

The standalone business reflected a similar trend. Standalone FY26 revenue dropped to Rs 54,739.37 lakh from Rs 65,048.53 lakh, while standalone net loss widened to Rs 22,161.07 lakh.

The results arrive at a time when traditional content libraries and syndication-led media businesses are facing increasing competition from streaming-first platforms, short-video ecosystems and changing audience consumption patterns. For legacy entertainment firms like Shemaroo, the challenge now is not just preserving nostalgia, but finding a profitable script for the digital era.