Shemaroo narrows Q1 loss as costs fall despite dip in revenue

MUMBAI: The credits may still be rolling on losses, but Shemaroo’s latest quarter hints that the script is beginning to change. The media and entertainment company reported a sharply lower consolidated loss for the first quarter of FY27, helped by tighter cost controls, even as revenue slipped marginally from a year earlier.

Shemaroo Entertainment posted consolidated revenue from operations of Rs 131.68 crore for the quarter ended 30 June 2026, compared with Rs 139.52 crore in the corresponding quarter last year. Including other income of Rs 0.61 crore, total income stood at Rs 132.30 crore, down from Rs 143.19 crore a year ago.

The company’s consolidated net loss narrowed significantly to Rs 8.05 crore, compared with a loss of Rs 45.81 crore in the year-ago period. Total comprehensive loss also improved to Rs 7.98 crore from Rs 45.82 crore in the corresponding quarter of FY26.

On the operating front, total expenses declined to Rs 142.76 crore from Rs 204.15 crore a year earlier. Operational costs reduced sharply to Rs 90.28 crore, compared with Rs 152.26 crore in the same quarter last year, while employee benefit expenses rose slightly to Rs 32.20 crore from Rs 31.19 crore.

Finance costs stood at Rs 7.77 crore, broadly unchanged from Rs 7.62 crore a year ago, while depreciation and amortisation expenses eased marginally to Rs 1.48 crore from Rs 1.52 crore. Other expenses also declined to Rs 11.02 crore, compared with Rs 11.56 crore.

The company reported a loss before tax of Rs 10.46 crore, a marked improvement over the Rs 60.96 crore loss recorded in the corresponding quarter last year. After accounting for a deferred tax credit of Rs 2.39 crore, the net loss after tax stood at Rs 8.07 crore.

On a standalone basis, revenue from operations came in at Rs 123.23 crore, compared with Rs 131.04 crore a year earlier. Standalone net loss narrowed to Rs 8.90 crore from Rs 46.92 crore in the first quarter of FY26.

The company also reiterated that its long-running GST dispute remains sub judice. Earlier, the GST department had sought recovery of Rs 70.26 crore towards alleged inadmissible input tax credit, along with interest and penalties, including an additional Rs 63.35 crore penalty under provisions of the CGST Act, 2017.

While the company’s appeal before the Commissioner of Central Goods & Services Tax and Central Excise (Appeals II) was decided in favour of the department, the Bombay High Court has stayed further action on the disputed orders and referred the matter to a larger bench for consideration. Shemaroo said it would continue to keep stakeholders informed of future developments.

The results suggest that while revenue growth remains elusive, Shemaroo’s aggressive cost rationalisation has significantly reduced losses. With the GST litigation still awaiting judicial resolution, investors will be watching whether the company can build on its improving financial trajectory in the quarters ahead.