Zee charts ₹3,144 crore growth plan with AI, sports and digital push

MUMBAI: Zee is changing the channel, but this time it’s tuning into the future. The broadcaster has unveiled an ambitious blueprint to transform itself beyond traditional television, outlining fresh bets on digital entertainment, sports, artificial intelligence (AI), broadband and live experiences as it seeks shareholder approval to raise ₹3,143.5 crore through a preferential issue of warrants.

The proposals, which will be placed before shareholders at an Extraordinary General Meeting (EGM) on July 31, position the capital raise as more than a funding exercise. Instead, Zee says the investment will accelerate its evolution into a diversified content and technology company.

The biggest turnaround has come from its digital business. After years of losses, Zee’s digital operations turned EBITDA profitable in FY26, a sharp improvement from an EBITDA loss of ₹548 crore in the previous year. Digital revenue climbed 53 per cent year-on-year to ₹1,488.8 crore, underscoring growing momentum for its streaming ambitions.

To strengthen ZEE5, the company rolled out seven language packs to deepen its regional offering while doubling its premium slate to 127 original shows and movies, signalling an aggressive push for both subscribers and advertisers across India’s multilingual market.

Zee is also placing a sizeable wager on emerging content formats. Its mobile-first vertical micro-drama platform Bullet has shown encouraging early traction, according to the company, while the introduction of Trinetra AI positions it among the first AI-powered filmmaking and content intelligence platforms built specifically for short-form dramas. The move reflects Zee’s broader strategy of using AI to improve production efficiency while experimenting with new storytelling formats.

Live sports, meanwhile, has become another strategic growth engine. Following its return to sports broadcasting, Zee has secured rights to properties including ILT20 cricket, the Bengal Super League, UP Kabaddi, the Pickleball League and Pro Govinda, alongside launching four Unite8 sports channels in Hindi and English across SD and HD feeds.

The broadcaster has also acquired rights to 39 FIFA events through 2034, including the 2026 and 2030 FIFA World Cups, the 2027 FIFA Women’s World Cup, youth World Cups, Futsal competitions and the Intercontinental Cup. Zee plans to continue investing in premium sports rights and production capabilities to attract younger audiences, boost subscriptions and widen its advertiser base.

Beyond broadcasting, the company is expanding into adjacent businesses. It has entered the live events segment, describing experiential entertainment as a long-term opportunity, while also launching KidZ on Z5, a dedicated children’s and edutainment destination targeting viewers aged 6 to 16 years.

The company has also ventured into the distribution and broadband business, allowing it to strengthen direct relationships with consumers while extending the reach of its content beyond conventional television platforms.

Even as it diversifies, Zee said its core television business has regained momentum. Network market share has risen to nearly 20 per cent, a multi-year high, helped by investments in new fiction and non-fiction programming that strengthened its prime-time position across multiple languages.

To fund the next phase of expansion, Zee is seeking approval to issue up to 24.95 crore fully convertible warrants to promoter group entity Sunbright Mauritius Investments Ltd at ₹126 per warrant, raising up to ₹3,143.5 crore.

The issue price represents a premium of 11.86 per cent over the price determined under SEBI regulations, 16.33 per cent above the closing market price on the board approval date and 28.61 per cent higher than the 90-day volume-weighted average price on the NSE. The warrants will be convertible into equity shares within 18 months, with 25 per cent of the subscription amount payable upfront and the balance due at conversion.