ZEEL’s share price surges by 12%; what is driving the rally?

ZEEL Share Price: The shares of Zee Entertainment are experiencing significant activity today (June 23) as the market reacted positively to the company’s FY2026 strategy. ZEEL shares surged over 12 percent, reaching a 10-month peak, despite the overall market selling pressure. The BSE 500 stock commenced slightly lower at Rs 132.50 compared to the previous closing price of Rs 133.08. As the day advanced, strong buying interest was observed in ZEEL shares, which peaked at an intraday high of Rs 149.25, reflecting a 12.10 percent increase by 2:50 PM.

ZEEL chart shows that the stock had previously traded at today’s level in August 2024.

Today’s buying in ZEEL shares came as the company announced its plans to achieve breakeven in Zee 5 from EBITDA loss of Rs 548 crore in FY2025.

Zee Entertainment, which has a market valuation of 14,302 crore, said that is also targeting a TV viewership share of 17.5 per cent in FY2026, up from 16.8 per cent from the previous the previous fiscal. Besides, the company said that it is aiming for an 8 to 10 per cent increase in advertising revenue during the fiscal (FY26) and improve operating margins from 14.6 per cent in FY2025 to the range of 18 to 20 per cent in current fiscal.

Additionally, the company has also plans to unlock further value through its music and syndication business.

Earlier this month, ZEEL board had approved a capital infusion plan worth Rs 2,237 crore to raise stake to 18.39 per cent, up from 4.28 per cent. Back in March, ZEEL promoters had purchased nearly 27 lakh shares via open market worth nearly Rs 27 crore. Post this, the stake increased to 4.28 per cent from 3.99 per cent earlier.