15-05-2025
Shemaroo Entertainment Ltd (BOM:538685) Q4 2025 Earnings Call Highlights: A Turnaround Quarter ...
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Shemaroo Entertainment Ltd (BOM:538685) posted its first positive quarter in six quarters, driven by deferred B2B deals.
Digital media revenues for the fourth quarter increased by 1.25% year on year, and for the full financial year, it grew by approximately 11%.
The company released 13 new titles in Gujarati, including movies, web series, and plays, enhancing its content portfolio.
Shemaroo's YouTube channel, Shimarumi Gane, crossed 71 million subscribers, garnering over 10.5 billion views during the quarter.
The company is committed to strengthening its balance sheet and enhancing operational efficiency to unlock substantial long-term intrinsic value.
The company reported a net loss of approximately 5 crores for the quarter and 85 crores for the financial year.
Revenue from operations for the financial year declined by 3% year on year.
The consolidation of the broadcasting industry led to a significant decline in the TV syndication business, impacting the overall top line.
Margins are expected to remain under pressure due to ongoing accelerated inventory charges.
The advertising outlook remains subdued due to macroeconomic pressures, geopolitical tensions, and major sporting events like IPL.
Warning! GuruFocus has detected 3 Warning Signs with BOM:538685.
Q: Could you share the quantum of non-recurring B2B deals and the outlook for FY 2026? A: These content licensing deals are lumpy and non-recurring. While I can't disclose the exact value, they significantly impacted our topline this year. However, the outlook for next year is positive, with a strong content pipeline expected to drive growth. - CEO
Q: Have any of your channels broken even, and what is the typical break-even timeline? A: One channel broke even about 1.5 years ago, and another is near break-even with low investment. The major investment is in Shemaroo Umang, focusing on original content. - CEO
Q: What is the roadmap to achieve profitability, considering the inventory write-off? A: The accelerated inventory charge is significantly higher than the PBT loss. If added back, the PBT would be positive. We are focusing on cost rationalization and strategic investments to improve profitability. - CEO
Q: What would be the ROCE and ROE if the accelerated inventory charge was not taken? A: The accelerated charge for the year is between 150 to 160 crores. Adding this back would make the PBT positive by about 40 crores. - CEO
Q: How does the recent US tariff impact the company's performance in FY 2026? A: There is no official order yet, but it is likely intended for US-produced films shot outside the USA. We don't expect a major impact on foreign films, including our business. - CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
