JioStar's Q2 profit falls 13% amid weak ad environment

Reliance Industries Ltd's entertainment subsidiary JioStar reported a 10% year-on-year jump in revenue to ₹6,806 crore in the September quarter, although earnings before interest, taxes, depreciation, and amortization (Ebitda) fell nearly 14% to ₹1,502 crore.

Profits after tax for the quarter stood at ₹1,147 crore, down 13% on-year.

The company said a “weak ad environment” hurt the quarter, although subscription and streaming revenue helped boost overall revenue. However, linear TV ad revenue remained “under transition”, it added.

Quick answers to key questions

•5 QUESTIONS

1

How did JioStar perform financially in the September quarter?⌵

JioStar’s revenue rose 10% year on year to ₹6,806 crore. EBITDA fell nearly 14% to ₹1,502 crore, while profit after tax declined 13% to ₹1,147 crore.

2

Why did JioStar's profit fall despite higher revenue?⌵

JioStar said a weak advertising environment hurt the quarter, with linear TV ad revenue still “under transition.” Subscription and streaming revenue helped lift overall revenue, but did not prevent profit from declining.

3

How did advertising and subscription revenue affect JioStar's Q2 results?⌵

Weak advertising weighed on the quarter, while subscription and streaming revenue supported overall growth. Sports ad revenue increased as more cricket events, including the England-India series, took place.

4

How many monthly active users did JioHotstar have in the September quarter?⌵

JioHotstar had 440 million monthly active users in the September quarter, down from 530 million in the June quarter. Its user count remained above the 400 million recorded a year earlier.

5

How did JioStar perform in the first half of FY27?⌵

For the first half of FY27, JioStar’s revenue increased 12% to ₹20,743 crore. EBITDA fell 7.4% to ₹2,551 crore, and profit after tax declined nearly 5% to ₹1,812 crore.

Sports ad revenue increased as more cricket events were held this quarter, including the England-India bilateral series held in July.

RIL does not break out JioStar’s revenue by segments.

JioHotstar’s monthly active users (MAUs) surged to 530 million in the June quarter, driven by the Indian Premier League, but fell to 440 million in the September quarter. However, the figure remained above the 400 million recorded in the year-ago quarter.

It remains a goal for JioStar to retain users from the typical Q1 surge in viewership driven by the IPL.

"We exited the quarter with a total MAU of 440 million, a 10% year-on-year growth," said Ishan Chatterjee, chief executive-sports at JioStar, at a results briefing. “What is encouraging is that we have hit this 400 million MAU number in multiple quarters when there was no marquee cricket.”

"The viewership across both digital and especially CTV was very strong [this quarter]," Chatterjee said. “However, when it comes to monetization, we had quite a lot of overhang due to the Middle East situation, which started with the IPL. But we ended with strong monetization with the West Indies [bilateral series with India, running from end-September to mid-October].”

Chatterjee said the festive season had also boosted sports advertising revenue and added that the company remained optimistic about the rest of the year.

Overall, while JioStar’s revenue is up 12% to ₹20,743 crore for the first half of fiscal year 2026-27 (FY27), Ebitda fell 7.4% to ₹2,551 crore and Ebitda margins contracted to 14.4% from 17.5% a year ago. Profits after tax for the first half of the year stood at ₹1,812 crore, down nearly 5% on-year.

JioStar also expanded its JioHotstar streaming service into new international markets, including the UK, Canada, and Singapore, during the quarter, while the platform’s flagship reality TV show, Bigg Boss, launched versions in six languages simultaneously, reaching 90 million streaming viewers in the first three weeks.

Heavy investments in sports and struggle to attract ad revenue in a disrupted consumer market have hit margins for all major entertainment networks. Zee Entertainment Enterprises Ltd also reported a 40% on-year decline in profits after tax as the company invested heavily in broadcast and streaming rights for FIFA World Cup and other events for an eight-year period. Zee’s ad revenue for the quarter was flat on-year.

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