UBS cautious on India's broadcasters, sees ad rev staying soft

Sun TV Network

16/04/2026 10:36

** UBS says softness persists for India's media sector, especially on the advertising side, with no visible recovery signs

** Adds that average weekly ad insertions for the quarter are still below peak levels, showing rapid decline

** "We believe this trend will continue to play out and remain cautious on the sector" - UBS

** Brokerage says while underlying trends remain weak for Zee, year-on-year decline is expected to moderate this quarter, aided by favourable base effects

** Expects 4% y-o-y decline in revenues at Zee, coupled with some increase in costs

** Sees Q4 ad revenues to decline 4% y-o-y for Sun TV due to continued underlying weakness

** "Ad revenue for broadcasters has remained soft despite FMCG companies' stable ad spends, indicating an accelerating shift to digital channels" - UBS

** Zee Entertainment ZEE.NS shares down 2.5%; Sun TV Network SUTV.NS up 1.4%

 (Reporting by Abhinav Parmar in Bengaluru)

 ((Abhinav.Parmar@thomsonreuters.com;))