Shemaroo Entertainment Ltd. (SHEMAROO) AI Stock Analysis

• Market Cap: ₹2.58B
• Dividend Yield: N/A
• Average Volume (3M): 4.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -2.93%
• EPS Growth: -50.62%
• Country: IN
• Employees: 663
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -20.29
• Shares Outstanding: 27,320,300
• 10 Day Avg. Volume: 1,025
• 30 Day Avg. Volume: 4,716
• PEG Ratio: -0.03
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 3.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹94.00 ▼(-16.07% Downside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is primarily held back by weak financial performance, led by negative margins, deteriorating profitability, and inconsistent free cash flow. Technicals show only a modest near-term improvement (above short-term averages) but momentum remains weak with a negative MACD and price still below the 200-day average. Valuation is also pressured by a negative P/E indicating losses and no provided dividend yield.

Positive Factors

Diversified monetization model

Shemaroo's revenue model spans licensing to broadcasters/OTTs, digital ad/subscription monetization, owned-branded distribution and ancillary rights. This multi-window, multi-product approach spreads revenue risk, supports recurring licensing income and provides durable cash channels over months.

Large content/IP library and distribution reach

Owning and curating a sizable content library gives Shemaroo long-lived monetization optionality: repeat licensing, clips/music exploitation and platform partnerships. IP ownership is a structural competitive advantage that supports sustained revenue generation and bargaining power with distributors.

Operational cash generation

A positive operating cash flow to net income ratio indicates the business generates cash from operations despite earnings volatility. That cash provides a durable buffer to fund content licensing, working capital needs and short-term investments without immediate external financing if trends sustain.

Negative Factors

Declining revenues and negative margins

Revenue declines coupled with negative gross and net margins point to structural profitability pressure—either weaker monetization or rising costs. Persisting negative margins reduce reinvestment capacity, weaken competitive positioning, and make long-term content acquisition and growth harder to sustain.

Inconsistent free cash flow

Inconsistent free cash flow limits Shemaroo's ability to steadily fund content purchases, platform investments, or service liabilities. Over a 2–6 month horizon this unpredictability raises financing risk, may force tighter content spend, and constrains strategic flexibility versus better-cash-generative peers.

Rising liabilities, leverage and negative ROE

A declining equity ratio and growing liabilities indicate greater reliance on debt financing while ROE is negative, showing shareholder capital is not generating returns. Higher leverage reduces financial flexibility and increases vulnerability to revenue shocks over the medium term.

Shemaroo Entertainment Ltd. Business Overview & Revenue Model

Company Description

Shemaroo Entertainment Limited engages in the distribution of content for broadcasting of satellite channels, physical formats, and emerging digital technologies in India. The company is involved in the movie production; online video streaming over the top (OTT) platform; and syndication business that distributes its content to satellite, cable, and terrestrial networks. It also deals in curating and providing content to DTH services on DTH platforms; and provides inflight eclectic mix of content service. In addition, the company offers studio services comprising digital intermediate, digital restoration, VFX, telecine, film scanning, film grading, etc. to various content owners and distributors, as well as offers mobile applications. Further, it company offers pre-loaded devotional speakers. Shemaroo Entertainment Limited was founded in 1962 and is based in Mumbai, India.

How the Company Makes Money

Shemaroo primarily makes money by monetizing entertainment content rights across different distribution windows and platforms. Key revenue streams include: (1) Content licensing/syndication: licensing film and other video content from its library to third parties such as television broadcasters and digital/OTT platforms, typically for defined territories, durations, and formats. (2) Digital monetization: earning revenue from distributing content on digital platforms, which can include platform-led payouts and advertising-led models where available (e.g., monetization tied to views/engagement and ad inventory), subject to platform terms. (3) Branded/owned distribution offerings: monetizing content through company-branded channels or services where Shemaroo controls packaging and distribution, generating revenue via advertising, subscriptions, or carriage arrangements when applicable; if specific pricing/ARPU details are not publicly available, null. (4) Ancillary exploitation of rights: monetizing music, clips, and other derivatives where rights are held, through licensing or platform distribution; if the exact mix by category is not publicly available, null. A significant factor in earnings is the breadth and monetizability of its content library and its ability to renew and expand licensing relationships with broadcasters, OTT platforms, and digital distribution partners; specific named partnerships not confirmed from publicly available sources are null.

Shemaroo Entertainment Ltd. Financial Statement Overview

Summary

Income statement weakness dominates: declining revenues and worsening profitability with negative gross and net margins and deteriorating EBIT/EBITDA margins. Balance sheet is moderately stable (manageable debt-to-equity) but rising liabilities and negative ROE add risk. Cash flow shows some operating cash generation, but free cash flow remains inconsistent.

Income Statement

Shemaroo Entertainment Ltd. has been facing declining revenues and worsening profitability. The gross profit margin turned negative in the latest year, indicating a significant cost pressure or revenue decline. The net profit margin is also negative, reflecting struggles with operational efficiency and cost management. The revenue growth rate is volatile, with a recent decline, and both EBIT and EBITDA margins have deteriorated, showing operational challenges.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio that is reasonably managed, though the company's equity ratio has decreased slightly, indicating a higher reliance on debt financing. Return on equity has turned negative, signaling a need to improve profitability. The company maintains a substantial amount of assets, but the increasing liabilities are concerning.

Cash Flow

Cash flow analysis reveals challenges in maintaining consistent free cash flow, with recent improvements overshadowed by historical negative trends. The operating cash flow to net income ratio is positive, suggesting some operational cash generation, but the free cash flow to net income ratio is inconsistent, highlighting the need for better cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.52B	6.85B	7.07B	5.57B	3.81B	3.11B
Gross Profit	-618.64M	-281.31M	645.37M	1.73B	1.35B	325.93M
EBITDA	-1.43B	-797.53M	44.95M	506.90M	377.14M	135.94M
Net Income	-1.33B	-849.59M	-406.67M	93.64M	52.70M	-214.83M
Balance Sheet
Total Assets	7.86B	8.66B	10.22B	10.38B	8.89B	8.77B
Cash, Cash Equivalents and Short-Term Investments	111.99M	25.21M	2.35M	19.73M	80.10M	71.18M
Total Debt	2.97B	3.05B	3.40B	3.21B	2.54B	2.69B
Total Liabilities	4.08B	3.98B	4.73B	4.51B	3.12B	3.05B
Stockholders Equity	3.82B	4.72B	5.53B	5.92B	5.82B	5.76B
Cash Flow
Free Cash Flow	306.75M	701.22M	154.27M	-368.03M	409.86M	92.44M
Operating Cash Flow	321.76M	751.52M	255.88M	-172.32M	441.34M	101.48M
Investing Cash Flow	-23.32M	-14.79M	-74.66M	-190.01M	-23.95M	-7.02M
Financing Cash Flow	-198.22M	-727.33M	-188.14M	355.50M	-409.77M	-93.23M

Shemaroo Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHEMAROO, the sentiment is Negative. The current price of 112 is above the 20-day moving average (MA) of 99.54, above the 50-day MA of 101.20, and below the 200-day MA of 112.54, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 13.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHEMAROO.

Shemaroo Entertainment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAREGAMA	59 Neutral	₹63.81B	32.87	―	2.59%	26.97%	8.03%
EROSMEDIA	57 Neutral	₹756.76M	―	―	―	-69.51%	71.68%
MUNJALAU	56 Neutral	₹7.01B	14.78	―	1.24%	13.34%	-26.93%
BALAJITELE	55 Neutral	₹9.40B	-12.87	―	―	-50.42%	2921.37%
SHEMAROO	45 Neutral	₹2.58B	-1.32	―	―	-2.93%	-50.62%
MUKTAARTS	45 Neutral	₹848.30M	-24.35	―	―	-3.03%	6.44%

Shemaroo Entertainment Ltd. Corporate Events

Shemaroo Entertainment Releases Q3 and 9M FY26 Earnings Presentation

Shemaroo Entertainment Limited has released its earnings presentation for the quarter and nine months ended December 31, 2025, in line with its disclosure obligations under SEBI’s listing regulations. The presentation, made available to stock exchanges and on the company’s website, provides investors and stakeholders with detailed financial and operational updates for Q3 and the first nine months of FY26, supporting transparency and informed decision-making in the market.