Nuvama sees stronger media growth in Q3FY27

Nuvama Research expects India’s media and entertainment industry to gain momentum in the third quarter of financial year 2026-27, with a later Diwali, a fuller film schedule and stronger digital monetisation supporting performance. The brokerage’s assessment was reported by the1news.com.

The forecast points to an improvement in both spending and audience engagement after a relatively weaker period for parts of the industry. Nuvama expects festive activity to assist advertising, while new films and sporting events could increase viewing across television and digital services.

Festive timing and a fuller content schedule

The timing of Diwali is expected to be important for the quarter. Because the festival falls later, advertisers and media companies may see more activity during Q3FY27, according to Nuvama’s report. Festive consumption is expected to encourage brands to raise promotional activity and attract audiences across different platforms.

The brokerage also expects the entertainment calendar to become more supportive. Several major films are scheduled for release during the quarter, following a second quarter in which there were no major movie launches. A stronger supply of cinema content could improve activity for film-related businesses and contribute to wider audience engagement.

Nuvama identified content availability as an important factor for both cinema and television. The expected arrival of large film releases, combined with planned sports programming, could give viewers more reasons to spend time with broadcasters and digital platforms. That may create additional opportunities for companies seeking to increase advertising and subscription revenue.

Sports are expected to play a particularly significant role. Major scheduled events could lift viewing on television and online services, helping platforms attract audiences and improve the value of their content. The brokerage expects sports programming to support subscription gains as well as efforts to generate more revenue from existing users.

Digital, television and subscription prospects

Nuvama sees improving performance from digital platforms as another potential source of growth for broadcasters. Rising engagement with online services could give media companies more ways to distribute content and monetise audiences. The report connects this opportunity with both subscription expansion and better use of digital advertising or other platform-based revenue streams.

Television advertising is also expected to grow. Nuvama attributed that outlook partly to favourable comparisons with the previous period and partly to increased attention around major events. A busier sports and entertainment schedule could therefore benefit broadcasters that are able to attract large audiences.

The report presents the quarter as a potentially better one for most industry participants, driven by several factors working together rather than by a single source of demand. Festive expenditure may improve advertising conditions, while films and sports can strengthen viewing. Subscription growth and digital monetisation would provide additional support as audiences move across television and online platforms.

The music business is expected to remain broadly stable. Nuvama continues to see potential in regional content and sustained digital consumption, even though it does not anticipate a major change in the segment’s overall position. Regional music had maintained strong traction during the second quarter despite the absence of significant film releases.

Growth opportunity with a near-term risk

Nuvama’s positive view does not mean that all companies will see immediate improvement in profits. The brokerage warned that some broadcasters may increase advertising expenditure or make other investments to capture audience and revenue opportunities. Those higher outlays could weigh on profitability in the short term.

At the same time, the report indicated that such spending may help companies build growth over a longer period. Investment in content, promotion and platform development could strengthen their ability to benefit from future audience demand, even if it creates pressure on near-term margins.

Overall, Nuvama expects Q3FY27 to provide a more favourable operating environment for the sector. Its outlook rests on the combined effect of the late Diwali season, major film releases, sports-led engagement, television advertising growth, subscription gains and stronger digital revenue generation. The quarter’s results will therefore depend on how effectively media companies convert increased content and audience activity into sustainable monetisation.