Walt Disney Company reported a $28 million equity loss from its 37% stake in the Indian joint venture, JioStar (a partnership with Reliance Industries), for the first quarter of fiscal 2026.
Despite the loss, the results show a narrowing deficit compared to the $33 million loss reported in the same quarter of the previous year (Q1 FY25).
1. Financial Context: The “Narrowing” Loss
The $28 million figure represents Disney’s share of the joint venture’s net results, which are now recorded under “equity in the income of investees” following the deconsolidation of Star India.
| Metric | Q1 FY26 (Current) | Q1 FY25 (Previous) | Improvement |
| India JV Equity Loss | $28 Million | $33 Million | $5 Million |
| Restructuring Charges | $0 | $143 Million | $143 Million |
- Absence of Impairment: Unlike Q1 FY25, which was weighed down by a $143 million one-time restructuring charge tied to the Star India transaction, this quarter’s results were relatively “clean” of major merger-related accounting hits.
- Accounting Shift: Since November 14, 2024, Disney has stopped consolidating Star India’s full revenue and operating income. It now only recognizes 37% of JioStar’s net profit or loss.
2. Impact on Disney’s Global Segments
The deconsolidation of the India business has created significant year-on-year (YoY) variances in Disney’s broader financial reporting:
- Entertainment Advertising: Global advertising revenue for the Entertainment segment declined 6% YoY. Disney attributed 11 percentage points of this decline to the removal of Star India from its consolidated books.
- SVOD Revenue: Subscription video-on-demand (streaming) revenue grew 11%, but management noted that this growth would have been 1 percentage point higher if not for the inclusion of Star India revenue in the prior-year period.
- Sports Segment: The lack of Star India’s contribution led to a notable “step-down” in reported international sports income compared to fiscal 2025.
3. JioStar’s Operational Performance
While Disney reports a loss at the equity level, the underlying JV—JioStar India—is navigating a transition period as it integrates the massive media portfolios of Viacom18 and Star India.
- Market Dominance: The JV remains the largest media entity in India, controlling over 100 channels and two major streaming platforms (JioCinema and Disney+ Hotstar).
- FY25 Forecast: Prior to the Q1 2026 report, Disney had lowered its full-year loss projection for the India JV to $200 million (down from $300 million), citing better-than-expected ad sales during the 2025 IPL season.
4. Disney’s Overall Q1 FY26 Performance
The India loss was a minor footnote in an otherwise robust quarterly report for Disney:
- Total Revenue: $26 billion (up 5% YoY).
- Adjusted EPS: $1.63 (beating Wall Street estimates of $1.57).
- Streaming Success: Disney’s streaming division (Disney+, Hulu, ESPN+) turned a significant operating profit of $450 million, a 72% increase YoY.
- Box Office Wins: Success was driven by $1 billion+ blockbusters Zootopia 2 and Avatar: Fire and Ash.
Conclusion: A Managed Exit?
The $28 million loss suggests that while the India business is still in the “red,” the financial bleeding for Disney has stabilized compared to the multi-billion dollar write-downs of 2024. By shifting to a minority 37% stake, Disney has successfully insulated its global balance sheet from the high-cost volatility of the Indian media market while retaining a seat at the table of the country’s dominant entertainment giant.
