PVR INOX reported a better-than-expected performance this quarter. Its pre-IND AS EBITDA loss stood at Rs110 million—far better than the projected Rs366 million loss. What drove this surprise? Smarter cost control. On a same-store basis, fixed costs grew only 0.4% year-on-year to Rs7,639 million.
That’s no small feat in a business where popcorn sells dreams, but fixed costs can pop your margins.
So what does this mean for the average moviegoer—or investor?
In simple terms, the cinema giant is tightening its belt. It’s shifting to a leaner, more efficient model. It’s trying to survive the cold without a blockbuster blanket.
Footfall—meaning how many people actually show up to watch a movie—is still a problem. And that’s the real plot twist. Despite cost control, growth is only possible if people return to the theatres.
So far, that comeback is slow.
Here’s where PVRINOX is hitting the right notes:
- Cost per screen? Flat at around Rs20 million for 5 years. That’s efficiency.
- Net debt? Down by Rs4,782 million since its merger.
- Asset-light strategy? Gaining ground. The company has already signed 101 screens under this model, which reduces capital expenditure and risk.
This shift is like swapping a heavy backpack for a sleek briefcase. Still a burden, but lighter and smarter.
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But here’s the sticking point:
Bollywood hasn’t been delivering enough crowd-pullers. As a result, the company’s revenue base is shaky. Analysts now expect only a 6% CAGR in footfall over the next two years.
Pre-IND AS EBITDA margins are projected to be 12.4% in FY26E and 15.7% in FY27E. Decent—but not dazzling.
PVRINOX’s stock is rated as ‘HOLD’ with a target price of Rs1,040. That’s based on 11x Sep-26 EBITDA, and there’s been no change in the target multiple.
In short: The cost-saving script is solid. But without better movies and fuller halls, there’s no encore yet.
PVRINOX is doing all the right things on the backend—cutting costs, reducing debt, and shifting to an asset-light model. But the real win will come when people start buying tickets again. For now, it’s playing defense with grace.
Disclaimer: This article is for information only and not financial advice. Please do your own research or speak to a financial advisor before making any investment decisions. Views are based on public info available at the time.
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