Copyright © HT Digital Streams Limit all rights reserved. Madhvendra 4 min Read 25 Aug 2025, 01:25 IST PVR Inox added 20 screens in Q1FY26, bringing the total to 1.745. Summary to a slide of 49% of its peak, India’s largest multiplex operator shows early signs of recovery with stronger collections, rising footfalls and discounted valuations. But risks remain. After a bruise two years, PVR Inox finally finds the foot of it. India’s largest multiplex chain, once a favorite stock market, saw its shares tumble almost 49% of a 2022 highlight of £ 2,215, as a poor content, box office flops and falling feet drove the audience to streaming platforms. Now, stronger collections, rising occupation and a promising release of the release has helped the stock since the latest earnings about 10%. Valuations, meanwhile, sit far below the historical averages. For investors, the question is whether this early rebound is the beginning of a sustained turnaround or just another short rally. We break it down. Q1FY26 performance consolidated turnover rose 23% year-on-year to £ 1.469 crore in the June quarter of FY26 (Q1FY26), fueled by stronger box office collections. Hindi Cinema led with a 38% increase, while Hollywood recorded an even sharper growth of 72%. With a healthier film pipeline ahead, analysts expect the momentum to continue through the rest of the financial year. Film tickets and food and drink remained the bread and butter of the business. Ticket income rose 22.7% to £ 728, almost half of the total turnover, while F&B climbed 22.4% to £ 492, which contributed 34%. A £ 99 weekday menu increased sales among value-conscious audiences, while advertising revenue, at £ 110, was the strongest since the pandemic. The rest comes from convenience fees (£ 48 crore) and other operating income (£ 91 crore). Box Office and Footfalls Box-Office Winsions were powered by a series of successful films, including Raid 2, Sally Zameen Par, Kesari Chapter 2, HouseFull 5 and Jaat. Five Hindi films crossed £ 100 crore, and three surpassed £ 200 crore, pointing to a healthier environment that is less dependent on single blockbusters. Hollywood also contributed, with titles such as Mission Impossible: The Final Reckoning, Final Destination, Ballerina and F1. Regional films, including good bad ugly (Tamil), Thudarum (Malayales) and Tourist family (Tamil), have drawn strong numbers. The better content of the content translated into higher attendance and spending. Footfalls rose 12% to 3.4 crore, average ticket prices rose 8% to £ 254, and spending per head affected a record of £ 148. Unlimited popcorn and Pepsi refills, along with premium prices for Hollywood films, helped to achieve expenses. Occupation rose 167 basis points to 22%, with the launch of ‘Blockbuster Tuesdays’, which started nearly 1 million new or returning protectors with tickets from £ 99. The initiative was aimed at students, housemakers and retirees, and helped Julie to deliver the highest feet in 18 months. Alternative programming, from IPL -streaming to concerts, added another 5 lakh allowances. Management expects total footfalls to exceed FY24’s 15 crore in fiscal 2026, supported by both content and non-film events. Cost -discipline and debt reduction, while turnover improved, did the cost control. Fixed costs increased by just 2.8%, with the hiring of 5% – according to the 6.2%increase for comparable theaters – thanks to renegotiations and waiver. The discipline, together with stronger income, pushed the operating margins back into the black. Ebitda amounted to £ 95.3 crore, with margins at 6.5% compared to a negative 3.2% a year earlier, with the same 22% occupation. Net loss hampered 76% to £ 33.4. Margins are expected to improve further as occupation expands, especially as the Q3 is traditionally the strongest quarter. The backlash in profitability has given management more room to manage the balance sheet. Net debt has fallen by 6.3% to £ 892 consecutively, with further reduction expected as cash flow improves. The company has moved to a capital light model, which helps the returns on capital and keeping the leverage in check. Extension through an asset light strategy PVR Inox added 20 screens in the quarter, bringing its total to 1.745. Fourteen of these were under the “Foco) model owned by the franchise in which developers finance the investment and earn PVR management fees. The rest was under an asset light structure sharing investments and rental obligations with developers. FY26. Year of 16. If the current momentum holds and flows to net profitability, the gap can narrow. Analyzes. Research articles on listed Indian businesses, sectoral tendencies and macro -economic developments. The business news, market news, news reports and latest news updates on Live Mint.
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