PVRINOX - PVR Inox

📊 NSE: PVRINOX 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 11:24

💰 Financial Performance

Revenue Growth by Segment

Total Revenue decreased by 8% (INR 4,622 Mn) in FY25. Segment performance: Movie ticket sales fell 10% to INR 29,424 Mn; Food and Beverages (F&B) declined 8% to INR 17,335 Mn; Advertising revenue dipped 1% to INR 3,365 Mn; and Convenience fees decreased 3% to INR 2,214 Mn. However, Q2 FY26 showed a recovery with total income rising 12% YoY to INR 1,641.9 Cr.

Geographic Revenue Split

Not specifically disclosed by region in the provided documents, though the company operates across India and has a presence in Sri Lanka via PVR Lanka Ltd.

Profitability Margins

FY25 Standalone PAT margin was -3% (loss of INR 1,491 Mn) compared to -1% in FY24. H1 FY26 consolidated PAT margin improved to 1.5% (INR 51 Cr) from a negative margin of -6.6% in H1 FY25, driven by better content performance.

EBITDA Margin

Adjusted EBITDA margin for H1 FY26 stood at 13.3% (INR 441.4 Cr) compared to 6.6% (INR 187 Cr) in H1 FY25, representing a 670 bps improvement. FY25 full-year EBITDA margin was impacted by a 10% drop in admissions.

Capital Expenditure

Planned capex for FY26 is estimated between INR 400 Cr and INR 500 Cr. This will fund the addition of 100-120 new screens, maintenance of existing properties, and IT initiatives.

Credit Rating & Borrowing

Maintains a 'Stable' outlook from CRISIL and India Ratings. Net debt was reduced from INR 1,294 Cr in March 2024 to INR 952.2 Cr by March 2025. The company aims to reduce net debt to below INR 800 Cr by FY26.

⚙️ Operational Drivers

Raw Materials

Food and beverage supplies (corn, oil, seasonings, syrups) represent the primary raw material costs, though specific % of total cost per item is not disclosed.

Import Sources

Sourced primarily within India; F&B supplies are managed through subsidiaries like Zea Maize Pvt Ltd.

Key Suppliers

Zea Maize Pvt Ltd (subsidiary) for gourmet popcorn; various third-party vendors for F&B and IT support.

Capacity Expansion

Current capacity is 1,714 screens across 348 locations as of March 2025. Planned expansion of 100-120 screens annually, primarily through asset-light models.

Raw Material Costs

F&B costs are a major component; the company achieved a 1% increase in Spend Per Head (SPH) to INR 134 in FY25 despite lower admissions, helping offset procurement cost volatility.

Manufacturing Efficiency

Occupancy levels were 23.0% in FY25, down 260 bps from 25.6% in FY24. Efficiency is being targeted through the closure of 72 underperforming screens which saved ~INR 80 Mn in EBITDA.

Logistics & Distribution

Not disclosed as a specific % of revenue.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Pivoting to an asset-light model (FOCO) to add 100-120 screens annually with minimal upfront capex. Growth is also driven by 'PVR INOX Pictures' for film distribution (INR 500 Mn equity invested) and premiumization through increased SPH and ATP.

Products & Services

Movie tickets, food and beverages (popcorn, snacks), in-cinema advertising, movie distribution services, and convenience fees for online booking.

Brand Portfolio

PVR, INOX, PVR INOX Pictures, 4700BC (Zea Maize), PVR Luxe, PVR P[XL], PVR Director's Cut.

New Products/Services

Expansion of the 'Passport' subscription program and alternate content screenings (live sports, concerts) to improve mid-week occupancy.

Market Expansion

Focusing on under-penetrated markets in India and optimizing the existing circuit by exiting loss-making malls (72 screens exited in FY25).

Market Share & Ranking

Largest multiplex operator in India with 1,700+ screens.

Strategic Alliances

Joint ventures include PVR Lanka Ltd and partnerships with mall developers for FOCO model cinemas.

🌍 External Factors

Industry Trends

The industry is shifting toward premiumization and 'cinema as an experience' to compete with OTT. PVR is positioning itself by adding IMAX and 4DX screens while reducing fixed costs through developer-funded capex.

Competitive Landscape

Primary competition from OTT platforms (Netflix, Amazon Prime) and other alternate media/broadcasting mediums.

Competitive Moat

Strong brand equity and market leadership (scale) allow for better rental negotiations and higher advertising rates. The moat is sustainable due to the exclusive theatrical window for major blockbusters.

Macro Economic Sensitivity

Highly sensitive to discretionary consumer spending and inflation in F&B input costs.

Consumer Behavior

Shift toward consuming long-form content on OTT, especially for small and medium-budget movies, challenging traditional multiplex growth.

Geopolitical Risks

Hollywood strikes (2023) significantly delayed the content pipeline for FY25, leading to lower occupancy and revenue.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations and Section 177 of the Companies Act for internal financial controls. Cinema operations are subject to local licensing and entertainment tax norms.

Environmental Compliance

Investing in rooftop solar and energy-efficient equipment; ESG profile supports credit risk profile with low greenhouse gas emissions.

Taxation Policy Impact

Effective tax rate resulted in a tax credit/expense of INR 381 Mn in FY24 and a credit of INR 541 Mn in FY25 due to losses.

Legal Contingencies

Not disclosed in specific INR values; however, the company maintains a robust risk management framework to handle legal and ethical responsibilities.

⚠️ Risk Analysis

Key Uncertainties

Content risk (quality of movies) and competition from OTT platforms could lead to sustained lower occupancy (<23%), impacting ROCE targets (currently 16%, target >12%).