Multiplex operator PVR Inox is aiming to become net debt-free in FY27 and has retained its growth and expansion guidance for the year, encouraged by a strong start to the fiscal and a robust content slate lined up for the coming quarters.
“Our net-debt levels have significantly come down. If things remain the way they are, we should be able to become net-debt zero in this financial year,” Sanjeev Kumar Bijli, executive director, PVR Inox, told FE in an interaction.
The company, the country’s largest multiplex chain, closed FY26 with a net debt of Rs 161.9 crore, down nearly 90% versus Rs 1,430.4 crore reported at the time of the PVR-Inox merger in FY23. PVR Inox also plans to add over 100 screens during FY27 across metro markets, tier-2 cities and smaller towns, while continuing to follow an asset-light model. The company has also maintained its capital expenditure guidance of Rs 375-400 crore for the year.
Admissions in Q1 of FY27 have risen by nearly 10% so far versus the same period last year, Bijli said, with April and May delivering healthy footfalls. This has been driven by Hollywood and regional cinema and comes at a time when heatwaves have been growing and demand conditions have been uneven owing to the Iran war.
Box Office Momentum
Among English films to draw footfalls during the April-May period include Michael Jackson, Devil Wears Prade 2, and Obsession, a surprise hit worldwide and in India. These films have cumulatively grossed collections of nearly Rs 140-150 crore at the Indian box office so far, according to trade analysts.
Successful regional films in April-May include Deool Band 2, Malayalam film Drishyam 3, which has crossed the Rs 100-crore-mark and Suriya-starrer Tamil film Karuppu, which crossed Rs 200 crore in India collections. Ram-Charan-starrer Peddi, which released on June 4 has collected over Rs 187 crore so far.
The multiplex operator, however, is counting on several key releases still scheduled for the remainder of June. This includes Jailer 2, the Tamil-language sequel to the 2023 hit of the same name, starring Rajinikanth, which releases on June 12; Cocktail 2, starring Shahid Kapoor, Kriti Sanon and Rashmika Mandanna, which releases on June 19, and Welcome to the Jungle, starring Akshay Kumar, which releases on June 26.
Resilient Discretionary Spending
Despite concerns around inflationary pressures, geopolitical tensions in the Middle East and stress on discretionary spending, Bijli believes consumer demand for entertainment remains intact, at least for now.
“The consumption story in India is fairly intact. People are still spending domestically on goods and services and entertainment,” he said.
He added that cinemas are relatively insulated from extreme weather conditions, with summer months often proving favourable for exhibitors.
“It’s an indoor activity. It’s air-conditioned. Cinemas provide entertainment,” Bijli said
Looking ahead, the company expects momentum to strengthen further as the release calendar becomes more crowded from Q2. While Hindi cinema has had a relatively subdued start to the ongoing fiscal, Bijli expects bigger Hindi releases from July onwards to boost occupancy and box-office collections.
The upcoming slate includes Alia-Bhatt-starrer Alpha, Dhamaal 4, Sanjay Leela Bhansali’s Love & War and Aamir Khan-produced Batwara 1947, King, Ramayana: Part 1 among others. Among Hollywood films are upcoming releases such as Spider-Man: Brand New Day, Avengers: Doomsday and Dune: Part 3 among others.