The country’s largest multiplex operator, PVR INOX, on Thursday saw a first-quarter profit, helped by strong demand for films across languages, higher ticket prices and increased spending on food and beverages.
The company posted a consolidated net profit of Rs 56.5 crore in Q1FY27 versus a net loss of Rs 54.5 crore last year. The return to profitability was supported by solid top-line growth and a sharp expansion in operating margins. This is the fourth straight quarter that PVR Inox has reported a profit after seeing losses in previous periods.
The multiplex operator reported consolidated revenue from operations of Rs 1,622 crore, registering an 11.9% growth compared to Rs 1,450 crore in the same period last year. At the operating level, PVR INOX’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 31% to reach Rs 529 crore, up from Rs 404 crore a year ago.
The accelerated growth in operating profit also translated to significantly healthier margins. The company’s EBITDA margin expanded by a substantial 480 basis points, climbing to 32.6% from 27.8% in the year-ago quarter.
Operating Metrics
“Q1FY27 reflects the structural strength we have built over the last three years. Our operating metrics improved across the board, and the company is now net cash positive,” Ajay Bijli, MD, PVR Inox, said.
Average Ticket Price (ATP) in Q1 grew 8% year-on-year to Rs 273, while average F&B Spend per Head (SPH) rose 9% YoY to Rs 161. During the quarter, the company recorded 36.6 million admissions, registering a growth of 8% YoY.
Analyst Outlook
Brokerages had expected a stronger quarter for multiplex operators in Q1, helped by a steady flow of movie releases in Hollywood and regional cinema, despite the absence of a major Hindi blockbuster. Prabhudas Lilladher said that the 31% jump in EBITDA highlights the core movie exhibition business had operated with much higher efficiency. The widened margins indicated the multiplex giant had rationalised its discretionary costs while capitalizing on increased footfalls during the quarter.
The company said India’s box office collections grew 20% during the quarter, driven by both metro and smaller cities. Looking ahead, the company said, the content pipeline for the remainder of FY27 was encouraging, with a strong mix of franchise films, star-led tentpoles and regional cinema.
Shares of PVR Inox climbed as much as 4% intra-day on Thursday on the BSE to end at Rs 1,009.05 apiece, up 1.62% versus the previous day’s close.
