PVR Inox
Exhibition duopoly-of-one at book
- Last close
- ₹1,190.10
- 29 Sept 2026 · reference
- 1D · 1M
- −2.8% · −2.5%
- price-only
- Weight
- 1.5%
- 31 Jul 2026 · Aug rank 24
- Thesis review
- 8 Sep 2026
- Why We Own, p64
Approved description
India's largest multiplex chain (merger of PVR and INOX in 2023) with 1,798 screens across 359 cinemas in 113 cities at Mar-26 - roughly 40% of India's multiplex screens and ~18% of the country's 10,033 total screens. Revenue comes from box office (~52%), F&B (~30%), advertising and convenience fees; FY26 admissions were 150 mn at an ATP of Rs 280 and F&B spend per head Rs 147. Expansion has shifted to capital-light FOCO/asset-light formats (55% of FY26 additions) to reach zero net debt.
- 01Volume + price + spend all growing: Q1FY27 admissions +8% (36.6 mn), ATP +8% (Rs 273), F&B SPH +9% (Rs 161) with no Rs 500 cr+ blockbuster in H1 CY26 - a weak-content quarter still doubled pre-Ind AS 116 EBITDA to Rs 230 cr.
- 02Balance-sheet repair nearly done: net debt ~Rs 1,100 cr (Jun-2026 est.) targeted at zero by end-FY27 via Rs 600-800 cr annual operating cash flow, ~Rs 100 cr non-core asset sales and 100% internally funded capex (FY26 capex Rs 254 cr, -24% YoY); interest savings ~Rs 150 cr/yr.
- 03Capital-light growth: signed pipeline of 138 screens (52 FOCO, 86 asset-light) and ~100 screen openings guided for FY27 (150-160 longer-run) on top of 1,798 screens; 55% of FY26 additions were capital-light and 44% were in South India.
- 04Structural under-screening: India has 6.8 screens per million vs China 64 / USA 109 and only 3,150 of 19,500 pin codes have a cinema (FICCI-EY 2026), while box office hit a record Rs 13,395 cr in CY25 and Rs 6,398 cr in H1 CY26 (+10%).
- 05Earnings inflection at a modest multiple: FY26 was the first profitable year post-merger (PAT Rs 333 cr vs -Rs 281 cr) and Buoyant's FY28e P/E of 21.5x is roughly half the trailing multiple.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 1,622 | +11.9% | +4.8% |
| Operating Profit | 529 | +30.9% | +17.0% |
| Net Profit | 57 | turned profitable | −69.8% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Sell-side targets are third-party views, not Buoyant's; the upside is recomputed on our reference close, so it differs from the figure printed at the broker's price date.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- H2 FY27 (Oct-Dec 2026) festive slate plus bunched Q2/Q3 screen openings (~100 for FY27) - Q3FY27 results in Jan-2027 are the key print.
- Zero net debt milestone targeted by end-FY27 (Mar-2027) enabling a return to dividends/higher ROCE toward pre-COVID levels.
- Ormax/FICCI CY2026 box office: trend implies >Rs 15,000 cr full-year (record) if H2 holds.
- Content dependence: no Rs 500 cr+ film in H1 CY26; a weak Diwali/H2 slate would stall admissions (FY26 Q4 admissions grew only 1.5% - growth was mostly pricing).
- Advertising recovery lagging: FY26 ad revenue Rs 464 cr (+3.6%) is still below pre-COVID and management said brands need 'more proof of concept'; ad is the highest-margin line.
- Regulatory/licensing delays bunch screen openings, and state-level ticket-price caps (Karnataka/Tamil Nadu precedents) or OTT window compression could hit ATP; interest coverage is still flagged 'low' by screener and ROE is only ~5%.