PVR INOX swings to Q1 profit as revenue rises 12 per cent and box office rebounds

Gurugram: Lights, camera, cash in. India’s biggest multiplex chain PVR INOX opened FY27 on a blockbuster note, returning to profit in the June quarter as a stronger box office, rising ticket prices and higher spending on food and beverages helped drive double-digit revenue growth.

The company reported adjusted revenue of Rs 16,423 million for the quarter ended June 30, 2026, up 12 per cent from Rs 14,682 million a year earlier. Adjusted EBITDA surged 90 per cent to Rs 2,296 million from Rs 1,211 million, while profit after tax stood at Rs 705 million, compared with a loss of Rs 335 million in the corresponding quarter last year.

On a reported basis under Ind AS, total revenue rose to Rs 16,483 million from Rs 14,817 million, EBITDA climbed to Rs 5,546 million from Rs 4,358 million and PAT came in at Rs 565 million against a loss of Rs 545 million in Q1 FY26.

The company noted that the previous year’s figures were restated after excluding the financials of Zea Maize Pvt. Ltd. (4700BC), which it divested on January 29, 2026. Q1 FY26 profit also included a loss of Rs 71 million from discontinued operations.

Cinema attendance remained healthy during the quarter, with 36.6 million patrons visiting PVR INOX properties, an increase of 8 per cent year on year. The average ticket price rose 8 per cent to Rs 273, while average food and beverage spending per head increased 9 per cent to Rs 161.

These gains translated into a 16 per cent rise in ticket sales and a 17 per cent increase in food and beverage revenue compared with the same period last year. EBITDA margin expanded sharply to 14.0 per cent from 8.2 per cent, reflecting stronger operating leverage.

The company also achieved a key financial milestone by turning net cash positive. As of June 30, 2026, it held net cash of Rs 807 million, a significant turnaround from the net debt of Rs 14,304 million it carried at the time of the merger. PVR INOX said sustained free cash flow generation and disciplined capital allocation had strengthened its balance sheet and provided flexibility to fund future expansion through internal accruals.

As of June 30, 2026, the multiplex operator had 1,779 screens across 113 cities in India and Sri Lanka. It remains on track to add 90 to 100 new screens during FY27, with a greater focus on asset-light formats.

The company said India’s box office collections grew 20 per cent year on year during the quarter, supported by a wider range of successful films across Hindi, regional and Hollywood content. It added that growth was spread across metro markets as well as Tier II and Tier III cities, making the recovery broader and more sustainable.

Hindi films such as Bhoot Bangla, Cocktail 2 and Main Wapas Aunga performed well, while regional cinema and Hollywood titles delivered much of the momentum. Regional successes included Raja Shivaji in Marathi, Drishyam 3 in Malayalam and Karuppu in Tamil. Hollywood releases such as Project Hail Mary, Michael and Obsession also attracted audiences despite not being franchise films.

PVR INOX also pointed to improving global theatrical trends. North American box office collections reached US$4.8 billion in the first half of 2026, up 14 per cent from last year and marking the second-best first-half performance since 2019. The company said this reinforced the continued appeal of theatrical-first releases among filmmakers.

Looking ahead, the company expects a strong release calendar to support growth through the rest of FY27. The Hindi slate includes Ramayana Part 1, King, Love and War, Drishyam 3, Awarapan 2, Mirzapur: The Movie and Haiwaan. Regional releases such as Jana Nayagan, Toxic, Jailer 2, Khalifa and Sardar 2 are also expected to draw audiences.

Hollywood’s line-up features major releases including Spider-Man: Brand New Day, Avengers: Doomsday, Dune: Part Three, The Hunger Games: Sunrise on the Reaping and Jumanji: Open World, many of which will be released in premium large-screen formats.

Commenting on the quarter, PVR INOX managing director Ajay Bijli said the results reflected the structural improvements made over the past three years. He said the industry had delivered broad-based growth, the company’s operating metrics had improved across the board and becoming net cash positive marked an important milestone. He added that with a strong content pipeline and a capital-light expansion strategy, the company would continue to focus on improving the cinema experience, increasing footfalls and creating long-term shareholder value.

With stronger finances, improving audience spending and a packed release calendar stretching across Hindi, regional and Hollywood cinema, PVR INOX appears to have entered FY27 with the credits still rolling in its favour.