Cineline India returns to profit in FY26 despite revenue pressures

MUMBAI: The popcorn may still be pricey, but the numbers are finally looking box-office worthy for Cineline India Limited. After a bruising FY25, the cinema exhibition company staged a comeback in FY26, swinging back into profitability even as quarterly earnings flickered under pressure and operating costs remained high. For the year ended March 31, 2026, the company reported a net profit of Rs 11.52 crore, sharply reversing last year’s loss of Rs 60.64 crore. Total income for FY26 rose to Rs 245 crore from Rs 212.03 crore in FY25, signalling a steadier footfall recovery across its cinema and entertainment business.

The turnaround was helped by the absence of large exceptional losses that had weighed heavily on FY25 numbers. Profit before tax stood at Rs 10.67 crore against a loss of Rs 80.41 crore a year earlier.

But while the full-year script improved, the final quarter delivered a more mixed performance.

For the January-March quarter, total income slipped to Rs 63.50 crore from Rs 70.25 crore in the preceding quarter, though it remained ahead of the Rs 56.17 crore posted in the same quarter last year. Quarterly net profit came in at Rs 3.31 crore, recovering from a massive loss of Rs 56 crore in the year-ago quarter.

Movie exhibition continued to dominate expenses, costing the company Rs 67.77 crore during FY26 compared to Rs 61.03 crore a year earlier. Food and beverage consumption rose to Rs 13.87 crore, while power and fuel expenses climbed to Rs 18.39 crore, reflecting the rising operational burden of running multiplex properties.

Finance costs, however, eased sharply to Rs 13.21 crore from Rs 28.69 crore in FY25, offering some relief to the bottom line. Depreciation and amortisation expenses increased to Rs 29.28 crore from Rs 24.45 crore as the company expanded and upgraded assets.

The balance sheet also reflected a business leaning back into growth mode. Total assets rose to Rs 336.83 crore as of March 31, 2026, from Rs 314.24 crore a year earlier. Property, plant and equipment climbed to Rs 137.05 crore, while right-to-use assets increased to Rs 105.41 crore.

Cash and bank balances, however, narrowed to Rs 9.90 crore from Rs 33.26 crore, as the company continued investing in operations and expansion.

Operational cash generation remained healthy. Net cash generated from operating activities stood at Rs 37.82 crore during FY26, although investing activity consumed Rs 40.83 crore as the company continued spending on properties and infrastructure.

The broader exhibition business remains caught between two realities. Audiences are returning for big-screen spectacles, but cinema chains are still balancing high operating costs, changing viewing habits and intense OTT competition.

Yet FY26 showed that when the right films arrive and occupancy lights up, the silver screen can still deliver a profitable ending.