PVR To Add 100 Screens In FY26, Looking At Tier 3 Markets With Affordable Ticket Pricing

Leading multiplex operator PVR INOX would add 100 screens in the current fiscal, though 10-15 non-performing screens may be shut after a review, its Executive Director Sanjeev Kumar Bijli said on Thursday.

Although PVR INOX's 60% of screen additions are coming from its existing top markets, it is also looking at smaller markets, with affordable ticket pricing of Rs 150-200.

Besides, it is focusing on Southern states, which the company considers a key market for growth, he added.

"As far as the number of screens is concerned, we are on track to open 100 screens by the end of the financial year. We've already opened around 60 screens and right now, the remaining 40 screens will open in the remaining half of the year, and these are very exciting properties," Bijli told PTI.

Last week, PVR INOX entered Siliguri, West Bengal and Gangtok in Sikkim.

"In Sikkim, it's one of the first cinemas in the market. We also opened in Raipur (Chhattisgarh) and Jabalpur (Madhya Pradesh) this year, and now going forward with opening first in Leh in Ladakh, which does not have a cinema yet," he said.

However, PVR INOX also closed 55-60 negative Ebitda screens last fiscal, on account of various factors as low-performing malls, empty properties, etc.

"I think that is a process that may last for the next three years," he said, adding, "We have about 10 to 15 screens on our list, which we intend to close because of the same reasons, and then maybe another 10 next year." PVR INOX is the largest film exhibition company in India with 1,767 screens across 355 properties in 111 cities in India and Sri Lanka.

Over the content pipeline, Bijli said as far as new movies are concerned, it looks very exciting till the end of March.

"We've got Tere Ishk Mein, Gustaakh Ishq on Friday, then we have Avatar Dhurandhar, Kiss... 120 Bahadur, Mastiii 4. So there is a lot of content that is coming out, and the good thing is that the producers are making films for theatrical," he added.

Bijli said if a film does not perform on box office, it is compensated by a Hollywood film or a regional film.

"That is the beauty of our business in India that even if some Hindi movies don't do well, there are so many other regional films or English films that come up and end up doing well," he added.

However, when asked about PVR INOX's performance in the second half (October-March) of fiscal 26, Bijli said it will be "a bit muted" in comparison to the first half.

In first half, PVR INOX's revenue from operations on a consolidated basis was at Rs 3,292.1 crore, up 17% year-on-year.

When asked about the expansion of PVR INOX in the Southern market, Bijli said:" Next year, we have handovers and starting work on two projects in Chennai, one more in Bangalore," he said.

According to Bijli, PVR INOX growth strategy is "multi-prompted" as wherever it feels there is a gap in the market, it enters.

"We are also looking at even smaller tier III cities now. We are still planning to enter into two II & III cities and smaller towns where there are no cinemas at all, where there is a massive gap... So we are looking at a low-cost model where we can enter these markets," he said.

The average ticket price (ATP) of PVR INOX is Rs 260 YTD (April 25 till date) and the company will decide the admission prices for smaller cities, once it opens them.

However, he hinted "it could be as low as Rs 150 to Rs 200" as the real estate cost in those smaller markets will be lower and capex model will be much lower.

PVR INOX on Thursday introduced luxury cinema in Pitampura here with a brand new six-screen multiplex featuring 2 Luxe auditoriums, 1 P[XL], and 3 uniquely themed mainstream auditoriums.