PVR-Inox Q2 Review — Broad-Based Recovery Driven By Strong Content, Execution; IDBI Capital Maintains 'Buy'

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IDBI Capital Report

PVR-Inox Ltd. delivered its strongest quarterly performance in two years driven by a robust and diversified content pipeline across Hindi, Hollywood and regional markets. Revenue rose 12% YoY to Rs 1,843 crore, Ebitda surged 58% YoY to Rs 327 cr and PAT jumped nearly sixfold to Rs 127 cr.

Footfalls grew 15% YoY aided by strong occupancy (28.7%) and consistent film releases. The company saw steady average ticket price growth of 2% YoY and food and beverage spends per head at Rs 134 supported by initiatives like-Blockbuster Tuesdays.

Net debt declined sharply to Rs 619 cr down Rs 812 cr since the merger reflecting robust cash flows and disciplined capital allocation. Management highlighted structural recovery in Hindi content, record regional box-office collections and strong Hollywood performance.

With 22 films crossing Rs 100 cr in H1 FY26, the company expects sustained traction from upcoming marquee titles and remains focused on capital-light expansion, innovative formats (dine-in cinemas, smart screens), and enhancing consumer experience to drive growth and deleveraging.

We reiterate our rating to Buy with target price of Rs 1,256 due to recent recovery in stock price valuing at 11.3x FY27E EV/Ebitda.

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