PVR-Inox Q1 Review: Strong Start To FY26; Box Office Momentum To Remain Strong— Motilal Oswal Retains Neutral

PVR-Inox delivered a strong start to FY26, with footfalls improving 12% YoY, driven by improved performance from Bollywood and a rebound in Hollywood collections. Average ticket price grew 8% YoY and spends per head rose 10% YoY to an alltime high for a 23% YoY growth in revenue.

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Motilal Oswal Report

A recovery in Hollywood collections and promising content slate bode well for PVR INOX Ltd., given its skew toward premium screening formats.  Initiatives such as ‘Blockbuster Tuesdays', curated re-releases, live sports screenings, and weekday value meal offers are driving an uplift in footfalls and spends per head, aiding weekday monetization.

These targeted interventions reflect a strategic effort to smoothen occupancy volatility and enhance per patron revenue, particularly during non-peak periods.

Nevertheless, PVR INOX's business remains highly sensitive to occupancy levels, which are dependent on the quality and consistency of content, a factor largely outside the company's control.

While management remains optimistic about the FY26 content pipeline, even a 200-300 bp decline in occupancy could materially impact screen-level economics and Ebitda performance, posing a downside risk to our current estimates.

We raise our FY26-27E Ebitda by ~1-3%, driven by better cost controls.

We reiterate our Neutral rating with a target price of Rs 1,180, premised on 12.5x pre-IndAS 116 Sep'27E Ebitda.

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