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.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.