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Informist, Friday, Jul. 24, 2026

 

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--PVR INOX: Asset-light model helped deleverage balance sheet in Q1 
--CONTEXT: PVR INOX mgmt's comments in post-earnings call with analysts 
--PVR INOX: AI systems help with dynamic pricing model 
--PVR INOX: Aim to net add 80 screens FY27 after closing loss-making screens 
--PVR INOX: Aim to spend INR 3.5 bln as capex in FY27 
--PVR INOX: Bulk of screen closures happened in Q1 
--PVR INOX: Looking at expansion into tier 2, tier 3 mkts 
--PVR INOX: Strong control on costs to achieve pre-COVID margins 
--PVR INOX: Invest in food courts lower as business less capital-intensive 
--PVR INOX: Immediate aim to return to pre-COVID level of return on capital 
--PVR INOX: Content, marketing campaign drove near 70% online penetration

 

By Shruti Nair and Avishek Rakshit

 

MUMBAI/KOLKATA – PVR Inox Ltd. aims to recover its pre-COVID 19 margins in the near-term, the company's management said in a post-earnings call with analysts. Thursday, the multiplex chain detailed its June quarter earnings and reported a consolidated net profit of INR 565 million, recovering from the loss seen in the year-ago quarter. The company's earnings before interest, taxes, depreciation, and amortisation margin rose to 14% for the June quarter from 8.2% a year ago. For the March quarter of FY20, when the countrywide lockdown was imposed to spread the check of coronavirus, the company had reported an EBITDA margin of 20.0%.

 

Controlling costs remains an important strategy for the company to achieve this margin recovery. The company has already made headway by becoming debt free on a net basis in the June quarter with a net cash positive balance of INR 807 million. The company's efforts to transition into an asset-light model helped deleverage its balance sheet in June quarter. 

 

For the remainder of financial year 2026-27 (Apr-Mar), the company is on track to add 90-100 screens on a gross basis or 80 screens on a net basis. The management clarified that the bulk of screen closures for FY27 were done in the June quarter.

 

 

The mutliplex major is targetting a capital expenditure of INR 3.50 billion for the remainder of FY27, according to a senior official. The company is seeking to penetrate tier-2 and tier-3 markets while sticking to its asset-light approach, the official underscored. The company's food and beverages-focused joint venture with Devyani International is going strong. However, the food and beverages vertical accounts for a lower portion of the company's capital investment due to the segment being less capital intensive, according to the management.

 

Content and marketing campaigns drove a near 70% online penetration in the June quarter, the management said. Further, the company has incorporated the use of artificial intelligence systems to set prices under its dynamic pricing model. With a strong set of releases lined up across Hollywood, Bollywood, and South verticals, the management remains optimistic on the company's near-term performance. Friday, shares of PVR Inox ended nearly 6% higher at INR 1,063.95 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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