Cinema chain operator PVR Inox delivered exceptional financial results for the third quarter of fiscal year 2026, with consolidated net profit surging 167% year-on-year to ₹95.7 crore. According to reports from CNBC TV18, this represents a significant improvement from the ₹35.9 crore profit recorded in the same quarter last year. However, shares of PVR Inox fell as much as 4% on Thursday following the results announcement, with the stock witnessing a sharp decline from intraday highs of ₹1,034 to intraday lows of ₹972. The strong annual growth demonstrates the company's robust operational performance and market recovery in the entertainment sector, with the performance being described as riding the Dhurandhar wave as the highest-grossing Hindi film of all time contributed significantly to earnings growth.
While the year-on-year performance was impressive, PVR Inox profit figure missed estimates by 26% due to a one-time exceptional charge of ₹44.6 crore related to the impact of changes in the labour code. As reported by CNBC TV18, this exceptional charge significantly impacted the quarterly profitability despite strong operational metrics. The company's revenue for Q3FY26 stood at ₹1,880 crore, up 9% year-on-year and about 1% above market estimates. EBITDA rose 18% YoY to ₹622 crore, while EBITDA margin expanded 238 basis points to 33.1%, demonstrating operational efficiency improvements from merger synergies and cost optimization initiatives.
The Hindi box office delivered its strongest-ever collections of over ₹5,500 crore in 2025, marking an 18% YoY growth, according to CNBC TV18. This performance was supported by a healthier genre mix and a more consistent release slate, led by a few large tentpole releases including Dhurandhar, which has emerged as the highest-grossing Hindi film of all time with cumulative box office collections of ₹1,000 crore. The year also saw 37 films crossing the ₹100 crore box office mark, while total box office collections stood at ₹13,395 crore in 2025, representing a 32% increase over pre-pandemic levels and a 13% YoY growth. Regional cinema also achieved remarkable success with collective box office growing by 4% year-on-year to an all-time high of ₹6,488 crore, with Gujarati cinema seeing a 188% growth and Kannada cinema growing by 74%.
The company's financial performance was supported by revenue growth of 9% during the quarter, with CNBC TV18 reporting that revenue from operations surged 9% YoY to ₹1,880 crore for the quarter under review. According to CNBC TV18, sequentially, it rose 1% from ₹1,823 crore in Q3FY25. At an operational level, EBITDA stood at ₹622 crore in the December FY26 quarter, marking an 18% YoY jump from ₹569.5 crore in the year-ago period. The company maintained EBITDA margins at 33.1% in Q3FY26, as against 32.4% in the same period of FY25, demonstrating operational resilience and efficiency improvements. Ticket revenue grew 14% YoY to ₹1,005.6 crore, while food and beverage revenue also rose 14% to ₹593.8 crore. However, advertising revenue declined 21% year-on-year to ₹118 crore and 6% sequentially.
The company's operational performance was further strengthened by strong customer engagement metrics. As reported by CNBC TV18, patrons visiting PVR Inox cinemas soared 9% YoY to 40.5 million during the third quarter of FY26, with occupancy improving to 28.5% from 25.7% a year ago. The average ticket price increased by 4% annually to ₹293, while average food and beverage spend per head (SPH) grew 4% YoY to ₹146 during the quarter. During Q3, PVR Inox added two cinemas and 29 screens, taking the total number to 356 and 1,774 screens respectively. The company also completed the divestment of its entire 93.27% stake in gourmet popcorn brand 4700BC to Marico for ₹226.8 crore, with proceeds used to strengthen the balance sheet. Looking ahead, PVR Inox plans to roll out 'smart screen' cinemas with self-service formats in Tier 2 and Tier 3 cities and has launched a 72-seater gourmet dine-in theatre in Bengaluru.
A key highlight of the quarter was the continued strengthening of the balance sheet through free cash flow generation of ₹587 crore in the first nine months of FY26. As reported by CNBC TV18, this strong cash flow enabled a 74% reduction in net debt to ₹365.2 crore as of December 31, 2025, marking the lowest level since the PVR-INOX merger. The company recently approved the sale of its 93.27% stake in ZMPL to Marico for ₹227 crore, further strengthening its financial position. As of the reporting date, PVR Inox operates 356 cinemas with 1,774 screens across 112 cities. Despite the strong operational and financial performance, PVR Inox shares declined following the results announcement, with the stock trading 1.47% down at ₹1,000/share as of 2.46 pm on Thursday.
