PVR Inox shares declined 2.5% to ₹1,000 on Tuesday despite the company's return to profitability in the March quarter. According to reports from The Economic Times, the stock has now fallen 6% in two sessions, reflecting mixed market sentiment toward the multiplex operator's financial performance. The decline occurred even as the company reported a consolidated net profit of ₹186.4 crore versus a loss of ₹125.3 crore in the same period last year.
The company demonstrated robust financial recovery with revenue from operations rising 26% year-on-year to ₹1,547 crore in Q4FY26, up from ₹1,230 crore in the corresponding quarter of the previous financial year. As reported by The Economic Times, sequential profit after tax surged 95.3% to ₹186.4 crore from ₹95.4 crore in Q3FY26, though revenue declined 16.3% quarter-on-quarter to ₹1,547.3 crore in the October–December period. The strong performance was driven by blockbuster films including Dhurandhar – The Revenge, Border 2 and Project Hail Mary.
Despite the sequential revenue decline, PVR Inox recorded impressive growth in movie ticket sales with revenue from movie ticket sales rising 27% year-on-year to ₹818.5 crore in Q4FY26, compared to ₹644.7 crore in the year-ago period. According to latest reports, quarterly movie ticket sales stood at ₹172.1 crore, up 2% year-on-year. The company's average ticket price (ATP) stood at ₹315, up 22% from a year ago, while spend per head (SPH) rose 32% year-on-year to ₹165. These metrics demonstrate the company's ability to improve pricing power and customer engagement despite challenging market conditions.
The company's advertising income remained strong with 14.8% year-on-year growth to ₹110.4 crore, compared to ₹96.2 crore in Q4FY25, as reported by Storyboard18. On the cost front, PVR Inox managed to reduce expenses during the quarter with total expenses declining 7% sequentially to ₹1,599 crore from ₹1,721.1 crore in Q3FY26. Movie exhibition costs fell to ₹350.7 crore in Q4FY26 from ₹404.4 crore in the previous quarter, while consumption costs related to food and beverages declined to ₹101.1 crore from ₹127.1 crore. Revenue from movie exhibition business dropped to ₹1,571.7 crore compared to ₹1,819.8 crore in Q3FY26.
For the full fiscal year FY26, PVR Inox achieved an impressive turnaround with net profit of ₹333 crore against a loss of ₹281 crore in FY25. As reported by The Economic Times, EBITDA increased to ₹2,279 crore from ₹1,728 crore, while EBITDA margin improved to 33.4% from 29.4%. Total income for the year stood at ₹6,830 crore compared with ₹5,871 crore in FY25, while expenses rose to ₹4,551 crore from ₹4,143 crore. The company continued its expansion with cinema count increasing to 359 at the end of Q4FY26 compared to 349 cinemas in the corresponding quarter last year, with screen count rising 4.4% sequentially to 1,798 screens. The company also reduced its total headcount by 15% over the last six years to 20,659 employees.
Speaking during the company's fourth-quarter earnings call, Managing Director Ajay Bijli expressed confidence that Prime Minister Narendra Modi's recent announcement aimed at curtailing travel and commuting through private vehicles will not adversely impact the cinema exhibition business. Bijli noted that cinema has historically remained an affordable entertainment option even during challenging periods, with PVR ticket prices starting at around ₹280 and the industry-wide average ticket price estimated at nearly ₹150. CEO Gautam Dutta attributed slower annual ad growth to the postponement of major films like Jana Nayagan and Toxic, which were initially expected to release during Pongal and early January but were shifted to later dates. Despite this, the company remains optimistic about FY27, particularly the second half backed by a strong slate of Hindi, Hollywood and regional films expected during October and December quarter.
