ICICI Securities has joined Prabhudas Lilladher in maintaining bullish sentiment on PVR Inox, with both brokerages issuing buy ratings on the stock. According to ICICI Securities' research report dated May 12, 2026, the brokerage has set a target price of ₹1,500 based on a multiple of 12x adjusted FY28E EBITDA. This dual support from major brokerages reinforces the positive outlook on the multiplex operator, with both firms citing the company's strong operational performance and strategic business model transformation.
In Q4FY26, PVR Inox delivered robust financial results with revenue growing 25.8% YoY, driven by strong operational metrics. The company achieved 22% YoY growth in ATP to ₹315 and 32% YoY growth in SPH to ₹165, supported by a favourable content slate including Dhurandhar 2, Project Hail Mary and Border 2. As reported by Prabhudas Lilladher, these figures were achieved despite Q4 being a seasonally weak quarter, demonstrating the company's ability to capitalize on premium content. The strong performance was supported by successful movies like Dhurandhar: The Revenge and Border-2, which drove the robust operational metrics.
According to both brokerage reports, PVR Inox is pivoting toward a capital-light model with 138 screens signed under FOCO/asset-light model. In Q4FY26, 55% of FY26 screen additions were under FOCO/asset-light formats, aiding lower capital intensity and better return on capital employed. This strategic shift is expected to enable cash preservation while maintaining balance sheet strength and improving capital efficiency. The company plans to expand by roughly 150% in FY27, emphasizing capital-light methods, and aims to become net debt-free by early FY27. Management's focus on premium formats like IMAX and 4DX, which command higher ticket prices, aligns with industry efforts to enhance the cinema experience against streaming competition.
The company's financial position has strengthened significantly, with net debt reducing by approximately 90% since the merger to ₹1.6 billion in FY26. After generating FCFF of ₹7,901 million, the company's balance sheet strength has improved considerably. As reported by ICICI Securities, management is targeting a net cash position in the near term, supported by healthy free cashflow generation. The company remains optimistic about FY27, led by a diversified movie pipeline and a signed pipeline of 138 screens to be executed over the next 18 months. This improved financial position provides a strong foundation for the company's expansion plans and capital-light strategy.
