28-Oct-2026 19:57:28
PVR INOX Q2 CONCALL : REVENUE GROWS 17%, EBITDA JUMPS 44%; RECORD PROFITABILITY, ₹604 CR H1 FREE CASH FLOW & MANAGEMENT TARGETS 90–100 NEW SCREENS IN FY27
MANAGEMENT GUIDANCE & OUTLOOK • MANAGEMENT EXPECTS HEALTHY H2 FY27 PERFORMANCE, SUPPORTED BY STRONG HINDI, HOLLYWOOD & REGIONAL FILM RELEASES, BUT HAS NOT PROVIDED SPECIFIC REVENUE OR PROFIT GUIDANCE • MANAGEMENT TARGETS 90–100 GROSS SCREEN OPENINGS IN FY27, WITH MOST ADDITIONS EXPECTED DURING H2; CURRENT NETWORK STANDS AT 1,797 SCREENS ACROSS 114 CITIES • MANAGEMENT INDICATES POTENTIAL FOR 150–175 ANNUAL SCREEN OPENINGS FROM FY28, WITH APPROXIMATELY 500 ADDITIONS OVER THREE YEARS AS A LONGER-TERM ASPIRATION • MANAGEMENT TARGETS 3–4-YEAR PAYBACK ON NEW CINEMA INVESTMENTS, SUPPORTED BY SMART CINEMAS, DEVELOPER PARTNERSHIPS & ASSET-LIGHT EXPANSION • SMART CINEMAS REQUIRE APPROXIMATELY 25–30% LOWER CAPEX & 25% LOWER OPERATING COSTS; MANAGEMENT EXPECTS 2–3 ADDITIONAL SMART CINEMA OPENINGS IN FY27 FINANCIAL PERFORMANCE & BUSINESS DEVELOPMENTS • Q2 TOTAL INCOME GREW 17% YOY TO ₹2,133 CR, WHILE EBITDA JUMPED 44% TO ₹475 CR & NET PROFIT MORE THAN DOUBLED TO ₹273 CR • Q2 EBITDA MARGIN EXPANDED 420 BPS YOY TO 22.3%, SUPPORTED BY HIGHER TICKET REALISATIONS, F&B SPENDING & OPERATING EFFICIENCIES • H1 TOTAL INCOME GREW 15% YOY TO ₹3,775 CR, EBITDA INCREASED 56% TO ₹705 CR & NET PROFIT SURGED 233% TO ₹344 CR • Q2 FOOTFALLS GREW 4% YOY TO 4.63 CR VISITORS, WHILE OCCUPANCY STOOD AT 30.4% • AVERAGE TICKET PRICE INCREASED 14% YOY TO ₹298, WHILE FOOD & BEVERAGE SPEND PER HEAD GREW 14% TO ₹153 • INDIAN INDUSTRY Q2 GROSS BOX OFFICE COLLECTIONS JUMPED 23% YOY TO A RECORD ₹4,433 CR, WHILE PVR INOX'S OWN BOX OFFICE GROWTH WAS APPROXIMATELY 18% • H1 FREE CASH FLOW REACHED ₹604 CR, WITH ₹259 CR DEBT REPAID & ₹300 CR SHARE BUYBACK COMPLETED; SEPTEMBER-END NET CASH STOOD AT ₹141 CR EXPANSION, CAPITAL ALLOCATION & RISKS • MANAGEMENT EXPECTS FY27 CAPEX OF APPROXIMATELY ₹300–320 CR, WHILE FY28 CAPEX COULD EXCEED ₹350 CR AS SCREEN EXPANSION ACCELERATES • TRAILING 12-MONTH ROCE IMPROVED TO 16.5% FROM 10.2% IN FY26, SUPPORTED BY OPERATING LEVERAGE, COST EFFICIENCIES & LOWER CAPITAL INTENSITY • MANAGEMENT REMAINS POSITIVE ON PREMIUM FORMATS, SMART CINEMAS & ASSET-LIGHT EXPANSION, BUT FILM PERFORMANCE, BOX OFFICE VOLATILITY, SCREEN EXECUTION & SUSTAINABILITY OF MARGINS REMAIN KEY RISKS INVESTOR TAKEAWAY: POSITIVE — RECORD EARNINGS, STRONG CASH GENERATION, IMPROVING ROCE & A NET CASH BALANCE SHEET SUPPORT THE OUTLOOK. KEY MONITORABLES INCLUDE H2 BOX OFFICE PERFORMANCE, DELIVERY OF 90–100 SCREEN OPENINGS & SUSTAINABILITY OF 20%+ QUARTERLY EBITDA MARGINS.
PVR INOX LIMITED