Geojit Financial Services Recommends Buying PVR Inox, Targets Rs 1189

PVR INOX Ltd. Posts Strong Growth in FY26, Driven by Box Office and F&B Revenue

PVR INOX Ltd., India's largest and most premium film exhibitor, has reported significant growth in its consolidated revenue for the fiscal year 2026 (FY26). The company's revenue grew by 15.0% year-over-year (YoY) to Rs. 6,646cr, driven by a 19.5% YoY increase in both ticket sales and food & beverage (F&B) revenue.

PVR INOX's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 35.9% YoY to Rs. 2,095 in the fiscal, with a 480bps YoY increase in margins. This reflects the company's consistency in cost optimisation. In Q4FY26, average ticket price (ATP) and F&B sales per head (SPH) increased significantly by 22.4% and 32.3% YoY to Rs. 315 and Rs. 165, respectively. Admissions grew modestly by 1.5% YoY to 31mn in the quarter.

The company's advertisement income reported a 14.8% YoY growth in the quarter, primarily due to the success of the second instalment of the Dhurandhar franchise. PVR INOX turned profitable in FY26, delivering a reported profit after tax (PAT) from continuing operations of Rs. 176cr, reversing the Rs. 279cr loss reported in the previous year. This was driven by the blockbuster content calendar and cost discipline.

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Outlook

The company's high-hype line-up is expected to accelerate advertisement revenues in the coming period. Additionally, the management's continued focus on cost discipline and the closure of underperforming screens are likely to expand margins. Consequently, we upgrade our rating on the stock to BUY with a revised target price of Rs. 1,189 based on 2.3x FY27E enterprise value to sales (EV/Sales).