PVRINOXNSEAugust 12, 2025

PVR INOX Limited

8,250words
89turns
10analyst exchanges
5executives
Management on call
Ajay Bijli
MANAGING DIRECTOR – PVR INOX LIMITED
Sanjeev Kumar
EXECUTIVE DIRECTOR – PVR INOX LIMITED
Gautam Dutta
CHIEF EXECUTIVE OFFICER --
Gaurav Sharma
CHIEF FINANCIAL OFFICER – PVR INOX LIMITED
Abhisek Banerjee
ICICI SECURITIES
Key numbers — 40 extracted
38%
performances from both Bollywood and Hollywood movies. Bollywood box office collections surged by 38% year- on-year, driven by a steady flow of successful titles such as Raid 2, Sitaare Zameen Par, Ke
INR100 crore
ers and more on a consistently performing steady flow of films with five Hindi films crossing the INR100 crores mark, including three films, which crossed the INR200 crores mark. This signals a healthier th
INR200 crore
s with five Hindi films crossing the INR100 crores mark, including three films, which crossed the INR200 crores mark. This signals a healthier theatrical environment where performances are less skewed by mega
72%
titles. Hollywood movies too, where PVR INOX enjoys a dominant market share, delivered a sharp 72% year-on-year growth in collections, powered by super hit franchises like Mission Impossible, Fina
20%
erformed exceptionally well in our premium and experiential formats, which recorded an impressive 20% year-on-year growth in admissions. On the other hand, regional content demonstrated stability. Re
INR99,
we launched blockbuster Tuesdays offering tickets starting at just INR99, which has quickly emerged as a very high-impact footfall driver for value-conscious weekday patron
1 million
high-impact footfall driver for value-conscious weekday patrons. Impressively, it brought nearly 1 million new and lapsed transactors back to cinemas, highlighting its effectiveness in revitalizing weekda
6 lakh
efinite suspension of Sardaar Ji 3 collectively impacted footfalls, resulting in a loss of nearly 6 lakh to 7 lakh admissions. All key operating metrics registered strong year-on-year growth. Admissions
7 lakh
spension of Sardaar Ji 3 collectively impacted footfalls, resulting in a loss of nearly 6 lakh to 7 lakh admissions. All key operating metrics registered strong year-on-year growth. Admissions rose to 1
12%
h admissions. All key operating metrics registered strong year-on-year growth. Admissions rose to 12% -- by 12% to 34 million, while average ticket price increased by 8% to INR254. We also achieved o
34 million
key operating metrics registered strong year-on-year growth. Admissions rose to 12% -- by 12% to 34 million, while average ticket price increased by 8% to INR254. We also achieved our highest ever spend pe
8%
r growth. Admissions rose to 12% -- by 12% to 34 million, while average ticket price increased by 8% to INR254. We also achieved our highest ever spend per head on F&B at INR148, reflecting a 10% ye
Advertisement
Guidance — 20 items
Ajay Bijli
opening
“The Indian box office has started on a strong note in FY'26, led by robust performances from both Bollywood and Hollywood movies.”
Ajay Bijli
opening
“With such a diverse and high potential content slate lined up, we expect strong audience traction and healthy footfalls in the quarters ahead.”
Abneesh Roy
qa
“And if you could also comment on the FY'25 screen openings, if any, in this model.”
Ajay Bijli
qa
“I mean out of the 20 screens that we've opened, Raipur is on FOCO model, Jabalpur is on FOCO model, and also Director's Cut in Mall of India DLF project in Noida is an asset-light model.”
Abneesh Roy
qa
“Now if you see weekend audience, generally, my understanding is will be the office-goer and the student who has classes on the weekday.”
Vaibhav Muley
qa
“So going forward, what kind of margin expansion do you foresee because of the addition of capital-light screens?”
Gaurav Sharma
qa
“Going forward, yes, majority of our new screen additions will be under the asset-light model.”
Vaibhav Muley
qa
“So we can expect the current levels of cost as a percentage of sales to continue going forward or even reduced from the current levels?”
Vaibhav Muley
qa
“So can we expect more net debt reduction because free cash flow generation can be pretty strong going forward given the kind of outlook that we have.”
Vaibhav Muley
qa
“So given the strong free cash flow generation, net debt should accelerate going forward?”
Risks & concerns — 4 flagged
In terms of the financial results for the quarter, the following numbers were calculated after adjusting for the impact of Ind-AS 116 on lease accounting.
— Ajay Bijli
Sir, what could be the impact of the Karnataka tax on PVR profitability and operation, overall operation?
— Jayaram Shetty
So actually, there was an impact of a certain provision that we had reversed last year in quarter 1 of roughly around 3.5 crores because of which the last year quarter 1 convenience fee was higher by INR3.5 crores.
— Gaurav Sharma
Hindi also had hits and misses and volatile year.
— Gaurav Sharma
Advertisement
Q&A — 10 exchanges
Q
My first question is on the FOCO and asset-light models. So you've opened around 14 screens in these 2 models this quarter. So if you could comment what was the response. And if you could also comment on the FY'25 screen openings, if any, in this model. Any tweaks that are needed in terms of expansion? And are you happy with the initial response in these 2 asset-light and FOCO models?
Ajay Bijli
This is Ajay Bijli, Abneesh. Yes. I mean out of the 20 screens that we've opened, Raipur is on FOCO model, Jabalpur is on FOCO model, and also Director's Cut in Mall of India DLF project in Noida is an asset-light model. And we are extremely happy because we are not compromising on any of the things that we look at when we do a normal lease model, even when we're doing these models. Because, in fact, our responsibility increases to make sure that these projects are successful and quality of the operations, quality of the fit-outs are equally good. And the response even from the developers and
Q
Congratulations on a good set of numbers. My first question was on your asset-light and capital- light strategy. So going forward, what kind of margin expansion do you foresee because of the addition of capital-light screens? The reason I'm asking is there has been a significant cost reduction across the cost headers in Q1 results. So is there any particular reason for that? Or are we already starting to see the benefit of shifting towards capital-light model?
Gaurav Sharma
So -- Gaurav here. Today, if you look at our circuit, the number of screens which are on asset- light are very miniscule. So to answer your question, the control on cost that you are seeing is not because of asset-light. It's largely because of the cost discipline and various efficiency initiatives we have implemented across our circuit, electricity, water, utilization of resources, optimizing and controlling on a variable basis linked to footfalls. All of that is driving the control on fixed cost, not because of FOCO or asset-light. Going forward, yes, majority of our new screen additions wil
Q
Sir, what could be the impact of the Karnataka tax on PVR profitability and operation, overall operation?
Gaurav Sharma
So yes, the Karnataka government order is yet not notified. There was a draft notification released in mid-July, where the government sought feedback and objections from the public at large. A lot of feedback and objections have been sent out, more than 700 objections on the price cap has been sent out to the government. We have not yet heard anything after that. There is no clarity by when this notification, if at all, will become applicable. But also whether this will be applicable across the board or there will be exclusions in terms of weekday sorry, weekends and special formats and whethe
Q
I just had a follow-up regarding 10 movies have done more than INR100 crores of collections for the quarter. So what has qualitatively changed according to you compared to previous quarters? Of course, one of the reason is slightly improved content pipeline. But apart from that, we have had good movies in the past as well, but revenue distribution has been very skewed towards a particular movie, while many of the movies have performed poorly on the box office. So what exactly has been changing fundamentally among a consumer that has led to more distributed collections across movies?
Gautam Dutta
So there could be many reasons for this, and we keep debating internally as well as keep checking with consumer and do deep insight sessions with them. But what we clearly are getting is that there is an OTT fatigue. Clearly, that's one. The content overall has become a lot sharper and better. And the fact that people do want to come out and understand and enjoy this movie experience is the pivot point. The more and more that we are talking to consumers is they are saying the best and the only way perhaps to enjoy an unadulterated movie experiences at the cinema. So I think the swing is comple
Q
Congratulations on a good set of numbers. Firstly, on the margin front, fairly healthy show, 730- odd bps sequential margin improvement on the back of 150 bps occupancy expansion. You've already touched upon that part of it was aided by increasing share from Hollywood, part from cost control. Any cost levers that can further be exercised to sustain or rather derive these benefits in lull periods, which usually see sharp dips in margins? Any thoughts on that?
Gaurav Sharma
Sorry, can you repeat your last sentence? It was not very clear. So increase in share from Hollywood as well as cost control aided us to deliver these margins. Any cost levers that can further be exercised to sustain or rather derive these benefits in lull periods, which usually see sharp dips in margins? Yes. Our business is a business which is dependent on flow of footfalls and admissions. And over the course of last 2 years and especially post merger, we have leveraged technology, we have leveraged scale to control and variabilize our cost at the ground. So when there is less number of foot
Q
So my question was again linked to one of the previous participants. While you mentioned that you can't share details on July kind of profitability, you delivered 6.5% margin with 22% occupancy. As we enter the seasonal period where ATPs will be even better, would it be too farfetched to think that with the 25%, 26% occupancy, you could do mid-teen or even higher EBITDA margins, I mean, given the current cost structure?
Gaurav Sharma
See, if you look at our financial year '24 results, which is a year ago, at a 25% occupancy, we did about 13.5% EBITDA margin. So that's a mid-teens EBITDA margin at a 25% occupancy. Now a lot of the margin is dependent on how the other levers in the business like pricing, advertisement income, cost, they pan out. So yes, I think it's very hard for us to say where exactly the margins will be if the occupancies are 25% in subsequent quarters. I'd like to add one point to what Gaurav said. If you traditionally look at our business, our business quarter 3 is by far the biggest quarter. So as far
Q
Sir, my question is on our management fee income, which was about INR2.4 crores in this quarter. I know the figure is quite low. But given we have plans to expand via the FOCO route, I mean, where do you see this number stabilize at, maybe in 2 to 3 years? I mean just wanted to get some sense on this because I believe in this model, your flow-through to EBITDA is quite high.
Gaurav Sharma
Yes, management fee is entirely flowing through to our EBITDA. And this number is only going to increase as the new signings of FOCO will happen. We've shared that we have signed about 55 screens under FOCO model. And as these screens open, the management fee income from these screens will accrue in the P&L. So it will continue to grow. To what number it will be and what level it will become, it's hard for us to say. But clearly, it's on an uptick growth trajectory. Got that. And sir, secondly, I believe our fixed contract that we had with BMS ended some time back, and we are on the revenue sh
Q
So I just have two questions. When you spoke about this blockbuster Tuesday, you spoke about three types of categories of people coming in, college students, senior citizens and house wives. I think two out of those three categories as per any -- as per the industry research done in the past were the categories which are not really coming in, in the past, I mean, housewives and senior citizens. I think that age cohort also was lower down in terms of the growth. So do you see this strategy as being kind of medium- to long-term structurally positive for you as in that can really drive up footfal
Gautam Dutta
So first and foremost, they were coming. It's not as if they weren't coming. But this was an available cohort to us from Monday to Thursday. And all our footfalls that we were getting even earlier, Monday to Thursday, they were the kind of people. And when we had launched this, we -- as per our plan, we felt that we could galvanize a larger chunk of people within this cohort to come out and watch movies. And that's exactly what has happened. So more number of students, more number of house wives and more senior citizens who were still on the brink earlier to come and watch movies at the normal
Q
On the asset-light models, could you share some details about how the unit economics or margins look like in properties that you have already started operating? What does the revenue share agreement look like both in FOCO and asset-light?
Gaurav Sharma
So in asset-light, we've opened one property in Mall of India, Noida, where the developer contribution is there, and this got opened only early this year. So we will look at the performance for some period of time before coming on to any conclusion and sharing the performance. But as such, the developer contribution unit economics in terms of margins, depending on the level of developer contribution, the margins are accordingly calculated because whatever is the developer investment in view of that incremental rentals are given. But the return on capital employed profile and the breakeven peri
Q
Thank you all for joining us on this earnings call today. In case of any questions, you may reach out to our Investor Relations team or directly to us. Thank you so much for your time.
Management
Speaking time
Gaurav Sharma
20
Gautam Dutta
17
Moderator
12
Abneesh Roy
8
Vaibhav Muley
8
Kavish Parekh
7
Umang Mehta
4
Jinesh Joshi
4
Ajay Bijli
3
Harit Kapoor
3
Advertisement
Opening remarks
Abhisek Banerjee
Good afternoon, everyone. On behalf of ICICI Securities, I would like to welcome you to the Q1 FY '26 earnings conference call for PVR INOX Limited. Representing the company, we have Mr. Ajay Bijli, Managing Director; Mr. Sanjeev Kumar, Executive Director; Mr. Gaurav Sharma, Chief Financial Officer; and other senior management personnel. The call will begin with brief management remarks followed by a Q&A section. I would now like to hand over the call to Mr. Bijli for his opening remarks. Over to you, sir.
Ajay Bijli
Thank you very much, Abhisek. Good evening, everyone. I'd like to invite you all to discuss the unaudited results for the quarter ending June 30, 2025. We uploaded the earnings presentation and the results on our company's and Stock Exchange's website earlier today, and I hope you've had a chance to review them. The Indian box office has started on a strong note in FY'26, led by robust performances from both Bollywood and Hollywood movies. Bollywood box office collections surged by 38% year- on-year, driven by a steady flow of successful titles such as Raid 2, Sitaare Zameen Par, Kesari Chapter 2, Housefull 5 and Jaat. The year so far has relied less on the big ticket blockbusters and more on a consistently performing steady flow of films with five Hindi films crossing the INR100 crores mark, including three films, which crossed the INR200 crores mark. This signals a healthier theatrical environment where performances are less skewed by mega blockbusters and more anchored in the sustai
Advertisement
← All transcriptsPVRINOX stock page →