PVR Inox Goals for 200 Million Admissions and Zero Debt by FY26, ETCFO
Multiplex main PVR Inox Ltd is focusing on 180–200 million admissions, 90–100 new screens, and a internet debt-free stability sheet by the tip of the monetary yr 2025–26 (FY26), its Chief Monetary Officer mentioned in an unique interplay with ETCFO.
The corporate recorded 34 million admissions within the first quarter (Q1) of FY26 up by 12 per cent year-on-year and posted its highest month-to-month footfalls in 18 months in July, pushed by constant efficiency throughout Hindi, Hollywood and regional language releases.
“Content material momentum is robust throughout languages and genres,” mentioned Gaurav Sharma, Chief Monetary Officer, PVR Inox Ltd. The field workplace now not will depend on one or two mega releases. We’re seeing a structural shift in demand that’s serving to flatten seasonality.”
Debt discount, asset-light mannequin key to monetary technique
PVR Inox is executing a three-pronged monetary technique targeted on tight value management, asset-light enlargement, and stability sheet strengthening, Sharma mentioned.
We wish to develop into a internet debt-free firm. Lowering monetary leverage and strengthening the stability sheet is crucial factor… every thing is money circulateGaurav Sharma, CFO, PVR Inox
The corporate has diminished its internet debt by 40 p.c because the merger of PVR Ltd and Inox Leisure Ltd, bringing it all the way down to Rs 850 crore as of June 2025.
Mounted prices have remained in verify, rising simply 2.8 p.c year-on-year in Q1 FY26, whilst working revenues rose by 23 p.c.
100 new screens in FY26; 55–60% to comply with asset-light mannequin
The multiplex chain is planning to open 90–100 new screens in FY26, with a majority below the asset-light mannequin, the place builders fund capital expenditure for brand new properties.
Of the 20 screens opened in Q1, 14 had been below the asset-light mannequin. We’ve already signed up 125 screens below this mannequin, which reduces our per-screen capex (capital expenditure) by 50–60 p.cSharma mentioned.
Almost 35–40 per cent of the brand new screens are anticipated to be positioned in South India, a market the corporate considers underpenetrated when it comes to multiplex infrastructure.
Can India’s commerce receivables ecosystem really scale with out obligatory PSU participation and modernised underwriting guidelines? RXIL CFO Kailashkumar Varodia thinks not. In an unique interplay with ETCFO, he urged RBI to launch “TReDS 2.0” and mandate bill routing by PSUs to spice up MSME liquidity entry.
Premium codecs and F&B drive profitability
PVR Inox’s concentrate on premium codecs equivalent to P[XL], Luxe, and Director’s Lower can be driving profitability. “These codecs supply greater common ticket value (ATP), differentiated experiences, and higher margins,” Sharma mentioned.
Meals and beverage (F&B) income is a key profitability driver and contributed 33 p.c to general income in Q1 FY26. F&B spend per head (SPH) reached an all-time excessive of Rs 148, up by 10 per cent year-on-year, and now stands at 55 p.c of ATP.
Globally, F&B spend per head is round 75 per cent of ticket value, so there’s nonetheless headroom to developSharma added.
The corporate’s common ‘Blockbuster Tuesdays’ initiative, providing ticket costs ranging from Rs 99, has introduced in almost 1 million (10 lakh) new customers, most of them first-time cinema-goers.
No ambiguity on GST compliance, says CFO
Addressing issues round Items and Providers Tax (GST) on bundled cinema and meals companies, Sharma clarified that PVR Inox operates with full compliance.
“There isn’t any ambiguity. Meals and beverage is handled below restaurant companies and taxed at 5 per cent, whereas film tickets are taxed individually,” Sharma mentioned. “We’ve correct month-to-month filings and quarterly GST audits in place.”
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