PVR Inox Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript PVR Inox Ltd filed with BSE on 18 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
PVR-INOX reported its highest ever fourth quarter and full year financial performance for FY26, with revenue up 16% year-on-year to Rs 6,742 crores and EBITDA before exceptional items doubling to Rs 968 crores. The company pivoted to a capital-light growth model, adding 93 new screens in FY26 with 55% under FOCO or asset-light formats, and reduced net debt by nearly 90% since the merger to Rs 161 crores. Management discussed plans for further capex, screen additions and debt reduction in FY27, alongside commentary on industry trends, occupancy levels and content pipeline.
Numbers mentioned
Revenue: Rs 6,742 crores (FY26)
p. 4
“On an IND AS 116 adjusted basis, FY26 revenues was a record of INR6,742 crores, up 16% year-on-year.”
Ajay Bijli, page 4 of the filed PDF · View the filing
EBITDA before exceptional items: Rs 968 crores (FY26)
p. 4
“EBITDA before exceptional items doubled to INR968 crores with margins expanding from 8.4% to 14.4%, reflecting both strong revenue growth and the cost discipline we have sustained for several years.”
Ajay Bijli, page 4 of the filed PDF · View the filing
PAT: Rs 386 crores (FY26)
p. 4
“FY26 also recorded the highest ever PAT at INR386 crores against a loss of INR152 crores in FY25.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Revenue: Rs 1,577 crores (Q4 FY26)
p. 4
“For quarter 4, revenue grew 25% to INR1,577 crores.”
Ajay Bijli, page 4 of the filed PDF · View the filing
EBITDA: Rs 169 crores (Q4 FY26)
p. 4
“EBITDA rose nearly six fold to INR169 crores and PAT was INR178 crores versus a loss of about INR10 crores -- INR106 crores.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Footfalls: 150 million (FY26)
p. 4
“We welcomed 31 million guests in the quarter and 150 million across the year, which is a 10% growth over FY25.”
Ajay Bijli, page 4 of the filed PDF · View the filing
ATP: INR280 (FY26)
p. 4
“ATP for the year stood at INR280, which is up by 8% compared to previous year and SPH at INR147 compared -- up by 10%, both record highs.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Free cash flow: Rs 790 crores (FY26)
p. 4
“with FY26 free cash flow reaching an all-time high of INR790 crores.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Net debt: Rs 161 crores (as of 31 March 2026)
p. 4
“Our net debt now is nearly down 90% since the merger to a negligible level of INR161 crores as of 31 March 2026.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Return on capital employed: 10.2% (FY26)
p. 4
“Return on capital employed has improved to 10.2% in FY26, a clear breakout, and we will continue to work towards improving it further.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Screen additions: 93 new screens (FY26)
p. 4
“Of the 93 new screens added in FY26, 55% came under capital-light formats with around 44% of additions in underpenetrated South India.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Screen exits: 18 screens (FY26)
p. 4
“Screen exits dropped sharply to 18 from 72 last year as the post-merger portfolio rationalization is largely behind us.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Signed capital-light pipeline: 138 screens
p. 4
“Our signed capital-light pipeline now stands at 138 screens, 52 under FOCO and 86 under assetlight.”
Ajay Bijli, page 4 of the filed PDF · View the filing
Occupancy: 26.2% (FY26)
p. 12
“26.2% is what we closed the year on.”
Ajay Bijli, page 12 of the filed PDF · View the filing
Gross debt: Rs 760 crores (as of 31 March)
p. 16
“Our gross debt as of 31st March is around INR760 crores, and we intend to bring it down to about INR500 crores levels.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Management income: about Rs 10 crores (FY26)
p. 8
“And our management income has seen a sharp increase, even though at an absolute level, it is about close to INR10 crores for financial year '26.”
Gaurav Sharma, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — INR375 crores to INR400 crores · FY27
stated firmly by Gaurav Sharma
p. 8
“So next year, I mean, financial year '27, we expect around INR375 crores to INR400 crores of overall capex, which will be spent across new projects as well as renovation of some of our highvalue cinemas.”
Gaurav Sharma, page 8 of the filed PDF · View the filing
Screen additions under capital-light model — 55% to 60% · FY27
stated firmly by Ajay Bijli
p. 5
“And the percentage of screens opening in FOCO and asset-light model will -- was 55% this year. It will continue to be between 55% to 60%.”
Ajay Bijli, page 5 of the filed PDF · View the filing
Screen expansion — over 100 screens · FY27
stated firmly by Ajay Bijli
p. 15
“Expansion will be continuing to be over 100 screens.”
Ajay Bijli, page 15 of the filed PDF · View the filing
Smart Cinema screens opening — 28 to 30 screens · this financial year
stated conditionally by Ajay Bijli
p. 8
“So by July 15 or mid-July, at least 2 of them are open, and we're hoping to open close to 28 to 30 screens under this model.”
Ajay Bijli, page 8 of the filed PDF · View the filing
Gross debt — about INR500 crores levels
stated firmly by Gaurav Sharma
p. 16
“So we want to bring it down to about INR500 crores levels at a gross debt.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Net debt — positive net cash · near term
stated as an aspiration by Gaurav Sharma
p. 16
“While I would not like to comment on the exact timeline, but in near term, it's definitely on the horizon.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Capex pipeline execution — 138 screens · next 18 months
stated firmly by Gaurav Sharma
p. 9
“This will get executed over next 18 months.”
Gaurav Sharma, page 9 of the filed PDF · View the filing
Smart screen capex per screen — 30% to 40% lower than mainstream cinema
stated conditionally by Gaurav Sharma
p. 16
“So we expect that our per screen capex for a smart screen will be at least 30% to 40% lower than mainstream cinema in that same location.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Capital allocation / buyback
stated as an aspiration by Ajay Bijli
p. 14
“Your point is well noted. As I said nothing is off the table.”
Ajay Bijli, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said cinema is a small-ticket discretionary spend that historically benefits in challenging times as other leisure spending gets cut.
Answered by Ajay Bijli
Asked by Abneesh Roy: Whether macroeconomic pressures like fuel price hikes and reduced discretionary spend would hurt multiplex consumption.
p. 5
“Typically, history has shown that -- I don't want to use the word recession, but I'm just saying in challenging times, cinema going actually benefits.”
Ajay Bijli, page 5 of the filed PDF · View the filing
Management said there is no correlation between IPL and cinema-going, as they are different forms of entertainment.
Answered by Ajay Bijli
Asked by Abneesh Roy: Whether IPL matches in a city reduce box office performance in that city.
p. 6
“No, I think IPL is completely -- has no impact on cinema going at all. We have seen no correlation.”
Ajay Bijli, page 6 of the filed PDF · View the filing
Management said the trend is for occupancy to keep rising, supported by the growing theatrical-first model versus OTT.
Answered by Ajay Bijli
Asked by Umang Mehta: Expectations for occupancy improvement in FY27 given the content pipeline.
p. 7
“The trend is only that it goes up.”
Ajay Bijli, page 7 of the filed PDF · View the filing
Management said a couple of pilots would open by mid-July with confidence based on good deals and demographic studies.
Answered by Ajay Bijli
Asked by Umang Mehta: Update on the smart screens pilot in Tier 2 and below cities.
p. 8
“Yes. I think by July 15, a couple of pilots will open. I think we're calling them pilots. We're very confident because these are in good cities.”
Ajay Bijli, page 8 of the filed PDF · View the filing
Management gave the current split of asset-light and FOCO screens and said rental costs would trend lower under capital-light models but declined to give an exact percentage guidance.
Answered by Gaurav Sharma
Asked by Harit Kapoor: Breakdown of screens already under the capital-light model and expected trend in rental costs as a percentage of sales.
p. 9
“At this stage, it's hard for us to give a guidance on what exact percentage drop that will happen in terms of percentage of revenue. But overall, the trend will be on asset-light will be on the lower side.”
Gaurav Sharma, page 9 of the filed PDF · View the filing
Management said the model improves ROCE and that internal accruals should fund growth rather than relying on the balance sheet, while screen growth continues regardless of funding model.
Answered by Ajay Bijli
Asked by Arun Prasath: Rationale for pursuing asset-light and FOCO models despite a healthy balance sheet and strong cash flows.
p. 9
“Asset-light model and the FOCO model is straightaway, your ROCEs improve dramatically.”
Ajay Bijli, page 9 of the filed PDF · View the filing
Management explained that depreciation on existing ROU assets exceeded the smaller ROU contribution from new capital-light additions.
Answered by Gaurav Sharma
Asked by Jinesh Joshi: Why the ROU asset balance declined despite new lease and asset-light screen additions.
p. 11
“So ROU, as you know, ROU assets depreciate over time and simply because the depreciation over the last 1 year has been more than the gross additions on the ROU on lease model screens.”
Gaurav Sharma, page 11 of the filed PDF · View the filing
Management split the capex figure into new project spend, renovation spend, and maintenance/IT capex.
Answered by Gaurav Sharma
Asked by Jinesh Joshi: Breakdown of the FY27 capex guidance between new projects and renovation.
p. 12
“Roughly around about INR225 crores to INR250 crores we will spend on new projects, which will be across payments which are due for projects which are under fit-out as well as new handovers that will take within the year.”
Gaurav Sharma, page 12 of the filed PDF · View the filing
Management said occupancy would keep rising and that even at current levels margins are being protected through cost efficiency, with further upside if occupancy rises.
Answered by Ajay Bijli
Asked by Sameer Gupta: Whether current occupancy levels represent a new post-COVID normal or can still improve.
p. 13
“Secondly, we are not just -- we're looking at occupancy levels at one level, but we're also looking at our costs so that even at, say, 27%, 28% occupancy, we are able to get the same EBITDA margins that we were getting pre-COVID.”
Ajay Bijli, page 13 of the filed PDF · View the filing
Management said the OTT-versus-cinema substitution effect was temporary and tied only to the COVID shutdown period, and has since played out.
Answered by Ajay Bijli
Asked by Sameer Gupta: Whether OTT-related fatigue with theatrical viewing has fully played out.
p. 13
“No, it's played out. It was always a -- it was never a substitute. It only became a substitute during the COVID period, obviously, when cinemas are shut.”
Ajay Bijli, page 13 of the filed PDF · View the filing
Management said franchisee screens saw strong management fee growth and asset-light screens delivered ROICs in line with feasibility estimates.
Answered by Gaurav Sharma
Asked by Kavish Parekh: Assessment of progress on capital-light screens after roughly a year, and margins generated.
p. 15
“The response from the local partner that we have given the franchisee to has been satisfied and the overall growth in the management fee on a run rate basis has been upwards of 40% to 50%.”
Gaurav Sharma, page 15 of the filed PDF · View the filing
Management declined to give an exact timeline but said it was on the horizon in the near term.
Answered by Gaurav Sharma
Asked by Kavish Parekh: Whether net debt could reach zero by the first half of FY27.
p. 16
“Yes. While I would not like to comment on the exact timeline, but in near term, it's definitely on the horizon.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Management explained that FOCO bookings are limited to management fee income with the landlord retaining the P&L, while asset-light contributions are capitalized as ROU assets with a yield paid as rental expense.
Answered by Gaurav Sharma
Asked by Saurabh Beria: How FOCO and asset-light arrangements are accounted for in the P&L and balance sheet.
p. 16
“On the FOCO model, we only book the management fee. We don't consolidate the P&L of the property.”
Gaurav Sharma, page 16 of the filed PDF · View the filing
Risks flagged
West Asia crisis and related austerity measures could affect urban discretionary spending
p. 5
“That's all due to the West Asia crisis. And obviously, that doesn't sound that good overall.”
Ajay Bijli, page 5 of the filed PDF · View the filing
Advertising revenue growth was subdued due to blockbuster film release date shifts
p. 6
“On advertising, just to -- while these numbers are a bit subdued, most of our growth this year also came in from a lot of sleeper hits, which became really, really big at the box office, which was great news.”
Gautam Dutta, page 6 of the filed PDF · View the filing
Weak February and absence of a major Diwali release affected occupancy trends during the year
p. 12
“This particular year, I think February was not very good. Diwali, which is an aberration, wasn't -- normally, you have big Diwali releases. So that didn't happen.”
Ajay Bijli, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.