Screen Additions: 150-165 screens annually
Already opened 46 screens (8 properties) in Q1-Q2; on track to meet full-year target with focus on South India (40-45% of additions).
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PVR INOX · forward-looking guidance across the available source record.
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expansion
Special Format Mix: 15%-20% medium-term target
Currently 13.5% in 229 screens; rolling out IMAX, ICE, 4DX, LUXE formats in new and existing properties under renovation.
Ad Revenue Recovery: Sharp bounce in Q2, normalized levels by Q3
Q1 ad revenue was INR 89 crore vs INR 93 crore last year (pro forma). Management expects sharp recovery from Q2 with long-term deals closing in 60-90 days; Q3 (festive period) to reach normalized levels.
No Fundraising in Next 12 Months
All growth CapEx to be funded via internal accruals. Net debt increased INR 70 crore in Q1 due to screen fit-outs; quarter-on-quarter volatility expected but annual guidance unchanged.
FY25 Screen Expansion: Net +50 Screens
Company plans to open 120 new screens and exit 70 underperforming screens, resulting in net 50 screen additions. New screens will be selective and largely on capital-light model partnering with developers.
Q3 FY25 Expected to be Largest Quarter
Management indicated Q3 (October-December) with Pushpa 2 and other big releases could potentially be the biggest quarter of fiscal year, though exact comparison to prior year not specified.
Return to Pre-COVID EBITDA Margins as Long-term Target
Company stated it is taking measures on revenue and cost sides to return to pre-COVID EBITDA margin levels, though no specific timeline or target percentage provided.
Full-year admissions to cross FY2024 levels
Management expressed full confidence in exceeding FY2024's ~150 million annual admissions, citing a robust and diverse content pipeline and strong July performance.
INR 400-425 crore CapEx for FY2026
CapEx guidance maintained at INR 400-425 crore, comprising ~INR 250-260 crore for new screens (90-100 screens), ~INR 70-75 crore for renovation, and ~INR 75 crore for maintenance/IT.
Net debt reduction to continue
Management expects further net debt reduction as operating cash flow strengthens, building on INR 61 crore Q1 reduction and INR 539 crore (38%) reduction since merger.
127 new screens in pipeline via capital-light models
55 screens signed under FOCO model and 72 under asset-light model, to be opened over 18-24 months, improving ROC profile versus traditional lease model.
Free Cash Flow Positive by FY24-end
Company expects to be FCF positive after funding all CapEx for FY24, driven by EBITDA growth and working capital optimization.
1:1 Debt-to-EBITDA ratio in FY24
Net debt reduced by INR 327 crore in H1 to INR 1,100 crore. Management targets achieving 1x leverage this fiscal year.
150-160 new screens in FY24
68 screens opened in H1; remaining 82-92 screens planned for H2. Net additions of ~100 screens after 60 exits from underperforming locations.
Pre-COVID ad revenue by FY25
Absolute ad revenue expected to reach 2019-20 levels next year. Per-screen ad revenue will remain below pre-COVID due to higher screen count.
Q3FY25 to be strongest quarter of FY25
Management expressed high confidence that November and December will deliver strong numbers with Singham Again (Diwali), Pushpa 2 (December), and Venom releasing. Q3 is expected to be the best quarter of the fiscal year.
Screen expansion target: ~100 screens per annum
For the next few years, PVR INOX plans to add 80-120 screens annually, with 15% in FoCO model, 35-50% in asset-light model, and balance in structured lease model.
FY25 CapEx guidance: ₹400 crore
H1 CapEx was ₹205 crore. Going forward, with increased asset-light mix, CapEx for new screen additions should decline, though renovation CapEx may increase for high-performing properties.
FY26 expected to be a strong year
Management anticipates improved occupancy levels next year with a very strong film lineup including biggest blockbusters from top Bollywood stars (Ranbir Kapoor, Ranveer Singh, Shah Rukh Khan, Salman Khan) and more Hollywood releases post-strike recovery.
H2 performance expected at least equal to H1
Management expects Q3 and Q4 to match or exceed H1's strong performance, supported by a robust festive slate and Diwali releases.
132 new screens over 18-24 months
Pipeline screens signed under capital-light model (44 FOCO + 88 Asset Light), to be opened as malls/sites become ready, with ~50% to remain in owned cinemas.
Film distribution slate: 8-10 Hindi, 15-20 Hollywood films annually
PVR Pictures maintains its track record with releases including 'Thama' (Diwali), 'De De Pyaar De 2', 'Now You See Me' sequel, and multiple Hollywood titles.
Smart Screen POC to launch in December 2025
First proof-of-concept smart cinema targeting tier 2/tier 3 markets with lower ATP and concession pricing, using digital-first operations.
Screen Additions: 160-170 new screens in FY24
Company is on track to open 160-170 new screens in FY24, with 72 screens currently under fit-out awaiting licenses. Approximately 40-45% of additions targeted for South India.
Net Screen Additions to Normalize
The 77-screen closure exercise is a one-time post-merger rationalization. Going forward, annual churn will be 1-2% of portfolio with net additions similar to gross additions (~150-160 screens per year).
Passport Loyalty Program v2 Launch
Revised loyalty program launching pan-India within three weeks, designed to drive multiple monthly visits per customer and reduce dependency on tentpole releases.
Debt Reduction Priority
All free operating cash flow after funding CapEx needs will be directed toward debt reduction. Average cost of debt is approximately 9%.
Q4 FY25 Strong Lineup Visibility
January saw 4 films cross INR 100 crore; February has Chhaava (Vicky Kaushal), Captain America, regional releases; March includes Sikandar (Salman Khan), War 2, and multiple regional titles.
FY26 CapEx Guidance: INR 400-500 Crore
35% reduction from FY24's INR 625 crore, driven by capital-light model adoption where developers contribute 40-80% of cinema fit-out CapEx.
Screen Additions: 100-120 Screens Annually
Majority of new screen openings from FY26 onwards will be under capital-light models. 100 screens signed under new model, expected over 2-3 years.
2025 Hollywood Blockbuster Pipeline
Major titles include Captain America (Feb), Mission: Impossible: Final Reckoning (May), Fantastic Four (Jul), Avatar 3: Fire and Ash (Dec), Superman, Jurassic World: Rebirth.
~150 new screens in FY27
Net screen additions expected to be approximately 150 in FY2027 as the company continues its capital-light expansion strategy, following ~100 screen additions planned for FY2026.
CapEx of INR 350-400 crore in FY27
Capital expenditure outlay for FY2027 includes new screen additions, renovations, and maintenance across the circuit, with greater focus on upgrading older cinemas.
Return on Capital on upward trajectory to double digits
ROCE expected to reach high single digits on adjusted basis (excluding goodwill), improving from current levels as balance sheet strengthens and asset-light model scales.
Tax shield utilization over 3.5-4 years
Deferred tax assets expected to be fully utilized over the next 3.5-4 years, providing a tax shield for future earnings visibility.
FY25 Net Screen Addition: +50 screens
Opening 120 new screens while exiting 70 underperforming screens, resulting in net addition of approximately 50 screens. Focus on South India expansion.
CapEx Reduction: 25% lower than FY24
Total CapEx outlay expected to decline by at least 25% from INR 630 crore in FY24, driven by capital-light model adoption and developer co-investment.
Leverage Reduction: 50% over 12-18 months
Target to reduce leverage by at least 50% through FCF generation and monetization of inherited INOX real estate assets (potential INR 300-400 crore).
FOCO Model: 20-25% of new screens by FY26
Franchise-Owned Company-Operated model expected to account for 20-25% of new screen additions, scaling up over four years. Currently testing with 15-20 screens in FY25.
Screen Expansion: 100-110 new screens in FY26
Bulk of new screens will be under capital-light/FOCO model. 23 cinemas with 101 screens already signed under these models, with 20 screens opened in April 2025 alone.
CapEx Guidance: INR 400-425 crore for FY26
INR 250-300 crore for new projects under fit-out, plus renovation/maintenance of existing circuit and IT-related CapEx.
Debt Reduction: Negligible Net Debt in 2-3 Years
Capital allocation priority is deleveraging. With uptick in earnings, increased occupancy, and lower CapEx intensity from asset-light model, operating cash flows will exceed repayment obligations.
Hollywood Outlook: Strong FY26 Lineup
Mission: Impossible: Final Reckoning tracking well per advance bookings. Expect buoyant year with multiple tentpoles including Fantastic Four, Superman, Jurassic World, Avatar 3.
Screen additions of 100+ in FY27
Management expects to add over 100 screens in FY27, with 55-60% under capital-light models (FOCO and asset-light).
Capex guidance of ₹375-400 crore for FY27
Capex includes ₹225-250 crore for new projects, ₹80-100 crore for renovations, and balance for maintenance and IT.
Gross debt reduction target to ~₹500 crore
Management intends to reduce gross debt from ₹760 crore to around ₹500 crore in the near term.
Smart screen pilot openings by mid-July 2026
Two smart screen pilots will open by mid-July, with 28-30 screens planned under this model over the next year.