India’s largest multiplex operator, PVR-Inox, has reported a net profit of ₹10.55 crore in Q2 FY26, marking its first profitable quarter after six consecutive quarters of losses. The recovery was powered by improved footfalls, a strong movie lineup, and better cost management.
The turnaround underscores the revival of India’s cinema industry after a prolonged slowdown caused by weak content performance and post-pandemic audience fatigue. moneycontrol
Financial Performance Highlights
Metric | Q2 FY26 | Q2 FY25 | Change |
---|---|---|---|
Net Profit / (Loss) | ₹10.55 crore | ₹11.8 crore (loss) | Reversal to profit |
Revenue from Operations | ₹1,823 crore | ₹1,622 crore | ↑ 12.3% YoY |
EBITDA | ₹384 crore | ₹296 crore | ↑ 29.6% YoY |
Footfalls | 3.5 crore approx. | 2.8 crore | ↑ 25% YoY |
The strong lineup of Bollywood, Hollywood, and regional releases — including “Bhool Bhulaiyaa 3,” “Kantara 2,” and “Deadpool & Wolverine” — contributed significantly to Q2 occupancy growth.
What Drove the Comeback
- Stronger Content Calendar
The quarter saw a consistent flow of high-performing releases across multiple languages, drawing families and young audiences back to theaters. - Improved Operational Efficiency
PVR-Inox’s focus on cost optimization, efficient screen utilization, and F&B expansion helped boost margins. - Enhanced F&B and Premium Experiences
The company reported higher spends per head on food and beverages, along with growing demand for premium formats like IMAX, 4DX, and Gold Class. - Regional Film Boom
South Indian releases continued to dominate the domestic box office, contributing nearly 35% of total revenue.
CEO Commentary
Ajay Bijli, Managing Director of PVR-Inox, said the company’s turnaround “marks the beginning of a stable growth phase.”
He added that “a strong content pipeline for Q3 and the festive season is expected to sustain profitability.”
Challenges & Outlook
- Content Volatility: Box office success remains highly content-driven. A weak quarter could again pressure margins.
- OTT Competition: While footfalls have risen, OTT platforms continue to compete for audience attention.
- Expansion Costs: The company plans to open 60 new screens this fiscal, which could impact short-term profitability.
Despite these challenges, analysts view the return to profit as a positive inflection point. With occupancy levels nearing pre-pandemic levels and new content releases ahead of Diwali, PVR-Inox is set for stronger financial performance in H2 FY26.
Conclusion
After six difficult quarters, PVR-Inox’s ₹10.55 crore profit in Q2 FY26 signals a solid recovery for India’s cinema exhibition sector. With improving content, higher footfalls, and cost control measures, the company appears poised for sustained profitability in the coming quarters.