Synopsis: Ending a multi-year stretch of losses, PVR INOX Limited has posted a consolidated net profit of Rs.332.8 crore for FY26 against a net loss of Rs.280.9 crore in FY25, driven by a 17 percent jump in revenue, sharp debt reduction, and an exceptional gain from the divestment of its food court subsidiary.
Shares of India’s largest multiplex operator came into focus on Monday after its board approved audited financial results for the fourth quarter and full year ended March 31, 2026. The filing marks the first year of consolidated profitability for the company since the pandemic-era restructuring that reshaped its balance sheet.
With a market capitalization of Rs. 10,122 crore, the shares of PVR INOX Limited were trading at Rs. 1,031.40 per share, down 3.95 percent from its previous closing price of Rs.1,073.80. It is trading at a P/E of 499.75.
Full Year Results: Turnaround on All Fronts
On a consolidated basis, revenue from operations grew 17 percent year-on-year to Rs.6,646 crore in FY26, up from Rs.5,700 crore in FY25. Operating profit (EBITDA before lease costs) improved materially, with operating margins in recent quarters trending in the 27-34 percent range. After tax, continuing operations delivered a profit of Rs.176 crore against a loss of Rs.265 crore a year ago. The consolidated net operating cash flow rose to Rs.2,160 crore in FY26 from Rs.1,968 crore in the prior year.
The Q4 FY26 standalone performance was softer — revenue from operations came in at Rs.1,487 crore, down from Rs.1,774 crore in Q3 FY26, reflecting the typically weaker content slate in the January-March quarter.
Zea Maize Divestment and Exceptional Items
A significant one-time item in FY26 was the disposal of the company’s 93.27 percent stake in Zea Maize Private Limited, its food court subsidiary, completed on January 29, 2026, for a consideration of Rs.222 crore net of expenses. The carrying value of net assets at the time of sale was Rs.27 crore, yielding an exceptional gain of Rs.195 crore reported under discontinued operations in the consolidated results.
Partly offsetting this, the company recognised Rs.40.5 crore as a provision for incremental liabilities arising from the four new Labour Codes notified by the Government of India in November 2025, and impaired Rs.7.8 crore of capital work-in-progress relating to a property dispute with a landlord. The net exceptional position at the consolidated level was a gain of Rs.148 crore, contributing to the reported PAT of Rs.333 crore.
Balance Sheet Repair: Debt Down Nearly 50 Percent
Excluding lease liabilities which are structural for a property-heavy multiplex business and reduced from Rs.6,284 crore to Rs.6,021 crore during the year, conventional debt (borrowings) fell sharply from Rs.1,491 crore in FY25 to Rs.759 crore in FY26, a 49 percent reduction in one year. This was achieved through a combination of cash flow generation and net repayments: the company repaid Rs.732 crore in long-term borrowings on a net basis and Rs.150 crore in short-term borrowings during the year. Total equity attributable to shareholders stood at Rs.7,379 crore as at March 31, 2026, up from Rs.7,052 crore a year earlier.
Business Overview
PVR INOX Limited is India’s largest multiplex chain, operating under the combined brand formed after the merger of PVR and INOX Leisure. The company operates in three segments: movie exhibition, movie production and distribution, and allied activities.
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