Synopsis:
Karnataka Govt. plans to cap movie ticket prices at Rs. 200, impacting multiplexes like PVR Inox. The move aims to make cinema more affordable but could pressure operators’ revenue and pricing strategies.
During Wednesday’s trading session, shares of India’s largest and most premium film exhibition company tumbled nearly 2 percent on BSE, following reports that the Karnataka government plans to cap movie ticket prices at Rs. 200 each.
With a market cap of Rs. 9,614 crores, at 12:46 p.m., shares of PVR Inox Limited were trading in the red at Rs. 979 on BSE, down by nearly 1.1 percent, as against its previous closing price of Rs. 989.95. The stock has delivered negative returns of nearly 32 percent in one year, but has gained by over 1 percent in the last one month.
What’s the News
The Karnataka government is reportedly planning to cap movie ticket prices at Rs. 200 each, according to industry sources. The state has issued the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, a move likely to impact the film exhibition sector, especially multiplex operators like PVR Inox. This proposal is seen as a significant push to make movie-going more affordable, addressing long-standing public complaints about high ticket prices.
If implemented, the Rs. 200 price cap would apply across all theatres in Karnataka, including both single screens and multiplexes. The capped price would be inclusive of entertainment tax. The government has opened the draft rules for public feedback, with a 15-day window for responses. PVR Inox has not yet issued an official statement.
In comparison, Tamil Nadu currently caps ticket prices at Rs. 150 (excluding GST and local taxes), while Telangana sets limits at Rs. 295 for regular seats and Rs. 350 for recliners. Andhra Pradesh follows a similar model, capping regular seats at Rs. 177 and recliner seats at Rs. 295.
As of May 2025, Karnataka represents around 12.3 percent of PVR Inox’s total screen network, with 215 screens out of 1,743 nationwide. The state also contributes approximately 8 percent to Hindi box office revenue and nearly 10 percent to overall collections, with an average ticket price of Rs. 260. A Rs. 200 cap would translate to a roughly 30 percent drop in average ticket pricing for the state, as per sources.
Although the price cap is expected to benefit moviegoers, it raises concerns over how multiplex operators like PVR Inox will adjust their pricing and revenue strategies to manage the potential impact on profitability.
Financials
PVR Inox reported a marginal decline in revenue from operations, experiencing a year-on-year fall of nearly 0.5 percent, from Rs. 1,256 crores in Q4 FY24 to Rs. 1,250 crores in Q4 FY25. In contrast, the company’s net loss narrowed from Rs. 130 crore to Rs. 125 crore, reflecting an improvement of around 4 percent YoY during the same period.
PVR INOX Limited is engaged in the business of movie exhibition & production and operates the largest cinema network across India. It earns revenue from the sale of movie tickets, in-cinema advertisements/product displays, the sale of food and beverages, and the restaurant business.
Written by Shivani Singh
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