Synopsis:
PVR Inox is in focus after the Karnataka High Court has stayed, until further orders, the implementation of the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which capped movie ticket prices at Rs 200.
The shares of the largest and most premium film exhibitor in India rose after a key decision taken by the Karnataka High Court that can impact its business in a positive way. In this article, we will dive more into the details.
With a market capitalization of Rs 10,873 crore, the shares of PVR Inox Ltd made a day’s high of Rs 1,119.05 per share, up 1 percent from its previous day’s closing price of Rs 1,107.30 per share. In the last one year, the stock has delivered a negative return of 34 percent, compared to the NIFTY 50’s return of -3 percent.
About the news
The Karnataka High Court has temporarily stopped the state government’s rule that capped cinema ticket prices at Rs 200. This decision came after the Multiplex Association of India and other theatre owners asked the court to review the rule, saying it was unfair and made it hard for them to run their businesses.
The government introduced this Rs 200 cap with respect to Karnataka Cinemas (Regulation) Rules, 2014. The rule applies to most theatres, but small boutique or premium theatres with fewer than 75 seats can continue charging their usual prices. The government said the cap was needed to keep movies affordable for the public.
Multiplex operators and industry representatives argued in court that the price cap is excessive government control over private businesses. They also said it doesn’t consider the large investments theatre owners and film producers have made, making it difficult for them to earn a profit.
Justice Ravi V Hosmani gave temporary relief to the multiplexes and will make a final decision after hearing all sides in detail. The court’s order only stops the cap for now, and further rulings will decide the long-term outcome.
This news is important for big multiplex chains like PVR and INOX as a Rs 200 ticket cap could limit the revenue they earn from movie tickets, especially for popular films and premium formats. The court’s temporary suspension gives these chains some relief and flexibility in setting prices for now. PVR Inox has a total of 215 screens in the state of Karnataka.
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Financial Highlights
PVR’s revenue for Q1 FY26 came in at Rs 1,469 crore, up by 23 percent from Rs 1,191 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 18 percent from Rs 1,250 crore in Q4 FY25.
Coming to its profitability, the company reported a net loss of Rs 54 crore in Q1 FY26, which reduced from a loss of Rs 179 crore in Q1 FY25. Additionally, it also reported a loss of Rs 125 crore in its previous quarter, making the company face difficulties in operating its business smoothly.
The company has delivered a poor ROE and ROCE of -4.18 percent and 2.72 percent respectively, and has a high debt-to-equity ratio of 1.10x as compared to its poor interest coverage ratio of only 0.74x. This puts the company in a very difficult situation to service its debt smoothly.
PVRINOX is the most significant and most luxurious cinema chain in India, having 1,743 screens in 111 cities in India and Sri Lanka, and a total capacity of 3.54 lakh seats. The firm has expanded by combining all its strategic acquisitions, such as Cinemax, DT Cinemas, SPI Cinemas, and, lately, it has merged with INOX Leisure.
PVRINOX is all about delivering a contemporary and delightful film experience through various premium formats, good seating, audio, projection, and food & beverages. The company is the liaison between the audiences and the movies, studios, as well as other entertainment partners, and thus, it can cater to over 180 million patrons through its various channels.
Among other things, PVRINOX makes money from ticket sales, food & beverages, advertisements, convenience fees, and movie distribution. This is supported by excellent guidance and a strong financial position
Written by Satyajeet Mukherjee
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