PVR Inox (PVRINOX IN) – Q4FY26 Result Update – BS strength & capital efficiency improves – BUY
Published on 12 May 2026
PVRINOX IN reported better than expected performance with pre-IND AS EBITDA margin of 9.0% (PLe 8.0%) led by 22.1% YoY growth in ATP to Rs315 and 32.0% YoY growth in SPH to Rs165 aided by movies like Dhurandhar: The Revenge and Border-2. After generating FCFF of Rs7,901mn, BS strength has improved considerably with net debt declining to Rs1,619mn in FY26. Further, a pivot towards capital light model (138 screens signed under FOCO/asset-light model) will not only enable cash preservation ensuring BS strength remains intact but will also aid in improving capital efficiency. We expect modest footfall CAGR of 4.7% over FY26-FY28E with pre-IND AS EBITDA margin of 14.0%/15.7% in FY27E/FY28E led by tight cost control and disciplined screen churn. PVRINOX IN trades at an attractive valuation of 9x/7x our FY27E/FY28E pre-IND AS EBITDA estimates. We retain BUY on the stock with a TP of Rs1,309 (9.5x FY28E pre-IND AS EBITDA; no change in target multiple).
