PVR Inox (PVRINOX IN) – Q1FY27 Result Update – Best 1Q operating performance since last 4 years – BUY
Published on 27 Jul 2026
PVRINOX IN reported better than expected operating performance with pre-IND AS EBITDA margin of 12.9% (PLe 11.3%) led by a healthy combination of price-volume mix. While ATP/SPH increased 7.5% YoY/8.8% YoY to INR273/INR161 respectively; footfalls increased 7.6% YoY to 36.6mn aided by movies like Bhoot Bangla, Cocktail-2, Michael, Obsession, and spill-over in collections from Dhurandhar: The Revenge. PVRINOX IN has transitioned to a positive net cash position of INR807mn, reflecting improvement in BS health. The continued pivot towards asset-light/FOCO model (79% of screen addition in FY27E is on an asset light route) should preserve cash flows, improve capital efficiency and drive higher RoE/RoCE over time. We expect modest footfall CAGR of 4.7% over FY26-FY28E with pre-IND AS EBITDA margin of 14.1%/15.7% in FY27E/FY28E led by tight cost control and disciplined screen churn. PVRINOX IN trades at an attractive valuation of 10x/8x our FY27E/FY28E pre-IND AS EBITDA estimates. We retain BUY on the stock with a TP of INR1,307 (9.5x FY28E pre-IND AS EBITDA; no change in target multiple).
