PVR Inox (PVRINOX IN) – Q2FY27 Result Update – Best ever quarter – Downgrade to ‘ACCUMULATE’
Published on 29 Oct 2026
We increase our pre-IND AS EBITDA estimates by 5%/8% for FY28E/FY29E as we fine tune our footfall, ATP and SPH assumptions. PVRINOX IN’s operating performance was broadly in-line with pre-IND AS EBITDA margin of 21.2% (PLe 21.1%). However, pre-IND AS PAT was 17% above our estimate led by lower-than-expected depreciation expense of INR2,959mn (PLe INR3,318mn) amid change in useful life of assets and higher-than- expected other income of INR342mn (PLe INR280mn) aided by exceptional gain of INR70mn arising from provision reversal. Led by healthy FCFF generation, PVRINOX IN has transitioned to a positive net cash position of INR1,407mn, reflecting improvement in BS health. Further, a pivot towards asset-light/FOCO model (74% of screen addition in FY27E is on an capital light route) should preserve cash flows, improve capital efficiency and drive higher RoE/RoCE over time. The stock trades at EV/EBITDA multiple of 9.9x/8.4x over our FY28E/FY29E pre-IND AS EBITDA estimates and has appreciated by 38% since our last upgrade note in Jan-26. Downgrade to “ACCUMULATE” with a TP of INR1,561 (10x Sep-28E EBITDA; no change in target multiple).
