PVR Inox (PVRINOX IN) – Q3FY26 Result Update – A “Dhurandhar” performance – BUY
Published on 06 Feb 2026
PVRINOX IN reported better than expected performance with pre-IND AS EBITDA margin of 16.8% (PLe 15.8%) as footfalls increased 8.6% YoY to 40.5mn (PLe 40mn) led by “Kantara-2” and sleeper hit “Dhurandhar”. After reporting strong performance for 2 consecutive quarters (occupancy of ~28% odd with pre-IND AS EBITDA margin of ~17%), BS strength has improved considerably with net debt declining to Rs3,652mn. Further, a pivot towards capital light model (149 screens signed under FOCO/asset-light model) will enable cash preservation ensuring BS strength remains intact. We expect modest footfall CAGR of 7.1% over FY25-FY28E with pre-IND AS EBITDA margin of 11.8%/14.3%/15.6% in FY26E/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. Retain BUY with a TP of Rs1,274 (9.5x FY28E pre-IND AS EBITDA; multiple re-aligned as we roll forward our valuation to FY28E).
