Financial Performance Highlights - Q2 FY27

  • Total Income: ₹2,133 crores (17% YoY growth, Ind AS 116 adjusted)
  • EBITDA: ₹475 crores (44% YoY growth)
  • EBITDA Margin: 22.3% (expanded ~420 basis points)
  • PAT: ₹273 crores (more than doubled YoY)
  • This represents the sixth consecutive quarter of YoY revenue growth

Financial Performance Highlights - H1 FY27

  • Total Income: ₹3,775 crores (15% YoY growth)
  • EBITDA: ₹705 crores (56% YoY growth)
  • PAT: ₹344 crores (233% YoY growth)

Operational Metrics - Q2 FY27

  • Footfalls: 46.3 million guests (4% YoY growth)
  • Occupancy: 30.4%
  • Average Ticket Price (ATP): ₹298 (14% YoY growth)
  • Food & Beverage Spend Per Head: ₹153 (14% YoY growth)
  • Return on Capital Employed: 16.5% on trailing 12-month basis (improved from 10.2% in FY26)

Industry Context

  • Industry gross box office collections reached ₹4,433 crores in Q2 FY27, the highest quarterly collections on record
  • Industry box office grew 23% YoY, following 20% growth in Q1
  • H1 FY27 industry collections grew 22% to ₹7,618 crores

Content Performance Breakdown

English Language Cinema:

  • Collections grew 87% to ₹1,024 crores (first time crossing ₹1,000 crores in a quarter)
  • Spider-Man: Brand New Day became India's highest grossing English movie ever at ₹608 crores
  • Christopher Nolan's Odyssey grossed ₹233 crores with exceptional demand in premium formats
  • Avengers Endgame: Encore re-release grossed ₹45 crores over 4-week theatrical run

Hindi Cinema:

  • Led by Hanuman Ansh (₹351 crores) and Mirzapur: The Movie (₹267 crores)
  • Other successful hits included Awarapan 2 and Dhamaal 4

Regional Cinema:

  • Strong growth with Jana Nayagan (Tamil, ₹200 crores) and Toxic (Kannada, ₹296 crores)
  • Other blockbusters: Irumudi (Telugu) and Bethlehem Kudumba Unit (Malayalam)

Balance Sheet and Capital Management

  • Generated ₹604 crores of free cash flow in H1 FY27
  • Repaid ₹259 crores of debt during H1
  • Completed maiden share buyback of ₹300 crores in September 2026
  • Ended September with net cash of ₹141 crores (up from ₹81 crores in June)
  • Company turned net cash positive in Q1 FY27

New Capital Allocation Policy

Board approved policy with three priorities:

1. Continue investment for growth in new screens, premium formats, and technology

2. Maintain strong balance sheet with net debt-to-EBITDA remaining within 0.5x after any distribution

3. Return approximately 30% of annual surplus cash flow to shareholders through dividends, buybacks, or combination

Expansion Update

  • Opened 24 new screens across 6 new cinemas in H1 FY27, predominantly under asset-light models
  • Network now spans 1,797 screens across 114 cities in India and Sri Lanka
  • Exited 25 screens during H1 (majority loss-making)
  • On track to open 90-100 new screens in FY27 with bulk openings in second half

SMART Cinema Initiative

  • First SMART Cinema opened in Muzaffarpur, Bihar in September 2026
  • Affordable capital-light format designed for Tier 3 and Tier 4 markets
  • Capex approximately 25-30% lower than normal screens
  • Operating cost about 25% lower than normal cinemas
  • ATP at ₹190 (vs company average of ₹298)
  • Limited F&B offerings focused on "hero items"
  • Two more SMART Cinemas under fit-out in Rampur and Bharatpur
  • Pipeline of about 100+ screens signed for next 12-18 months
  • 300 cities identified for SMART Cinema expansion

Future Content Pipeline

Hindi: Ramayana: Part 1 (November), Shah Rukh Khan's King (December), Love & War, Golmaal 5 (Q4)

Pan-India Regional: Chiranjeevi's Kaaka, Prabhas' Fauji

Hollywood: The Hunger Games: Sunrise on the Reaping, Avengers: Doomsday, Dune: Part Three, Jumanji: Open World

Business Initiatives

  • Value offers: Weekday morning shows at ₹99, Friday first shows at ₹149, front row seats from ₹79
  • F&B expansion: Home delivery, Grab & Go counters, outdoor catering, in-house food brands
  • Live events and sporting telecasts to utilize screens outside peak movie hours
  • Digital pay-per-eyeball advertising platform in development (8-10 months away)

Management Commentary Highlights

  • Merger synergies, cost discipline and capital efficiencies have made PVR INOX structurally stronger
  • EBITDA margin of 22.3% this quarter against 17-18% pre-COVID at higher occupancy levels
  • No conversations about ticket price gaps in Southern states
  • South India represents 34% of PVR INOX screens but ~45-50% of industry screens
  • 35-40% of new screens annually are opening in South region
  • South India has higher occupancy that compensates for lower ATP (approximately 25% lower than rest of country)

Accounting Updates

  • Depreciation reduced by ₹35-40 crores annually due to change in useful life policy for projectors and IT equipment
  • FY27 capex guidance: ₹300-330 crores (₹132 crores spent in H1)
  • FY28 capex expected to be more than ₹350 crores due to accelerated screen expansion
  • Other income included ₹7 crores one-off reversals of old provisions on distribution collections

Rental Structure

  • Majority of legacy screens on minimum guarantee-fixed rental and revenue share (whichever is higher)
  • Revenue sharing terms vary property by property on ticket sales and F&B
  • Rent as percentage of revenue dropped in Q2

F&B Business Performance

  • Gross margins improved from ~74% to 77-78%
  • 60% of F&B sales from popcorn and Pepsi (high margin products)
  • 85% of guests purchase F&B items
  • 40% of SPH growth from volume increase, 60% from value increase
  • Initiatives include supply chain optimization, reduced wastage, and targeted promotions