PVR INOX narrows Q1 loss to ₹54 crore on strong lineup, cost control

PVR INOX, India’s largest cinema exhibitor, has focused on tighter control over its operating costs through reduction in its electricity and marketing expenses to narrow down its losses. This was also helped by a strong lineup of movies from Hollywood and Bollywood in the first quarter of 2025-26 (Q1FY26).

 

“We have to have our eye on the ball as far as cost-cutting is concerned,” Ajay Bijli, founder of PVR Cinemas and managing director (MD) of PVR INOX, told Business Standard in an interview. “On our comparable properties, there has been a marginal increase in manpower, our electricity costs have gone down along with marketing and rent expenditure (in Q1FY26 on a year-on-year or Y-o-Y basis). It is an extremely important part of our strategy to not just rely on movies and improve our revenues but also keep an eye on the cost.”

 

 

PVR INOX’s consolidated net loss narrowed down to ₹54 crore in Q1FY26 on a Y-o-Y basis. The company’s revenue from operations rose by 23.38 per cent to ₹1,469.1 crore during the quarter compared with Q1FY25. Its other income increased by 12.89 per cent Y-o-Y to ₹32.4 crore.

 

In the earnings call, an executive of the company said that PVR INOX was able to control electricity consumption by air-conditioning utilities based on the occupancy levels within the cinema halls. It has also deployed solar panels in the cinema, which have reduced its dependence on grid electricity.

 

Meanwhile, Gautam Dutta, chief executive officer (CEO), revenue and operations, PVR INOX, explained in the company’s earnings call that majority of the growth for the company is coming through value and not through volume. He added that through initiatives like Blockbuster Tuesdays (tickets at ₹99), the company has been able to convert non-cinema-going consumers into regular moviegoers. 

   

PVR INOX’s profit before depreciation, interest, and taxes (PBDIT) rose by 53.32 per cent to ₹429.6 crore in Q1FY26 compared with the same quarter last year.

 

In Q1FY26, a total of 10 films crossed the ₹100 crore mark, and three crossed the ₹200 crore mark. Bollywood box office collections of PVR INOX surged by 38 per cent in the quarter on a Y-o-Y basis, fuelled by films like Ajay Devgn’s Raid 2, Aamir Khan’s Sitaare Zameen Par, Kesari Chapter 2, Housefull 5, and Jaat, its earnings release stated. Similarly, with back-to-back major releases from Hollywood like Mission: Impossible – The Final Reckoning, Final Destination Bloodlines, From the World of John Wick: Ballerina and F1, PVR INOX saw 20 per cent rise in admissions during the quarter on a Y-o-Y basis for its premium and experiential formats like IMAX and 4DX.

 

Bijli noted that the momentum in the industry is back, both from the filmmakers' side and the consumers’ side, for watching movies on the big screen.

 

“Things are only going to get better from here. In July, despite the nail-biting (cricket) Test series between India and England, people came and watched movies like Jurassic World Rebirth, Superman, and The Fantastic Four: First Steps. There’s also an amazing amount of traction that we are seeing for the August 15 weekend, when movies like War 2 and Coolie will be releasing,” he said.

 

The company observed 34 million admissions during the quarter, up by 12 per cent on a Y-o-Y basis. It recorded its highest-ever food and beverage spend per head, which rose 10 per cent to ₹148, according to the release.

 

PVR INOX opened 20 new screens in Q1FY26 and plans to open 100 new screens this year, Bijli added.