Box office recovery, synergies could drive more gains for PVR-Inox

Given the promise of further operational gains from the merger synergies, there is the promise of reasonable visibility of margins

PVR–Inox is in an inherently fickle business. If there is a string of flops, the box office collections will be weak. Conversely, Q2FY24, which witnessed several hits, has brought about an upside in revenues.

However, the merger has led to market share gains and synergies that helped bring breakeven down to approximately 20 per cent occupancy.

PVR INOX operates the largest multiplex network with 1,709 screens across 358 properties in 113 cities (India and Sri Lanka). It picks up around one-third of total box office collections across India. 

Given the promise of further operational gains from the merger synergies, there