PVR INOX Limited announced its audited standalone and consolidated financial results for the fourth quarter and full financial year ended March 31, 2026, following approval by the Board of Directors at its meeting held on May 11, 2026. The statutory auditors, M/s. S.R. Batliboi & Co. LLP, issued an unmodified audit opinion on both the standalone and consolidated financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In a significant development, the company has also outlined plans to cut its gross debt from INR 760 Crores to approximately INR 500 Crores, with management aiming to achieve zero net debt in the near term.

Debt Reduction and Financial Strength

PVR INOX has announced a targeted reduction in gross debt from INR 760 Crores to approximately INR 500 Crores, with the company aiming for zero net debt soon. This deleveraging drive is supported by the company's strong cash generation in FY26. On a standalone basis, non-current borrowings declined to Rs. 4,592 million from Rs. 9,198 million, while current borrowings reduced to Rs. 2,994 million from Rs. 5,710 million. Consolidated cash and cash equivalents at year-end stood at Rs. 5,883 million compared to Rs. 5,225 million at the start of the year. Management has indicated that once the company achieves cash positivity, discussions on capital allocation and possible dividends will be taken up with the Board.

Analyst Ratings and Outlook

Following the strong FY26 results, leading brokerages have reaffirmed their positive stance on PVR INOX. Kotak Institutional Equities maintained a Buy rating with a target price of ₹1,500, citing a post-pandemic high FY26 EBITDA of ₹8.7bn driven by improving cinema-going trends and plateauing OTT risks. The brokerage also noted that cost efficiencies, capital-light expansion, and asset monetisation have sharply reduced net debt, though it remains mindful of volatility in the content cycle.

CLSA maintained an Outperform rating with a target price of ₹2,135, driven by strong Q4 performance with 24% year-on-year revenue growth and a 27% rise in ticket sales, robust 60% EBITDA growth, and healthy PAT. CLSA also highlighted record FY26 admissions and operating metrics, along with sharply improved financial strength, with FY26 free cash flow more than doubling to ₹7.9bn, supporting self-funded expansion.

The following table summarises the latest brokerage recommendations:

Management Guidance: FY27 Capital Expenditure and Expansion

Management has outlined a detailed capital expenditure plan for FY27, reflecting confidence in the business outlook and a continued focus on capital-light growth. PVR INOX plans total FY27 capital expenditure of INR375-400 Crores, with INR225-250 Crores earmarked for new projects and INR80-100 Crores allocated for renovations. The company intends to open approximately 120 screens during FY27, with 55% to 60% of new additions in capital-light formats.

As part of its innovation strategy, PVR INOX aims to launch 28 to 30 Smart Screens in FY27, beginning with two pilot locations by mid-July, with a focus on Tier 2 and Tier 3 cities. Management also expressed high confidence for FY27, highlighting diverse content across languages as a key driver of audience engagement and occupancy. The company anticipates better occupancy rates backed by a robust schedule of upcoming films and increased funds from filmmakers for big-screen releases, with an upward trend expected.

The following table summarises the key FY27 capital expenditure and expansion parameters:

Standalone Financial Performance

The company delivered a significant turnaround on a standalone basis, reporting a net profit of Rs. 2,685 million for FY26 compared to a net loss of Rs. 2,769 million in FY25. Standalone revenue from operations grew to Rs. 63,912 million from Rs. 54,424 million in the prior year. Total standalone income for FY26 stood at Rs. 65,682 million versus Rs. 56,061 million in FY25. Total standalone expenses for FY26 were Rs. 63,148 million compared to Rs. 59,812 million in FY25.

The following table summarises the key standalone financial metrics:

Standalone Exceptional Items

Standalone exceptional items for FY26 included a net gain of Rs. 800 million, comprising several components:

• Labour Code impact: The company recognised an incremental liability of Rs. 392 million following the Government of India's notification of four new Labour Codes on November 21, 2025, consolidating 29 existing labour laws.
• Disposal of Zea Maize Private Limited: The company disposed of its entire 93.27% shareholding in subsidiary Zea Maize Private Limited for a consideration of Rs. 2,221 million (net of expenses) with effect from January 29, 2026. The carrying value of the investment on the date of sale was Rs. 951 million, resulting in an exceptional gain of Rs. 1,270 million (net of expenses).
• Capital work-in-progress impairment: Capital work-in-progress of Rs. 78 million relating to a property under development was impaired due to a dispute with the landlord.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflected total assets of Rs. 1,54,784 million compared to Rs. 1,62,149 million as at March 31, 2025. Total equity stood at Rs. 73,369 million versus Rs. 70,708 million in the prior year, with other equity of Rs. 72,387 million against Rs. 69,726 million. Non-current borrowings declined to Rs. 4,592 million from Rs. 9,198 million, while current borrowings reduced to Rs. 2,994 million from Rs. 5,710 million, indicating meaningful debt reduction during the year. Cash and cash equivalents at year-end were Rs. 4,429 million compared to Rs. 4,489 million at the start of the year.

Standalone Cash Flow Summary

On a standalone basis, net cash flows generated from operating activities stood at Rs. 20,719 million for FY26 versus Rs. 19,514 million in FY25. Net cash flows used in investing activities were Rs. (212) million compared to Rs. (3,173) million in FY25, aided by proceeds of Rs. 2,221 million from the sale of investment in subsidiary. Net cash flows used in financing activities were Rs. (20,567) million versus Rs. (15,279) million in FY25, reflecting significant repayment of long-term borrowings of Rs. 7,320 million and lease liabilities of Rs. 11,798 million.

Consolidated Financial Performance

On a consolidated basis, PVR INOX reported a profit for the year of Rs. 3,328 million for FY26, reversing a net loss of Rs. 2,809 million in FY25. Consolidated revenue from operations grew to Rs. 66,462 million from Rs. 56,999 million. Total consolidated income for FY26 was Rs. 68,297 million versus Rs. 58,708 million in FY25. Total consolidated expenses were Rs. 65,540 million compared to Rs. 62,287 million in FY25. On a quarterly basis, Q4 EBITDA came in at Rs. 4.52B versus Rs. 2.89B in the same period of the prior year, with the EBITDA margin expanding to 29.2% from 23.53% year-on-year, reflecting improved operating leverage.

The following table highlights Q4 EBITDA performance on a year-on-year basis:

Consolidated Segment Performance

The group operates across two primary segments — movie exhibition and movie production & distribution. The following table presents segment revenues and results for FY26:

Segment results for FY26 showed the movie exhibition segment reporting a profit of Rs. 2,536 million versus a loss of Rs. 3,767 million in FY25, while movie production & distribution contributed a profit of Rs. 216 million against Rs. 185 million in FY25. Segment assets for the movie exhibition segment stood at Rs. 1,47,321 million and for movie production & distribution at Rs. 2,710 million as at March 31, 2026. Segment liabilities for movie exhibition were Rs. 81,551 million and for movie production & distribution were Rs. 785 million.

Discontinued Operations and Consolidated Exceptional Items

The disposal of Zea Maize Private Limited was treated as a discontinued operation in the consolidated results under Ind AS 105. The exceptional gain on disposal of discontinued operations amounted to Rs. 1,952 million in the consolidated results, with the carrying value of net assets of the subsidiary on the date of sale at Rs. 269 million. For FY26, discontinued operations reported total income of Rs. 849 million and total expenses of Rs. 1,037 million, resulting in a loss before tax of Rs. 188 million. Consolidated exceptional items also included the Labour Code impact of Rs. 405 million and capital work-in-progress impairment of Rs. 78 million.

Consolidated Balance Sheet and Cash Flow Highlights

The consolidated balance sheet as at March 31, 2026 reflected total assets of Rs. 1,56,123 million compared to Rs. 1,62,624 million as at March 31, 2025. Total consolidated equity stood at Rs. 73,787 million versus Rs. 70,534 million in the prior year. Non-current borrowings declined to Rs. 4,592 million from Rs. 9,198 million, and current borrowings reduced to Rs. 2,994 million from Rs. 5,710 million. Consolidated cash and cash equivalents at year-end were Rs. 5,883 million compared to Rs. 5,225 million at the start of the year. Net cash flows generated from total operating activities were Rs. 21,603 million for FY26 versus Rs. 19,675 million in FY25, while total cash flows used in financing activities were Rs. (20,651) million versus Rs. (15,348) million in FY25.

Board Actions and AGM

The Board also approved the convening of the 31st Annual General Meeting of the company through Video Conferencing or Other Audio Visual Means, in accordance with relevant circulars issued by the Ministry of Corporate Affairs and SEBI. The date and time of the AGM are to be communicated separately along with the AGM notice. The trading window reopened from May 13, 2026, following the conclusion of the board meeting, which was held from 12:30 PM to 1:40 PM IST on May 11, 2026.

PVR INOX Limited has submitted its mandatory compliance certificate to stock exchanges for the quarter ended March 31, 2026, fulfilling regulatory requirements under SEBI depositories regulations. The submission demonstrates the company's adherence to transparency and compliance standards in securities market operations.

Regulatory Compliance Filing

The compliance certificate was filed on April 15, 2026, with both the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 74(5) of Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018. The filing was executed by Murlee Manohar Jain, who serves as SVP - Company Secretary & Compliance Officer for PVR INOX Limited.

Registrar Confirmation Process

KFin Technologies Limited, acting as the Registrar and Share Transfer Agent for PVR INOX Limited, issued confirmation certificates dated April 1, 2026, to both Central Depository Services (India) Limited and National Securities Depository Limited. These certificates were signed by Rajitha Cholleti, Vice President of KFin Technologies Limited.

The registrar certified that all details of securities dematerialized and rematerialized during the quarter ended March 31, 2026, have been properly furnished to stock exchanges where PVR INOX shares are listed, as required under the applicable SEBI regulations.

Depository Communications

Separate certificates were issued to both major depositories operating in India:

Both certificates confirm compliance with SEBI (Depositories and Participants) Regulations 2018 requirements for the specified quarter. The documentation ensures proper record-keeping and transparency in the dematerialization and rematerialization processes of company securities.

Corporate Infrastructure

KFin Technologies Limited operates from multiple locations to support its registrar services. The company maintains its operations centre in Hyderabad at the Financial District, Nanakramguda, while its registered office is located in Mumbai. This infrastructure supports comprehensive share transfer and registry services for listed companies including PVR INOX Limited.