PVR Inox experienced a significant turnaround in Q3 performance following the blockbuster success of Dhurandhar, which restored confidence across the theatrical ecosystem after a challenging period for Hindi cinema. Executive Director Sanjeev Kumar Bijli described the response to the film as "gratifying and reassuring" amid widespread concerns about movies bypassing theatrical releases altogether.

Dhurandhar Drives Box Office Recovery

The Ranveer Singh-Akshaye Khanna starrer emerged as a major success story, earning ₹831.00 crore and surpassing Pushpa 2: The Rule's Hindi version to become the highest-grossing Bollywood film. According to Bijli, this performance was crucial for the industry, with strong showings from other titles including Saiyaara, Kantara, and Avatar: Fire and Ash helping reinforce consumer confidence in the big-screen experience.

Premium Screens Show Superior Performance

PVR Inox continues to see stronger performance in premium formats, with these screens operating at 35-40% occupancy levels compared to overall occupancy of 28-30%. Bijli attributed this superior performance to a combination of factors including fewer seats, all-recliner formats, and higher ticket prices, which improved utilization despite lower seat counts.

The company is now expanding recliner-led premium formats into more cities, capitalizing on this trend while mainstream cinema occupancies remain broadly consistent across markets.

Dynamic Pricing Strategy and Tuesday Boost

Addressing pricing concerns, Bijli emphasized that dynamic pricing has always been core to PVR Inox's business model. Ticket prices vary by format and experience, from IMAX and 4DX to Luxe and Director's Cut screens, along with day-specific promotional offers.

The company's ₹99.00 Tuesday ticket offer, combined with recent GST relief on sub-₹100.00 tickets, has significantly boosted footfalls. Tuesday admissions now reach around 6 lakh viewers, matching weekend numbers and representing a notable shift in movie-going behavior.

Q4 Pipeline and Regional Focus

While Q4 typically represents a softer quarter, the upcoming slate appears promising with films like Border 2 and Vishal Bhardwaj's O Romeo, alongside a strong pipeline of South Indian releases during the Pongal weekend. The highly anticipated clash between Kannada superstar Yash's Toxic and Dhurandhar 2 is scheduled for March 19.

With 45% of PVR Inox's screens located in South India, the company expects regional cinema to play a key role in driving occupancy. English-language films, including Oscar-nominated titles, are also expected to add momentum later in the quarter.

Balanced Pricing Approach

On pricing strategy, Bijli noted the company remains conscious of balancing average ticket prices with admissions volume. Average ticket prices have increased approximately 5% year-on-year, remaining well below inflation rates as the focus continues on driving footfalls rather than aggressive pricing.

Looking ahead, Bijli expressed optimism about upcoming releases, particularly Ramayana, suggesting it could potentially outperform Dhurandhar given its broader appeal. "If an A-rated film like Dhurandhar can do ₹900.00 crore, a film with universal appeal like Ramayana can do even better," he stated.

PVR INOX shares came under pressure on Tuesday, December 30, declining approximately 2% to ₹994.60 following the disclosure of a significant promoter-level share pledge. The multiplex operator's stock movement reflects investor concerns over the latest encumbrance created by its key promoter.

Promoter Share Pledge Details

In a regulatory filing, PVR INOX disclosed that its promoter and Managing Director Ajay Kumar Bijli created an encumbrance through pledge on 4 lakh equity shares on December 24. The pledge arrangement involves two financial institutions with specific share allocations.

The company clarified that the encumbrance has been created specifically for personal borrowing purposes, providing transparency regarding the nature of the pledge arrangement.

Stock Performance Challenges

The latest disclosure comes amid ongoing challenges for PVR INOX shares on the stock exchanges. The multiplex chain has faced significant headwinds over the past year, with the stock declining approximately 25% during this period. The current share pledge adds to investor concerns about the company's market performance.

Expansion Milestone in Ladakh

Despite market pressures, PVR INOX achieved a significant operational milestone by launching India's highest cinema site. The company opened Leh-Ladakh's first multiplex at an extraordinary altitude of 11,500 feet above sea level, located at Solar Colony, Saboo, along the Leh–Manali Bypass Road in the Himalayas.

Strategic Expansion Commentary

The new Ladakh property represents PVR INOX's entry into the region and operates under the company's Franchise Owned Company Operated model. Both auditoriums feature advanced cinema technology including 2K projection systems, Dolby 7.1 Surround Sound, and Next-Gen 3D capabilities.

Ajay Bijli, Managing Director of PVR INOX Limited, emphasized the significance of this expansion, stating that few places in the world offer a setting as extraordinary as Ladakh. He highlighted that bringing world-class cinema to 11,500 feet reflects the company's commitment to reaching audiences everywhere, demonstrating PVR INOX's dedication to expanding its footprint across diverse geographical locations.