In a significant development for the multiplex industry, the Supreme Court has provided interim relief to multiplex operators by staying the Karnataka government's rules that capped cinema ticket prices at ₹200. This decision comes as a respite for cinema chains like PVR Inox , which had challenged the state's price control measures.

Key Points of the Supreme Court's Decision

• The court has restrained Karnataka from implementing the price cap until further orders.
• The Karnataka High Court has been directed to decide on the multiplexes' plea expeditiously.

Background of the Price Cap

The Karnataka government issued a draft notification under the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025. The key points of this notification were:

• Mandated ticket prices for all language films not to exceed ₹200 per show.
• The cap was inclusive of entertainment tax.

Industry Response

The price cap was met with strong opposition from various stakeholders in the film industry:

The primary argument against the price cap was that a blanket application across all cinemas was unreasonable, given the significant cost variations between multiplexes and single-screen theaters.

Implications for the Industry

This interim stay by the Supreme Court is likely to have significant implications for the multiplex industry in Karnataka. It allows cinema operators to continue setting their own ticket prices while the case is being heard, potentially affecting their revenue streams and operational strategies.

The final decision on this matter will be closely watched by the entertainment industry, as it could set a precedent for similar regulations in other states. For now, the multiplex operators can breathe a sigh of relief as they continue their operations without the imposed price restrictions.

As the case progresses in the Karnataka High Court, all eyes will be on how the balance between consumer interests and business viability is struck in the cinema industry.

PVR Inox , India's leading multiplex chain, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating strong recovery in the cinema exhibition sector. The company's performance was driven by a diverse slate of successful films across multiple languages and genres.

Record-Breaking Performance

PVR INOX achieved its highest quarterly revenue, EBITDA, and PAT in two years for Q2 ended September 30, 2025. Key highlights include:

Content-Driven Success

The quarter saw a balanced mix of blockbusters and content-driven films contributing to the company's success:

• Hindi films showed strong performance, with 'Saiyaara' grossing nearly ₹400 crore and 'Mahavatar Narsimha' collecting around ₹300 crore.
• Hollywood collections reached ₹500 crore, driven by franchise titles.
• Regional cinema performed well, with the Kannada box office growing over 100% year-on-year.

Operational Metrics

• Average Ticket Price (ATP) grew 2% year-on-year to ₹262.00.
• Food & Beverage Spend Per Head (SPH) was ₹134.00.
• The company added 22 new screens while rationalizing eight, bringing the total screen count to 1,761 across 354 cinemas.

Financial Discipline

PVR INOX continued to focus on financial discipline and deleveraging:

• Net debt decreased to ₹619.00 crore, the lowest since the merger, down ₹333.00 crore from March 2025.
• The company has 132 screens signed under the capital-light model, with 44 screens under FOCO and 88 under the asset-light model.

Management Commentary

Ajay Bijli, Managing Director of PVR INOX, commented on the results: "The momentum built in Q1 has only accelerated in Q2, making H1 one of the most remarkable periods in recent times with robust contributions from Hindi, Hollywood, and regional films. What is especially encouraging is that the performance this year is increasingly looking structural with total India box office growing by 15% year-on-year in H1, driven by a steady and diverse flow of films across languages and scales."

Outlook

The company remains optimistic about the upcoming quarters, supported by a strong and diverse multi-language release slate. With marquee titles like 'Thama', '120 Bahadur', 'Tere Ishk Mein', 'Dhurandhar', 'Avatar: Fire and Ash', 'Raja Saab', 'Alpha', 'Border 2', 'Mardaani 3', 'Love & War', and 'Toxic' on the horizon, PVR INOX is well-positioned to drive robust audience traction and sustained footfalls.

The strong Q2 performance and positive outlook underscore PVR INOX's resilience and ability to capitalize on the recovering cinema exhibition market in India. As the company continues to expand its screen presence and focus on delivering premium entertainment experiences, it remains well-positioned to benefit from the growing demand for out-of-home entertainment options.