PVR Ltd.- Play on increasing disposable income

Might be a easy business to track but not a great business to begin with . This quarter results would be interesting with none of the hindi films barring bhoot bangla performing. Wonder why i havent pivoted to defence, aerospace or CDMO where the asymmetry is high. Eager to watch in this quarter results

  1. the footfalls they got. in latest investor presentation slide the industry box office continues to grow at 9% CAGR
  2. the level of debt reduction
  3. how much the low occupancy (20-22%) would translate to profit of loss after the change in business model to include FOCO.

Let down with Toxic, jana nayagan not releasing this quarter. some 25 days left lets see if we have a banger on the cards. Possibly will exit after the December quarter results (SRK , Avengers one helluva qtr) if the price action doesnt improve. 90% debt reduction since merger thats hallmark of a great business in a weak industry.

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Had gone for Obsession last week, full house! We might see good footfall due to Psych/Horror thrillers like Backrooms, Hokum etc.

On another note, PVR has come up with private events catering (Not sure how old is this) Does anyone have any data on it, how is the traction?

Anectodal evidence. Even i couldnt get tickets for sheep detective for two weekends barring the front row seats. only lastweek i went with family. Weekend occupancy would be invariably much higher one have to factor in how it does on week days especially the morning and matinee shows.

Obsession might maximum do 20 -30 Cr in India and 10 -20 Cr for PVR. No Dhurandhar to save this quarter (Dhurandhar 2 alone contributed 350 crore to pvr box office last quarter).

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This has been a great quarter for Hollywood movies in India. Here are some rough numbers I compiled using Claude. All figures are India collections for this quarter (Apr-Jun 2026).

Film Release India Gross this quarter (₹ Cr)
Project Hail Mary Mar (ran into Apr) ~62 (85.5 total)
Obsession (still running) 29 May ~84 and climbing
Michael 24 Apr ~70
The Devil Wears Prada 2 1 May ~40
The Mummy 17 Apr ~35
Disclosure Day (still running) 12 Jun ~10
Mortal Kombat II 8 May ~9
Star Wars: Mandalorian & Grogu 22 May ~5.5
Masters of the Universe 5 Jun ~5
Backrooms / Scary Movie / others Jun ~5
Total (this quarter) ~325 Cr GBOC

We still have Toy Story and Supergirl to go.

I feel that this is not a one-off thing but a trend. The Indian audience is increasingly tuned into global content, and social media plays a huge part in this. If a movie is really good (like Obsession) everyone knows about it in a few days. Obsession opened to just ~2 cr on day 1 and word of mouth carried it to ~84 cr and counting.

Think of this from the perspective of production houses as well. They see that there is a big market in India. They are going to make sure to market their movies well in India, further increasing the footfalls. We could be a huge market for them. We have one of the largest English-speaking populations in the world. The demographic is young. So it’s not just Marvel and Nolan movies, all movies have a market here. The beneficiary of this will be PVR-INOX, who have about 40-50% of the market for international movies in India.

Remember that all the big Hollywood movies are yet to be released. Odyssey, Spiderman, Dune and Doomsday. This could be the best ever year for International films in India. The highest so far is 1,595 cr in 2019. Last year (2025) was at 1,403 Cr.

Also, PVR Inox has almost all the IMAX screens present in India. There are so many IMAX movies coming off late and people are willing to pay the premium to get the best possible experience. I don’t have stats but it feels like the number of movies “Filmed for IMAX” has increased a lot over the last two years. Last year we had Mission: Impossible - The Final Reckoning, F1, Sinners and Superman. In 2026 - Project Hail Mary, Mandalorian & Grogu, Supergirl and Toy Story 5 have all been Filmed for IMAX, and Odyssey, Dune: Part Three, Street Fighter and Ramayana are still to come.

And it’s not just the films shot for IMAX, even non-IMAX movies are now being watched in IMAX. I watched Michael in IMAX and it was great. People just want the best possible experience on the big screen, and they’ll pay the premium for it.

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But what about bollywood which is the major contributor to the revenue(40-50%). looks like one of the worst quarters for them.

Yeah I’m doubtful the company will be profitable this quarter. Bollywood has been lackluster. Bhooth Bangla was the only hit. There were hits in the south but their contributions are low. Toxic got pushed to the next quarter. Peddi was probably the biggest release but it didn’t do enough. Let’s see, with manageable debt levels the results may not be too bad.

I guess this is to be expected. It’s gonna be lumpy, so we need to look at it in a wider time frame.

The line up for the next two quarters is looking incredible. I have been excited about the line up for 2026 but other than Dhurandhar 2, none of the big movies have come out yet other than Peddi which was bad. Odyssey, Spiderman, Toxic, Ramayana, Doomsday, King. If they live up to the hype, this can easily be the best ever year for Indian box office by a mile. Other than that there is Alpha, Evil Dead, Dhamaal 4, Paradise, Drishyam 3, Dune 3, Jumanji 3 and numerous other movies which can add to the collections.

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Please have a look at this dashboard I vibe coded. It measures PVR-INOX’s box office earnings by looking at BookMyShow data.
I can’t guarantee that this is going to be robust or even guarantee the accuracy of the data. But it looks good to me.. 6 cr on a weekday (7th July) is something I would expect.

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Impressive. Could you give your forecast for this quarter ?

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Looks good, can you also try taking data from District? Lately they’ve been giving much more lucrative offers for bookings. Safe to assume 20-25% must have shifted here.

If you are asking for the quarter that just ended in June (Q1 FY27), please note that I’ve started tracking data from 7th July only. We don’t have a way to get historical data. I have set up a monitoring system that checks the available shows on BookMyShow and calculates the box office revenue based on the tickets booked. BookMyShow does not provide APIs, what I am doing is data scraping.

If you are asking for Q2, keep an eye on the dashboard. If we don’t run into issues, we should get a decent estimate on how much the GBOC is going to be.

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So this includes data from all methods of booking since I am checking the booked seats of the show at the point when a show starts. Tickets that you book via District, PVR’s own website, or any other platform all appear on BookMyShow as booked seats.

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This looks great. As an investor in PVR, I had this exact idea last year, but didn’t get around to building it.

Is it possible to make an estimate for F&B revenue based on the ticket sales data?

I’m also guessing that a small percentage of tickets are sold at the theater after the online booking option is closed (when the movie begins)?

Great work Praneeth but do you think this business needs that level of detail tracking.

Footfalls are continuously falling. This quarter I’m expecting around 20% occupancy levels far cry from the 36% precovid. Most of them have migrated to reels and people who can afford are going for live concerts, standups

Bollywood is on a lean patch. No movies barring dhurandhar did well and we have 2 -3 bankable heroes who act one movie a year unlike malayalam film industry which is healthy with both commerce and content aspects.

Company is in much better shape than a year before but stock has corrected a lot. There is a chance that market may not assign the higher multiples it used to give this business earlier (like what happened with leading private banks) .

Disclosure : Will give it another year and will exit if the price action doesnt improve. Top 3 holdings and feels like a opportunity cost when my other midcap/smallcap picked during march did well, while this dint go anywhere

Also wont the fund managers/market be aware of a strong calendar for the rest of the year. Why the price action havent picked up

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The rest of the revenue is usually a multiple of Box Office revenue. Somewhere around 2 times.

I’m also guessing that a small percentage of tickets are sold at the theater after the online booking option is closed (when the movie begins)?

Yes, we are just making a calculated estimate. Also the number displayed is simply multiplying (ticket prices displayed) x (number of tickets sold) but there is also convenience fees, GST etc that get added. So not fully accurate but enough to get a ballpark revenue estimate.

Thank you! I am an inexperienced investor myself and don’t want to influence anyone, but I still have the conviction that the company will do well in the near term.

I looked back at the occupancy numbers. Yes it is down but the ATP and SPH have gone up.

Metric FY2020 (pre-covid) FY2026 (current) Change
Occupancy rate 35% 26% −25%
ATP (avg ticket price) ₹205 ₹280 +37%
SPH (spend per head) ₹100 ₹150 +50%
Rent / seat (p.a.) ₹40,000 ₹48,000 +20%
Stock price ₹2000 (2019 peak) ₹1000 −50%

Occupancy rate is still hovering around 26% and has not caught up to pre-covid ~35% levels but the ATP has gone up from 205 to 280 and SPH from 100 to 150. They have added about 130 new screens since 2020. It looks like the drop in occupancy levels has been compensated by ATP and SPH increase. Stock has corrected 50% since the peak in 2019. The costs like rent and employee benefits have gone up by a substantial amount hence not much profitability.

I’d like to see how the margins improve from now on. Unless something goes wrong drastically, like a pandemic or government capping prices, I don’t see much downside risk in the near term. On the up-side this could be the period when the company makes a come back. That is the hope. They took a covid beating, survived, reduced their debt and now, hopefully, they enjoy some profits.

The belief that cinemas are not going to die is the most important conviction to have to stay invested. I have that but the company will have to keep innovating or at least partner with innovators. Good news is that they do have a good fleet of premium formats.

Experience at theatres should be much better than what you can get at home, at least for the average person.

Excited to see what numbers the company does for Odyssey and Spiderman since people will want to experience them on these premium screens.

Disclosure: Invested, please DYOR.

Similar thesis. This quarter is going to be the tipping point. Apart from the Hollywood biggies, there’s toxic , jana nayagan (pvr is distributor for Andhra as well) and paradise in this quarter. June quarter washout followed by a good september quarter and an even better December qtr.

Due to the structural changes in the telecom sector, advent of 5g and 6g, convenience of ott platforms, availability of abundance of content online, future of tv and cinema sector looks dismissal……positive views are welcome….

The “Cheer” Effect: Humans catch each other’s feelings. Laughing, crying, or cheering with a crowd makes the experience stronger. This shared energy cannot be faked at home.

The “Event” Mindset: Paying for a ticket forces you to commit your time. Psychologically, this turns a normal evening into a special event or treat.

Social Connection: Going to the movies is a shared ritual. People enjoy group outings with friends or family.

People still pay for movie theaters despite having free or cheap content at home because of psychology. Cinemas offer total immersion, remove distractions, and create emotional bonding. Humans want to escape and share feelings in a group.

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Your views are biased to an elite or some narrow group of people. Whereas theatre as an mass product has lost appeal among the masses due to the convience of online content. We can say capacity utilisation is very less in theatres these days. So again a very good company but in a disrupted sector. I will be only interested in this company if they adopt some futuristic technology for theatre entertainment, which is not the case in the current situation.

Why I Feel the Cinema Experience Isn’t What It Used to Be

These are my personal thoughts, and I make my investment decisions based on these. I know very few people agree with it - given that those very few people are ardent fans of visiting the cinema hall in the first place.

Until just a few years ago, I almost always preferred watching movies in theatres. Today, I rarely do—not because ticket prices are high or refreshments are expensive, but because the overall experience has become far less enjoyable. I believe these bad experiences will impact the ticket sales to some extent.

1. The sound is unnecessarily loud

The audio levels in many theatres feel excessively high. I genuinely wonder whether the sound levels are within scientifically accepted safe hearing limits. There have been times when we’ve felt the need to use earplugs or sound dampeners to watch a movie comfortably.

2. Subtitles everywhere

Almost every movie today comes with subtitles. Personally, I find them distracting. When I go to watch a Tamil movie in Tamil Nadu, I don’t expect English subtitles constantly competing for my attention. My eyes keep getting pulled away from the visuals. This isn’t even about the quality or accuracy of the subtitles. I understand that subtitles are useful for people who don’t know the language, and I’m not dismissing that need. But most people watching a regional-language film in its home state are likely to understand the language reasonably well. For others, given the technology, we can create alternatives—dubbed versions or dedicated subtitled shows at specific timings. Making subtitles mandatory for every screening ends up reducing the viewing experience for many of us.

3. Poor theatre etiquette

Audience behaviour has changed significantly. It’s now common to see people scrolling through their phones if they lose interest in a scene. The bright light from mobile screens is incredibly distracting for everyone seated nearby. I’ve personally had to request that people put their phones away on several occasions.

4. Food service during the movie

The trend of ordering food from your seat and having it delivered after the movie has started is another major distraction. Once the lights go down, the focus should be on the film. Instead, staff keep walking up and down the aisles searching for seat numbers, handing over food, and sometimes even taking fresh orders during the screening. I’ve witnessed theatre staff moving from seat to seat, asking for food orders after the movie had already begun. All of this breaks the experience for everyone around.

So, how does it help in investing in PVR shares or not?

Ultimately, I feel many multiplex chains, including PVR and others, increasingly view moviegoers as a captive audience and try to maximize every possible revenue opportunity. In doing so, they’ve lost sight of the core purpose of a cinema hall: providing a great movie-watching experience. Until cinema chains recognize that the movie itself should remain the primary focus, I believe they’ll continue to see declining footfalls. People don’t stop going to theatres because movies are available on OTT alone; many stop because the theatre experience itself is no longer as enjoyable as it once was. I am negatively biased and did not hold PVR shares.

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