PVR Inox Ltd. has seen its shares receive renewed 'Buy' calls from several brokerages after the company delivered a robust performance in the fourth quarter of fiscal year 2026 (Q4 FY26). The strong showing was significantly propelled by the massive box office collection of the film 'Dhurandhar 2'.
Q4 Performance Highlights
The cinema chain reported a 26% year-over-year (YoY) increase in revenue, with net box office revenue climbing 27% YoY to Rs 820 crore. EBITDA also saw a substantial 56% YoY growth, surpassing analyst estimates. Key metrics like Average Ticket Price (ATP) and Spend Per Head (SPH) reached all-time highs, with ATP at Rs 315 (up 8% quarter-over-quarter and 22% YoY) and SPH at Rs 165 (up 13% QoQ and 32% YoY).
Nuvama Institutional Equities highlighted that the sharp increase in revenue was largely driven by the strong performance of 'Dhurandhar 2', a nearly four-hour film. Occupancy levels improved 340 basis points YoY, reaching 23.9%, though they declined 460 basis points QoQ. Ad revenue also grew by 15% YoY, while footfalls saw a modest 1.5% increase YoY.
Brokerage Outlook and Recommendations
Following the results, several brokerage firms updated their views on PVR Inox shares:
- Nuvama Institutional Equities: Maintained a 'BUY' rating, citing expectations for a strong FY27 backed by a healthy content pipeline across Bollywood, regional cinema, and Hollywood. They rolled over their target price to Rs 1,620 from Rs 1,605.
- Elara Capital: Also reiterated a 'Buy' rating with an unchanged target price of Rs 1,300. Elara noted the robust content pipeline is expected to support sustained occupancy of approximately 26% in FY27 and raised their FY27E-28E EBITDA by 5%.
- Nirmal Bang: Reaffirmed their 'BUY' recommendation with a target price of Rs 1,340 (slightly adjusted from Rs 1,344). While cutting EBITDA margin and EPS estimates due to lower-than-pre-pandemic occupancies and slow ad income recovery, they remain optimistic about the long-term prospects, particularly through expansion via an asset-light model.
- Motilal Oswal Financial Services Ltd (MOFSL): Reiterated a 'Neutral' rating with a revised target price of Rs 1,125.
As of Tuesday's afternoon trade, shares of PVR Inox Ltd. were trading marginally lower at Rs 1,023.10. Despite this slight dip, the stock has climbed 9.46% in the past month, although it remains down 6.91% over the last six months.