Shares of multiplex giant PVR Inox Ltd surged by 5.54 percent to settle at Rs 1,065 on Friday, following the announcement of its robust financial results for the June quarter (Q1 FY27). Nuvama Institutional Equities reiterated its 'Buy' rating on the stock, underscoring the company's sustained efforts in debt reduction and a better-than-expected operational performance.
Q1 FY27 Financial Highlights
PVR Inox reported a Q1 FY27 revenue of Rs 1,620 crore, marking a 10 percent year-on-year (YoY) increase, which aligned with analyst estimates. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 530 crore, demonstrating a substantial 33 percent YoY growth. This figure surpassed Nuvama's estimates by 10 percent and consensus estimates by an impressive 54 percent.
Pre-Ind AS EBITDA for the quarter was Rs 230 crore, with a Profit After Tax (PAT) of Rs 70 crore. Key operational metrics also showed positive trends:
- Average Ticket Price (ATP) increased by 8 percent YoY to Rs 273.
- Spend Per Head (SPH) rose by 9 percent YoY to Rs 161.
- Admissions grew by 8 percent YoY to 36.6 million.
- Occupancy improved to 25.3 percent, up from 22 percent in the same quarter last year.
The only segment that showed a decline was advertising revenue, which fell by 2 percent YoY during the quarter.
Balance Sheet Strengthens with Debt Reduction
A significant positive highlighted by Nuvama was the substantial improvement in PVR Inox's balance sheet. The company successfully turned net cash positive, reporting Rs 80.7 crore in net cash at the end of Q1 FY27. This marks a notable turnaround from a net debt position of Rs 160 crore at the close of Q4 FY26.
Despite a net closure of 19 screens during the June quarter, the multiplex chain remains on track with its expansion strategy, aiming to add 90-100 new screens throughout FY27.