Karnataka High Court stays Rs 200 price cap, theatres to return to dynamic pricing

Hold on movie ticket price cap in Karnataka.

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26 Aug, 2025 12:21

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The Karnataka High Court on September 23 stayed the rule capping movie ticket prices at Rs 200 in the southern state, clearing the way for cinemas to return to dynamic pricing.

The order means ticket prices will once again depend on factors such as a film popularity, timing, and seating.

"From tomorrow (September 24), theatres in Karnataka including multiplexes and single screens will go back to dynamic pricing," Bhuvanesh Mendiratta, managing director, Miraj Entertainment, told Moneycontrol.

Karnataka government on September 12 had issued rules capping ticket prices at Rs 200 (excluding taxes) saying that the decision was made in the interest of general public.

Ticket prices will go back to the Rs 250-270 range. For big and most awaited releases like the second instalment of Kantara tickets are expected to go to over Rs 300.

The interim relief was granted by Justice Ravi V Hosmani on a plea moved by the Multiplex Association of India and other entities, a LiveLaw report said.

Appearing for the Multiplex Association of India, senior advocate Mukul Rohatgi argued that the price cap was affecting hundreds of cinemas.

For over a week, cinemas followed the Rs 200 cap, with the highest ticket priced at Rs 236, which included 18 percent goods and services tax (GST).

For exhibitors, this as a big relief. Their requests were considered and the court also took note of their concerns about higher capital expenditure and unviability of running cinemas due to the price cap, Mendiratta said.

The price cap would have led to a decline in India's top multiplex chain PVR INOX's revenue, analysts said. Karnataka accounts for 12.3 percent of PVR INOX's screen portfolio, with 215 screens out of 1,743 as of May 2025, Karan Taurani, senior vice president, Elara Capital, had said.

The state contributes around 8 percent to the multiplex chain's Hindi box office and around 10 percent to overall collections, with an average ticket price (ATP) of Rs 260. The Rs 200 cap would have resulted in a 30 percent reduction in state-level ATP. Given Karnataka’s 12.3 percent screen share, the price cap would have led to a 3.7 percent decline in consolidated ATP, potentially impacting revenues.

Exhibitors argued in the court that that multiplex infrastructure in India is better than global standards. The country has more premium cinemas, which involves high capital expenditure, they said, adding a price cap would stunt the growth of new screens in the state.

India has one of the lowest screen density with 9,000 screens. The Covid impact coupled with streaming effect and low content quality has led to shutdown of theatres especially single screens.