PVR Inox says Rs 200 movie ticket cap will not stall screen expansion in Karnataka

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26 Aug, 2025 12:21

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India's top multiplex chain PVR Inox has no plans to halt screen expansion in Karnataka despite a state government notification to cap movie ticket price at Rs 200.

There is no change in our expansion strategy in Karnataka, said the company's management. "In Karnataka, there is no government order which has been released on price cap. So, it's premature for us to make any strategic decision based on this."

The exhibitor has plans to open screens in Karnataka, including in Bengaluru. "We will assess how the situation unfolds," the management added.

July notification

A draft notification was released in July by the government, inviting feedback and objections, and more than 700 objections have been placed with the government with concerns from all stakeholders, including film producers, exhibitors, local employees, state players, Gaurav Sharma, Chief Financial Officer (CFO), PVR Inox told Moneycontrol.

"The government has not notified anything in complete yet. As of now, there is no clarity when this will become applicable. But if you look at this matter, it was also there in the past -- in 2017. The government has come out with a similar cap. Previously, there were some exceptions which were agreed by the government, like premium and special formats. They were excluded and GST was over and above the cap," he added.

The draft notice does not provide detailed segmentation by format or days so far, Sharma said. "We have made our representations, and depending on the final structure of the government order and its applicability on premium formats or weekdays, we will assess the financial impact."

PVR Inox has 215 screens across 36 cinemas in the state, accounting for 12 percent of the company's total 1,745 screens. The price cap is estimated to lead to a 3.7 percent decline for PVR Inox in consolidated Average Ticket Price (ATP), potentially affecting its revenues by around 2.2 percent.

For the exhibitor, Karnataka contributes around 8 percent to the Hindi box office turnover and around 10 percent to overall collections, with an ATP of Rs 260. The proposed cap at Rs 200 implies a 30 percent reduction in state-level ATP.

The Multiplex Association of India (MAI) shared its concerns with the Karnataka government after the draft notification was issued.

MAI president Kamal Gianchandani pointed out that large sums had been spent to upgrade facilities at movie halls in the belief that the market would be freely priced, so a change of policy will put upwards of Rs 2,000 crore at risk.