Motilal Oswal's research report on PVR Inox
Despite the release of the all-time blockbuster, Pushpa 2, PVRINOX (PVR)’s footfall remained stable QoQ at 25.7%, due to weaker performance from the Hindi language movies. Revenue increased 11% YoY to INR 17.1b (+6% QoQ, 3% beat) driven by alltime high average ticket prices (ATP), spends per head (SPH), and recovery in advertisement revenue. EBITDA (pre-Ind-AS 116) improved 17% QoQ to INR2.4b (5% beat) driven by lower movie exhibition costs. Margin expanded to 13.8% (20bp beat). FY25 has been a muted year for PVR, due to the lack of tent-pole movie releases in Hindi and the impact of the Hollywood strike. We expect the content pipeline to improve in FY26, with several tent-pole movie releases in Hindi and an improvement in the Hollywood movie slate.
Outlook
We cut our FY25-26 revenue estimates by 2-5% and EBITDA by ~10-15% primarily on lower footfall assumptions. Reiterate Neutral with a TP of INR1,250 (based on ~14x pre-Ind-AS 116 FY27E EBITDA).
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