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“Advertisers are back in cinemas”: PVR INOX posts ₹126 cr in Ad revenue, a post-pandemic high
Advertising revenue was driven by FMCG, banking, textiles, e-commerce, and jewellery sectors, followed by automobiles and retail. Executives noted that upcoming GST-related consumption boosts and festive spending could lift ad revenues further in Q3.
PVR INOX unveiled two key innovations this quarter. First, its new dine-in cinema format in Bengaluru, described as a proof-of-concept, allows customers to enjoy gourmet food during screenings on LED screens.
Multiplex chain PVR INOX is banking on two growth engines to power its next phase — a revival in cinema advertising and a new high-end dine-in cinema format that merges fine dining with movie watching. The company, which reported its strongest quarterly performance in two years, said both verticals are emerging as major differentiators in a market increasingly driven by experience and content diversity.
Advertising, one of the worst-hit segments during the pandemic years, has bounced back sharply. PVR INOX’s ad revenues for the second quarter of FY26 touched ₹126 crore, the highest since the pandemic and a 16% increase year-on-year.
Advertising revenue was driven by FMCG, banking, textiles, e-commerce, and jewellery sectors, followed by automobiles and retail. Executives noted that upcoming GST-related consumption boosts and festive spending could lift ad revenues further in Q3.
The company’s leadership, including Managing Director Ajay Bijli, Executive Director Sanjeev Kumar, and CFO Gaurav Sharma, shared highlights of the quarter during an investor conference call.
Bijli said the momentum that began in the first quarter had accelerated in the second, making the first half of FY26 “one of the most remarkable periods in recent times.” He noted that the growth was broad-based and not dependent on one or two blockbuster titles. The Indian box office expanded by 15% year-on-year in the first half, led by diverse content across languages and formats.
In the second quarter alone, 12 films crossed the ₹100 crore mark, while 22 titles did so in the first half—the highest number since the pandemic. Hindi films saw a strong recovery, led by titles such as Saiyaara (₹400 crore) and Mahavatar Narsimha (₹300 crore), both of which demonstrated that quality storytelling, not just star power, was driving theatre audiences. Star-driven releases like War 2 and Jolly LLB 3 also performed well, reflecting a balance between content-led and star-led hits.
Hollywood films grossed ₹500 crore during the quarter, with franchises such as Jurassic World, The Conjuring, Superman, Demon Slayer, and The Fantastic Four performing strongly. Regional cinema continued to thrive as well—Kannada box office collections grew by more than 100%, led by Su from So, while Malayalam cinema saw a 50% rise thanks to Lokah Chapter 1, which became the highest-grossing Malayalam film ever at ₹180 crore. Tamil and Telugu hits such as Coolie, They Call Him OG, and Mirai also contributed to regional growth.
Innovation and Future Plans
PVR INOX unveiled two key innovations this quarter. First, its new dine-in cinema format in Bengaluru, described as a proof-of-concept, allows customers to enjoy gourmet food during screenings on LED screens. CEO (Growth & Investment) Pramod Arora said the concept, inspired by South Korea’s CJ Group model, offers an elevated experience for “discerning audiences.” Bijli emphasized that cinema was “all about experience” and that the company would continue experimenting with formats to cater to diverse demographics.
Second, the company announced plans for “Smart Screens,” a new format targeting Tier-II and Tier-III cities to expand India’s underscreened market. The first smart screen will debut later this year as a pilot project. CFO Gaurav Sharma said the model would use digital efficiencies to keep costs low, with average ticket and concession prices below current PVR INOX levels, while aiming for higher occupancy and affordability.
Kamal Gianchandani, CEO (Business Planning & Strategy), revealed a robust upcoming release lineup under PVR INOX Pictures. Titles include Thama (Diwali release), De De Pyaar De 2, Now You See Me sequel, Christmas Karma, Gustaakh Ishq (Manish Malhotra’s debut production), and Junaid Khan’s next film. The company expects to distribute 8–9 Hindi and 15–20 Hollywood films annually.
The management expressed optimism about the rest of FY26, citing festive season releases such as Border 2, Raja Saab, Mardaani 3, Love & War, Avatar: Fire and Ash, and Toxic (starring Yash). Q3 and Q4 are expected to maintain or exceed H1 performance, even with overlapping cricket tournaments, as the company plans to also screen select World Cup matches in cinemas.
Record Footfalls and Revenue Surge
PVR INOX welcomed 44.5 million guests in the quarter, its highest in eight quarters, marking a 15% year-on-year and 31% sequential rise. Occupancy improved to 28.7% from 25.7% last year, while the average ticket price rose 2% to ₹262. Food and beverage spend per head stood at ₹134, and advertising revenue reached ₹126 crore—the highest second-quarter figure since the pandemic, up 16% year-on-year.
Adjusted for accounting standards (Ind AS 116), total revenue for Q2 stood at ₹1,843 crore, EBITDA at ₹327 crore, and profit after tax at ₹127 crore—significantly higher than ₹1,642 crore revenue, ₹207 crore EBITDA, and ₹22 crore profit in the same quarter last year. The company also noted that it had fully passed on the recent GST rate reduction on lower-priced tickets to customers, enhancing affordability. For instance, its “Blockbuster Tuesday” tickets now cost ₹92 instead of ₹99.
The company added 22 new screens during the quarter and rationalized eight underperforming ones. PVR INOX now operates 1,761 screens across 354 cinemas in 111 cities in India and Sri Lanka. Maintaining its “capital-light” strategy, it has 132 screens signed under this model—44 under franchise (FOCO) and 88 under asset-light structures. Net debt stood at ₹619 crore as of September 2025, down ₹333 crore since March and ₹812 crore from merger levels, marking a 57% reduction. This was achieved through strong cash flows and disciplined capital allocation.
PVR INOX reiterated its commitment to innovation, disciplined growth, and audience experience. “Cinema is about creating magic every week,” Bijli said. “The consistency of good content and the excitement of diverse audiences are what keep us going.”
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