PVR INOX’s Rs 40 cr cost cuts, digital push lift ad income 17% in Q1, says Sanjeev Kumar Bijli
During the April-June quarter, PVR INOX launched 'Blockbuster Tuesdays', offering tickets at just Rs 99, a move that attracted at least 40% new customers to its multiplexes.
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With the rapid growth of online streaming platforms and the rising adoption of home theatre systems in urban households, multiplex giant PVR INOX is shifting gears in its strategic approach by moving beyond traditional cinema experience to break 'couch addiction' and reignite the appeal of theatre visits.
The company, which released its Quarter 1 fiscal year 2026 earnings on Wednesday, narrowed its consolidated loss by nearly 70% to Rs 54 crore, while total income surged 23% year-on-year, driven by box office momentum, footfall initiatives, and capital-light expansion.
"We knew we had to do a lot more than just depend upon the content pipeline," PVR INOX's Executive Director, Sanjeev Kumar Bijli, told Storyboard18 in an interview.
During the April-June quarter, PVR INOX launched 'Blockbuster Tuesdays', offering tickets at just Rs 99, a move that attracted at least 40% new customers to its multiplexes.
"We also started offering Food & Beverages for Rs 99 between Monday and Thursday for morning to evening shows, especially appealing to a younger audience," Bijli added.
Bijli noted that IPL matches, re-releases, and comedy shows became major crowd-pullers, drawing over 5 lakh admissions during the quarter.
To woo the OTT-savvy consumers, Bijli said the company is repositioning itself as more than just a cinema chain-transforming into PVR INOX into a multipurpose entertainment venue.
Bijli asserted that targeted and cost-effective marketing has been one of the key enablers of this transition in bringing back the audience to the multiplexes.
"We have extensively used a lot of our in-house inventory, including cinema foyers, screens and social media platforms like Facebook and Instagram in Q1 to drive engagement," Bijli added, "We've been able to use our marketing dollars far more effectively and in a much more targeted way".
Despite its digital marketing push, Bijli said PVR INOX has remained conservative with its promotional spends. "We do not operate with big or audacious marketing budgets. We are conscious of that, and that's why the numbers have looked better this quarter".
PVR INOX reduced its cost by Rs 40 crore in Q1 FY26, even as total fixed expenses, including rent, CAM, and others, rose 2.8% YoY to Rs 767 crore. Meanwhile, the advertising income of surged by 17.3% to Rs 109 crore, and tickets plus food & beverages sales jumped to Rs 1,289 crore, up from Rs 994 crore in the same quarter last fiscal.
'Capital-light expansion'
PVR-INOX is also aggressive on asset-light expansion, as well as technology to attract customers to cinemas.
It opened 20 new screens during the quarter, of which 14 were under FOCO (Franchise-Owned Company-Operated, where franchisees invest in the property but PVR INOX operates it) and Asset-Light models (where the company limits its own capital investment, partnering for venues or infrastructure).
The company operated 55 new screens under FOCO and 72 under the Asset-Light model as of June 30, 2025.
Bijli said that going forward, 70% of the new screens will follow these models, aiming to reduce the company's capital expenditure commitment by more than 50%. Bijli has targeted to open around 25 screen under these models every quarter in FY26.
Of the total new screens under FOCO and asset-light models, 10% are likely to be high-end experiential formats such as IMAX, ScreenX, LUX, and 4DX, catering to Hollywood buffs.
"We currently have 25 IMAX installations across the country, and plan to add another four this fiscal," Bijli said.
"However, we are rolling out IMAX judiciously because it requires specific heights and auditorium size standards," Bijli said.
New IMAX will focus on metro cities only, such as Delhi NCR, Chennai, Hyderabad, Mumbai, Ahmedabad, and Kolkata, he added.
Hollywood titles, where PVR INOX holds a substantial market share, saw 72% YoY growth in Q1. According to Bijli, Franchises like Mission Impossible, Final Destination, Bloodlines, Ballerina, and F1 delivered strong results, particularly in premium IMAX and 4DX, which recorded 20% YoY growth in admissions during the quarter.
