Synopsis: The article highlights how the blockbuster film Dhurandhar is boosting PVR-INOX’s Q3 performance, potentially lifting revenue and earnings estimates for FY26 and industry outlook, with potential implications for earnings and market sentiment.
The shares of a Small-Cap company, specializing in premium film exhibition, operating India’s largest multiplex network with over 1,700 screens across 110+ cities, have been in the spotlight following the Q3 Industry overview, Brokerage Outlook and the expected PVR revenue.
With a market capitalization of Rs. 10,261.90 crores on Thursday, the shares of PVR Inox Ltd jumped upto 0.3 percent, reaching a high of Rs. 1062.05 per share compared to its previous closing price of Rs. 1065.75 per share.
What Happened
PVR Inox Ltd, engaged in premium film exhibition, operating India’s largest multiplex network with over 1,700 screens across 110+ cities, has been in the spotlight as the box office run of Dhurandhar has emerged as a defining factor in PVR INOX’s strong year-end performance, helping the multiplex chain convert December into one of its best months of the year, according to Gautam Dutta, the Chief Executive Officer – Revenue and Operations at PVR INOX.
Scope for FY26 Earnings Upgrades
PL Capital believes that the success of Dhurandhar, with lifetime collections now tracking between Rs. 400–500 crore, could trigger upgrades to FY26 earnings estimates. Excluding the film would materially weaken the quarter’s box office performance, underscoring its outsized impact on earnings visibility.
Q3 Industry Box Office Momentum
They expect that with nearly half the month still remaining, industry-wide net box office collections have already touched around Rs. 2,570 crore in Q3 FY26. The upcoming release of Avatar: Fire & Ash is expected to add further momentum, pushing total quarterly collections closer to, and potentially beyond, the Rs. 3,000-crore mark.
Why the ₹3,000-Crore Threshold Matters
PL Capital said there is a strong possibility of industry-wide collections breaching Rs. 3,000 crore in Q3FY26, a threshold crossed only three times since the pandemic, multiplex operators like PVR-INOX tend to deliver strong EBITDA margins. This level typically reflects healthy content flow, strong footfalls, and operating leverage kicking in, making it an important profitability benchmark.
Revenue and Earnings Impact
On conservative assumptions of industry-wide box office collections reaching Rs. 3,000 crore and PVR-INOX retaining a 30% market share, the company’s net box office collections could reach around Rs. 900 crore in Q3 FY26. Since box office revenue usually accounts for about half of total revenue, this implies a quarterly topline of roughly Rs. 1,800 crore, with EBITDA estimated at about Rs. 297 crore and margins near 16.5%.
Content Mix Works in PVR-INOX’s Favour
The strong Hindi-language contribution from Dhurandhar benefits PVR-INOX, which enjoys a dominant share in the Hindi box office. Additionally, the company typically commands 55–70% of Hollywood film collections, positioning it well to gain from the release of Avatar: Fire & Ash.
Brokerage View Remains Cautious
Despite the improved outlook, PL Capital has retained a ‘HOLD’ rating on PVR-INOX with a target price of Rs. 1,211, valuing the stock at 10.5× FY27E EBITDA. The brokerage prefers to balance near-term box office momentum with valuation discipline.
Financials & Others
The company’s total revenue rose by 17 percent from Rs. 1,622 crore in September 2024 to Rs. 1,823 crore in September 2025. Meanwhile, Net loss from Rs. 12 crores turned to a profit of Rs. 106 crores during the same period.
PVR Limited (PVR) is India’s largest and most premium film exhibition company. It pioneered the multiplex revolution in India by establishing the first multiplex cinema in 1997 at New Delhi and continues to lead the market with relentless focus on innovation and operational excellence to democratise the big‑screen movie experience.
It offers diverse premium formats (IMAX, 4DX, LUXE), and generates revenue from box office, F&B, ads, and production/distribution. It is headquartered in Gurugram, it’s a major force in Indian film entertainment, providing enhanced movie experiences with cutting-edge tech and luxury options for millions of patrons.
For Q2 FY’26, the total box office collection reached Rs. 1,170 crore, showing a strong year-over-year growth of 17%. The revenue distribution across languages was dominated by Hindi films at 46%, followed by regional languages at 26%, English at 24%, and Hindi dubbed films at 3%. This indicates a balanced and diverse language-wise contribution to the box office growth.
The distribution of 1,761 screens in 111 CITIES across five regions. The South region has the highest number of screens at 580, making up 33% of the total. North follows with 471 screens (27%), West has 369 screens (21%), Central has 201 screens (11%), and East has the least with 140 screens, accounting for 8% of the total screens.
Written By Sridhar J
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