How Did PVR INOX Make a Strong Comeback in Q2 FY26 With Profits and Margin Expansion?
PVR INOX Ltd delivered an impressive turnaround in Q2 FY26, swinging to a net profit of ₹106 crore compared to a ₹11.8 crore loss in the same quarter last year. The recovery was fueled by a robust content pipeline, higher average ticket prices, and cost optimization, signaling improved profitability across multiplex chains.
Revenue rose 12% YoY to ₹1,824 crore from ₹1,622 crore, supported by strong movie releases and festive-season footfalls. The performance was further aided by premium format contributions and increased F&B spends per patron, which continue to enhance operating leverage.
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Operating performance was strong, with EBITDA up 28% YoY to ₹612 crore versus ₹479 crore last year. The EBITDA margin expanded 410 basis points to 33.6%, reflecting tight cost control and improved operating efficiency as cinema occupancy rebounded.
The margin improvement is notable given rising rental and energy costs. Analysts suggest that premium screen formats and recliner additions helped sustain higher per-screen profitability. The content lineup, led by blockbuster regional and Hindi releases, provided a further tailwind to Q2 results.
Management remains optimistic about the second half of FY26, expecting strong performance from festive releases and Hollywood slate recovery. Strategic cost rationalization and integration synergies post-merger continue to strengthen financial stability.
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With improving occupancy, consistent footfalls, and growth in premium screens, PVR INOX is positioned to capture the revival of theatrical entertainment. The focus on operational synergy and revenue diversification through advertising and F&B channels strengthens its medium-term growth outlook.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that PVR INOX’s Q2 FY26 marks a solid turnaround story with sharp profitability recovery and robust margin gains. Continued cost discipline, steady occupancy, and a strong release calendar make it a promising play on India’s consumption and entertainment theme.
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Related Queries
- ✅ How did PVR INOX achieve a profit turnaround in Q2 FY26?
- ✅ What drove PVR INOX’s margin expansion by 410 bps YoY?
- ✅ Is PVR INOX well-positioned for growth in the festive season?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
