India’s largest multiplex chain PVR Inox Ltd plans to open 90–100 new screens in FY26, followed by around 150 screens in FY27, as it sharpens focus on disciplined expansion, renovations and debt reduction.
The company has earmarked a capital expenditure of ₹350–400 crore for FY27, covering new screen additions, renovations and maintenance. The expansion comes amid improving content visibility and a more evenly distributed film release calendar expected in calendar year 2026.
PVR Inox currently operates 1,791 screens across 357 cinemas in 112 cities in India and one property in Sri Lanka. During the December quarter (Q3), the company added 20 new screens while exiting three underperforming screens located in ageing malls. Year-to-date, it has added 62 screens and shut 11 loss-making properties.
Executive Director Ajay Bijli said during an earnings call that the company remains committed to a capital-light and scalable growth strategy. At present, 149 screens have been signed under the capital-light model, including 54 under the franchise-owned, company-operated format and 95 under the asset-light model.
The FOCO and asset-light approaches have strengthened cash flow generation, enabling the company to fund growth largely through internal accruals. “Even if we do not have anything to divest, accruals will be enough to take care,” Bijli said, adding that tight control over capital and operating expenditure would help further reduce debt levels.
As of December 31, 2025, net debt stood at ₹365 crore — a reduction of over ₹1,000 crore since the merger of PVR and Inox — driven by strong free cash flows and disciplined capital allocation.
In line with its deleveraging strategy, the company recently divested its entire stake in premium snacking brand 4700BC to Marico for an all-cash consideration of ₹226.8 crore. The exit from 4700BC, which derived over 85% of its sales outside cinema premises, was seen as a strategic move as PVR Inox does not intend to build a standalone FMCG business. However, the products will continue to be retailed in its cinemas.
Chief Financial Officer Gaurav Sharma said the company will allocate a higher share of capex towards renovating high-value older cinemas whose look and feel have become dated compared to newly opened properties. Upgrades will include improved projection and sound systems, enhanced seating and overall ambience.
Renovations carry lower risk compared to opening new cinemas, as operating profiles and payback periods are better understood. “Return metrics on renovation capex are healthy,” Sharma noted.
The company is also betting big on food and beverages (F&B) as a growth driver. Through its joint venture with Devyani on the food court side, PVR Inox aims to expand its F&B footprint beyond cinema counters into mall food courts. Three food courts have already been launched, with plans to scale further.
The company is targeting F&B revenue of over ₹2,000 crore in FY26, supported by initiatives such as new in-house cuisine brands, weekday promotional offers and the expansion of PVR Café to drive out-of-cinema sales.
With steady screen additions, a stronger content pipeline and continued deleveraging, PVR Inox is positioning itself for a more robust and cash-efficient growth phase.