Leading multiplex operator PVR INOX Ltd said it has decisively shifted to a capital-light growth model, with over 55% of the 93 new screens added in FY26 coming under asset-light and FOCO formats. Nearly 44% of the new screen additions were in underpenetrated South Indian markets.
Speaking during the earnings call, Managing Director Ajay Bijli said the company’s screen exit count dropped sharply to 18 in FY26 from 72 a year earlier, indicating that the post-merger portfolio rationalisation exercise is largely complete.
The company’s signed capital-light pipeline currently stands at 138 screens, including 52 under the FOCO model and 86 under the asset-light model, which will be executed over the next 18 months.
Focus on returns
Ajay Bijli said the capital-light and FOCO formats are significantly improving return on capital employed (ROCE), as developers contribute between 40% and 80% of project capex in the asset-light structure.
He added that the company has increasingly begun “sweating the brand”, leveraging the strong recognition of the PVR INOX brand across markets. According to him, such partnership-led growth models are common across hospitality, retail and food services sectors and help improve returns without requiring heavy capital deployment from the company.
The company maintained that it would continue to pursue disciplined expansion rather than indiscriminate screen additions. Bijli said annual expansion of 120 to 150 screens remains a healthy pace, provided unit-level economics work for both developers and the company.
He noted that PVR INOX would continue to expand only in markets where demographics, mall dynamics and commercial terms make business sense.
Cash flow and balance sheet
The company said robust operating performance, cost discipline and lower capital intensity helped generate record free cash flow of ₹790 crore in FY26.
Management said the cash flows were primarily deployed toward debt reduction, resulting in net debt declining nearly 90% since the merger to ₹161 crore as of March 31, 2026.
ROCE improved to 10.2% in FY26, which the company described as a significant breakout, with further improvement expected going forward.
PVR INOX also said capex intensity declined 24% year-on-year.
Market leadership and industry outlook
The company said it currently operates nearly 40% of India’s multiplex screens and captures around 31% of the country’s box office revenues.
Management said India’s box office industry has grown at a compounded annual growth rate of 7% to 8% over the last decade, reflecting sustained consumer demand for theatrical movie viewing.
According to the company, the “theatrical-first” release model has now become firmly dominant, with both producers and OTT platforms recognising that theatrical performance establishes the key benchmark for films.
FY27 content pipeline
PVR INOX said it is entering FY27 with a strong and diversified content slate across Hindi, regional and Hollywood cinema.
The Hindi lineup includes titles such as Cocktail 2, Dhamaal 4, Welcome to the Jungle, Awarapan 2, Ramayana: Part 1, King and Love & War. Regional cinema releases include Peddi, Toxic, Jailer 2 and Spirit.
Hollywood releases lined up include Masters of the Universe, Toy Story 5, The Odyssey, Spider-Man: Brand New Day and Avengers: Doomsday.
Smart screens and capex plans
Management said the company expects overall capex of ₹375 crore to ₹400 crore in FY27 toward new projects and renovation of premium cinemas.
The company also shared an update on its smart screens pilot focused on Tier 2 and smaller cities. Bijli said two pilot properties are expected to open by mid-July, with plans to add 28 to 30 screens under the model.
PVR INOX added that management income has risen sharply and currently operates at an annualised run rate of ₹13 crore to ₹14 crore, compared with nearly ₹10 crore recorded in FY26.