At a Glance
PVR Inox, India’s largest multiplex chain, might be selling combo offers to audiences — but to investors, it’s offering consistent losses, falling footfalls, and a market cap clinging to pre-pandemic nostalgia. FY25 ended with a ₹281 Cr net loss and barely 3% ROCE. The screens are growing. The profits are not.
1. 🍿 Box Office Numbers or Box Office Bummer?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Screens (Total) | ~1,700 | ~1,765 | 1,754 |
| Revenue (₹ Cr) | 3,751 | 6,107 | 5,780 |
| Operating Profit (₹ Cr) | 1,048 | 1,810 | 1,541 |
| Net Profit (₹ Cr) | –336 | –33 | –281 |
| ROCE (%) | 3% | 5% | 2.86% |
| EPS (₹) | –34.21 | –3.26 | –28.47 |
👎 The screen count is growing faster than the footfalls. Earnings? Still waiting for intermission.
2. 🧨 FY25 Quarterly Drama: Every Quarter a New Twist
| Quarter | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 1,256 | 278 | –130 |
| Q2 FY25 | 1,191 | 252 | –179 |
| Q3 FY25 | 1,622 | 479 | –12 |
| Q4 FY25 | 1,717 | 528 | –125 |
- FY25 saw a 9% box office drop YoY (per concall).
- Despite 77 new screens, profits remained in deep red.
- Q3 gave a false sense of hope — Q4 killed it.
📉 From “Animal” to “Crew”, Bollywood showed up — but PVR Inox’s bottom line stayed on mute.
3. 📊 Revenue Split: Ticket to Losses
- 🎟️ Tickets: 52% of revenue
- 🍔 Food & Beverages (F&B): 30%
- 📺 Advertising: 6%
- 💻 Convenience fees + Others: 12%
🤔 F&B margins are great. But when people stop visiting cinemas, ₹400 popcorn can’t save your income statement.
4. 🧾 Balance Sheet Check: Post-Merger Bloat
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Debt (₹ Cr) | ₹8,052 | ₹8,304 | ₹7,775 |
| Depreciation | ₹753 Cr | ₹1,219 Cr | ₹1,280 Cr |
| Interest Cost | ₹572 Cr | ₹791 Cr | ₹810 Cr |
| Equity Capital | ₹98 Cr | ₹98 Cr | ₹98 Cr |
| Reserves | ₹7,232 Cr | ₹7,225 Cr | ₹6,953 Cr |
🧨 High fixed costs + high depreciation + expensive borrowings = a multiplex with more financial drama than a Karan Johar movie.
5. 🔍 ROE & Shareholder Perspective
| Metric | 3-Year Avg | FY25 |
|---|---|---|
| ROE | –4% | –3.89% |
| ROCE | 3–5% | 2.86% |
| Promoter Holding | 27.5% | Steady |
| FII Holding | 20.4% | Up from 16.8% YoY |
| DII Holding | 36.3% | Stable |
🧠 FII selling slowed down. But with ROE in the red and no dividend in sight, investors are basically watching this stock for entertainment only.
6. 🎯 Valuation & Fair Value Zone
- CMP: ₹941
- Book Value: ₹718
- P/B: 1.3x
- No P/E (loss-making)
Fair Value Estimate Based on Turnaround Hopes:
| Scenario | EV/EBITDA | EBITDA (FY25) | Target Price |
|---|---|---|---|
| Bear Case | 6x | ₹1,541 Cr | ₹650 |
| Base Case | 7x | ₹1,541 Cr | ₹730 |
| Bull Case | 8x | ₹1,541 Cr | ₹840 |
📉 Current Price: ₹941
🙃 Premium to even bull-case EV/EBITDA. Seems like investors priced in a Rajkumar Hirani level comeback — but got a low-budget flop.
7. 🔮 Outlook: OTT vs Big Screens
✅ Tailwinds:
- India has <10 screens per million people — room to grow
- Regional movies and pan-India hits are on the rise
- Ad income should return post-election
❌ Headwinds:
- OTT content fatigue = myth
- Hollywood slowdown
- High fixed costs + uncertain footfalls
- Audience increasingly “waiting for Netflix drop”
🤯 Final Verdict: Multiplex or Multiplexed?
PVR Inox is too big to disappear, but that doesn’t make it investable right now. The structural headwinds aren’t going away. They can launch all the recliner seats and gourmet menus they want — but if earnings don’t show up, this is just a loss-making lifestyle stock.
Tags: PVR Inox, FY25 Earnings, Movie Stocks, OTT vs Cinema, EduInvesting, Loss-Making Stocks, Valuation
✍️ Written by Prashant | 📅 June 22, 2025
