PVR Inox Shares Dip 6% Post Q4 Earnings; Analysts Motilal Oswal and Nuvama Evaluate Potential Upside.
Shares of PVR INOX experienced a notable decline of 2.5% on the BSE, falling to a day’s low of Rs 1,000, despite the company’s return to profitability in the March quarter. The multiplex operator reported a consolidated net profit of Rs 187 crore, a significant recovery from a loss of Rs 125 crore during the same period last year. This turnaround can be attributed to blockbuster titles such as “Dhurandhar – The Revenge” and “Border 2,” which helped boost earnings. Revenue from operations for Q4FY26 increased by 26% year-on-year, reaching Rs 1,547 crore, although it did see a quarter-on-quarter decline compared to the previous quarter’s Rs 1,850 crore.
Brokerage firms remain optimistic regarding PVR INOX’s future performance, with Nuvama Institutional Equities maintaining a “Buy” rating and revising its target price to Rs 1,620, signaling a 58% upside potential. The brokerage anticipates a strong FY27, forecasting robust performances driven by a healthy film pipeline across Bollywood and regional cinema, as well as steady Hollywood releases. Similarly, Elara Capital also holds a “Buy” rating with a target price of Rs 1,300, noting that upcoming content could support occupancy levels in the 25-27% range, despite expected moderation in average ticket prices and spend per head following normalization in FY26.
Conversely, Motilal Oswal Financial Services has adopted a more cautious “Neutral” stance with a target price of Rs 1,125, indicating a modest upside of 10%. While the firm highlights PVR INOX’s progress in managing operating costs and reducing debt, it warns that the business remains highly sensitive to fluctuations in occupancy rates. A potential decline in occupancy by just 200-300 basis points could adversely impact screen-level economics and overall EBITDA performance. Thus, while the broader sentiment remains positive, analysts urge vigilance regarding occupancy and its consequent effects on profitability.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)