PVR-Inox Q3 FY25 revenue grows 11%; Ad revenue up 6% to Rs 1.5 bn

PVR-Inox’s consolidated revenue grew 11% YoY (+6% QoQ) to Rs 17.2 billion (3% beat) in the third quarter ended December 31, 2025. Blockbuster movies such as ‘Pushpa 2’ contributed to the revenue uptick. EBITDA (pre-Ind-AS 116) rose 17% YoY to Rs 2.4 billion (5% beat). EBITDA margin stood at 13.8% (vs. 11.5%/13.1% QoQ/YoY; 20bp beat).

Reported profit after tax (PAT) was up ~66% YoY to Rs 682 million (vs. est. of Rs 506 million) led by higher EBITDA and lower depreciation.

Ticketing revenue at Rs 8.8 billion (+6% YoY) was up 5% QoQ, largely on account of a 9% QoQ improvement in ATP to Rs 281 (+4% YoY) as occupancy remained stable QoQ at 25.7% (vs. 25.2% YoY).

F&B revenue at Rs 5.2 billion (+9% YoY) was flat QoQ as 3% QoQ higher SPH at Rs 140 (+6% YoY) was offset by ~4% QoQ decline in admits (+2% YoY).

Ad revenue was up 6% YoY (-7% YoY) to Rs 1.5 billion in Q3 FY2025.

Movie exhibition costs at Rs 3.5 billion came in at ~40% as a % of ticketing revenue (vs. 39% QoQ, 45% YoY). F&B COGS at Rs 1.3 billion, came in at ~25.7% of F&B sales (vs. 30bp higher QoQ, 26.2% YoY).

Depreciation declined 5% YoY (-6% QoQ, 8% below).

Analysing the financial results for Q3 FY2025, Motilal Oswal Financial Services noted that despite the release of the all-time blockbuster, ‘Pushpa 2’, PVR-INOX’s footfall remained stable QoQ at 25.7%, due to weaker performance from the Hindi language movies. Motilal Oswal observed that FY25 has been a muted year for PVR, due to the lack of tent-pole movie releases in Hindi and the impact of the Hollywood strike.

Revenue increased 11% YoY to Rs 17.1 billion (+6% QoQ, 3% beat) driven by all-time high average ticket prices (ATP), spends per head (SPH), and recovery in advertisement revenue.

EBITDA (pre-Ind-AS 116) improved 17% QoQ to Rs 2.4 billion (5% beat) driven by lower movie exhibition costs. Margin expanded to 13.8% (20bp beat).

Motilal Oswal expects the content pipeline to improve in FY26, with several tent-pole movie releases in Hindi and an improvement in the Hollywood movie slate.

However, it added that PVR’s business remains highly sensitive to occupancy trends, which are dependent on the quality of content (not in PVRL’s control). Although management sounded upbeat about the FY26 content pipeline, the analyst warned that even a 200-300bp blip in occupancy could derail the company’s screen economics.

Q3 FY2025 saw the highest box office collections of 2024 and the highest ever quarterly ATP and SPH, led by the massive success of ‘Pushpa 2’. The quarter also saw the highest advertisement revenue since the pandemic. October collections were boosted by regional movies, while the Hindi box office remained muted. However, ‘Singham Again’ and ‘Bhool Bhulaiya 3’ led to a recovery in November 2024, which was followed by the massive success of ‘Pushpa 2’, which accounted for ~36% of Indian Box Office in Q2 and ~12% of 2024 box-office collections.

Motilal Oswal pointed out that the content pipeline during 2024 was subdued as there was no superstar movie release. Further, the Hollywood strike also hit the box-office performance in 2024. Hollywood started to pick up momentum with the release of ‘Mufasa – The Lion King’ in Q3. The upcoming content pipeline, both in Hindi (‘Sikander’, ‘Chhaava’, ‘Sitare Zameen Par’, etc.) and Hollywood (several franchise movies, F1), is strong and should drive higher footfalls. Further, management also expects some boost from the recent tax cuts.

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