PVR INOX Delivers Strong Q2FY26 with 16.8% EBITDA Margin; Smart Screens, Dine-In Format to Drive Future Growth — Retain ‘HOLD’, TP ₹1,211

PVR INOX Ltd reported a better-than-expected performance in Q2FY26, with pre-Ind AS EBITDA margin at 16.8%, ahead of PLe’s estimate of 15.4%. The beat was driven by a 14.7% YoY rise in footfalls to 44.5 million (PLe: 44.0 million), aided by a strong box office performance across languages. Despite delivering its second-best quarter since COVID, analysts have maintained their full-year estimates, with 2HFY26E footfalls and pre-Ind AS EBITDA projected at 69 million and ₹4,150 million, respectively. To stabilize footfalls and attract value-conscious audiences, PVR INOX plans to roll out smart screens across Tier-2 and Tier-3 cities. Analysts view this initiative as a structural lever to bridge the gap between high average ticket prices (ATP) and stagnant admissions. Additionally, the company has launched a dine-in cinema format in Bengaluru, betting on food as a core experience driver rather than a mere add-on. The strategy aims to elevate cinemas into lifestyle destinations while boosting non-ticket revenue streams. Analysts remain cautious, awaiting proof of concept on these initiatives, and project footfall CAGR of 6.7% over the next two years, with pre-Ind AS EBITDA margins of 12.4% and 15.6% in FY26E/FY27E, respectively. The brokerage retains a ‘HOLD’ rating on the stock with a target price of ₹1,211 (valued at 10.5x FY27E EBITDA), maintaining the same target multiple. #PVRINOX #Q2Results #CinemaBusiness #BoxOffice #Footfalls #SmartScreens #DineInCinema #EntertainmentSector #NonTicketRevenue #StockMarketIndia #HoldRating