PVR Inox shares jump 6% after Q1; Nuvama cites continued debt reduction

Shares of PVR Inox Ltd climbed 5.54 per cent on Friday to settle at Rs 1,065 after the multiplex operator reported its June quarter (Q1 FY27) earnings.

Nuvama Institutional Equities maintained its 'Buy' rating on the stock, highlighting the company's continued debt reduction efforts and better-than-expected operating performance.

"PVR INOX's Q1 FY27 revenue of Rs 1,620 crore, up 10 per cent year-on-year (YoY), was in line with our and consensus estimates. EBITDA stood at Rs 530 crore, up 33 per cent YoY, and was 10 per cent and 54 per cent ahead of our and consensus estimates, respectively. Pre-Ind AS EBITDA and PAT came in at Rs 230 crore and Rs 70 crore," the domestic brokerage said.

Nuvama noted that average ticket price (ATP) and spend per head (SPH) increased 8 per cent and 9 per cent YoY to Rs 273 and Rs 161, respectively.

Admissions rose 8 per cent YoY to 36.6 million, while occupancy improved to 25.3 per cent from 22 per cent in the corresponding quarter last year.

The brokerage, however, pointed out that advertising revenue remained the only weak segment, declining 2 per cent YoY during the quarter.

A key positive, according to Nuvama, was the company's balance sheet. It said PVR Inox turned net cash positive at Rs 80.7 crore at the end of Q1 FY27, compared with net debt of Rs 160 crore at the end of Q4 FY26.

The brokerage also said the multiplex chain remains on track to add 90-100 screens in FY27, despite reporting a net closure of 19 screens during the June quarter.