PVR Inox shares tumble 8%: What is weighing on the stock

Shares of PVR Inox, India's largest multiplex operator, fell 8.24 per cent in Monday's trade after a report raised concerns over an internal investigation into alleged kickbacks involving a former senior executive. The decline also came after the record date for the company's recently announced share buyback.

According to a report by The Economic Times, PVR Inox asked a senior executive to leave in April following an internal investigation into alleged kickbacks purportedly received from developers involved in the construction of cinema properties.

The report said the alleged payments were made over several years and could total as much as Rs 200 crore. The allegations reportedly centre on Pramod Arora, the company's former chief executive officer (CEO) for growth and investment.

PVR Inox has not yet confirmed or denied the reported figure of Rs 200 crore. Business Today has not independently verified the report at the time of publishing this story.

Buyback record date passes

The stock's decline also follows the September 4, 2026 record date for PVR Inox's buyback. Shareholders had to hold the stock on the record date to be eligible to participate in the buyback.

The passing of the record date means investors who bought shares specifically to qualify for the buyback are no longer required to hold them for that purpose. However, the extent to which such trading contributed to Monday's decline cannot be established without company- or market-level data.

Brokerages remain positive

Select brokerages continue to maintain positive views on PVR Inox.

JM Financial retained its 'ADD' rating and raised its 12-month price target to Rs 1,270 from Rs 1,130. The brokerage cited the buyback as a signal of confidence in the company's balance sheet.

JM Financial also raised the valuation multiple it uses for the company to 9x EV/EBITDA from 8x, citing a healthy content pipeline and an improvement in PVR Inox's net cash position. The company had net cash of Rs 80.7 crore at the end of June 2026, compared with net debt of Rs 161.9 crore at the end of March 2026.

Nuvama Institutional Equities also retained its 'BUY' rating and raised its target price to Rs 1,640 from Rs 1,620. The brokerage expects a strong FY27, supported by a healthy pipeline of Bollywood releases and a steady slate of Hollywood films.

Nuvama said PVR Inox trades at 14x and 10x FY27E and FY28E price-to-earnings multiples, respectively.

PVR Inox was formed following the merger of PVR and Inox Leisure in 2023. As of late August 2026, the company had 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. The company plans to add another 1,000 screens over the next five years, with franchise-led expansion expected to account for a significant portion of the additions.