Taurani said the current quarter should be stronger for multiplex operators due to the festive season and the release of a few large films. Movies like Dhurandhar have helped improve footfalls, while upcoming releases such as Avatar later in December are expected to support occupancies further.
However, he cautioned that the broader box office recovery remains uneven. While big-budget and franchise films are doing well selectively, a large number of small and mid-budget movies continue to underperform. As a result, overall box office growth is improving only gradually.
Taurani pointed out that Hindi net box office collections are currently running at an annualised level of around ₹4,000 crore. Even if collections rise to about ₹4,200 crore by the end of the year, the increase is not large enough to materially change the industry’s long-term outlook.
He noted that recent gains mainly offer short-term comfort rather than a structural turnaround for cinema companies.
PVR INOX has been trying to reduce its dependence on box office revenues by expanding food and beverage (F&B) offerings and exploring lifestyle-led formats. Taurani said these initiatives can help support footfalls and enhance customer experience, but scaling them into a meaningful standalone business will not be easy.
He added that the broader food and QSR space is already facing pressure due to high competition and slowing same-store growth globally, making execution critical.
One of the key positives for PVR INOX is its increasing focus on South India. Taurani said the southern film industry has been more successful in creating franchise-led content, which has helped drive better occupancies post-COVID.
He highlighted that films from the South—such as large franchises—have consistently delivered strong box office numbers. This also opens up opportunities to dub South films into Hindi and reach wider audiences, which could support future growth.
According to Taurani, for cinema business occupancy levels remain the most important driver for earnings growth. Average occupancy stood at around 24–25% in the first half of the year, with expectations of 27–28% in the third quarter due to a stronger film slate.
For the full year, Elara Capital is working with an average occupancy assumption of about 26%, as the Hindi content pipeline for the fourth quarter appears weak.
On the financial front, Taurani estimates full-year EBITDA of around ₹850 crore for FY26 (pre-Ind AS). Any major upgrade to valuations would require a sustained rise in occupancies and more consistent film performance.
Elara Capital currently has an ‘accumulate’ rating on PVR INOX with a target price of ₹1,225.
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