PVR INOX Limited Reports Strong Q3FY26 Results with Net Profit of ₹950 Million

PVR INOX Limited has delivered a strong financial performance for the third quarter ended December 31, 2025, demonstrating significant recovery in its theatrical exhibition business. The company's Board of Directors approved the unaudited standalone and consolidated financial results on February 05, 2026, following review by the Audit Committee. Financial Performance Highlights The company's standalone financial results showed remarkable improvement across key metrics. Net profit surged to ₹950 million in Q3FY26 compared to ₹345 million in the corresponding quarter of the previous year, marking a substantial increase of 175.36%. Metric Q3FY26 Q3FY25 Change (%) Revenue from Operations ₹17,736 million ₹15,958 million +11.15% Total Income ₹18,097 million ₹16,344 million +10.73% Net Profit After Tax ₹950 million ₹345 million +175.36% Basic EPS ₹9.67 ₹3.51 +175.78% Operational Efficiency and Cost Management The company demonstrated improved operational efficiency with total expenses rising modestly to ₹16,500 million from ₹15,912 million in Q3FY25. Key expense categories showed controlled growth: Movie exhibition cost increased to ₹4,471 million from ₹4,056 million Employee benefits expense rose to ₹1,807 million from ₹1,638 million Finance costs decreased to ₹1,798 million from ₹2,023 million, indicating improved debt management Depreciation and amortisation remained stable at ₹3,129 million compared to ₹3,160 million Nine-Month Performance For the nine months ended December 31, 2025, PVR INOX showed strong recovery with revenue from operations reaching ₹49,042 million compared to ₹42,658 million in the corresponding period of FY25. The company achieved a net profit of ₹1,477 million for the nine-month period, a significant turnaround from the loss of ₹1,541 million in the previous year. Exceptional Items and Regulatory Impact The company recorded an exceptional item of ₹423 million in Q3FY26 related to the implementation of four new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and required the company to assess and account for incremental compliance costs. Key Financial Ratios The company's financial health indicators showed improvement: Parameter Q3FY26 Q3FY25 Debt Equity Ratio 0.15 0.23 Interest Service Coverage Ratio 18.58 12.08 Operating Margin (%) 32.36% 32.77% Net Profit Margin (%) 5.25% 2.11% Post-Reporting Period Development Subsequent to the reporting period, PVR INOX disposed of its entire 93.27% shareholding in subsidiary Zea Maize Private Limited for a consideration of ₹2,268 million. The carrying value of this investment as at December 31, 2025 was ₹951 million. This disposal is expected to generate significant gains for the company in the subsequent quarter. The results reflect PVR INOX's successful navigation of the challenging entertainment industry landscape and its ability to capitalize on the recovery in theatrical exhibition business. PVR INOX Limited has delivered impressive financial performance in its third quarter, with consolidated net profit reaching ₹957 million compared to ₹359 million in the corresponding period of the previous year. The company also reported revenue of ₹18.8 billion versus ₹17 billion in the previous year, demonstrating strong operational recovery and improved market position across key financial metrics. Q3 Financial Performance The cinema exhibition major's latest quarterly results demonstrate significant improvement across all key financial metrics. The company's consolidated operations showed robust performance with double-digit revenue growth complementing substantial profit increase and enhanced operational efficiency. Metric: Q3 Current Year Q3 Previous Year Growth (%) Revenue: ₹18.8 billion ₹17 billion +10.6% Consolidated Net Profit: ₹957 million ₹359 million +167% EBITDA: ₹6.22 billion ₹5.27 billion +18.0% EBITDA Margin: 33.10% 30.73% +237 bps Operational Efficiency and Margin Expansion The company's EBITDA performance highlights strong operational efficiency with earnings reaching ₹6.22 billion compared to ₹5.27 billion in the year-on-year comparison. The EBITDA margin expansion to 33.10% from 30.73% demonstrates effective cost management and revenue optimization strategies across the cinema network operations. Board Meeting and Results Declaration The company had earlier scheduled its Board meeting for February 5, 2026, to review and approve the financial performance for the third quarter of fiscal year 2026. The meeting focused on considering unaudited standalone and consolidated financial results for the period ended December 31, 2025. Parameter: Details Meeting Date: February 5, 2026 (Thursday) Results Type: Unaudited Standalone and Consolidated Period Covered: Third quarter ended December 31, 2025 Trading Window and Compliance PVR INOX Limited had implemented trading window restrictions as part of its insider trading prevention measures. The trading window for designated persons and their immediate relatives was closed since January 1, 2026, following the company's communication dated December 24, 2025. These restrictions remained in effect until 48 hours after the declaration of the unaudited financial results, ensuring compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015. Market Position Strengthening The comprehensive financial performance reflects the company's successful operational strategies and market recovery in the cinema exhibition sector. The strong improvement in revenue, profit, and EBITDA metrics indicates effective execution of business strategies, with the enhanced EBITDA margin demonstrating the company's ability to generate higher operational returns while maintaining growth momentum. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. 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