How is the future of PVR Inox after the rise in OTT platforms?

With the rise of OTT Platforms, the Landscape of Cinemas is quickly changing as the audiences opt for better convenience and diverse content, this has severely impacted the business, revenue models of the Company, and audience preferences.

The onset of Covid-19 has helped the OTT platforms accelerate the shift in viewers’ preferences, when the demand for home entertainment became a primary choice. The shares of PVR are down 45 percent from their 52-week high of Rs. 1,748 and only 37 percent above their March 2020 Covid bottom. 

How has PVR Adapted to these Changes

To attract people to the cinemas, the company has launched premium theaters with luxury amenities. PVR did a mega merger with INOX to further strengthen their operations and gain more market share, and have diversified their revenue streams, like launching loyalty programs like PVR Privilege. They are also partnering with OTT platforms and filmmakers to first release the movies in theaters, and later on OTT platforms.

The future of PVR INOX now depends on how well it adjusts to ever-changing viewer habits and industry trends. While streaming services are very popular, movie theaters still provide a special experience that people can’t get at home.

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Business Highlights

The company has decided to go for a capital light model, where the majority of the New Screens additions will be under the Capital Light approach. In total, the Company in total has 1,728 regional Screens, and in FY 25, the company opened 77 new screens and closed 67 screens in total, a net screen addition of 10. 

The company has the most number of screens in South India with 33 percent, followed by 27 percent in the north, 21 percent in the west, 11 percent in the central, and 8 percent in the East. On a 9 month basis, Gross Debt has been reduced from Rs. 1717.70 Crore to Rs. 1,659.50 Crore, a reduction of 3.38 percent.

Financial Highlights

The company reported an 11.06 percent YoY increase in revenue from Rs. 1,546 Crore in Q3FY24 to Rs. 1,717 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 5.85 percent in revenue from Rs. 1,622 Crore in the previous quarter.

Their Net profit saw an impressive increase of 176.92 percent YoY from Rs. 13 Crore to Rs. 36 Crore for the same period. On a QoQ basis, the company saw a turnaround from a loss of Rs. 12 Crores.

About the Company

PVR Limited (now PVR INOX after the merger with INOX Leisure) is India’s largest multiplex chain, known for revolutionizing the cinema experience with premium theaters, IMAX, 4DX, and luxury formats. Established in 1997 and headquartered in Gurugram, PVR operates a vast network of screens across major cities, offering a diverse range of films, including Bollywood, Hollywood, and regional cinema. The company has also expanded into food & beverage services and advertising within its multiplexes. 

Written By Abhishek Das

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