Shares in Pledge: Entertainment stock in red after promoter pledges 4 Lakh equity shares

SYNOPSIS: PVR INOX promoter Ajay Kumar Bijli has pledged over 4 lakh additional shares for personal borrowing, taking total encumbered shares to 3 percent of equity.

During Tuesday’s trading session, shares of India’s largest and most premium film exhibition company are in focus on the stock exchanges, after the company’s promoter released 4,00,444 shares from a pledge.

With a market cap of Rs. 9,781 crores, shares of PVR Inox Limited closed in the red at Rs. 996 on BSE, down by around 2 percent, compared to its previous closing price of Rs. 1,016.65. The stock has delivered negative returns of around 24 percent in one year, and has fallen by over 9 percent in the last one month.

What’s the News:

As per the latest disclosures with the stock exchanges, Ajay Kumar Bijli, Promoter and Managing Director of PVR INOX Limited, has created an encumbrance by way of pledge on a total of 4,00,444 equity shares.

This includes a pledge of 3,10,407 shares in favour of Infina Finance Private Limited, and 90,037 equity shares pledged with HSBC InvestDirect Financial Services (India) Limited.

Following this release, the total number of shares encumbered stands at 29,44,444, representing 3 percent of the total share capital. The pledges have been created for personal borrowing purposes, as disclosed.

Financials & More:

PVR Inox reported a marginal growth in revenue from operations, experiencing a year-on-year increase of over 12 percent, from Rs. 1,622 crores in Q2 FY25 to Rs. 1,823 crores in Q2 FY26. The company also returned to profitability, posting a net profit of Rs. 106 crore compared with a net loss of Rs. 12 crore in the same period last year.

As of 30th September 2025, PVR’s net debt stood at Rs. 618.8 crores, the lowest since the merger, marking a reduction of Rs. 333.4 crores since 31st March 2025 and Rs. 811.6 crores or 57 percent since the merger.

With a strong release slate and continued consumer interest in theatrical experiences, the company remains optimistic about its performance for the remainder of FY26. PVR Inox expects the upcoming quarters to feature a diverse and high-quality content pipeline across languages, which is likely to support healthy footfalls and sustain revenue momentum.

PVR INOX Limited is engaged in the business of movie exhibition & production and operates the largest cinema network across India. It earns revenue from the sale of movie tickets, in-cinema advertisements/product displays, the sale of food and beverages, and the restaurant business.

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