PVR Inox margin rebounds as stock gains 12.23% in five sessions
Revenue rose 10.42% year on year while expenses grew 2.04%; management said it is on track to open 90-100 screens in FY27.
Filed 23 Jul 2026, 17:47 IST · after market close · PVR Inox Ltd (PVRINOX)
Key takeaways
- Consolidated operating margin rose 5.54 percentage points year on year to 32.58% as revenue grew 10.42% while expenses increased 2.04%.
- Net profit turned positive at Rs 56.5 cr from a loss of Rs 54.5 cr a year earlier, although other income contributed 34.61% of pre-tax profit.
- The stock gained 5.61% on the first trading day and 12.23% by day five, well above its 2.00% median move after the last eight results.
Price around the results
Operating recovery lifts quarterly profitability
PVR Inox reported consolidated revenue growth of 10.42% year on year and 4.84% sequentially in Q1FY27. Operating profit grew 33.02% year on year, and the operating margin expanded 5.54 percentage points year on year and 3.38 percentage points from Q4FY26. The margin remains below the 33.55% recorded in Q2FY26 and the 33.10% in Q3FY26, but it recovered from the 29.20% in Q4FY26.
Lower cost growth supports the margin rebound
Expenses grew only 2.04% year on year while revenue rose 10.42%, so costs did not grow faster than sales. Sequentially, expenses fell 0.16% even as revenue increased 4.84%, supporting the 3.38-percentage-point margin expansion. Interest expense also declined 14.05% year on year and 4.91% sequentially, while depreciation increased 1.94% year on year.
Profit is positive, but other income remains material
Profit before tax was Rs 75.7 cr, compared with a loss of Rs 70.3 cr a year earlier, while net profit was Rs 56.5 cr versus a loss of Rs 54.5 cr. Other income accounted for 34.61% of pre-tax profit, even after falling 18.89% year on year and 63.86% sequentially. The tax rate was 25.36%, 2.88 percentage points higher than a year ago but 2.52 percentage points lower than in Q4FY26.
Management points to FY27 screen additions
Management said the company is on track to open 90-100 new screens in FY27. That expansion statement accompanies the quarter's 10.42% year-on-year revenue growth, but the next quarters will show how screen additions affect the operating mix.
Market reaction was unusually positive
The stock rose 5.61% on the first trading day after the results, 11.49% by day one and 12.23% by day five, with first-day volume at 6.76 times the reference level. This was an unusually large reaction against the stock's history: five of the last eight result-day moves were positive, three were negative, and the median absolute move was 2.00%. Operating margin was also 21.09 percentage points above the 11.49% median for 389 Consumer Discretionary peers that had reported the same quarter.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,622 cr | ₹1,547 cr | +4.84% | +10.42% |
| Other income | ₹26 cr | ₹73 cr | -63.86% | -18.89% |
| Expenses | ₹1,094 cr | ₹1,096 cr | -0.16% | +2.04% |
| Operating profit | ₹529 cr | ₹452 cr | +16.98% | +33.02% |
| Operating margin (%) | 32.58% | 29.20% | — | — |
| Interest | ₹165 cr | ₹173 cr | -4.91% | -14.05% |
| Depreciation | ₹315 cr | ₹331 cr | -4.84% | +1.94% |
| Profit before tax | ₹76 cr | ₹21 cr | +263.94% | — |
| Tax | ₹19 cr | ₹6 cr | +231.03% | — |
| Net profit | ₹57 cr | ₹186 cr | -69.69% | — |
| EPS (₹) | ₹5.75 | ₹19.00 | -69.74% | — |
Operating margin of 32.58% compares with a Consumer Discretionary sector median of 11.49% across 389 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.61% | +6.04% |
| Next session | +11.49% | — |
| 5 sessions | +12.23% | +10.08% |
| 15 sessions | +16.54% | — |
| 30 sessions | +21.82% | — |
Volume on the results session was 6.76× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is on track to open 90-100 new screens in FY27.
Expansion
- Approximately 100 screens are planned to be opened in FY27.
What to watch
- Whether consolidated operating margin holds above 32.58% after the Q1FY27 rebound.
- Whether other income remains a material contributor after accounting for 34.61% of Q1FY27 pre-tax profit.
- Progress against management's stated plan to open 90-100 screens in FY27.