MovieMAX closes FY26 with record revenue, improving margins, and a visible expansion pipeline

Cinline India Limited, operating cinemas under the MovieMAX brand, ended FY26 with its highest reported operating performance to date, supported by a stronger balance sheet and a renewed push toward asset-light growth. For FY26, the company reported pre Ind AS revenue of Rs. 24,205 lakh, up 14 percent year on year, with pre Ind AS EBITDA of Rs. 3,565 lakh, up 46 percent. Pre Ind AS PAT stood at Rs. 1,608 lakh. In Q4 FY26, the performance stepped up further, with pre Ind AS revenue of Rs. 6,323 lakh, up 14 percent year on year, pre Ind AS EBITDA of Rs. 905 lakh, up 100 percent, and pre Ind AS PAT of Rs. 480 lakh.

The quarter’s operating story was not only about higher revenue, but about better monetisation per customer. Q4 ATP rose to Rs. 308, up 20 percent year on year, while SPH increased to Rs. 118, up 47 percent. The combined ATP plus SPH reached Rs. 426, up 27 percent. This mattered because admissions fell 10 percent year on year to 15.6 lakh, largely because 30 screens were under renovation during the period. The company still improved EBITDA margin to 14.3 percent in Q4 on a pre Ind AS basis, a 610 bps improvement year on year, signalling that pricing, mix, and cost control offset the temporary volume hit.

A network that is scaling, with a clear shift toward visibility-led openings

MovieMAX has grown from a regional player into a national exhibitor with 22 cinemas and 85 operational screens across 15 cities, with more than 21,100 seats. The presence spans 7 states and 1 Union Territory, with Maharashtra being the largest cluster at 11 cinemas and 41 screens. Uttar Pradesh is another key market with 5 cinemas and 23 screens. The screen base is spread across four operating models: owned, variable, fixed, and O and M. This mix is important because the company is explicitly pushing for capital efficiency and flexibility, and the operating model determines both upfront investment and fixed cost exposure.

FY26 also included new openings that show the direction of travel. The company added a fifth cinema in Uttar Pradesh at City Center LA Mall, Bareilly, with 3 screens and 564 seats. It entered Tamil Nadu with its first cinema in Chennai at Wall Tax Road, adding 2 screens and 452 seats. It also launched an O and M model location in Dadra and Nagar Haveli. These additions sit alongside a stated plan to expand by 20 to 25 screens, taking the estimated screen count to 105 to 110 by FY27.

The pipeline is positioned as visible, with management stating that openings are already secured through registered lease deeds. The company has also outlined a city list with committed screens, including Gurugram, Bangalore, Hyderabad, Nagole, Agra, Noida, and Dehradun. While the table totals more than 20 screens, the message is consistent: the near-term focus is on profitable additions, with timing risk acknowledged due to developer delays and licensing approvals, with most sites expected to open in Q4 FY27 and potential spillover into FY28.

The FY26 operating model: higher per-patron spend, steadier mix, and margin recovery

The FY26 numbers show a company leaning into monetisation levers rather than relying only on footfalls. For the full year, admits rose modestly to 68.6 lakh, up 2 percent, but the yield metrics improved more meaningfully. ATP increased to Rs. 259 and SPH to Rs. 105, taking ATP plus SPH to Rs. 364, up 11 percent year on year. In effect, MovieMAX captured more rupees per visit, and that flowed into margins, with pre Ind AS EBITDA margin expanding to 14.7 percent.

This trend is visible in the multi-year KPI trajectory highlighted by the company. Admits increased from 36 lakh in FY23 to 69 lakh in FY26. Gross box office collections rose from Rs. 65 crore in FY23 to Rs. 178 crore in FY26. ATP plus SPH increased from Rs. 247 in FY23 to Rs. 364 in FY26, a 47 percent increase. The company also notes that EBITDA has grown about six times over the past four years, which aligns with the combination of screen additions, higher pricing, and improved F and B throughput.

Content also mattered. The presentation identifies Dhurandhar as a key driver, with the company calling Dhurandhar The Revenge its top grossing movie, generating box office collections of Rs. 2,954 lakh considered till 11 May 2026. In the company’s Q4 and FY26 lists, Dhurandhar appears as the largest contributor by GBOC, alongside titles such as Border 2, Saiyyaara, and others. While the lists show some repetition and truncation in names, the key point is that one standout title delivered a meaningful share of the year’s box office outcome.

In Q4, the earnings improvement also reflects a lower finance cost on a reported basis compared with the prior year, alongside a cleaner year-on-year base that included a large exceptional item loss in FY25 and Q4 FY25. For example, FY25 reported exceptional item loss was Rs. 6,948 lakh versus Rs. 59 lakh in FY26. That base effect is part of the reason the swing in reported profitability looks dramatic. The more durable signal is the improvement in pre Ind AS operating margin during a quarter disrupted by renovations.

Balance sheet reset and the strategic pivot to asset-light growth

A central part of the FY26 narrative is financial flexibility. The company states it achieved debt free status after paying off major debt of Rs. 228 crores in FY25 through monetisation of non-core assets. It expects savings in debt servicing cost of Rs. 22 crores annually. Management’s stated intention is to channel incremental free cash flows toward expanding the film exhibition business. The board also proposed a dividend of Rs. 1.25 per share, subject to shareholder approvals.

This balance sheet reset links directly to the operating model strategy. The company’s priorities include asset-light expansion through partnerships with developers for joint investments in new screen infrastructure, aiming to reduce annual capital expenditure while improving capital efficiency. The launch of the first O and M model screen in Silvasa is positioned as an early example.

Alongside this, MovieMAX intends future additions to primarily follow a revenue-sharing approach, focusing on 3 to 4 screen multiplex formats with lower upfront capex and better return ratios. The rationale is straightforward: reduce fixed rental obligations and retain flexibility if a site underperforms or the content cycle weakens.

The third priority is premium yet accessible positioning. Management is focused on driving higher ATP and SPH through superior formats and enhanced F and B. The presentation’s premium concept is framed through offerings like Max Recliner Club, including curated menus, dedicated service during the movie, and priority concessions. The strategy suggests the company is trying to widen its yield per seat without moving into a purely luxury niche, and it is using a mix of recliner-like curated formats and premium screens to support that.

A management reinforcement also came through leadership hiring. The company appointed Mr. Rajeev Sharma as Joint CEO, citing over 30 years of experience across cinema exhibition and related sectors. His background includes leading NY Cinemas as CEO, and later serving as Group CEO at ADF, with roles spanning transformation, expansion, fundraising initiatives, and brand positioning. For investors, this is a signal that the next phase is intended to be execution-heavy, with sharper operational systems and a structured approach to expansion.

Brand-building and demand visibility: marketing, awards, and the content pipeline

While the core unit economics come from ticketing and F and B, the company is also investing in brand recall. The presentation references awards such as Most Admired Retailer of the Year at MAPIC India and Most Impactful Brand of the Year at Big Cine Expo Awards 2025. It also highlights partnership events and influencer marketing, including a Chennai launch push with high view counts and an aggregated claim of one million collective views for Chennai.

The near-term content slate is presented as supportive, with a line-up for Q1 and Q2 FY27 across Hindi and English titles, including Star Wars: The Mandalorian and Grogu, Spider-Man: Brand New Day, and The Odyssey, along with several Hindi releases. The company also cites the Ormax Media 2025 report, noting that India’s 2025 gross box office reached Rs. 13,395 crore, the first year to cross Rs. 13,000 crore, and that average ticket price increased 20 percent in 2025. For an exhibitor, a strong industry box office backdrop generally supports occupancy and pricing power, but it also raises expectations on sustaining ATP and F and B attach rates.

What to watch: execution quality, renovation normalisation, and expansion discipline

FY26 positions MovieMAX at an inflection point. The company has scaled to 85 screens and is planning to add 20 to 25 screens by FY27, with visibility through registered lease deeds and a stated focus on profitable screens. The unit economics are moving in the right direction, as seen in higher ATP and SPH, and Q4’s margin expansion despite reduced admissions due to renovation. The balance sheet has been reset to debt free status, and management has outlined how surplus funds and lower financing outflows can be redirected toward screen additions and technology upgrades.

The next test is disciplined delivery. Several openings are expected in Q4 FY27, but the company acknowledges potential delays due to developers and approvals. Investors should track whether admissions recover once renovations normalise, and whether higher ATP and SPH sustain across different content cycles. If the company can keep pushing revenue per patron while adding screens through revenue-share and O and M models, the operating leverage could remain intact.

The FY26 theme is simple: better monetisation, better margins, and a stronger base to expand. The company has laid out a clear plan, and the numbers show that the core engine is improving. The key now is consistent execution across new markets, especially as the screen base tilts further toward the South and the pipeline begins to convert into operational capacity.