PVR INOX screen expansion: 150 FY27 adds, capex ₹400 cr

What PVR INOX is planning for FY27

PVR INOX is preparing a large screen expansion in FY27, with plans to add 150 new screens in that year alone. The company has indicated that many of these additions will be in tier-2 and tier-3 towns. A key part of the rollout is the FOCO model, short for franchise-owned, company-operated.

Under FOCO, a local franchise owner builds the property while PVR INOX operates the cinema. The company describes this as a capital-light strategy that supports expansion while keeping the balance sheet cleaner than a fully owned rollout. Alongside FY27 plans, the company also reported a strong pace of additions in FY26.

FY26 pace: nearly 100 screens already added

PVR INOX said it added nearly 100 new screens in FY26. In another update, management also said it remained on track to add about 100 new screens in FY26, with a mix of owned and FOCO (asset-light) models. The overall message across disclosures is consistent: screen growth is a priority and the company is using a blended approach to accelerate openings.

The company also discussed “screens under the Asset Light model”, reinforcing a focus on capital efficiency and scalable expansion. Separately, it noted opening 20 new screens as part of its capital-light strategy during the period referenced in its Q1 FY26 performance commentary.

Capex guidance: ₹350-400 crore for FY27 additions

For FY27, the company’s expansion plan of 150 screens is linked with a capital expenditure outlay of ₹350-400 crore. This figure is important because it frames how the company is balancing growth with financial discipline.

The company has also spoken of reducing capital intensity through FOCO and other asset-light formats. In one stated target, the company aims to reduce capital expenditure by 25-30% through franchise-owned and company-operated models.

FOCO and asset-light: how the model works

FOCO shifts part of the upfront build-out responsibility to a local partner, while PVR INOX runs operations and leverages its brand, programming, and operating systems. The strategy is being used heavily for tier-2 and tier-3 markets where growth potential exists and where lower-capex formats can be scaled faster.

PVR INOX has also talked about “smart screens” as a way to penetrate tier-2 and tier-3 locations. Management described India as “underscreened” compared to other markets, positioning smaller-town expansion as a structural growth lever.

Q1 FY26 operating trends: admissions and ticket prices

PVR INOX reported strong Q1 FY26 earnings with a 12% increase in admissions to 34 million. It also reported an 8% rise in average ticket prices. The combination points to improving demand and pricing power during the quarter.

The company has linked performance to promotions and programming aimed at improving footfalls, and said it would continue to prudently manage cash flows and reduce leverage. It also said net debt was reduced by 38% since the merger.

Portfolio scale: screens, cinemas, and geographic reach

Across company updates cited in the provided material, PVR INOX’s reported footprint is broadly in the range of about 1,740-1,761 screens across roughly 350-356 properties (or cinemas) in 111 cities in India and Sri Lanka. One disclosure specifically said that as of December 2024, it operated 1,749 screens across 355 properties in 111 cities.

The company has also set a target to reach 2,000 screens by 2026, underscoring a multi-year expansion roadmap. Its growth focus includes underpenetrated South India, with 40% of new screens slated for development there, as mentioned in multiple updates.

Content pipeline: multi-language releases in focus

Management has repeatedly highlighted a strong upcoming lineup across languages. Titles cited include Ward two, Coolie, Jolly LLB three, Ipkasthama, Tere, Ishkme, Dorandar, Avatar, Firehanash, Rajasad, Alpha, Border two, Love and War and Toxic. In another outlook note, it also referenced titles such as Thama, 120 Bahadur, Tere Ishkar, Avatar, Alpha, Border 2, Love and war, and toxic.

Ajay Bijli, Managing Director, said the company’s momentum had returned and characterised cinema as a durable out-of-home leisure category. He also pointed to a shift in box office performance, where mid-range films have contributed more meaningfully.

Industry context: H1 FY26 box office and the “mid-range” shift

Industry-wide box office collections for the first half of FY26 were stated at ₹6,241 crore, up from ₹5,446 crore a year earlier. The material also noted that collections from films earning between ₹100 crore and ₹500 crore surged to 59% of total receipts, compared with 21% a year ago.

This matters for multiplex operators because it suggests a broader base of performing titles, rather than reliance on a few very large blockbusters. Bijli also said the September quarter had no ₹500-crore blockbuster, yet 12 films crossed the ₹100-crore mark.

Key numbers snapshot

Why this expansion strategy matters for investors

For investors, the combination of faster screen additions and a capital-light model is a key thread. FOCO can help expand reach without pushing capex and leverage up in the same proportion as a fully owned model. The company has explicitly framed this as a way to keep the balance sheet clean while growing its footprint.

The other element is content flow. The company’s outlook repeatedly ties admissions momentum to a robust pipeline of releases across Hindi, Hollywood, and regional languages, along with promotions to “manufacture footfalls.” If content supply stays steady, the operating leverage of multiplexes can become more visible, given the high fixed-cost nature of the business.

Conclusion

PVR INOX is positioning FY27 as a major expansion year, targeting 150 new screens backed by ₹350-400 crore of capex, with tier-2 and tier-3 towns and the FOCO model central to the rollout. With Q1 FY26 admissions up and net debt reported lower since the merger, the company is linking growth to capital efficiency. The next updates to watch will be quarterly disclosures on screen openings, the mix of FOCO versus owned additions, and how the upcoming multi-language release slate translates into admissions and occupancy.