Patriotism fervour to run high in cinemas during 4QFY26E - Prabhudas Lilladher Ltd
In addition, regional movies that were released in Jan-26, viz; The Raja Saab and Mana ShankaraVaraprasad Garu have already netted Rs1.4bn and Rs1.7bn respectively. However, being South centric releases, their contribution to PVR INOX’s NBOC will be limited to the tune of ~10-20%. Nonetheless, 4QFY26E has 3 big ticket releases namely Border 2, Dhurandhar 2 and Toxic. As Border 2’s release coincides with Republic day and long weekend, collections would get an additional boost. Further, given audiences are on tenterhooks to witness Hamza’s revenge, Dhurandhar 2’s collections could well mimic the prequel. Also, Yash has evolved as an action star after KGF and Toxic belonging to a similar genre is expected to do well.
Valuation cushion & earnings comfort in PVR INOX provides a good entry point at CMP
As can be seen in the chart below, PVR INOX is trading closer to the lower end of the one year forward EV/EBITDA valuation band. On the other hand, earnings have seen a sharp rebound in 2QFY26 (2nd best quarter post COVID). Further, we expect performance of 3QFY26E to mimic the previous quarter with revenues and pre-IND AS EBITDA margin of Rs18.6bn and 15.8%, respectively. As highlighted earlier, the pipeline of 4QFY26E looks interesting as well.
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SEBI Registration number is INH000000933.
