PVR INOX to consider share buyback proposal on August 31

MUMBAI: PVR INOX may be ready to give its shareholders an encore. The multiplex operator will consider a proposal to buy back its fully paid-up equity shares at a board meeting on August 31, 2026, marking the first reported buyback proposal since the PVR-INOX merger.

In an exchange filing, the company said its board will consider and approve the proposed buyback of equity shares with a face value of ₹10 each, along with matters incidental and ancillary to the proposal. However, the company has not yet disclosed the buyback size, price, number of shares or record date.

Those details are likely to be the key numbers investors will watch when the board meets. The company said the outcome will be communicated to the stock exchanges after the meeting.

The proposal comes after a stronger Q1 FY27, with PVR INOX returning to profitability and moving into a net cash-positive position. The company reported a consolidated profit after tax of ₹56.5 crore, compared with a ₹54.5 crore loss in the year-ago quarter.

Revenue from operations rose 11.9 per cent year on year to ₹1,622.2 crore, from ₹1,449.6 crore previously. Operating performance also improved, with EBITDA climbing 30.9 per cent to around ₹529 crore and the EBITDA margin expanding to 32.58 per cent, from 27.85 per cent a year earlier.

The cinema chain also saw more feet through its doors. Admissions increased 8 per cent to 36.6 million during the quarter, while the average ticket price rose 8 per cent to ₹273. Spend per head increased 9 per cent to ₹161.

The balance sheet has strengthened alongside the operating recovery. PVR INOX was net cash positive at ₹80.7 crore as of June 30, 2026, following its debt-reduction initiatives.

That combination of profitability, improving operating metrics and a net cash position provides the backdrop for the proposed capital-return move. The actual structure, however, remains unknown. The buyback could potentially be conducted through a tender offer or open-market route, but the company has not yet specified the mechanism.

Investors appeared to welcome the announcement. PVR INOX shares rose as much as 4.2 per cent on August 25, touching a fresh 52-week high of around ₹1,283 during the session. The stock had closed 2.32 per cent higher at ₹1,245 on August 24.

The proposed buyback comes three years after PVR Cinemas and INOX Leisure merged in 2023, creating PVR INOX. With the company now back in the black and holding more cash than debt, the August 31 board meeting could determine whether its latest financial turnaround gets a shareholder-friendly sequel.