PVR Inox needs ‘Pushpa 2’ to be a blockbuster to improve its shot in Q3FY25
Subscribe to enjoy similar stories. With the release of Pushpa 2: The Rule on Thursday, PVR Inox Ltd is back in the spotlight. Expectations for the movie's collections are running high as the first edition of the action film franchisewas a success at the box office.
“With strong franchise recall, Pushpa 2 may break records and fetch lifetime India gross box office collections (GBOC) of more than ₹1,000 crore while Hindi GBOC could do ₹500 crore; this may also break the record of India GBOC of ₹1,200 crore and ₹1,000 crore of Bahubali 2 and KGF Chapter 2, respectively," wrote Karan Taurani, analyst at Elara Securities (India) in a report dated 3 December. Note that movies that released earlier in this quarter such as Singham Again, and Bhool Bhulaiyaa 3 have performed well. The answer is simple.
Better-performing movies pull audiences to the theatres, hence improving occupancy rates. PVR Inox’s earnings are highly sensitive to occupancy trends and that depends heavily on good movie content. So far in FY25, the company’s occupancy rate stood at 20.3% in the June quarter (Q1FY25) and improved to 25.7% in the September quarter.
The occupancy rate is expected to improve further sequentially in the December quarter. This would be backed by a slew of blockbusters and a strong content pipeline for December, which includes movies such as Baby John and Sitaare Zameen Par. “With 33% quarter-on-quarter Hindi GBOC growth, PVR Inox’s overall GBOC (Hindi plus non-Hindi) is set to grow 29% quarter-on-quarter in Q3FY25 to ₹800 crore," said Taurani.
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