A single film appears to have had an outsized impact on India’s media and entertainment stocks this quarter. According to a recent report by brokerage firm Nuvama Institutional Equities, the success of Dhurandhar, particularly its sequel, has not only boosted theatrical performance but also had an effect on the revenue and operating metrics of exhibition players like PVR INOX.
PVR INOX sees pricing power surge
According to the report, the biggest beneficiary of the film’s success has been PVR INOX, where the impact is visible in both ticket pricing and food and beverage spending. Nuvama expects the company to post 19% year-on-year revenue growth and a sharp 41% rise in EBITDA for the March quarter. PVR INOX is expected to report revenue of Rs 1,483.3 crore in Q4FY26, up 19% year-on-year, with EBITDA rising sharply by 41% to Rs 400 crore, the report mentioned.
A key driver has been record-high average ticket prices (ATP) and spend per head (SPH), which are estimated to have reached Rs 310 and Rs 158, respectively, as per the brokerage firm. The report attributes this jump directly to Dhurandhar 2, a four-hour-long film that allowed multiplex operators to extract higher pricing and consumption per viewer.
According to the brokerage firm, net box office collections and F&B revenues are each expected to grow about 22% year-on-year to Rs 790 crore and Rs 470 crore, respectively.
A broader ripple across the media ecosystem
The impact of Dhurandhar has not been limited to cinemas. The report notes that Saregama’s music licensing business also benefited from earlier releases linked to the franchise. Saregama is expected to post revenue of Rs 257.9 crore in Q4FY26, marking a 7% year-on-year increase, while EBITDA is likely to grow 9% to Rs 87.7 crore, the report said.
While overall revenue for Saregama is expected to grow 7% year-on-year, its core music licensing segment is likely to see stronger growth of around 15%. This comes despite a lack of major Bollywood music releases during the quarter.
Weak spots remain in broadcasting
In contrast, the brokerage firm stated that broadcasters continue to face pressure, with advertising demand remaining soft. Zee Entertainment, for instance, is expected to report a 6% decline in revenue because of a sharp drop in other sales and services, combined with weak ad revenue.
The brokerage firm further mentioned that subscription revenues are seen growing modestly, while digital platform Zee5 is expected to deliver strong growth. However, overall profitability is likely to remain under pressure due to higher marketing spends.
Sun TV, on the other hand, is expected to post relatively stable growth.
Nuvama bets on PVR INOX as top pick
Against this backdrop, Nuvama has identified PVR INOX as its top pick in the media and entertainment space. The brokerage firm mentioned that the company has a strong operating leverage and is improving monetisation metrics.
Content pipeline to sustain momentum
Looking ahead, Nuvama expects the June quarter to remain strong for media companies, supported by a robust pipeline of film releases. For PVR INOX, upcoming titles include Toxic, Michael, Raja Shivaji, Bhooth Bangla, and Star Wars, which could help sustain the momentum built in the March quarter.
