The developments could also put the spotlight on PVR INOX co-promoters Ajay Bijli and Sanjeev Bijli, who have been overseeing the company since the merger of PVR and INOX Leisure took effect in February 2023.
PVR INOX was formed through the merger of PVR and INOX Leisure in 2023.
PVR INOX reported a consolidated net profit of ₹56.5 crore for the April-June quarter of FY27, against a loss of ₹54.5 crore in the corresponding period in the previous fiscal year.
Revenue from operations rose 11.9 per cent year-on-year to ₹1,622.2 crore, while Ebitda increased 30.8 per cent to ₹528 crore.
PVR INOX had net cash of ₹80.7 crore at the end of the quarter.
PVR INOX, India’s largest cinema exhibitor, asked a senior executive to leave in April after an internal investigation into alleged kickbacks received from developers involved in the construction of cinema properties, The Economic Times reported on Saturday.
The alleged payments were made over several years and could total as much as ₹200 crore. The allegations centre on Pramod Arora, who was the company’s chief executive officer for growth and investment.
The allegations have raised questions over how long the alleged payments continued and whether others within the organisation were aware of them.
The investigation is aimed at determining the scale of the alleged wrongdoing, and whether other employees or individuals were involved, ET reported. The matter has reportedly also been discussed at recent board meetings.
“This was going on for several years,” the report quoted a source as saying.
The company became aware of the allegations sometime in April, following which Arora and a few other employees were asked to leave with immediate effect.
A declaration signed by Arora also restricted him from joining rival cinema chains and from approaching PVR INOX's existing vendors. The document provides for potential legal action if the restrictions are breached.
The developments could also put the spotlight on PVR INOX co-promoters Ajay Bijli and Sanjeev Bijli, who have been overseeing the company since the merger of PVR and INOX Leisure took effect in February 2023.
Under the terms of the agreement, Ajay Bijli is responsible for managing the company for the first five years from March 2022, when the merger was announced.
Arora was closely involved in PVR's expansion into Tier II and Tier III cities, particularly through asset-light formats. These included franchise-owned, company-operated (FOCO) cinemas, and the SMART/Smart Screen initiative.
The formats were designed to offer lower-cost, digital-first multiplexes targeting audiences in smaller cities and towns.
PVR INOX was formed through the merger of PVR and INOX Leisure in 2023. As of late August, the company has 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. It plans to add another 1,000 screens over the next five years, with franchise-led expansion expected to account for a significant share of the additions.
The alleged irregularities come at a time when the company's financial performance has strengthened.
PVR INOX reported a consolidated net profit of ₹56.5 crore for the April-June quarter of FY27, against a loss of ₹54.5 crore in the corresponding period in the previous fiscal year. Revenue from operations rose 11.9 per cent year-on-year to ₹1,622.2 crore, while Ebitda increased 30.8 per cent to ₹528 crore.
The company's Ebitda margin expanded to 32.5 per cent during the quarter, supported by improved occupancy, a stronger film slate and higher contributions from advertising and food and beverage.
PVR INOX had net cash of ₹80.7 crore at the end of the quarter. Its board has also approved a ₹300-crore share buyback at ₹1,450 a share.
The promoters own about 27.5 per cent of the company, while the rest is held by foreign investors, domestic institutions and public shareholders.
