PVR Inox takes a hit as kickback allegations put stock under spotlight

PVR Inox fell 5.31% to Rs 1,161.90 on Monday after a media report alleged irregularities at the company.

According to the media reports, PVR Inox asked a senior executive to leave in April. The move followed an internal investigation into alleged kickbacks of up to Rs 200 crore from developers involved in building cinema properties.

Pramod Arora, the company's former chief executive officer for growth and investment, was asked to leave with immediate effect. A few others were also asked to leave, reports added.

The reports said the probe sought to determine the extent of the alleged wrongdoing. It also looked into whether others were involved. The company's board has discussed the matter in recent meetings, reports added.

The reports further alleged that the executive was close to the company's promoters. This has raised questions over how long the alleged payments continued. It also raised questions over whether others were aware of the alleged irregularities.

Meanwhile, the exchanges have sought clarification from PVR Inox on 7 September 2026 regarding the media report. The company's response is awaited.

The development could lead to scrutiny of PVR Inox co-promoters Ajay Bijli and Sanjeev Bijli. They have been running the company since the PVR-INOX merger became effective in February 2023.

Meanwhile, PVR Inox last week announced a Rs 300-crore buyback of up to 20.69 lakh shares at Rs 1,450 per share through the tender-offer route. The buyback represents 2.11% of the company's paid-up equity capital and will be funded through cash balances, investment proceeds and internal accruals, not borrowings. The record date was fixed as 4 September 2026, with 15% of the buyback reserved for small shareholders. Promoters and promoter group members intend to participate.

A domestic brokerage called the buyback a notable capital-return milestone. It raised its earnings estimates for PVR Inox. It also raised its target price to Rs 1,270 per share. The brokerage maintained its 'Add' rating.

PVR Inox is an Indian multiplex chain. It was formed in 2023 as a result of the merger between PVR Cinemas and INOX Leisure.

The company reported a consolidated profit after tax of Rs 56.50 crore in Q1 FY27 compared with a loss of Rs 54.50 crore in Q1 FY26. On a sequential basis, PAT declined 69.7% from Rs 186.40 crore reported in Q4 FY26, which included a post-tax gain of Rs 171.40 crore from discontinued operations following the disposal of the business. Revenue from operations increased 11.9% YoY and 4.8% QoQ to Rs 1,622.20 crore in Q1 FY27.

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