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'Dhurandhar 2' Box Office Success Drives Strong Exhibitor Gains
"Dhurandhar 2" has set new domestic box office records for Hindi films, surpassing ₹900 crore and tracking towards a ₹1,100-1,150 crore lifetime gross. This massive success has revitalized interest in movie theaters. Trade experts believe the film's nearly four-hour runtime, once a potential drawback, has actually helped by enabling premium ticket pricing and higher customer spending. The movie is proving to be a major financial boost for the exhibition sector.
Cinema Chains See Financial Upside
The strong box office performance of "Dhurandhar 2" is expected to lead to significant financial improvements for major multiplex operators. PVR INOX, India's largest cinema chain, is projected to report substantial year-on-year revenue growth and a notable increase in EBITDA for the current quarter. This uplift is supported by an estimated 31 million people attending screenings of the film. Average ticket prices have reached a record ₹310, with average spending per visitor at ₹158. These figures represent a marked increase from previous industry averages, where ticket prices typically ranged from ₹230-280 and spending per visitor from ₹110-160. Such higher consumer spending is crucial for exhibitors, especially as net box office collections and food & beverage revenues are forecast to climb by about 22% year-on-year.
Valuations High Amidst Profitability Concerns
Despite the celebratory box office figures, a closer look at the exhibition sector reveals underlying vulnerabilities. PVR INOX, which leads the market with an estimated 43% of multiplex screens and over 50% of box office revenue, currently has a high Price-to-Earnings (P/E) ratio of around 435.98 (as of March 2026). This valuation suggests high expectations for future growth, potentially beyond current earnings capacity. Furthermore, PVR INOX reported a consolidated net loss of ₹279.6 crore for the full financial year 2024-2025. This indicates that achieving consistent profitability remains a significant challenge, even with strong revenue generation. The broader media and entertainment sector is also shifting, with digital media expected to account for about 64% of total advertising spending by 2026. While "Dhurandhar 2" shows the lasting appeal of movie theaters, the industry's increasing reliance on a few major films to drive the exhibition business raises questions about long-term sustainability.
Structural Weaknesses and Future Risks
The cinema exhibition industry faces persistent structural challenges, even with the success of "Dhurandhar 2". Companies like PVR INOX, Cinepolis, and smaller chains contend with competition from the expanding over-the-top (OTT) streaming market, which offers convenience and a vast selection of content. The high P/E ratio for PVR INOX signals that investors anticipate continued box office success and operational improvements. However, the company's ongoing net losses show that revenue growth alone is not yet translating into consistent profits. The lengthy runtime of "Dhurandhar 2," while enabling higher ticket prices, could also limit the number of screenings per day, affecting overall visitor numbers. The industry also historically deals with high rental costs and variable occupancy rates, issues that could return if the supply of major hits diminishes. The benchmark for a blockbuster has risen, with ₹1,000 crore collections now a key milestone, underscoring the increasing investment needed for major releases. Relying heavily on a few pan-India franchises, while currently effective, exposes the industry to potential content fatigue or changes in audience taste.
Outlook: Adapting to Evolving Entertainment
"Dhurandhar 2"'s success confirms the significant impact of event cinema and franchise building in India. However, the future for the exhibition sector will likely require a more varied approach. While increased ticket and food & beverage prices have boosted revenue, sustained growth will depend on controlling operational costs, using data to better understand and engage audiences, and adapting to how people consume entertainment across both digital and physical platforms. The industry's ability to stay appealing against a growing universe of digital content will depend on its efforts to innovate the in-cinema experience and deliver a consistent flow of engaging films beyond just major franchises. The current market consolidation, with leaders like PVR INOX holding significant shares, offers opportunities for efficiency gains, but competitive pressures and changing consumer habits will continue to define the sector's path.