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Record Opening Boosts Film Industry
The blockbuster opening weekend for "Dhurandhar 2: The Revenge" has generated ₹761 crore globally and ₹550 crore in India, electrifying the box office. This revenue surge offers a critical boost to the exhibition sector, which faced a subdued fourth quarter for fiscal year 2026. The film's performance is expected to drive significant audience numbers for multiplex chains, bringing much-needed optimism.
Dhurandhar 2 Shatters Box Office Records
The film shattered box office records, showing the strong commercial pull of major Hindi releases. "Dhurandhar 2" grossed ₹550 crore domestically in its opening weekend and an additional ₹211 crore overseas. Its ₹145 crore net collection on opening day, including paid previews, set records for the fastest domestic film to surpass ₹300 crore and ₹400 crore. Globally, the film earned an estimated $80 million opening weekend, ranking second worldwide and briefly leading the US box office. This success means more ticket and concession sales for exhibitors like PVR INOX. The company's stock rose as much as 6% in the three days after the sequel's release. PVR INOX, valued around ₹9,200-₹10,000 crore, operates in a sector directly boosted by such hits. Occupancy levels are expected to climb above 28% for the fourth quarter due to the film's run.
Industry Impact and Analyst Views
The success of "Dhurandhar 2" offers a welcome, though potentially temporary, break for a struggling industry. Analysts noted that Q4 FY26 box office collections were largely weak before this release, with only a few regional films seeing moderate success. The film's performance stands in sharp contrast to subdued market conditions, highlighting that strong, big-budget movies are key to drawing audiences to theaters. "Dhurandhar 2" is projected to gross ₹1,200–1,300 crore net domestically, surpassing its predecessor "Dhurandhar 1" (₹800-850 crore lifetime). This positions the franchise to become India's highest-grossing, potentially exceeding benchmarks set by films like "Baahubali" and "Pushpa." This surge helps Hindi cinema regain market share from strong regional hits like "KGF Chapter 2" and "Kantara." Reliance Industries (associated with Jio Studios) has a P/E ratio of around 19.58-23.00, reflecting its diversified business. In contrast, PVR INOX's P/E ratio is significantly negative, indicating ongoing recovery and debt reduction efforts.
Lingering Risks for Multiplexes
Despite the film's box office success, the multiplex industry faces underlying risks. The industry's recovery depends heavily on a steady stream of high-quality movies, a challenge worsened by the weak performance of other Q4 releases. "Dhurandhar 2" is seen as offsetting weak Q4 trends rather than driving a lasting recovery. Advertising revenue, a key profit source for exhibitors, is still about 30% below pre-pandemic levels as brands shift to digital marketing. B62 Studios, the production company, is privately held and its financials aren't widely disclosed, though it reported strong FY23 growth. PVR INOX has reduced debt, but its negative P/E ratio of around -41.76 suggests profitability is still a challenge. A large part of its valuation relies on future performance and market recovery, not current earnings. Depending on a few big hits to cover for a lack of consistent releases poses a significant risk for revenue growth in FY27 after "Dhurandhar 2's" run ends.
PVR INOX Expansion and Future Content
Analysts, such as Karan Taurani of Elara Capital, maintain a 'Buy' rating on PVR INOX with a ₹1,300 target price. They cite the company's debt reduction, improved return on invested capital (ROIC), and a strong content schedule for 2026 and 2027. PVR INOX plans to add 90-100 new screens in FY26 and around 150 in FY27, focusing on cost-effective expansion models and growth markets. The company expects occupancy levels to keep rising, potentially reaching 27-27.5% for the year. However, this positive trend depends on the industry consistently delivering blockbuster movies, a difficult task, especially after the rise of digital streaming.