The Indian media sector is showing a clear divide, with multiplex operators gaining from strong box office receipts while television broadcasters struggle with stagnant advertising revenues and high marketing costs.
The Indian media and entertainment industry is currently witnessing a stark performance gap between cinema exhibitors and traditional television broadcasters. While multiplex chains are benefiting from a resurgent theatrical market and higher consumer spending, television players are grappling with a challenging advertising environment and margin pressures.
Multiplexes Ride the Box Office Wave
PVR Inox has emerged as a key beneficiary of the current theatrical trend. The company is seeing positive momentum driven by strong box office collections, with net collections for Hindi films in the second quarter of FY27 estimated at ₹1,290 crore, a 30% increase year-on-year. This growth is supported by a 12% rise in average ticket prices and a 13% uptick in spending per head, suggesting that despite the rise of streaming services, there remains a solid demand for the big-screen experience.
Beyond operations, PVR Inox recently completed a ₹300 crore share buyback in September 2026, which involved extinguishing over 2 million shares. This move reflects management’s focus on capital allocation during a period of strong cash flow from hit film releases. Analysts are also watching the upcoming content pipeline, featuring major titles, which could further support occupancy levels and operating margins.
Broadcasters Under Pressure
In contrast, television broadcasters like Zee Entertainment and Sun TV are facing significant hurdles. Traditional advertising revenue, which remains the backbone of their business, has been stagnant or declining. Zee Entertainment, for instance, has contended with high promotional and marketing expenses—consuming over 24% of its sales—which are weighing heavily on its operating profit margins. Over the past year, shares of the broadcaster have seen a decline of approximately 36% as the market reacts to these margin pressures and the broader shift in viewer habits.
Sun TV is navigating a different set of challenges, including a high base effect that is expected to result in a 30% year-on-year revenue decline. The company’s operating profit is estimated to fall by 40% compared to the previous year. For these broadcasters, the ongoing competition from digital and OTT platforms continues to disrupt the traditional ad-supported model, forcing companies to increase spending to retain audiences.
Investors are currently monitoring how these companies manage their profitability in a changing media landscape. For multiplex operators, the key will be the sustainability of the current box office success and the consistency of the film pipeline. For television broadcasters, the focus remains on whether they can control marketing costs and spark a recovery in advertising demand in the coming quarters.