PVR Inox Ltd

Dear Shareholders,

We are pleased to present the Annual Report of PVR INOX S Limited for FY 2024-25 — a year that truly tested the mettle of our industry as well the resilience, agility, and entrepreneurial spirit of our organization. In an environment shaped by unprecedented content headwinds, the leadership team responded with decisive action and forward-looking strategies to recalibrate our model, deepen consumer engagement, and lay the foundation for long-term value creation. As we navigated these challenges, we remained anchored to our purpose: to inspire audiences through Rs.unforgettable cinematic experiences.

FY'25 was a year of recalibration across the industry. The after-effects of the 2023 Hollywood strikes and a softer pipeline of Hindi releases impacted our topline - with admissions declining from 151.4 million in FY'24 to 136.9 million in FY'25. With nearly 80% of our screens in metro and Tier 1 cities, and 67% in non-South markets, our performance remains linked to the fortunes of Hindi and Hollywood content—segments that faced material disruption.

Despite these headwinds, the Indian box office grossed INR 11,833 crore in calendar year 2024 (Source: Ormax)

— making it the second-best year ever after 2023 (INR 12,226 crore) — reflecting cinema's enduring cultural relevance and commercial viability in an evolving media landscape. What this year revealed most clearly is that our audiences still crave the magic of the big screen. It also highlighted the need to move beyond dependence on content cycles and reimagine how demand for cinema is created.

Green shoots are visible - there is growing optimism as the industry begins to recalibrate. OTT has pushed creative boundaries—forcing richer narratives and longer character arcs. Yet the big-screen communal experience remains irreplaceable. Producers are increasingly recognizing that strong theatrical performance is a pre-requisite. Thoughtfully managed release windows sustain the value chain, signals audience validation and protects pricing power across platforms.

The focus is shifting back to quality— with filmmakers investing more in compelling scripts, fresh narratives, and sharp casting rather than relying solely on star power. This evolution is being shaped by a discerning audience that values originality, relatability, and immersive storytelling.

The industry's renewed emphasis on theatrical-first releases, coupled with content tailored to today's social, digital-first consumer, positions us well for a more stable and exciting future. We believe this reset will lead to better content economics, more consistent box office performance, and ultimately, improved occupancy levels in the years to come.

The marketplace tested us in FY'25. Weak Bollywood and Hollywood releases led to footfall slowdown and a cooling urban F&B spend added to industry headwinds. The Company proactively recognized early signals of disruption and initiated a strategic transformation aimed at strengthening our business model. This ensured that FY'25 was not a year of decline, but rather one of reinvention and resilience.

We fundamentally shifted our operating mindset — moving from a reactive content-driven approach to one that actively creates demand for cinema experiences. Several innovative initiatives were introduced.

Insight-driven Re-releases: We curated over 250 re-releases of iconic, nostalgia evoking titles like 'Tumbbad', 'Sanam Teri Kasam', 'YehJawani Hai Deewani', 'Interstellar', 'Rockstar', 'Laila Majnu' which attracted over 7 million admissions, contributing over INR 124 crore to box office revenues and reminded audiences of cinema's timeless emotional appeal.

Event Days with Mass Appeal:

We institutionalised days like Cinema Lover's Day / National Cinema Day - five celebrations during the year that reignited excitement around the big screen experience. Drawing 3.4 million attendees at 39% occupancy, these days reinforced cinema as a joyful, collective ritual and helped re-anchor moviegoing as a recurring habit.

Blockbuster Tuesdays: Buoyed by the success of Cinema Lover's Day and National Cinema Day, Blockbuster Tuesday's was launched as an affordable mid-week cinema experience that fostered habit formation and resulted in stronger weekday occupancies.

The company adopted a flexible pricing strategy, allowing it to capitalize on blockbuster releases while remaining accessible to price- sensitive audiences. This approach enabled the company to sustain a stable YoY ATP of INR 259, even in a year characterized by softer content and a limited slate of tentpole releases.

• Senior's Day Mondays: We reintroduced Senior's Day Monday where guests aged 60+ years are offered a relaxing cinema experience every Monday till 4 PM—complete with priority aisle seating, wheelchair and staff assistance, on-seat food service and a complimentary cup of tea.

On-ground Hyperlocal Engagements: Aggressive outreach through corporate bookings, society activations, group sales, and gift cards expanded our audience reach.

Screen It and Flexi Show:

Consumers are empowered to customize their movie-going experiences with greater flexibility and personalization.

Movie Jockey (MJ): A WhatsApp- based smart assistant offering seamless booking, F&B orders, and customer engagement in multiple languages.

These initiatives collectively repositioned cinemas as dynamic experiential destinations, reducing our dependency on the new release calendar and expanding our consumer base.

Even in a content-deficient year, the Company sustained high levels of consumer engagement through sharp, data-led brand campaigns such as 'Bada Dekho' and 'Fresh Dekho, Bada Dekho'. We engaged the right voices for the right segments. From Orry & Kartik Aaryan— appealing to Gen - to Pankaj Tripathi — appealing to middle-aged audiences, our campaigns connected with over 80 million people across demographics. Our social media presence ensured that PVR INOX was one of the most engaged cinema brands globally, driving advocacy and brand love.

We continued to invest in Food & Beverage (F&B) as a core growth vertical:

Launched its first owned hot dog brand 'Dog Father' piloting scalable F&B brands with potential beyond cinema locations.

Completed the roll out of non-vegetarian menus across 116 INOX cinemas.

Entered a Joint Venture with Devyani International to operate mall-based food courts, diversifying our revenue streams into preticketed F&B formats. TheJV opened its first food court in Kota, Rajasthan with plans to open another 7-9 food courts in FY'26.

• Expanded home delivery and outdoor catering business.

Despite softer footfalls, on the back of these initiatives, the Company delivered SPH growth of 1.5% to INR 134 per head, demonstrating robust consumer uptake.

Through deeper partnerships with global brands such as Coca-Cola, HSBC, Visa and Kotak, our advertising income remained resilient at INR 4,475 million — nearly flat YoY despite industry-wide volatility.

PVR INOX Pictures: Scaling the Film Distribution Business: Recognizing the long-term growth opportunity within the film distribution segment and its strong strategic alignment with the company's core exhibition business, an equity infusion of INR 500 million was made into PVR INOX Pictures during FY'24 to strengthen and scale its operations.

This investment enabled PVR INOX Pictures to significantly expand its distribution slate in FY'25, successfully handling several marquee theatrical releases that have further enhanced its market position and profitability. During FY'25, the business delivered strong financial growth with revenues increasing by 72% and Profit Before Tax more than doubling. With Indian audiences increasingly embracing global cinema, PVR INOX Pictures is poised to play a pivotal role in shaping this trend.

Zea Maize: Scaling a Premium Snacking Brand: Zea Maize, which owns the premium popcorn and snacks brand '4700 BC', continued to scale in FY'25—recording 35% revenue growth and crossing INR 1,020 million in sales. With a sharper focus on distribution, product innovation, and brand building, the business has strengthened its market presence and strategic value within the consumer snacking space.

Zea Maize is set to enter its next phase of growth, fueled by wider distribution reach, entry into general trade and modern retail, and expansion into complementary snacking segments. Realizing this vision will demand stronger retail distribution infrastructure and continued brand-building efforts.

In FY'25, we advanced our postmerger integration journey by aligning structure, talent, and culture to support a more agile and performance-driven organisation. With the operational groundwork of the merger largely in place, our focus shifted to embedding consistent execution, deepening accountability, and preparing for the next phase of growth.

A simplified leadership structure was implemented to enable faster decisionmaking and better cross-functional integration across our national footprint. This evolution reflects our continued effort to unify teams, streamline processes, and eliminate legacy silos.

Strengthening workforce capabilities remains central to the company's long-term strategy. Multiple learning and development initiatives were rolled out, including the Executive Trainee and Duty Manager programs sourcing talent from leading institutes, monthly nationwide "Training Day" sessions for over 9,500 employees, and specialized programs such as 'Pragati' 'Parivartan', 'Pramukh' and 'Executive Presence Training' aimed at enhancing leadership, customer service excellence, and business acumen.

In addition, compliance-driven training modules on food safety (FoSTaC), POSH, fire and safety, and women's safety were conducted to ensure a safe, compliant, and inclusive workplace. Over 14,500 employees completed awareness programs, underscoring the company's commitment to continuous learning, employee well-being, and customer-centric excellence.

In an evolving industry landscape, financial resilience is not just about cost control—it is about strategic capital deployment to unlock long-term value. FY'25 marked a decisive shift in how we think about growth, cash flows, and return on capital. Building on the priorities laid out in the previous year, we sharpened our focus on capital efficiency, free cash flow generation, and deleveraging.

We pivoted decisively to a capital- light growth model, using asset-light formats like FOCO (Franchise-Owned Company-Operated) and developer partnerships to grow faster and more efficiently. As of March 31, 2025, we had signed 101 new screens under this model, with nearly 50% under asset light model —significantly reducing capex intensity while preserving brand control and customer experience.

Our capex was brought down by nearly 50%, from INR 6,344 million in FY'24 to INR 3,335 million in FY'25, without compromising on our premiumisation agenda or growth in underpenetrated markets. Parallelly, proactive contract renegotiations generated meaningful upfront inflows, easing working capital pressure and boosting liquidity.

Importantly, we delivered a net debt reduction of INR 3,418 million during the year, bringing down total net debt to INR 9,522 million—a reduction of INR 4,782 million post-merger.

This enhanced financial flexibility strengthens our ability to navigate short-term volatility while creating optionality to invest in premium formats, innovation, and adjacent revenue streams in the future.

By combining post-merger scale with disciplined capital allocation, we are shaping a future where growth is agile, returns are consistent, and balance sheet is stronger for longterm innovation.

In line with our long-term strategy to deepen presence in high-performing markets and elevate the overall network quality, we continued to expand selectively while introducing greater portfolio discipline. During FY'25, we added 77 new screens, with -45% in South India and about 27% in premium formats—reinforcing our dual focus on regional strength and experiential differentiation. At the same time, we exited 72 loss-making screens, ensuring a leaner and more future-ready footprint. This calibrated approach to expansion and optimization reflects our sharpened focus on return on capital and sustainable growth across our circuit.

We continued to play a leadership role in shaping the future of the exhibition industry through policy engagement and thought leadership. Our invitation to the WAVES 2025 Advisory Board, constituted by the Hon'ble Prime Minister, reflects the growing recognition of PVR INOX's role in India's creative economy. At the state level, we remained actively engaged on regulatory matters, safeguarding critical revenue streams and advocating for frameworks that support industry viability and consumer access.

FY'25 was not just a year of resilience — it was a year of bold, proactive transformation that has strategically positioned PVR INOX for sustainable growth in an evolving entertainment landscape.

As we move forward, our priorities remain clear and focused:

• Expanding revenue pools across alternate content, differentiated experiential formats, F&B, advertising and distribution.

Driving profitability through operational efficiency and cost discipline

• Deepening consumer engagement through richer, more diverse content-led experiences.

• Expanding footprint with agility through asset-light growth and selective investments.

• Strengthening balance sheet while investing in future growth engines.

• Nurturing a high-performance, entrepreneurial culture rooted in customer delight.

We extend our deepest gratitude to our employees, partners, shareholders, and loyal patrons for your unwavering trust and support. The road ahead holds immense promise, and we remain steadfast in our mission to elevate cinema as the definitive shared entertainment experience for years to come.

Managing Director

Executive Director.