Multiplex operator scales annual screen additions utilizing franchise models starting FY28

PVR INOX, operating as India's largest multiplex chain, intends to scale up its footprint by adding between 150 and 175 new screens annually starting from FY28. This accelerated pace represents a substantial increase from the 90 to 100 screens scheduled for construction during the current financial year. According to CFO Gaurav Sharma in an exclusive interview with ETCFO, the majority of this future expansion will be executed through asset-light franchise and developer-funded arrangements.

Deploying an asset-light expansion model allows entertainment companies to expand their geographical reach without heavy capital expenditure on real estate acquisition. By shifting property investment burdens onto developers and partners, operators can maintain healthier balance sheets and improve return on capital employed. This represents a strategic evolution from older, wholly-owned cinema development models. Corporate analysts and retail investors should review the company's capital allocation disclosures and franchise agreements during earnings announcements.

Business advisors working with commercial real estate developers should monitor partnership opportunities in the entertainment sector. Bottom line: capital-efficient expansion models improve long-term financial viability for consumer-facing leisure businesses.