Why PVR Inox sold 4700BC to Marico and what it means
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PVR INOX’s decision to sell its stake in gourmet popcorn brand 4700BC to Marico is less about exiting food and more about tightening focus on its core exhibition business and balance sheet repair.
The multiplex operator will receive ₹227 crore from the transaction, which analysts say provides an immediate lever to accelerate deleveraging. PVR INOX currently has net debt of about ₹600 crore as of H1FY26, and the cash infusion is expected to shave off ₹15–20 crore in annual interest costs. With the company generating an estimated ₹200–250 crore in annual free cash flows, this move brings it closer to its stated goal of becoming near zero-debt by the end of FY27.
Calling the transaction strategically sound, Karan Taurani, executive vice president at Elara Capital, said the sale helps PVR INOX “move away from non-core businesses and redeploy capital into its core exhibition operations, which should structurally improve return ratios over time.”
4700BC, while a fast-growing brand, has been a drag on profitability for PVR INOX. The popcorn brand clocked around ₹100 crore in revenue in FY25 and has been growing at a healthy 31–35% year-on-year pace. However, it remains loss-making at the net level, with a single-digit EBITDA loss as it continues to invest in growth.
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Quick commerce platforms such as Blinkit and Zepto account for roughly 35% of 4700BC’s revenue, while the rest comes from e-commerce marketplaces like Amazon, physical retail stores, and institutional channels including cinema chains. Despite the strong top-line momentum, the brand contributed only about 2% to PVR INOX’s overall revenue and sat in the “others” segment, not food and beverages. Its losses also resulted in a negative EBITDA contribution.
Taurani noted that “from a financial lens, the exit removes an EBITDA drag and directly supports a 15–18% potential upgrade to PAT estimates, even though EBITDA forecasts remain unchanged.” He added that the reallocation of capital away from a loss-making subsidiary is expected to lift return on equity from around 1% to 1.4% in the near term.
Importantly, the deal does not alter PVR INOX’s food and beverage strategy within cinemas. The company will continue to sell 4700BC products across its theatres, shifting its role from owner to retail partner. “There is no impact on F&B revenues from this transaction,” Taurani said, underlining that consumer-facing offerings inside cinemas remain intact.
Elara Capital has maintained an Accumulate rating on the stock with a target price of ₹1,225. PVR INOX is currently trading at about 7x FY28 pre-Ind AS EV/EBITDA, and Taurani believes the sharper balance sheet and cleaner business profile could drive a near-term re-rating.