Karnataka's movie ticket price cap: Movie goers may have to pay just Rs 200; how it will hit multiplex chains like PVR-Inox

Karnataka cinema houses may have to implement major cuts in ticket prices as the state government is looking to introduce a price cap. The state government on Tuesday released a draft notification proposing a uniform cap of Rs 200, taxes included, on movie ticket prices across all theatres and multiplexes, according to an ET report.While this move could bring big relief for moviegoers, it will likely hit major cinema chains, including PVR-Inox, the report said. The southern state is a key market for PVR-Inox, accounting for 215 out of its 1,743 screens, roughly 12.3% of its national presence. Karnataka also contributes around 8% to Hindi box office earnings and 10% to overall revenue, according to Karan Taurani, media executive vice president at Elara Capital, told ET.PVR Inox will be affected as the average ticket price in the state currently hovers around Rs 260, and the proposed cap would mean a nearly 30% price cut.Taurani said that in case the move is implemented, it could bring down the movie house’s consolidated average ticket price by 3.7%, dent headline revenues by 2.2% and reduce EBITDA by 1.8% over FY26–28.The impact would be felt most sharply in Bengaluru, where premium formats such as IMAX and 4D often charge weekend prices of Rs 600 to Rs 1,000.

A flat cap of Rs 200 could delay the return on investment for these high-end formats and deter further expansion in premium cinema offerings.“Since distributor revenue is linked to net ticket collections, a 30% price cut would directly impact exhibitor earnings, especially in premium malls where high rentals and reduced ticket pricing may raise the occupancy breakeven threshold above the current ~18–20% per show,” Taurani was quoted as saying.As a result, operators may be forced to depend more on food and beverage sales to stay profitable.The draft rule, which follows a similar announcement in the March 2025 state budget, will now go through a 15-day public feedback window. The government will consider objections and suggestions before deciding whether to finalise the rule through a gazette notification.This isn’t the first time Karnataka has tried to regulate cinema pricing.

In April 2017, a similar ceiling was introduced but challenged in court. In 2021, the Karnataka High Court partially sided with theatre owners, allowing premium pricing for luxury formats like IMAX and recliner screens, the report said.This time, however, the draft does away with all such exemptions, suggesting a flat rate across all screen types and formats.“While the government's intent is to make cinema more affordable and promote local language films, historical trends indicate that content quality plays a more critical role in driving footfalls than ticket pricing,” ET cited the executive. He also expects theatre chains to push back, possibly through legal action.Meanwhile, investor sentiment reflected the brewing concerns. Shares of PVR-Inox dipped nearly 1% in early trade on Wednesday on the BSE, touching a day’s low of Rs 972.50, well below its 52-week high of Rs 1,748.25.