The Karnataka government Tuesday released a draft notification proposing a uniform Rs 200 cap on movie ticket prices across all theatres and multiplexes statewide. This move could significantly impact PVR-Inox, which operates 215 screens in Karnataka - 12.3% of its total footprint.

With current average ticket prices around Rs 260, the proposed 30% reduction could decrease PVR-Inox's consolidated ticket prices by 3.7%, potentially eroding revenues by 2.2% and EBITDA by 1.8% over FY26-28. Premium formats in Bengaluru, where IMAX tickets cost Rs 600-1,000, would face the steepest cuts.

Unlike the 2017 cap that allowed premium pricing exemptions, this draft removes all format-based differentiation. The notification is open for public comments for 15 days, with exhibitors likely to challenge the cap in court.