Connplex Cinemas Ltd Q3 FY26 Earnings Analysis

- Connplex has an order book for about two years with plans to introduce 50-60 screens by FY26 year-end and another 60-75 screens by FY27 year-end. - The company aims to add approximately 60 to 70 screens in the next one and a half years, expecting operational royalty revenue to double as screens increase (e.g., 17 screens added in H1 FY26, targeting 41 in H2 FY26). - Revenue growth will be driven by an increase in operational screens as well as growth in core areas like ticketing, food & beverages (F&B), and advertising. - Expansion focus is on Tier 2 and Tier 3 cities where cinema is a primary entertainment source and competition is lower, providing strong growth potential. - Revenue recognition from new screens will align with construction completion and licensing; partial revenue from ready but non-operational screens is accounted. - Future shifts anticipated where recurring operational income (from royalties on ticket sales, F&B, and advertising) will grow alongside one-time construction income.

- Connplex plans to add around 50-60 screens by the end of FY26 and another 60-75 screens by the end of FY27, indicating significant expansion in operational capacity. - Revenue is expected to grow with more screens becoming operational; operational royalty revenue is projected to roughly double in H2 FY26 compared to H1 FY26. - Both cinema construction income and operational income (ticketing, F&B, advertising) will increase as new screens come online. - EBITDA margins may vary 3-4% depending on the revenue mix but are expected to be sustainable given the asset-light model. - Operating cash flow is currently impacted due to expansion-phase working capital investments but is expected to improve in the coming periods. - Management is focused on long-term growth with recurring income from franchise fees, ticket sales, and ancillary revenue streams supporting future profit expansion. - No explicit EPS guidance was shared in the call, but the growth in revenues and profitability indicates positive future earnings trajectory.

- The company is actively expanding by adding new cinema screens, with plans to introduce around 50-60 screens by the end of FY26 and another 60-75 screens by FY27. - IPO funds amounting to around INR 24 crores have been raised mainly for purchasing LEDs, projectors, and other technological assets; approximately INR 1.40 crores utilized so far, with the bulk planned for H2 FY26 in line with cinema development. - Average cost of a projector is around INR 27-28 lakhs, with about 80-85 screens' worth of projectors funded by the IPO proceeds. - Centralized procurement of customized inventory (chairs, air conditioners, carpets, sound systems) is maintained to support ongoing expansion. - The company is considering introducing small gaming zones inside cinemas in the future where viable but currently focuses solely on cinemas.

- There is no explicit mention on page 25 or surrounding pages of any current or planned new fundraising through debt or equity. - The company recently completed an IPO, with approximately INR 24 crores raised, primarily for purchasing LEDs and CapEx, of which about INR 23 crores remain unutilized as of the call. - The unutilized IPO funds are planned to be progressively deployed in line with cinema development and projector purchases. - No mention is made of additional fundraising plans beyond utilizing the IPO proceeds. - Debt levels are hinted at increasing due to fast cinema work completion and increasing debtors, but no direct fundraising through debt is stated.

- The company has an order book for about the next two years. - Approximately 50 to 60 screens are planned to be introduced by the end of FY26. - An additional 60 to 75 screens are expected to be added by the end of FY27. - In the last month, agreements were signed for around 22 new screens. - For H2 FY26, the target is around 41 screens, with more than 16 screens in the licensing process. - About 18 screens are ready and can start operations immediately. - Some screens in Patna and Mundra are pending licenses and expected to become operational soon. - Expansion is ongoing, with rapid construction and licensing processes underway.