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Imagicaaworld Entertainment Limited — Q1 FY27 earnings call

Call held 10 Aug 2026

Management summary

Imagicaaworld Entertainment Limited reported a strong Q1 FY27 with 20% revenue growth and 24% EBITDA growth, despite challenges from a severe heatwave and holiday calendar shifts. The company is strategically diversifying into indoor entertainment with Hello Park and consolidating its outdoor park portfolio through acquisitions, aiming for resilient, year-round engagement. Management highlighted disciplined expansion and focus on operational efficiencies to drive future growth and profitability.

Highlights

  • Strong revenue growth of 20% YoY to INR178 crores, driven by healthy footfalls and sustained demand.

  • Robust profitability with EBITDA up 24% YoY to INR90 crores and margin expansion of 170 bps to 50.7%.

  • Significant PAT growth of 30% YoY to INR58 crores, reflecting operating leverage.

  • Strategic expansion into indoor entertainment with Hello Park partnership, targeting 2-3 centers annually with efficient capital deployment.

  • Successful acquisition of 50% stake in Shanku's Water Park, consolidating presence in the fast-growing Gujarat market.

Concerns

  • Q1 FY27 performance was impacted by an unprecedented heatwave, leading to two weeks of non-operational days at Khopoli Park.

  • Shift in school holiday calendars in some catchment areas also affected footfalls.

  • ARPU remained largely stable at INR1,395, with a conscious decision for a slightly softer pricing strategy in ticketing to propel footfalls.

  • Gujarat catchment ARPU was tad lower YoY due to visitor mix changes and promotional initiatives, with management acknowledging price sensitivity in Surat.

Key financials

  1. Revenue from Operations ₹178 Cr +20%YoY
  2. EBITDA ₹90 Cr +24%YoY
  3. EBITDA Margin 50.7%
  4. PAT ₹58 Cr +30%YoY
  5. PAT Margin 32.4%
  6. Consolidated Park Footfalls ₹11.5 lakh +22%YoY
  7. ARPU ₹1,395
  8. Hotel Occupancy 62%
  9. Hotel ADR ₹9,657

What they filed

Q1 FY27: revenue up 20.3%, net profit up 31.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue40 92 94 148 42 +5%92 +0%92 −2%178 +20%
EBITDA-3 30 40 73 -9 −200%22 −27%30 −25%90 +23%
Net profit-6 3 16 44 -39 −550%-5 −267%0 −100%58 +32%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthFootfalls Increase
Mumbai, Pune Catchment18%19%
Rest of Maharashtra Catchment33%14%
Gujarat Catchment15%32%
Central India Catchment44%48%

Capital allocation

high confidence
  • Capex Capex disclosed Mix of internal accruals and moderate debt for INR200 crore projects; larger projects (INR400-450 crore) funded by internal accruals from existing parks and banking limits.
    • Investment for 50.002% stake in Mehsana Next Parks Private Limited (Shanku's Water Park) ₹50 Cr
    • Hello Park indoor entertainment centers (per center) ₹8 Cr
    • Hello Park indoor entertainment centers (per center, upper range) ₹12 Cr
    • Mid-sized outdoor parks (per park) ₹200 Cr
    • Mid-sized outdoor parks (per park, upper range) ₹500 Cr
    • Regular maintenance capex
    • New marquee attractions capex
    Yes. So, if we are going for, as Jai mentioned the range of the investment that we are looking forward in our expansion projects, so if it's for INR200 crores, it's from a mix of internal accruals that and some moderate debt that we could take since these are asset-heavy kind of investments. Except if you get the land on a long-term lease, else these are upfront capex, so hence it will have to be funded by a mix of debt-and internal accruals. And currently we have a healthy set of cash flows going, and if we are to get a larger project which is in a metro and which would entail capex of say INR400 to INR450 crores, so that typically over a two to three year kind of gestation will be there, where again we will be able to use internal accruals from our existing parks, but we have banking limits also with couple of leading banks in the country having approved us limits. (Page 11); Yes. So in so far as the regular maintenance kind of capex, which is we take it as part of our P&L and typically it could range from 6% to 7%, 8% of our revenues. So that's a number that you will find in our P&L as well. Insofar as the upgradation or addition of any new marquee rides, which is the case for certain existing locations where every two to three years or three to four years, we are contemplating, while there are some things we have done already. (Page 12); However, for the capex which will drive new attractions and essentially new footfalls, we keep about 5% kind of a budget of our top line. (Page 14)
  • Debt Debt disclosed
    So however, the debt to EBITDA of the company we have been clear in this regard that that will be kept in a certain range and at best it could be 3 to 3.5x for a limited period, but the average debt to EBITDA would be in the range of around 2.5 to 3x is what fiscal discipline that we intend to continue. (Page 11)
  • M&A Mehsana Next Parks Private Limited (SPV owning Shanku's Water Park) Acquisition · Closed · Consideration ₹[object Object] (cash)

    Strengthening presence in Gujarat market, one of India's largest and fastest-growing markets. MNPPL becomes a subsidiary, consolidation from Q2 onwards.

    Will partner with existing owners to expand park offerings, create unique value proposition, undertake operations and maintenance, and earn management fees (6-10%).

    The company has announced an investment of INR50 crores for a 50.002% stake in Mehsana Next Parks Private Limited, the SPV that owns and operates Shanku's Water Park. We will partner with the existing owners to expand park offerings, create a unique value proposition in the market, while continuing to undertake its operations and maintenance, and earning management fees in the range of 6% to 10%. MNPPL becomes a subsidiary of the company effective now, and we will see consolidation reflected from second quarter onwards. (Page 6)
  • Liquidity Liquidity disclosed Healthy set of cash flows, banking limits approved with leading banks.
    And currently we have a healthy set of cash flows going, and if we are to get a larger project which is in a metro and which would entail capex of say INR400 to INR450 crores, so that typically over a two to three year kind of gestation will be there, where again we will be able to use internal accruals from our existing parks, but we have banking limits also with couple of leading banks in the country having approved us limits. (Page 11)

Guidance & targets

Portfolio Expansion

  • Total Parks Operated Portfolio Expansion · by 2030 · High confidence 12 parks
    As we look ahead, our vision is to build India's most diversified entertainment company. By 2030, we aspire to operate a portfolio of 12 parks, having kept targets of adding approximately one park every year. (Page 4)

    — Jai Malpani, Managing Director

  • New Parks Addition Rate Portfolio Expansion · ongoing · High confidence approximately one park every year
    By 2030, we aspire to operate a portfolio of 12 parks, having kept targets of adding approximately one park every year. (Page 4)

    — Jai Malpani, Managing Director

Indoor Entertainment Expansion

  • Hello Park Centers Addition Rate Indoor Entertainment Expansion · ongoing · High confidence two to three Hello Park centers every year
    Further, we aim to add two to three Hello Park centers every year, building a Pan-India indoor entertainment network over the coming years. (Page 7)

    — Dhimant Bakshi, CEO

Outdoor Entertainment Expansion

  • Mid-sized Park Acreage Outdoor Entertainment Expansion · per park · High confidence 30 to 50 odd acres
    Our sweet spot would be mid-sized parks anywhere in the range of 30 to 50 odd acres. (Page 4)

    — Jai Malpani, Managing Director

  • New Park Capex Outdoor Entertainment Expansion · per park · High confidence INR200 crores to INR500 odd crores
    So, per park it can vary between INR200 crores to INR450 crores to INR500 odd crores based on which location and size and scale of the park we go for, based on the location and demographics. (Page 11)

    — Mayuresh Kore, CFO

Debt Management

  • Debt to EBITDA Ratio Debt Management · ongoing · High confidence 2.5 to 3x (average), 3 to 3.5x (limited period)
    So however, the debt to EBITDA of the company we have been clear in this regard that that will be kept in a certain range and at best it could be 3 to 3.5x for a limited period, but the average debt to EBITDA would be in the range of around 2.5 to 3x is what fiscal discipline that we intend to continue. (Page 11)

    — Mayuresh Kore, CFO

Spiritual Tourism Expansion

  • New Spiritual Tourism Locations Spiritual Tourism Expansion · next two to three years · Medium confidence one or two locations
    So we are in active talks, as of now we have not concluded on any locations so the talks are ongoing. Because without government supports the project become unviable, specifically in terms of the spiritual bit of it. So we are in active talks with them and we foresee at least one or two locations in the next two to three years that should come through. (Page 16)

    — Jai Malpani, Managing Director

Capex

  • Regular Maintenance Capex Capex · annual · High confidence 6% to 8% of our revenues
    Yes. So in so far as the regular maintenance kind of capex, which is we take it as part of our P&L and typically it could range from 6% to 7%, 8% of our revenues. (Page 12)

    — Mayuresh Kore, CFO

  • New Marquee Attractions Capex Capex · annual · High confidence about 5% of our top line
    However, for the capex which will drive new attractions and essentially new footfalls, we keep about 5% kind of a budget of our top line. (Page 14)

    — Dhimant Bakshi, CEO

Market context

  • Hello Park Capex per Center Indoor Entertainment Unit Economics · per center · High confidence INR8 to INR12 crores
    and the capital investment per center is expected to be INR8 to INR12 crores, making it an efficient capitalized fast-growth format. (Page 6)

    — Dhimant Bakshi, CEO

  • Hello Park EBITDA Margins Indoor Entertainment Unit Economics · ongoing · High confidence 24%-25%
    It would be around 24%-25% margins, if we account for the rentals to the malls as well. (Page 8)

    — Mayuresh Kore, CFO

  • Hello Park Ticket Price Indoor Entertainment Unit Economics · currently · High confidence INR800 to INR900
    And the tickets would be currently we are targeting ticket price of INR800 to INR900 on an average for the Hello Park entry ticket. (Page 10)

    — Mayuresh Kore, CFO

  • Hello Park Payback Period Indoor Entertainment Unit Economics · per location · High confidence 3 to 4 years
    And the typical playbacks that we are looking is between 3 to 4 years for a specific individual location. (Page 10)

    — Mayuresh Kore, CFO

What to watch in Q2 FY27

Hello Park launch and performance

next quarter / H2 FY27
Current First Hello Park in Hyderabad on track for launch later this year, second location finalized in Surat.
Target Launch of first Hello Park, initial footfalls and revenue contribution.

Why it matters

Hello Park is a key new growth vector for diversification and year-round engagement; its initial performance will validate the model.

We are on track to launch our first Hello Park in Hyderabad later this year at Lake Shore Y Junction Mall, and we have also finalized a second location at Phoenix Mall, Surat. We will share more details about these developments as we progress forward. (Page 7)

Risks & concerns

  • Impact of unprecedented heatwave and holiday calendar shifts

    medium

    Heatwave led to two weeks of non-operational days at Khopoli Park and holiday calendar shifts impacted footfalls, particularly in Mumbai/Pune catchment.

    Management acknowledged

  • Price sensitivity and ARPU pressure in certain markets

    medium

    Observed price sensitivity in Surat (Gujarat), leading to a conscious softer pricing strategy and lower ARPU in the Gujarat catchment this quarter.

    Management acknowledged

  • Dependency on government support for spiritual tourism projects

    medium

    Spiritual tourism projects require significant government intervention and support to be viable, especially for land acquisition and infrastructure.

    Management acknowledged

  • Concentration risk in Gujarat

    low

    Analyst raised concern about increasing concentration in Gujarat. Management believes the market is large and diversified enough, with different park concepts (Surat, Mehsana, Sabarmati riverfront).

    Analyst downplayed

Q&A highlights

5 direct, 1 evasive
Like-to-like growth and ARPU comparison with Q1 FY25 Partial
So, as I mentioned in our commentary, you would have noticed that FY27 first quarter has been truly an unprecedented quarter as regards to the kind of heat wave that we saw. I'm also wanting to inform that due to the crisis that we faced for about almost two weeks, Khopoli park was kept non-operational, which led to some obviously, since it was not operational, that led to some drop in the revenue. But if we further, there was a shift opted by some of the CBSE schools that led to change in the holiday pattern.

Analyst challenged the reported growth by comparing it to a stronger Q1 FY25, suggesting a lack of like-to-like growth despite new park additions. Management attributed it to external factors (heatwave, holiday shifts) and a conscious softer pricing strategy.

Asked by Jinesh Joshi, PL Capital

Hello Park unit economics (EBITDA margin, royalty, footfall, ARPU) Direct
And the EBITDA margins as you observe rightly because these will be inside malls, the margins would be not as similar to the water parks or the parks that we operate. It would be around 24%-25% margins, if we account for the rentals to the malls as well. ... And the typical playbacks that we are looking is between 3 to 4 years for a specific individual location. And the tickets would be currently we are targeting ticket price of INR800 to INR900 on an average for the Hello Park entry ticket.

Provided crucial details on the profitability, investment returns, and pricing strategy for the new indoor entertainment venture, which is a key growth driver.

Asked by Jinesh Joshi, PL Capital

Promoter warrant conversion timeline and intent Direct
So, from the promoter group, we are very positive on the business and overall long-term prospects of it. So, the conversion will happen before the given date and requirement which is there. So, we are very positive and we look forward to converting the same.

Addressed investor concern about promoter commitment and potential dilution, signaling confidence in the company's future.

Asked by Jinesh Joshi, PL Capital

Segmental breakup of revenue and margins (devotional, hotel, indoor) Partial
So currently we have at the start point we have broken our parks into clusters and catchments, and accordingly we have initiated reporting. Your question about devotional park is right. However currently there is one park in the portfolio, if you are increasing the number of parks in that space of devotional and spiritual, so we will definitely consider your suggestion, and at this juncture, because previously we used to report overall on a company level, we have broken down currently into after due deliberation into catchments, which would enable one level more of analysis.

Analyst sought more granular financial reporting to better understand growth drivers and reduce dependency on cyclical theme park business. Management acknowledged the request and indicated future consideration for more detailed segment reporting.

Asked by Ankit Kanodiya, Zen Nivesh

Integration of Dave & Buster's (promoter level asset) into the company Evasive
So, on Dave & Buster's, that was our first foray into indoor entertainment and indoor entertainment as a whole we have seen Smaaash and other players as well. So, we wanted to get the model right in that case and we are I think still along the way of getting that model of F&B as well as bigger centers in place. So, at the group level once that decision is done and the model is more stabilized, then we'll plan to do it and whenever it's decided we'll get back and inform the investors about the same.

Analyst inquired about a potential future M&A/asset transfer from the promoter group, which could significantly impact the company's portfolio. Management provided a non-committal response, indicating it's not imminent.

Asked by Ankit Kanodiya, Zen Nivesh

Sharp drop in Gujarat Park ARPU Direct
So, in case of Gujarat, we have seen that in certain markets like Surat, there has been a bit of price sensitivity that we had observed. So, this year, in this particular quarter of Q1 FY27, we decided to test waters and see how the price elasticity to demand was really playing out. And while you see that the footfall, the ARPU did have a drop, we've been able to sustain the revenue numbers higher than the FY'25 numbers as well.

Highlighted pricing pressure and strategic decisions in a key growth market. Management explained it as a deliberate strategy to test price elasticity and drive footfalls, with plans to refine the model.

Asked by Vipulkumar Shah, Sumangal Investments

Strategies to reduce business cyclicality Direct
First one being we are diversifying into indoor entertainment. So that would be a good hedge against the cyclicity which is there in the business because we see that indoor entertainment inside the cities people are less prone to, even in case it rains or in case of anything, people usually go there on a faster basis. Along with that in the off season, which is the monsoon as well as in Q3, we are trying and adding more indoor shows and attractions, so that people prefer those during the monsoon as well as Q3 season.

Addressed a core concern for leisure businesses. Management outlined multiple strategies including indoor entertainment, off-season attractions, events, Magic Pass, and geographical diversification to stabilize revenue streams.

Asked by Pratik, RNI Wealth Private Limited

Cost of a Ferris wheel Direct
So if you effectively were to look at about a 45 meter Ferris wheel, it would cost somewhere around INR20 cores to INR25 crores of capex landed in India unless forex further fluctuates.

Provided a specific cost benchmark for a major attraction, offering insight into the capital intensity of developing new parks and rides.

Asked by Navin, iThought PMS

3 min read 6 chapters

Detailed narrative

Strong Q1 FY27 Performance Despite Headwinds

Imagicaaworld Entertainment Limited reported a robust Q1 FY27, with revenue from operations growing 20% year-on-year to INR178 crores and footfalls increasing by 22% to over 11.5 lakhs visitors. This performance was achieved despite significant challenges, including an unprecedented heatwave that led to Khopoli Park being non-operational for two weeks, and shifts in school holiday calendars. The company demonstrated strong profitability, with EBITDA growing 24% YoY to INR90 crores, expanding the margin by 170 basis points to 50.7%, and PAT increasing 30% YoY to INR58 crores.

Strategic Diversification into Indoor Entertainment with Hello Park

The company has entered the indoor entertainment segment through an exclusive partnership with Dubai-based Hello Park, targeting children aged 3 to 13. This phygital concept requires 8,000-12,000 sq ft, with a capital investment of INR8-12 crores per center, offering an efficient, fast-growth format. Imagicaa aims to launch its first Hello Park in Hyderabad later this year and a second in Surat, with a target of adding two to three centers annually. This move is expected to build a Pan-India indoor entertainment network, providing year-round engagement and reducing seasonal dependency.

Consolidation and Expansion in Outdoor Parks

Imagicaa continues to expand and consolidate its outdoor park portfolio. A significant milestone was the acquisition of a 50.002% stake in Mehsana Next Parks Private Limited (SPV owning Shanku's Water Park) for INR50 crores, strengthening its presence in Gujarat. The company's vision is to operate a portfolio of 12 parks by 2030, adding approximately one park every year. The focus for outdoor entertainment is on mid-sized water parks (30-50 acres) complemented by dry rides, with new park capex ranging from INR200-500 crores depending on location and scale.

Regional Performance and ARPU Dynamics

The Mumbai-Pune catchment, the largest contributor, saw 18% revenue growth and 19% footfall increase. Rest of Maharashtra delivered 33% revenue growth and 14% footfall increase. Central India was the fastest-growing region, with 44% revenue growth and 48% footfall increase. In Gujarat, while footfalls increased by 32%, ARPU was slightly lower due to a conscious decision to adopt a softer pricing strategy to test demand elasticity, particularly in Surat. Overall ARPU remained largely stable at INR1,395, with management indicating headroom for price corrections in Q3/Q4.

Capital Allocation Strategy and Debt Management

The company's expansion strategy involves a balanced approach of greenfield developments and strategic acquisitions, guided by disciplined capital allocation. Capex for new parks will be funded through a mix of internal accruals and moderate debt, with larger projects utilizing existing banking limits. Management aims to maintain a healthy debt-to-EBITDA ratio, targeting an average of 2.5-3x, with a maximum of 3-3.5x for limited periods. Regular maintenance capex is projected at 6-8% of revenues, while capex for new marquee attractions is budgeted at approximately 5% of the top line.

Focus on Reducing Cyclicality and Enhancing Customer Engagement

To mitigate business cyclicality, Imagicaa is diversifying into indoor entertainment, adding indoor shows and attractions for off-season periods (monsoon, Q3), and organizing events, festivals, and concerts. The company also promotes repeat visitation through initiatives like 'Magic Pass' and is expanding geographically to reduce dependence on a single region. Efforts are also being intensified to attract schools and corporates, further broadening the customer base and stabilizing footfalls across seasons.

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