Wonderla Holidays Limited — Q1 FY26 earnings call

Wonderla Holidays reported a marginal decline in revenue from operations by 3% year-on-year, reaching INR169 crores for Q1 FY26. EBITDA also saw a 9% year-on-year decline to INR87.51 crores, resulting in an EBITDA margin of 48.9%. Profit After Tax (PAT) stood at INR52.58 crores, with PAT margins at 29.4%. The EBITDA reduction was primarily attributed to a 31% impact from reduced footfalls and a 45% increase in marketing expenditure, partially offset by INR6 crores in other income.

The company successfully launched 'Isle by Wonderla,' a boutique luxury resort adjacent to its Bengaluru park, developed with an investment of approximately INR39 crores. This new offering features private pool cottages and glamping tents, aiming for a differentiated premium experience. Management reported that the initial response has been 'above expectations,' with the resort currently achieving 60-70% occupancy, exceeding their initial 60% expectation. They anticipate Isle will be profitable and more so than their existing resort.

Construction of Wonderla's fifth park in Chennai is progressing as per schedule, with a soft opening targeted for December 2025. The full-fledged opening is anticipated for the summer season of April/May next year. An additional capital expenditure of INR120-130 crores is expected to complete the Chennai project. Beyond Chennai, Wonderla is actively pursuing expansion, with discussions underway for at least three new locations, including potential sites in the NCR region (Haryana) and Uttar Pradesh (Noida).

Total footfalls across all parks for Q1 FY26 reached 9.17 lakh visitors. While April saw double-digit footfall growth, the latter half of the quarter experienced a decline due to external factors such as an early monsoon and broader consumer sentiment. Despite the footfall challenges, Average Revenue Per User (ARPU) increased by a robust 6% year-on-year to INR1,775. This growth was driven by a 4% rise in average ticket price to INR1,281 and an 11% increase in average non-ticket price to INR493, reflecting the company's focus on premium positioning and value-added offerings.

Wonderla has incurred approximately INR480 crores in capital expenditure to date, with INR120-130 crores remaining for the Chennai park. For existing parks, the company plans to add a couple of new rides to each, with an estimated capex of INR10 crores per park. A significant INR20 crore investment is also earmarked for a new roller-coaster ride at the Bengaluru Park. Management confirmed their strategy of shifting rides between parks when feasible to refresh attractions and generate marketing buzz.

The non-ticket segment continues to perform well, demonstrating double-digit growth in sales per head. Management aims to significantly increase non-ticket revenue's contribution to total ARPU, with an eventual target of 60% of ARPU coming from non-ticket sources. Marketing expenditure increased by 40-45% in Q1, partly due to the company's 25th-anniversary celebrations and general inflationary pressures on operating costs. Marketing initiatives, including concerts, are viewed as strategic brand-building efforts rather than primary revenue drivers.

The Bhubaneshwar park, a relatively newer market for Wonderla, recorded 96,000 footfalls in Q1 FY26 and achieved EBITDA positivity for the quarter. Management anticipates roughly 3 lakh footfalls for the full year in Bhubaneshwar, with an endeavor to reach 1 lakh to 1.5 lakh footfalls for Q1. While early adopters in new markets tend to be more affluent and contribute to healthy non-ticket revenue, management acknowledges that ARPU might see a slight dip in later years as the park attracts a broader demographic.