Wonderla Holidays Limited

Wonderla Holidays achieved its best-ever Q2 performance in FY26, with total income growing 25% year-on-year and EBITDA seeing an 8x jump. Revenue from operations for Q2 FY26 stood at INR80.15 crores, a 19% increase from INR67.38 crores in the prior year, with an EBITDA margin of approximately 9%. The company's integrated digital strategy is proving effective, now driving almost half of its bookings. The Bangalore resort, 'Isle by Wonderla,' also contributed significantly, delivering its best-ever Q2 with a revenue upside of INR2 crores and a 2% EBITDA improvement.

For the first half of FY26, Wonderla reported a revenue from operations of INR248.4 crores, a 3% year-on-year growth from INR240.3 crores. EBITDA for H1 FY26 reached INR84.16 crores, and profit after tax stood at INR50.8 crores. Despite a negative PAT of INR1.75 crores in Q2 FY26, this represented a substantial improvement of INR7.62 crores year-on-year, excluding exceptional items^📎, highlighting the resilience of the business model.

The company's fifth park in Chennai is progressing rapidly and is expected to commence commercial operations in December 2025. Management anticipates the Chennai park will accommodate 10 lakh to 12 lakh visitors annually once fully ramped up, which is projected to take 3 to 4 years, similar to the Hyderabad park's ramp-up. Beyond Chennai, Wonderla aims to add 'a couple more locations at least,' focusing on Tier 1 and Tier 2 cities, though acknowledging potential delays due to land acquisition and government approvals.

Wonderla is shifting its focus towards maximizing Average Revenue Per User (ARPU), especially when footfalls are impacted or park capacities are nearing limits. This strategy involves premiumizing F&B offerings and enhancing the overall guest experience. While new parks like Bhubaneswar may initially offer lower ticket prices to build the market, the long-term objective is to premiumize the offering across all geographies, with non-ticket revenues already showing double-digit growth.

The company benefits significantly from its in-house capability to design, build, and maintain a substantial portion of its rides at units in Kochi, Hyderabad, and Bangalore. This indigenization offers a considerable cost advantage, with rides costing a fraction of imported alternatives (e.g., a Ferris wheel built for INR3-4 crores vs. 3x-4x for import), and enhances safety through easier repairs and local parts. Wonderla is also undergoing a digital transformation, including a new QR journey for food and ticketing, aiming for revenue upside, better customer experience, and reduced queue times.

Wonderla plans to allocate approximately 10% of its top-line towards maintenance capex for existing parks. The company also confirmed significant underutilized land in its mature parks (30-40% in Kochi/Bangalore, 15-20% in Hyderabad), which is being strategically consumed for new attractions like the upcoming large roller coaster in Bangalore (to be launched next financial year) and resort extensions. The total land holding across its three main parks is estimated at 250-300 acres, with a market value of around INR1,500 crores.

Footfalls in Q2 FY26 showed a 12% volume growth year-on-year, but when compared to the post-COVID high of Q2 FY24, there was a slight degrowth. Management clarified that FY23-24 saw unusually high footfalls post-COVID, and current trends show a stabilization and renewed growth. Seasonal factors, particularly heavy rains and cyclones, significantly impacted footfalls in Hyderabad during mid-August to October, leading to degrowth, but an improvement is expected in the coming quarter.