Wonderla Holidays Limited — Q4 FY25 earnings call

Call held 8 May 2025

Management summary

Wonderla Holidays reported a resilient FY25, marked by the launch of its fourth park in Bhubaneshwar and a successful QIP of INR540 crores. Despite a slight degrowth in Q4 revenue and footfalls due to unpredictable market conditions and softening discretionary spend, the company maintained a healthy full-year EBITDA margin of 36%. Management expressed confidence in future growth driven by strategic expansions, continuous innovation, and an increasing focus on digital transformation and non-ticket revenue streams, with significant projects like Chennai Park and Bangalore resort expansion underway.

Highlights

  • FY25 Total Income stood at INR482.78 crores.

  • Q4 FY25 Revenue from operations was INR96.78 crores, a 3% degrowth YoY.

  • Q4 FY25 EBITDA margin was 28%, while full year FY25 EBITDA margin was 36%.

  • Q4 FY25 PAT was INR11.01 crores with a 10% margin; FY25 PAT was INR109.27 crores with a 23% margin.

  • Online bookings reached 57% in Q4 and 45% for the full year, reflecting digital transformation.

  • Spend Per Head (SPH) grew 11% in Q4 and 12% for FY25.

  • Launched the fourth park in Bhubaneshwar and completed a QIP raising approximately INR540 crores.

  • Chennai Park is expected to open towards the end of Q3 FY26, and ISLE by Wonderla (Bangalore resort expansion) in Q1 FY26.

Key financials

2 periods

Q4

  • Revenue from Operations
    ₹96.78 Cr
    YoY -3%
  • EBITDA Margin
    28%
  • PAT
    ₹11.01 Cr
  • SPH Growth
    11%
  • Online Bookings
    57%

FY25

  • Revenue
    ₹458.57 Cr
    YoY -5%
  • EBITDA Margin
    36%
  • PAT
    ₹109.27 Cr
  • SPH Growth
    12%
  • Online Bookings
    45%

What they filed

Q1 FY27: revenue up 44.6%, net profit up 37.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue67 122 97 168 80 +19%135 +11%136 +40%243 +45%
EBITDA-1 37 20 77 7 +800%40 +8%40 +100%113 +47%
Net profit15 20 11 53 -2 −113%14 −30%16 +45%73 +38%
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.

Guidance & targets

Footfall

  • Footfall Growth Footfall · FY26 · Medium confidence 5-10%
    Sorry, we are expecting between 5% and 10% growth in footfall for this financial year. It's a conservative estimate.

    — Arun Chittilappilly, Managing Director

  • Chennai Park Footfalls (Large Park Target) Footfall · Per park · Medium confidence 1 million-plus
    But for a large park, we are expecting 1 million-plus footfalls per park.

    — Arun Chittilappilly, Managing Director

  • Bhubaneshwar Park Footfalls (Steady-State) Footfall · Steady-state · Medium confidence 5-6 lakh
    And small park like Bhubaneshwar, we want at least 5 lakh footfalls once we reach 5 lakh to 6 lakh footfalls and we reach a steady-state.

    — Arun Chittilappilly, Managing Director

  • Bhubaneshwar Park Visitors Footfall · FY26 · Medium confidence 2.8-3 lakh
    Bhubaneshwar, we are expecting around between 2.8 lakh to 3 lakh visitors this year.

    — Arun Chittilappilly, Managing Director

ARPU

  • ARPU Growth ARPU · FY26 · Medium confidence 3-5%
    And ARPU growth also, we should expect between 3% to 5% kind of growth we are expecting.

    — Arun Chittilappilly, Managing Director

Revenue

  • Revenue Growth Revenue · FY26 · Medium confidence Low double-digit
    In FY '26, at least we should be doing around 8% to 10% growth in terms of footfall and along with a 2% to 3% growth in ARPUs, we should expect around low double-digit kind of revenue growth for '26.

    — Arun Chittilappilly, Managing Director

Margin

  • EBITDA Margin (post-stabilization) Margin · Post-stabilization · Medium confidence 40-45%
    And post that, once we stabilize, maybe some 40% to 45% of EBITDA margin will be expected. That's what the regular EBITDA margin previously if you consider pre-COVID.

    — Saji Louiz, CFO

Capex

  • New Projects Capex Capex · Coming years · Medium confidence INR200-300 crores
    So the capex required for such projects would be in the range of INR200 crores to INR300 crores and not similar to what we are investing in Chennai.

    — Arun Chittilappilly, Managing Director

  • Chennai Park Total Budget Capex · Project duration · High confidence INR610 crores (with taxes)
    No. Chennai Park, the total budget is about some INR515 crores without taxes. Including taxes, it's about some INR610 crores.

    — Saji Louiz, CFO

  • Chennai Park QIP Spend (FY25) Capex · FY25 · High confidence INR75 crores
    And then out of it INR75 crores supposed to spend in FY '25, which has been spent. And then the rest of the money will be utilized in this current FY.

    — Saji Louiz, CFO

Capacity

  • Chennai Park Launch Capacity · Q3 FY26 · High confidence End of Q3 FY26
    From the project side, we are moving towards delivering our fifth park at Chennai, which will also be one of our largest towards the end of FY -- towards the end of Q3 FY '26.

    — Arun Chittilappilly, Managing Director

  • ISLE by Wonderla Launch Capacity · Q1 FY26 · High confidence Q1 FY26
    And we are also launching ISLE by Wonderla 39 key premium resort offering in Q1 FY '26.

    — Arun Chittilappilly, Managing Director

  • Bhubaneshwar Park Maturity Capacity · Long-term · Medium confidence 2-3 years
    Bhubaneshwar may take some 2 to 3 years, like generally, any park for that matter to get a maturity level it takes further time.

    — Saji Louiz, CFO

Opex

  • Marketing Spend Growth Opex · FY26 · Medium confidence 5-10% hike
    2026, about some 5% to 10% hike will be there. Apart from that, we'll have a launch expense and Chennai Park related expenses will be there.

    — Saji Louiz, CFO

Risks & concerns

  • Softening discretionary spend and unpredictable market conditions

    medium

    Management noted a slight degrowth in revenue and footfall due to unpredictable market conditions and temporary softening of discretionary spend, attributing it to post-COVID overspending and inflation.

    Management acknowledged

  • Competition from other entertainment avenues

    medium

    Dheeran Choudhary mentioned affinity to OTT and growth in the concert industry, indicating increased competition for consumer entertainment spend.

    Management acknowledged

  • Mid-term pressure on EBITDA margins

    medium

    Management stated that while long-term EBITDA margins are expected to improve, there will be pressure in the midterm due to investments in marketing for newer parks and driving occupancy for resorts.

    Management acknowledged

  • External factors impacting footfalls

    low

    Arun Chittilappilly cited climate-related issues and exam seasons as factors affecting people's ability to visit parks.

    Management acknowledged

Areas of evasion (2)

  • Specific EBITDA/PAT guidance for new parks in their initial operational phases
  • Detailed elasticity of dynamic pricing

Q&A highlights

2 direct
Consumer demand and discretionary spend patterns Direct
Discretionary spend also a little soft across sectors. I think I'm guessing it's because people have gone there was overspending that happened in the last few years and maybe people are reprioritizing their spend for other things, maybe because of inflation or other pressures.

Reveals management's view on the broader economic environment impacting their business, attributing soft demand to post-COVID overspending and inflation.

Asked by Ashwini Agarwal

Reasons for Hyderabad Park's footfall decrease Direct
So I think this is actually the point that Arun just mentioned previously that, obviously, in mature parks, there is some saturation so the growth will not be as much as the newer parks. And Hyderabad is one of our newer parks. It's only been operational for 7 years barring the two COVID years where we were shut. So there is a lot more room to grow.

Clarifies that even newer parks like Hyderabad can experience saturation effects, indicating that growth will increasingly rely on new park additions rather than just existing ones.

Asked by Saishwar Ravekar

Elasticity and impact of dynamic pricing on footfalls Partial
These are still early days. We are still experimenting with it. And also, we are upgrading our entire operating system for our Wonderla Park. So we are undergoing a digital transformation as we speak. And a lot of these things will be ready by only end of this financial year. So I think the full effect of dynamic pricing, we will not see in this financial year. Maybe next financial year, we can see it.

Highlights that dynamic pricing is still in an experimental phase and its full impact won't be realized until FY27, suggesting that current pricing strategies are not yet optimized for demand elasticity.

Asked by Himanshu Upadhyay

2 min read 6 chapters

Detailed narrative

Q4 & FY25 Financial Performance Overview

Wonderla Holidays reported a total income of INR482.78 crores for FY25. Q4 FY25 revenue from operations stood at INR96.78 crores, experiencing a 3% year-on-year degrowth. The company recorded an EBITDA margin of 28% for Q4 FY25 and a healthy 36% for the full year. Profit after tax (PAT) for Q4 was INR11.01 crores (10% margin), while full-year PAT was INR109.27 crores (23% margin), reflecting resilience despite market challenges.

Strategic Expansion and New Projects

FY25 marked the launch of Wonderla's fourth park in Bhubaneshwar, contributing 0.41 lakh footfalls in Q4 and 1.69 lakh for the full year. The fifth park in Chennai is progressing, with an expected launch towards the end of Q3 FY26, budgeted at approximately INR610 crores (including taxes). Additionally, an extension to the Bangalore resort, ISLE by Wonderla, offering 84 new keys to complement the existing 39, is slated for launch in Q1 FY26.

Market Conditions and Footfall Dynamics

Management acknowledged a temporary softening of discretionary spend and unpredictable market conditions, leading to a slight degrowth in overall footfalls and revenue. While mature parks like Bangalore and Kochi are expected to see mild footfall growth (5-10% for FY26), newer parks like Bhubaneshwar are targeted for 2.8-3 lakh visitors in FY26, aiming for 5-6 lakh at steady-state. The Hyderabad park delivered its highest-ever annual revenue in FY25, despite a recent decrease in Q4 footfalls.

Digital Transformation and Revenue Enhancement

A key highlight was the consistent improvement in online bookings, reaching 57% in Q4 and 45% for the full year, aligning with the company's digital transformation journey. Spend Per Head (SPH) demonstrated continuous growth, increasing by 11% in Q4 and 12% for FY25, with further growth expected. The company is also placing greater emphasis on enhancing non-ticket revenue streams and expanding its merchandise strategy.

Future Growth Outlook and Capex Plans

For FY26, Wonderla anticipates low double-digit revenue growth, driven by 5-10% footfall growth and 3-5% ARPU growth. Post-stabilization of new parks, EBITDA margins are expected to return to pre-COVID levels of 40-45%. The company is well-capitalized after raising INR540 crores via QIP, with INR75 crores already spent on the Chennai project in FY25. Future projects, similar in scale to Odisha, are estimated to require INR200-300 crores in capex, which management believes can be funded through internal accruals or minimal debt.

Marketing and Operational Efficiency

Marketing spend for FY25 increased to approximately INR40 crores, up from INR28 crores in FY24, primarily due to launch expenses for Bhubaneshwar and video shoots. For FY26, marketing spend is projected to increase by 5-10%, plus additional expenses for the Chennai Park launch. The company is also experimenting with dynamic pricing, with full implementation expected by FY27, to optimize revenue based on seasonality and demand.

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