Wonderla Holiday

Wonderla Holidays reported a strong Q4 FY26, with revenue from operations growing 40% YoY to INR135 crores and EBITDA surging 100% YoY to INR43.8 crores, achieving a 32% margin. For the full year FY26, revenue from operations grew 13% YoY to INR518.8 crores, with total footfalls of 32.19 lakhs. Full-year EBITDA increased 9% YoY to INR160 crores, maintaining a 31% margin. However, full-year PAT saw a 25% degrowth to INR81.7 crores, primarily due to a favorable deferred tax record in the previous financial year.

The newly opened Chennai Park, which commenced operations in December, has scaled up well and is already contributing meaningfully to the company's overall performance. It recorded approximately 191,000 footfalls in Q4 FY26, with an EBITDA margin of 30%. Management expects Chennai to eventually attract 7-8 lakh visitors annually and believes it has the potential to rival the Bangalore park in terms of maturity within 3-4 years, although they remain cautious until a full year of operations provides more data.

Hyderabad Park experienced a 7% YoY decline in footfalls for FY26, attributed to environmental issues, early monsoons, and a ban on school groups due to road incidents. Despite this, management remains confident in the park's fundamentals and brand salience, expecting a ramp-up. They believe Hyderabad, as a Tier 1 city, has the potential to reach footfall levels similar to Bangalore and are confident in its mid-to-long-term growth.

The company aims to add another 5 parks in the next 5 years, with at least 3-4 expected to be completed. However, new park expansion is facing delays primarily due to a recalibrated strategy to focus on larger Tier 1 cities, where land acquisition and government dealings are more complex and time-consuming. Management is actively discussing with at least four state governments and hopes to close 1-2 deals this year, emphasizing that the delay is not due to structural issues but a strategic shift.

The Resort and Hospitality business delivered its best-ever performance in Q4, driven by strong demand and improved occupancy. The Bangalore Resort, after refurbishment, is expected to see a 7-12% increase in its Average Daily Rate (ADR) from the current INR6,300. The company also sees significant headroom in non-ticket revenue, which currently stands at 30% of total revenue, with a target to increase it to 40-60% in the near term and 50-50% in 4-5 years through value-added offerings and premiumization across F&B and retail.

For FY27, Wonderla plans for sustaining capex of INR35-40 crores, with no large capex planned. Current work-in-progress (CWIP) of INR102.9 crores, related to new attractions like the Sky Wheel tower in Chennai and a roller coaster in Bangalore, is expected to be capitalized in Q1 FY27. Annual depreciation for the Chennai Park alone is projected to be INR45-50 crores in FY27, contributing to the overall depreciation hit to the P&L account.