Imagicaaworld Entertainment Limited Q1 FY27 Earnings Conference Call

Management Participants

  • Mr. Jai Malpani – Managing Director
  • Mr. Dhimant Bakshi – Chief Executive Officer
  • Mr. Mayuresh Kore – Chief Financial Officer
  • SGA – Investor Relations Advisor

Operational & Financial Performance Highlights

Financial Results (Consolidated):

  • Revenue from operations: ₹178 crores, up 20% YoY
  • EBITDA: ₹90 crores, up 24% YoY
  • EBITDA margin: 50.7%, expanded by 170 basis points
  • Profit After Tax (PAT): ₹58 crores, up 30% YoY
  • PAT margin: 32.4%

Operating Metrics:

  • Consolidated park footfalls: 11.5 lakh visitors, up 22% YoY
  • Average Revenue Per User (ARPU): ~₹1,395 (largely stable YoY)
  • Park revenue: ₹161 crores, up 22% YoY

Catchment-wise Performance:

Mumbai-Pune Catchment (4 parks: Imagicaa Theme Park, Imagicaa Water Park, Wet'n Joy Water Park, Wet'n Joy Amusement Park):

  • Revenue growth: 18% YoY
  • Footfall growth: 19% YoY

Rest of Maharashtra Catchment (2 parks: Wet'n Joy Water Park Shirdi, Saiteerth devotional theme park):

  • Revenue growth: 33% YoY
  • Footfall growth: 14% YoY
  • ARPU growth: 17% YoY

Gujarat Catchment (Aqua Imagicaa Water Park Surat, Shanku's Water Park Mehsana):

  • Revenue growth: 15% YoY
  • Footfall growth: 32% YoY
  • ARPU: Lower YoY due to visitor mix changes and promotional initiatives

Central India Catchment (Aqua Imagicaa Water Park Indore):

  • Revenue growth: 44% YoY
  • Footfall growth: 48% YoY

Hospitality Business (Novotel Imagicaa, 287 keys):

  • Occupancy: 62%
  • Average Room Rate: ₹9,657 (improved marginally)
  • Revenue: Largely stable despite slight moderation in occupancy

Strategic Developments & Expansion Plans

Acquisition Completion:

  • Company completed acquisition of 50.002% stake in Mehsana Next Parks Private Limited (SPV that owns Shanku's Water Park, Mehsana, Gujarat)
  • Investment: ₹50 crores
  • Becomes subsidiary effective immediately, consolidation to reflect from Q2 FY27 onwards
  • Company will continue operations and maintenance, earning management fees of 6-10%

New Indoor Entertainment Format:

  • Exclusive India franchise partnership with Dubai-based Hello Park for phygital entertainment centers
  • Target audience: Children aged 3-13 years
  • Format: Indoor centers requiring 8,000-12,000 sq. ft. space in malls/commercial spaces
  • Capital investment: ₹8-12 crores per center
  • Royalty: 5-7% of revenues payable to Hello Park
  • Target EBITDA margins: 24-25%
  • Payback period: 3-4 years per location
  • Ticket pricing: ₹800-900
  • Revenue mix: 65-70% ticketing, balance from F&B and merchandise
  • Launch timeline: First center in Hyderabad at Lake Shore Y Junction Mall in FY27; second location finalized at Phoenix Mall, Surat
  • Expansion plan: 2-3 centers annually

Growth Vision & Strategy:

  • Target to operate 12 parks by 2030, adding approximately one park annually
  • Expansion focus: Water parks complemented by select dry rides in 30-50 acre formats
  • Geographical focus: Delhi NCR, Bangalore, Hyderabad, Goa, and other large population centers
  • Approach: Balanced between greenfield developments and strategic acquisitions
  • Expansion criteria: Strong catchment areas, good connectivity, land availability, destination asset potential
  • Typical park capex: ₹200-450 crores depending on location and scale
  • Debt discipline: Target debt-to-EBITDA of 2.5-3x, maximum 3-3.5x for limited periods

Operational Challenges in Q1

  • Unprecedented heat wave led to non-operational days at Khopoli park
  • Shift in school holiday calendar in some catchment schools affected visitation patterns
  • Heat wave also impacted hotel bookings
  • These factors particularly affected Mumbai-Pune catchment performance

Capital Structure & Promoter Commitment

  • Promoter warrant conversion due at price of ₹73.5 per share
  • Managing Director Jai Malpani confirmed promoters are "very positive on the business" and will convert before the given date

Future Reporting Enhancements

  • Company will consider providing segmental breakup between ticketing and F&B revenues in future quarters
  • Currently reporting by catchment areas rather than park-wise profitability
  • Will consider suggestions for more detailed segment reporting

Maintenance & Growth Capex

  • Regular maintenance capex: 6-8% of revenues (treated as opex)
  • Growth capex for new attractions: ~5% of revenues budgeted
  • Recent enhancements: Added water slides, restaurant capacity, changing blocks, new rides across multiple parks in FY24

Cyclicity Mitigation Strategies

  • Diversification into indoor entertainment through Hello Park
  • Adding indoor shows and attractions for off-season visitation
  • Hosting events, festivals, concerts during off-peak periods
  • Magic Pass program for repeat visitation
  • Geographical diversification across states
  • Focus on school and corporate tie-ups

Spiritual Tourism Expansion

  • Active talks with state governments to replicate Shirdi model (Saiteerth devotional park)
  • Requires government support for viability due to land premium and infrastructure needs
  • Target: 1-2 locations in next 2-3 years