💰 Financial Performance

Revenue Growth by Segment

Total revenue for FY24 grew 13% to INR 483 Cr, driven by a 15% increase in Average Revenue Per User (ARPU) to INR 1,430. However, FY25 saw a 5.1% decline in revenue from operations to INR 458.57 Cr due to demand fluctuations. Q2 FY26 showed a recovery with a 25% YoY growth in total income. The resort business (Isle by Wonderla) contributed a revenue upside of INR 2 Cr in Q2 FY26.

Geographic Revenue Split

The company has a strong market position in South India (Kochi, Bangalore, Hyderabad) and has expanded to the East (Bhubaneswar). The Kochi park (inaugurated Q1 FY16) generated INR 135 Cr, representing 28% of FY24 total revenue. Expansion is currently focused on Chennai and the Northern regions.

Profitability Margins

PAT margins were maintained at 30-35% historically due to minimal interest costs. However, FY25 PAT fell 30.8% to INR 109.27 Cr, with PAT margins declining from 31.2% to 22.6%. Q2 FY26 saw an 8x jump in EBITDA, reflecting a sharp recovery in profitability during the monsoon quarter which is typically weak.

EBITDA Margin

EBITDA margin for FY24 was 49.4% (INR 250.17 Cr). In FY25, EBITDA declined 31.5% to INR 171.40 Cr, with the margin narrowing to 35.5% due to increased operating and employee costs. Adjusted EBITDA margin for FY25 stood at 37% compared to 50% in the previous year.

Capital Expenditure

The company is currently executing the Chennai park project at a total cost of INR 515 Cr, with INR 181 Cr already spent as of August 2024. Future plans include five new parks over the next 7-8 years in Indore, Mohali, Noida, Goa, and Ahmedabad, primarily funded through internal accruals and liquid assets of INR 214 Cr.

Credit Rating & Borrowing

Wonderla holds a CARE AA-; Stable rating for long-term facilities and CARE A1+ for short-term facilities. The company maintains a strong credit profile with nil scheduled term debt repayments and a total debt to GCA ratio of 0.03x as of March 31, 2024.

⚙️ Operational Drivers

Raw Materials

Ride components and engineering spares (steel and mechanical parts for in-house manufacturing), Food & Beverage supplies, and utilities (electricity and water). In-house ride design and manufacturing represent a significant cost-saving strategy, though specific % of total cost per material is not disclosed.

Import Sources

Sourced primarily within India through an in-house engineering and manufacturing team located in Bangalore, which manages ride design and maintenance to ensure operational excellence.

Key Suppliers

Not specifically named in the documents; however, the company utilizes an internal ride designing and manufacturing team to reduce dependency on external global ride vendors.

Capacity Expansion

Current capacity is measured by footfalls, which were 30.49 lakh in FY25 (down from 32.52 lakh in FY24). Expansion includes the Chennai park (opening December 2025) and 5 additional parks planned over 7-8 years to increase total visitor capacity.

Raw Material Costs

Operating costs increased in FY25, contributing to a 31.5% decline in EBITDA. The company uses an asset-light model by manufacturing rides in-house, which serves as a key driver for cost efficiency and allows for easier maintenance and upgrades.

Manufacturing Efficiency

In-house ride manufacturing enables the company to modify rides based on customer preference, maximizing customer experience and ensuring high operational efficiency with lower long-term maintenance costs.

Logistics & Distribution

Not applicable as a service-based business; however, marketing and digital sales strategies now drive 50% of bookings, reducing traditional distribution costs.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved through the commencement of the Chennai park in December 2025, expansion into five new states (Indore, Mohali, Noida, Goa, Ahmedabad) over 7-8 years, and deepening guest engagement through the 'Isle by Wonderla' resort model. Digital transformation is also a key pillar, with 50% of bookings now coming through online channels.

Products & Services

Amusement park entry tickets, resort accommodation (Isle by Wonderla), food and beverage services, and merchandise sales.

Brand Portfolio

Wonderla, Isle by Wonderla, Veegaland (historical).

New Products/Services

The Chennai park is the immediate new service launch (Dec 2025). The 'Isle by Wonderla' resort in Bangalore is a recent addition that delivered an INR 2 Cr revenue upside in Q2 FY26.

Market Expansion

Expansion into Chennai (2025) and subsequent entries into Northern and Western India (Indore, Mohali, Noida, Goa, Ahmedabad) over the next 7-8 years.

Market Share & Ranking

Wonderla is one of the largest amusement park operators in India with a dominant position in South India.

Strategic Alliances

The management is in discussions with various state governments for land and permissions for new parks, though no official JVs were finalized as of September 2024.

🌍 External Factors

Industry Trends

The industry is highly cyclical and capital-intensive. Q1 (summer) contributes 38% of revenue and 50-60% of EBITDA. The trend is shifting toward integrated resorts and digital booking channels, which now account for 50% of Wonderla's sales.

Competitive Landscape

Competitors have struggled to sustain operations, whereas Wonderla has successfully expanded using internal accruals. Key competition comes from other regional amusement parks and alternative entertainment options.

Competitive Moat

Sustainable moat built on 20+ years of brand recall, in-house manufacturing capabilities that lower capex/maintenance costs, and a strong balance sheet with nil debt (0.01x gearing) providing financial flexibility for expansion.

Macro Economic Sensitivity

Highly sensitive to discretionary spending trends and domestic economic conditions, as evidenced by the 5.1% revenue decline in FY25 attributed to demand fluctuations.

Consumer Behavior

Increasing adoption of online booking channels (50% of total) and a growing preference for integrated 'staycation' experiences at park-adjacent resorts.

Geopolitical Risks

Limited direct impact as operations are domestic, but global economic conditions are cited as a factor that could materially affect actual outcomes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by state legislative requirements for ride safety and maintenance. The company must renew park operating licenses and comply with ISO 14001 and OHSAS 18001 standards.

Environmental Compliance

The company invests in rainwater harvesting, solar energy, and zero-liquid discharge. CSR expenditure for FY25 was INR 2.65 Cr.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; actual tax paid is reflected in the PAT margin of 22.6% for FY25.

Legal Contingencies

The company maintains public liability insurance to cover liabilities from accidents and injuries. Specific values for pending court cases are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for the INR 515 Cr Chennai park and the planned 5-park expansion. Revenue volatility is high, with Q2 profitability often being negligible or negative due to fixed costs and seasonal downturns.

Geographic Concentration Risk

High concentration in South India, with the majority of revenue currently derived from three parks (Bangalore, Kochi, Hyderabad).

Third Party Dependencies

Low dependency on third-party ride vendors due to in-house manufacturing, but dependent on state governments for land allotments for new projects.

Technology Obsolescence Risk

Risk of rides becoming 'stale'; mitigated by constant investment in modifying old rides and innovating through the in-house design team.

Credit & Counterparty Risk

Strong liquidity with INR 214 Cr in cash and liquid investments as of June 2024, minimizing credit risk.