Imagicaaworld Entertainment (IMAGICAA IN) – Q1FY27 Result Update – Strong growth on a low base – BUY
Published on 11 Aug 2026
We cut our EBITDA estimates by 3% for FY27E/FY28E as footfalls were ~5% lower than 1QFY25 despite addition of Indore Park. Nonetheless, addition of Shanku’s water Park (existing operational asset) in FY27E and Sabarmati Park in FY28E is likely to boost footfall growth over the next 2 years. Further, strategic collaboration with Hello Park (LoI’s signed to open indoor parks in Surat and Hyderabad) marks an entry into the indoor entertainment business. The phygital family entertainment business model is scalable, synergistic to the existing outdoor park business and asset light in nature. IMAGICAA IN reported a 21.9% YoY growth in footfalls to 1.15mn aided by low base (1QFY26 was marred by early monsoons) with an EBITDA margin of 50.7% (PLe 59.0%). We expect sales CAGR of 21% over the next 2 years with EBITDA margin of 43.5%/45.9% in FY27E/FY28E led by addition of 2 parks. Retain BUY with a SoTP based TP of INR64 valuing the park/hotel business at 15x FY28E EBITDA (no change in target multiple).
