Imagicaaworld Entertainment (IMAGICAA IN) – Q2FY26 Result Update – Diversification on the cards – BUY
Published on 07 Nov 2025
We cut/increase our FY26E/FY28E PAT estimates by 26%/5% as we tweak our other income assumptions given capital subsidy receipt timelines for the Indore park have been re-aligned. In a seasonally weak quarter, IMAGICAA IN reported an EBITDA loss of Rs91mn (PLe loss Rs60mn). While footfalls declined 10.0% YoY to 0.23mn, ARPU increased 12.7% YoY to Rs1,299 aided by non-ticketing revenue. IMAGICAA IN has entered family entertainment business via strategic partnership with Hello Park. This collaboration provides IMAGICAA IN with exclusive rights to launch Hello phygital playparks for children in India. The phygital family entertainment business model is scalable, synergistic to the existing outdoor park business and asset light in nature. Beyond this diversification move, IMAGICAA IN has also received environmental clearance for the Sabarmati riverfront project and plans to launch a new water park in Ahmedabad for a capex of Rs2.5bn. We expect sales/EBITDA CAGR of 10%/14% over FY25-FY28E and retain BUY with a SoTP based TP of Rs73 valuing both the park/hotel business at 21x FY27E EBITDA (no change in target multiple).
