Imagicaaworld Entertainment (IMAGICAA IN) – Q3FY26 Result Update – Subdued performance – BUY
Published on 07 Feb 2026
We cut our EPS estimates by 13%/5% for FY27E/FY28E as we re-align our employee cost and other expense assumptions. IMAGICAA IN reported weak operational performance with EBITDA margin of 24.1% (PLe 35.5%) due to salary revisions for outsourced manpower and R&M of a large ride at one of the parks. IMAGICAA IN is in active discussion with Keshav Holiday Resort Pvt Ltd, operator of Shanku’s water park, for a potential JV, in the state of Gujarat. As Shanku’s water park is in proximity to the upcoming park in Ahmedabad, the plan is to have only one of these parks in the kitty to avoid cannibalization of footfalls. As for the Sabarmati park, construction is expected to begin soon with inauguration expected in FY28E. We expect sales/EBITDA CAGR of 10%/13% over FY25-FY28E and retain BUY with a SoTP based TP of Rs70. We have revised our EV/EBITDA multiple for park/hotels business to 17x (earlier 21x) as we roll forward our valuation to FY28E.
