Imagicaaworld Entertainment (IMAGICAA IN) – Q4FY26 Result Update – Subdued performance – BUY
Published on 18 May 2026
We increase our EPS estimates by 3% for FY27E as we factor in the consolidation of Shanku’s water park from 2QFY27E. We believe the decision to pursue an investment in Shanku’s water park (existing operational asset) over the upcoming greenfield exposure in Ahmedabad (plan is shelved now) will cut down on capex-to-revenue journey considerably without unduly stretching the BS. As for the upcoming Sabarmati park, there has been some delay, and accordingly we now expect an inauguration in 2HFY28E. IMAGICAA IN reported a weak operational performance with EBITDA margin of 33.0% (PLe 43.0%) due to higher-than-expected other expenses. We expect sales/EBITDA CAGR of 14%/30% over FY26-FY28E due to base effect and addition of 2 parks in Sabarmati and Mehsana. Retain BUY with a SoTP based TP of INR64 valuing the park/hotel business at 15x FY28E EBITDA (earlier 17x).
