Wonderla Holidays Limited: A Thrilling Q2 FY26 Performance Amidst Strategic Expansion

Wonderla Holidays Limited, India's premier amusement park chain, has reported a robust performance for the second quarter and first half of fiscal year 2026, ending September 30, 2025. The company achieved its best-ever Q2 results, marked by record revenues and footfalls, underscoring the resilience of its business model and the strength of the Wonderla brand. Total income for Q2 FY26 surged by 24% year-on-year to INR 88.52 crores, while EBITDA witnessed an impressive 8x jump to INR 7.48 crores from a negative figure in the prior year. Despite a negative Profit After Tax (PAT) of INR 1.75 crores for the quarter, the significant improvement in operational profitability highlights effective sales and marketing strategies coupled with operational excellence.

The company's performance in Q2 was primarily driven by strong footfalls, which increased by 12% across its parks, reaching 5.05 lakh visitors. This growth was supported by enhanced sales strategies and successful digital campaigns, with online channels now accounting for nearly half of all bookings. The Average Revenue Per User (ARPU) also saw a healthy 5% increase year-on-year, reaching INR 1,478, while Spend Per Head (SPH) grew by 7% to INR 461. This indicates a successful premiumization strategy and effective monetization of non-ticket offerings, which constitute 30% of the total revenue.

Strategic Initiatives Driving Future Growth

Wonderla is actively pursuing several strategic initiatives to sustain its growth trajectory and enhance guest experience. The company's fifth park in Chennai is rapidly progressing, with commercial operations slated to begin by December 2025. This expansion into a new strategic geography is expected to diversify its portfolio and tap into a significant market. Additionally, the newly launched 'The ISLE by Wonderla' resort in Bengaluru, which commenced operations in May 2025, has already shown positive traction, contributing to increased revenue and deeper guest engagement. This resort offering delivered a revenue upside of approximately INR 2 crores and an EBITDA improvement of about 2% in Q2 FY26 for the resort business.

The company's commitment to innovation is further demonstrated by the planned installation of a new roller coaster, imported from the U.S. with a capex of INR 20 crores, at the Bengaluru park. This attraction is expected to launch in the next financial year, aiming to enhance visitor engagement and attract more footfalls to the already popular park. Wonderla's in-house ride design and manufacturing capabilities remain a key strength, offering significant cost benefits and ensuring quicker repairs and safety standards. This unique capability allows them to build rides for a fraction of the cost of importing, sometimes 3 to 4 times cheaper.

Digital Transformation and Market Outlook

Wonderla's integrated digital strategy is proving to be a cornerstone of its operational success. By leveraging digital platforms for bookings and marketing campaigns, the company has significantly improved customer convenience and operational efficiency. This digital transformation journey is ongoing, with further enhancements and a new loyalty program expected in the coming years, aiming to drive revenue upside and reduce queue times.

While the first half of FY26 saw a 2% degrowth in overall footfalls and a 7% decline in EBITDA compared to H1 FY25, primarily due to the seasonal nature of Q2 and adverse weather conditions impacting parks like Hyderabad, management remains optimistic. They are actively re-evaluating new park opportunities, prioritizing financially viable locations in Tier 1 and Tier 2 cities. The company expects footfall growth from new parks to stabilize within 3 to 4 years post-launch, while mature parks like Kochi and Bengaluru are projected to achieve single-digit footfall growth and 8-10% overall revenue growth.

Concluding Thoughts

Wonderla Holidays Limited is strategically positioned for long-term growth, backed by a strong brand, diversified portfolio, and a robust, debt-free balance sheet. The company's focus on innovation, guest experience, and disciplined capital allocation, combined with its in-house manufacturing prowess and successful digital initiatives, provides a solid foundation. Despite short-term challenges from seasonality and weather, the strong Q2 performance and ongoing expansion projects, particularly the Chennai park and new attractions, signal a confident outlook for sustained momentum and value creation for its guests and shareholders.