Wonderla Holidays Q3 FY26: Chennai Launch Fuels Growth Amidst Footfall Nuances

Wonderla Holidays Limited, a prominent player in India's amusement park sector, recently unveiled its financial performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The period was marked by a significant strategic milestone: the successful launch of its largest amusement park in Chennai. Despite this expansion and robust revenue growth, the company navigated challenges including a decline in profitability, attributed to new regulatory changes and increased depreciation. Management's commentary highlighted a focus on disciplined growth, enhanced visitor experience, and strategic expansion across India.

For Q3 FY26, Wonderla reported a consolidated revenue from operations of Rs. 134.53 crore, marking an 11% year-on-year increase and representing the highest-ever Q3 revenue. This growth was primarily driven by a strategic emphasis on increasing visitor spending and improving monetization, which led to an 8% rise in Average Revenue Per User (ARPU) to Rs. 1,377. The newly launched Chennai Park made a notable contribution, generating Rs. 11.92 crore in revenue during its inaugural month of December. However, consolidated EBITDA for the quarter stood at Rs. 47.15 crore, a 13% decline year-on-year, with Profit After Tax (PAT) falling by 29% to Rs. 14.48 crore. This decline was largely influenced by a one-time financial impact of Rs. 8 crore due to the adoption of new labor code-related regulatory changes, recognized as an exceptional item, and increased depreciation from new projects.

The Chennai Park's launch was a pivotal event, completed efficiently within 21 months and an investment of approximately Rs. 600-611 crore. The park also secured a significant local body tax exemption for 10 years, underscoring favorable regulatory support. Management expressed confidence in Chennai's potential, projecting it to break even in its first year and achieve revenue levels comparable to the Bangalore park within 3-4 years. This expansion is a key step in Wonderla's ambition to become a pan-India amusement park operator.

Performance across existing parks presented a mixed picture. The Bangalore park demonstrated resilience with a 3% increase in footfalls, supported by ongoing sales and marketing initiatives. In contrast, the Kochi park experienced a moderation in footfalls due to an unforeseen environmental issue involving waterborne amoeba cases, which led to government advisories against school trips to water parks. The Hyderabad park also saw a slight dip in its Average Ticket Price (ATP) during Q3, primarily due to a higher mix of discounted group footfalls from educational institutions. The Bhubaneshwar park, a smaller format park, is undergoing a strategic re-evaluation to boost footfall growth, with management acknowledging the need to adapt to its unique market dynamics.

Wonderla's resort properties, including the recently launched ISLE at Bengaluru Park, showed strong performance, with revenues growing by 71% year-on-year and achieving a 68% occupancy rate. This segment is seen as a crucial component of the company's strategy to enhance the overall customer experience by integrating hospitality services with amusement park offerings. The company also continues to invest in its in-house ride designing capabilities and digital marketing strategies to drive innovation and boost revenue.

Looking ahead, Wonderla's management remains optimistic about future growth. They anticipate announcing 1-2 more parks or having them in development within the next three years, with a long-term vision of operating 6-7 parks in the next 5-8 years. Footfall growth is expected to pick up from Q2-Q3 of the financial year, and a new roller coaster ride is slated for launch at the Bangalore park by March or April. The company's disciplined capital allocation, coupled with its focus on expanding its footprint and enhancing existing assets, positions it for sustained growth in the Indian entertainment landscape.