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🎢 Wonderla Holidays Ltd – Riding the Waves of Leisure & Growth 📌

Lesson 4/225 | Study Time: 15 Min

Course: Top Quality Companies

🎢 Wonderla Holidays Ltd – Riding the Waves of Leisure & Growth

📌 Company Overview

Wonderla Holidays Ltd is India’s most loved amusement park operator, with 46+ million visitors since inception. With 4 operational parks (Bengaluru, Kochi, Hyderabad, Bhubaneswar) and the Wonderla Resort in Bengaluru, the company offers a complete entertainment ecosystem.

Recently, Wonderla also launched “The ISLE” luxury glamping pods at Bengaluru, marking a step towards blending hospitality with leisure parks.

🏭 Industry Landscape & Growth Prospects

The Indian amusement and theme park industry is expected to grow at double-digit CAGR (12–15%) over the next decade, driven by:

Rising middle-class disposable incomes.
Increasing preference for family leisure & outdoor entertainment.
Growth in domestic tourism.

With government support for tourism, regional park expansion, and higher per-capita spending on leisure, Wonderla is well-positioned to capture long-term demand.

📊 Historical Performance – Sales & Profits (₹ Cr)

Year	Visitors (Lakh)	Revenue	Net Profit	NPM %
FY 2021	4.0	45	-50	-111%
FY 2022	10.0	128	-9.5	-7%
FY 2023	33.1	429	149	35%
FY 2024	30.5	483	158	33%
FY 2025	32.5	458	109	24%
Tr. FY 2026	31.6	453	98	22%

👉 Key Trend: Visitor footfalls have broadly stabilized, but profitability has declined from 33–35% NPM to 22–24%, showing margin pressure due to rising operating costs.

⚖️ Q1 FY26 Results Snapshot

Revenue: ₹168 Cr (down 3% YoY).
Footfalls: 9.17 lakh (down 8.5% YoY).
ARPU: ₹1,775 (up 6% YoY).
PAT: ₹53 Cr (down 17% YoY).
EBITDA Margin: 45.9% vs 52.7% last year.

👉 Despite higher ARPU and non-ticket spends, declining footfalls and rising costs weighed on profits.

🌍 Segmental & Regional Growth

Park / Segment	Q1 FY26 Revenue (₹ Cr)	Share	Growth
Bengaluru Park	61	36%	-4%
Kochi Park	39	23%	-8%
Hyderabad Park	50	30%	-6%
Bhubaneswar Park	13	8%	+46%
Wonderla Resort	5	3%	+9%

⚡ Growth Driver: Bhubaneswar park (+46% YoY) offset weakness in mature parks.

🔍 Peer Comparison (Theme Parks & Leisure Sector)

Imagicaaworld Entertainment: Higher leverage, slower growth.
Nicco Park: Regional presence, lower ARPU.
Wonderla stands out for its debt-free balance sheet, strong brand, and higher margins despite near-term volatility.

📈 Valuations – Historical Multiples

P/E Range: 15x – 59x (post-COVID normalisation). Currently trading at ~35–44x.
P/BV Range: 2.1x – 5.6x; now ~2.1–2.6x.
Fair Value Estimates (Blended):

FY26: ₹634
FY30: ₹1,123
FY35: ₹2,198

⚡ Strategic Outlook & Growth Drivers

Expansion of Chennai Park (construction ongoing, with 10-yr local body tax exemption).
Leveraging digital & social media marketing to boost footfalls.
Diversification into hospitality (resorts, glamping pods) for higher per-visitor monetization.
Focus on in-house ride design & cost efficiencies.

📝 Conclusion – Long-Term Risk & Reward

✅ Positives: Strong brand, debt-free balance sheet, expansion into new cities, resilient ARPU growth.
⚠️ Concerns: Footfall slowdown, cost pressures, dependence on seasonal tourism.

🎯 For long-term investors, Wonderla represents a unique consumer play on India’s rising leisure & tourism spending.

📌 Disclosure

This report is prepared for educational purposes only, not a buy/sell recommendation. Investors should do their own due diligence before making investment decisions.

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Piyush Patel

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