Imagicaa profits dip as theme park spends rise despite steady crowds

MUMBAI: The rollercoasters were still running, but the financial ride at Imagicaaworld Entertainment Limited turned noticeably less thrilling in FY26. The theme park and entertainment operator reported a sharp fall in annual profit even as visitor-driven revenues remained relatively resilient, with higher finance costs, operating expenses and continued investments weighing on the bottom line. For the year ended March 31, 2026, the company posted a net profit of Rs 20.04 crore, down steeply from Rs 77.79 crore in FY25. Revenue from operations also slipped to Rs 359 crore from Rs 409.99 crore a year earlier, signalling softer momentum across its entertainment and hospitality business.

Still, the final quarter offered a slightly brighter finish.

For the January-March quarter, Imagicaaworld reported revenue of Rs 89.40 crore against Rs 94.24 crore in the same quarter last year. Quarterly net profit stood at Rs 5.52 crore, sharply lower than the Rs 15.03 crore posted a year ago, though profitability improved sequentially from the December quarter.

The company’s costs, however, kept climbing like a theme park drop tower.

Employee benefit expenses rose to Rs 50.37 crore during FY26 from Rs 46.02 crore last year, while advertisement, sales and marketing spends increased to Rs 31.56 crore from Rs 30.02 crore. Other expenses surged to Rs 126.38 crore compared to Rs 117.31 crore in FY25.

Finance costs also jumped significantly to Rs 18.28 crore from Rs 10.53 crore, reflecting the burden of borrowings and expansion-linked liabilities.

Depreciation and amortisation expenses remained high at Rs 89.26 crore, underlining the capital-intensive nature of the amusement park business where rides, infrastructure and hospitality assets require constant upkeep.

Even so, the company continued strengthening its balance sheet.

Total equity rose to Rs 1,329.19 crore as of March 31, 2026, compared to Rs 1,308.53 crore a year earlier. Total borrowings reduced notably, with non-current borrowings dropping to Rs 210.11 crore from Rs 301.99 crore in FY25.

Cash and cash equivalents, however, narrowed sharply to Rs 13.37 crore from Rs 37.01 crore, as the company continued investing aggressively in infrastructure, subsidiaries and operational expansion.

Its investing activities consumed Rs 227.61 crore during FY26, including a Rs 300 crore payment towards acquisitions through business combinations and additional investments in subsidiaries.

Operationally, the parks business still generated healthy cash flow. Net cash generated from operating activities stood at Rs 121.39 crore during FY26, although lower than the Rs 141.24 crore reported a year ago.

The entertainment company has spent the past few years repositioning itself beyond just rides and water parks, increasingly leaning into destination entertainment, hospitality and experiential tourism. But as consumers tighten discretionary spending and operating costs rise, profitability is becoming a trickier balancing act.

For Imagicaaworld, FY26 proved that while India’s appetite for experiences remains strong, keeping the financial rollercoaster smooth is a challenge of its own.