Summary
Wonderla Holidays Limited - Q3 FY2026 Earnings Call Summary Thursday, February 05, 2026, 2:00 PM IST
Event Participants
Executives 3 Arun Chittilappilly (MD), Dheeran Choudhary (COO), Saji Louiz (CFO)
Analysts 12 Abhishek, Angad Katdare, Ankit Shah, Athar Syed, Girish, Gunit Singh, Himanshu Upadhyay, Jatinmoy Karmakar, Karan Khanna, Navin, Nikhil Upadhyay, Shamit Ashar, Vinay Nadkarni, Vinod Krishna
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹134.5 crores | +11% YoY; driven by the launch of Chennai park and steady performance in Bangalore. |
| Total Income | ₹141.5 crores | +12% YoY; highest-ever Q3 revenue for the company. |
| Footfall | 9.17 lakhs | Flat YoY; Kochi and Hyderabad impacted by weather/environmental issues; Chennai added 75k in its first month. |
| ARPU | ₹1,377 | +8% YoY; driven by improved monetization and higher visitor spending. |
| EBITDA | ₹32.17 crores | -13% YoY; impacted by ₹5.5 cr Chennai launch costs and ₹8 cr new wage code provision. |
| EBITDA Margin | 23.9% | -700 bps YoY; lower due to absorption of one-time launch and regulatory costs. |
| Profit After Tax (PAT) | ₹14.5 crores | -29% YoY; affected by higher depreciation from new units and one-time exceptional items. |
| Resort Revenue | ₹14.2 crores (est) | +71% YoY; occupancy improved to 68% from 51% in the previous year. |
Geographic & Segment Commentary
- Chennai Park: Launched in Dec 2025 with an investment of ₹611 crores. Despite ₹5.5 crores in launch expenses and weather alerts, it recorded 75,000 footfalls and ₹12 crores revenue in its first 30 days, achieving a positive EBITDA of ₹1.3 crores. Management expects it to reach Bangalore-level potential (1 million+ footfalls) within 3-4 years.
- Bangalore Park: Witnessed 3% footfall growth YoY during the quarter. The park serves as a mature anchor, marking 20 years of operations with continued investment in a new ₹15-20 crore roller coaster ride expected by April 2026.
- Cochi & Hyderabad Parks: Kochi footfalls were impacted by waterborne amoeba cases in Kerala and government school trip restrictions. Hyderabad saw an ATP (Average Ticket Price) dip due to a high mix of discounted school group bookings, though 9-month trends remain positive.
- Bhubaneswar Park: Still in the ramp-up phase and yet to reach operational breakeven. Management noted it is a market-building exercise in a Tier-2 city where the category is not yet salient.
Company-Specific & Strategic Commentary
- Expansion Strategy: Management aims to be a pan-India player with a goal of reaching 6-7 parks in 5-8 years. While no new parks were announced this quarter, conversations are active with Maharashtra (Mumbai) and Goa governments.
- Asset Monetization & ARPUs: Focus is shifting toward “premiumizing” the experience to drive ARPU growth, as mature parks face capacity constraints during peak seasons.
- Resort Diversification: Launched ‘Isle’ (luxury format) in Bangalore 7 months ago; total Bangalore keys now stand at 123. Evaluation for resorts in Hyderabad and Kochi is underway to extend the guest stay and premiumize the brand.
- Tax Incentives: Secured a 10-year exemption from local body taxes for the new Chennai Park, significantly aiding long-term margins.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Footfall Growth | 2% - 3% Target | Expected for mature parks; higher growth anticipated from new locations like Chennai. |
| Chennai Breakeven | FY 2027 | Historically, parks breakeven in Year 1 at ₹50-60 crores revenue with initial 20-25% EBITDA margins. |
| New Ride Launch | Q1 FY 2027 | ₹15-20 crore new attraction in Bangalore to be operational by April 2026. |
| Long-term Margins | 40% - 45% Range | Mature parks expected to return to historical EBITDA levels once one-time launch costs stabilize. |
Risks & Constraints
| Risk | Context |
|---|---|
| Environmental & Health | Kochi performance was materially impacted by news of waterborne disease, leading to state-mandated school trip cancellations. |
| Regulatory (Wage Code) | Adoption of the new labor code resulted in a one-time ₹8 crore exceptional hit to the P&L this quarter. |
| Execution Delays | Land acquisition remains the primary bottleneck for new park announcements, as seen with the 21-month timeline for Chennai. |
| Weather Sensitivity | Heavy rains and cyclones in South India directly impact footfalls in Q2 and Q3, as parks are primarily outdoor venues. |
Q&A Highlights
Chennai Economics
- Question: What is the peak potential and breakeven for Chennai? (Gunit Singh)
- Answer: Total investment was ₹611 crores. Long-term “North Star” is Bangalore’s revenue levels. Breakeven is targeted at ₹50-60 crores annual revenue (Saji Louiz & Dheeran Choudhary).
Footfall Stagnation
- Question: Why has footfall remained flat at 1 million for mature parks? (Vinod Krishna)
- Answer: Peak seasons face capacity constraints where we must “leave demand on the table” to preserve guest experience. Focus is shifting to driving revenue via ARPU and premiumization rather than just volume (Dheeran Choudhary).
New Projects
- Question: When will the next park be announced? (Ankit Shah)
- Answer: We are in discussions with multiple states including Maharashtra and Goa. Timelines are unpredictable due to government approvals and land acquisition, but we expect to announce/start 1-2 more in the next 2-3 years (Arun Chittilappilly).
Negative Publicity
- Question: How did you handle the news of ride issues in Chennai? (Nikhil Upadhyay)
- Answer: Issues were due to power fluctuations, not safety. Being transparent with customers allowed us to maintain 75,000 footfalls in the first month despite the news (Dheeran Choudhary).
Key Takeaway
Wonderla Holidays reported a resilient Q3 FY26, characterized by the successful launch of its Chennai park, which contributed ₹12 crores in its first month and achieved immediate EBITDA positivity. Total income grew 12% YoY to ₹141.5 crores, though PAT was pressured by a ₹8 crore one-time labor code provision and ₹5.5 crores in launch expenses. While footfalls remained flat at 9.17 lakhs due to environmental headwinds in Kochi and heavy rains in Hyderabad, ARPU expanded by 8% to ₹1,377, signaling a successful shift toward monetization and premiumization. The resort segment showed significant momentum with 71% revenue growth. Looking ahead, management enters FY27 with a focus on scaling Chennai to 1 million footfalls over 4 years and pursuing new land acquisitions in Mumbai and Goa. However, investors should monitor the impact of seasonal weather patterns and the gestation period of the Bhubaneswar park, which is yet to reach operational breakeven.
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