Imagicaaworld Entertainment pushes beyond theme parks with Hello Park tie-up and Gujarat waterpark expansion

Imagicaaworld Entertainment Limited (BSE: 539056; NSE: IMAGICAA) has taken decisive steps in its strategic diversification journey, announcing a dual-pronged expansion into indoor family entertainment and large-scale destination infrastructure. For the second quarter and half-year ended September 30, 2025, the Indian amusement park operator reported modest revenue growth, resilient average revenue per user, and a sharp uptick in hotel segment occupancy, even as heavy rainfall during the monsoon months weighed on footfalls.

The period was marked not just by operational performance but by a slate of future-facing decisions, including a landmark partnership with international phygital play chain Hello Park, the acquisition of land ownership rights near Ahmedabad for its upcoming flagship waterpark, and a green light for construction activity at its Sabarmati Riverfront project. These moves reflect a broader shift toward format diversity and asset-light scalability, positioning Imagicaaworld Entertainment Limited as a more integrated player across the Indian leisure and tourism landscape.

How did Imagicaaworld Entertainment Limited perform financially in the second quarter of FY26?

For the quarter ending September 30, 2025, Imagicaaworld Entertainment Limited posted consolidated revenue of ₹41.8 crore, representing a 4.6 percent increase compared to ₹40 crore in the corresponding quarter of the previous year. Although this growth appears modest, it came despite a prolonged spell of heavy rainfall beginning in mid-May, which significantly impacted visitor traffic across outdoor theme park assets.

Footfalls for the quarter reached 2.25 lakh, a decline that was partially offset by a sharp rise in per capita spending. Average revenue per user (ARPU) climbed 13 percent year-on-year, increasing from ₹1,153 in Q2 FY25 to ₹1,299 in Q2 FY26. This growth was attributed to the company’s continued emphasis on boosting non-ticketing income, particularly through high-margin categories such as food and beverage, branded merchandise, and immersive guest experiences.

The hotel business within the company’s portfolio also recorded a healthy uptick, with revenues growing 17 percent to reach ₹13 crore for the quarter. Occupancy rates rose to 65 percent from 57 percent in the same quarter of the previous year, aided by bundled stay-and-play packages and targeted digital campaigns.

While institutional investors and analysts had expected weather-related headwinds to dampen quarterly performance, the underlying monetization trends and segmental diversification offered reassurance that Imagicaaworld Entertainment Limited was adapting to macro disruptions with operational discipline. The focus on experiential revenue streams and asset productivity has continued to strengthen analyst sentiment ahead of a seasonally stronger H2.

Why is the Hello Park collaboration a turning point in Imagicaaworld’s indoor entertainment strategy?

One of the most significant announcements of the quarter was the company’s entry into the fast-growing indoor family entertainment segment through a strategic partnership with Hello Park, the world’s largest chain of immersive phygital play parks for children. Under the agreement, Hello Park will be brought to India by Imagicaa Next, a wholly owned subsidiary of Imagicaaworld Entertainment Limited, which has secured exclusive national rights to operate the brand.

The partnership is intended to bring world-class, interactive edutainment formats to Indian cities, especially in Tier I and Tier II markets where retail footfall is rebounding and consumer interest in safe, climate-controlled leisure options is rising. Hello Park’s concept blends physical play structures with digital projection mapping, sensor technology, and animated storytelling, creating a “phygital” space that appeals to both children and parents.

Imagicaaworld Entertainment Limited views this segment as highly underpenetrated in India and believes that the Hello Park model aligns well with its broader strategy of building scalable, asset-light formats that complement its destination park assets. The new venture will allow the company to expand its consumer footprint beyond the outskirts of cities into high-traffic urban retail environments such as malls and multiplex zones.

According to Managing Director Jai Malpani, this expansion represents more than just a product addition. It signifies a diversification of revenue streams and a move toward creating a multi-format entertainment ecosystem that supports both repeat visitation and annuity-style income.

What is the strategic importance of the Ahmedabad land acquisition and Sabarmati clearance?

In another major development during the quarter, Imagicaaworld Entertainment Limited received shareholder and board approvals for the acquisition of 100 percent equity in Malpani Parks Ahmedabad Private Limited. This ₹75 crore transaction gives the company complete ownership of strategically located land earmarked for building what it projects will be India’s largest waterpark near Ahmedabad.

Securing land ownership is a significant milestone in reducing long-term development risk, especially for capital-intensive destination assets. With Ahmedabad emerging as a high-growth urban cluster supported by rising disposable incomes, improved road and rail infrastructure, and a proactive tourism policy from the state of Gujarat, the company sees this market as critical to its expansion roadmap.

In parallel, Imagicaaworld Entertainment Limited also obtained environmental clearance for its planned entertainment destination at the Sabarmati Riverfront. The project can now move into the implementation phase, with early-stage construction and planning activity expected to accelerate in the coming quarters.

These two initiatives reflect a deepening of the company’s Gujarat strategy. While the Hello Park partnership allows the company to access in-city audiences through smaller, modular units, the Ahmedabad and Sabarmati projects are aimed at building regional magnets that attract large visitor volumes from across western and central India.

How is the market responding to Imagicaaworld Entertainment Limited’s diversification narrative?

The equity markets have reacted with cautious optimism to the company’s execution momentum and its shift toward a multi-format entertainment strategy. Although trading volumes in Imagicaaworld Entertainment Limited remain relatively moderate, recent announcements have sparked renewed interest among institutional investors who had previously expressed concern over the company’s capital structure and seasonal revenue volatility.

What is drawing attention now is the company’s ability to reduce concentration risk through format and geography diversification. The asset-light Hello Park rollout, combined with high-potential land banks in Gujarat, creates a balanced risk-return profile. Analysts believe that if the indoor play model proves successful at a pilot level, it could be replicated quickly across metros and large urban centers using a franchise or mall partnership approach.

From a margin perspective, indoor family entertainment centers typically offer better operating leverage and faster payback cycles compared to large-scale outdoor amusement parks. Investors are also watching closely to see whether the hotel segment can continue to act as a stabilizing force and whether new destinations can be monetized more efficiently than legacy properties.

Sentiment around the stock has improved compared to the previous fiscal year, with market observers noting that Imagicaaworld Entertainment Limited is beginning to resemble a diversified consumer entertainment company rather than a single-format theme park operator.

What lies ahead for Imagicaaworld Entertainment Limited in the second half of FY26?

Heading into H2 FY26, Imagicaaworld Entertainment Limited is positioned to benefit from favorable seasonality, especially with the onset of school vacations and year-end travel. Management expects stronger demand recovery across its core properties and better operating metrics driven by bundled offerings and new seasonal events.

Digital engagement levels, advance bookings, and repeat visit indicators are all trending upward, suggesting improving brand affinity. The Hello Park rollout is expected to begin in early 2026, and its initial success or challenges will be a litmus test for the company’s diversification thesis.

In Gujarat, groundwork is expected to begin for both the waterpark and the riverfront development. These projects are likely to be phased over several quarters, but early regulatory clearances and land control remove significant barriers to capital deployment.

In a broader context, Imagicaaworld Entertainment Limited’s current strategy appears aligned with evolving consumer preferences in post-pandemic India: closer-to-home entertainment, experiential over transactional formats, and greater emphasis on safety and personalization. As the company continues to fine-tune its mix of physical, digital, and experiential offerings, it may well become one of the few Indian leisure operators capable of bridging destination tourism and everyday entertainment.

What are the key takeaways from Imagicaaworld Entertainment’s Q2 FY26 results and diversification strategy?

• Imagicaaworld Entertainment Limited reported Q2 FY26 revenue of ₹41.8 crore, up 4.6 percent year-on-year, despite reduced footfalls due to heavy rains.
• Average revenue per user rose 13 percent to ₹1,299, driven by increased non-ticketing revenue from food, beverage, merchandise, and guest experiences.
• The hotel segment saw a 17 percent revenue increase to ₹13 crore, with occupancy climbing to 65 percent from 57 percent in the previous year.
• The company entered the indoor family entertainment space through an exclusive partnership with Hello Park, aiming to launch phygital play centers across India via its subsidiary Imagicaa Next.
• The Hello Park model enables an asset-light expansion strategy, targeting urban locations and mall environments for faster scalability.
• Imagicaaworld acquired full ownership of Malpani Parks Ahmedabad Private Limited for ₹75 crore, securing land to build what it says will be India’s largest waterpark near Ahmedabad.
• Environmental clearance was granted for a major entertainment destination on the Sabarmati Riverfront, allowing project implementation to begin.
• Analysts noted stronger monetization and improved business mix, with institutional sentiment shifting positively on the company’s diversification and execution-led growth.
• The upcoming second half of FY26 is expected to benefit from festive demand, increased footfalls, and early-stage deployment of new projects across both indoor and destination formats.
• Imagicaaworld Entertainment Limited is positioning itself as a multi-format, experience-first entertainment company moving beyond its legacy identity as a theme park operator.