Wonderla Chennai Park Opens; Q3 Profit Dips 29% Amid Launch Costs

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AuthorAbhay Singh|Published at:
Wonderla Chennai Park Opens; Q3 Profit Dips 29% Amid Launch Costs
Overview

Wonderla Holidays has launched its largest amusement park in Chennai, a ₹611 crore project. In Q3 FY26, revenue climbed 12% YoY to ₹141.5 crore, driven by higher ARPU. However, reported EBITDA fell 13% YoY to ₹32.17 crore and PAT declined 29% YoY to ₹14.5 crore. This was due to ₹8 crore in exceptional costs from new labour codes, ₹6 crore increased depreciation, and ₹5.5 crore in one-time launch expenses for the Chennai park.

📉 The Financial Deep Dive

The Numbers:

Wonderla Holidays Limited announced its Q3 and 9MFY26 results, marked by the significant launch of its Chennai amusement park. For the third quarter ended December 31, 2025:

  • Revenue reached ₹141.5 crore, a robust 12% year-on-year (YoY) increase. This growth was fueled by footfalls of 9.17 lakh and an 8% YoY rise in Average Revenue Per User (ARPU) to ₹1,377.
  • EBITDA before exceptional items grew 8% YoY to ₹40 crore.
  • However, reported EBITDA declined 13% YoY to ₹32.17 crore, with EBITDA margins compressing to 23%.
  • Profit After Tax (PAT) saw a sharp 29% YoY decrease, falling to ₹14.5 crore.

For the first nine months of FY26 (9MFY26):

  • Revenue increased 6% YoY to ₹382.9 crore.
  • EBITDA declined 9% YoY to ₹116.3 crore, with margins at 28%.
  • PAT dropped 34% YoY to ₹65.3 crore.

Footfalls for Q3FY26 were largely in line with the previous period at 9.17 lakh, though 9MFY26 footfalls saw a marginal 1% decline to 23.4 lakh.

The Quality:

The sharp drop in reported PAT was primarily attributed to several factors:

  • An exceptional item of ₹8 crore due to the adoption of new labour code regulations.
  • Increased depreciation of ₹6 crore arising from new projects, including the Chennai park.
  • One-time launch expenses of ₹5.5 crore associated with the Chennai park's inauguration.

Despite these costs, the newly launched Chennai park, built with an investment of ₹611 crore over 21 months, managed a positive EBITDA contribution of ₹1.3 crore in its inaugural quarter. The company's resort business also demonstrated strong growth, with revenues up 71% YoY and occupancy at 68%.

Risks & Outlook:

Management expressed confidence in long-term growth, driven by ARPU expansion, technological efficiencies, and a focus on guest experience. The pan-India expansion strategy is a key growth driver, with the company evaluating locations like Visakhapatnam and Goa. [cite: text provided] Larger park projects will, however, require more time. [cite: text provided]

Immediate focus includes investments in existing parks, such as a new ride planned for the Bangalore Park (₹15-20 crore investment). [cite: text provided] Key risks include the successful execution and market adoption of new parks, potential ongoing impacts from regulatory changes, and managing increased depreciation costs. While parks remain the priority, the success of the resort segment suggests potential for future integration in new locations like Hyderabad or Cochin.

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