India Ratings and Research (Ind-Ra) has assigned and affirmed the bank loan facility ratings for Imagicaaworld Entertainment Limited. The company’s facilities, totaling INR 4,400 million, have been rated IND A/Stable/IND A1. This action reflects the company’s strong market position, robust performance in FY25, and its strategic expansion plans despite a muted performance during the first quarter of FY26 due to seasonal weather disruptions.
Rating Summary
Imagicaaworld Entertainment Limited has received an updated credit rating from India Ratings and Research. The agency has assigned a rating of IND A/Stable/IND A1 to a new bank loan facility of INR 650 million and affirmed the same rating for its existing facilities of INR 3,750 million. The stable outlook is supported by the company’s diversified portfolio of nine theme parks and resorts, alongside its prudent financial management.
Financial Performance and Operational Highlights
The company demonstrated strong growth in FY25, with consolidated revenue increasing by 52% year-on-year to INR 4,102 million. This growth was driven by a significant rise in footfalls to 2.7 million and the successful integration of newly acquired properties. While performance in the first nine months of FY26 (9MFY26) experienced moderation due to heavy monsoon rains impacting visitor numbers, the company maintained a healthy EBITDA of INR 857 million during this period.
Strategic Expansion and Debt Management
Imagicaaworld continues to expand its footprint with ongoing projects, including a water park in Indore and new entertainment hubs in Ahmedabad. To support these capital-intensive plans, the company has focused on debt reduction, successfully lowering its consolidated debt to INR 1,671 million at the end of FY25. Future capital expenditure, estimated at approximately INR 6,000 million over the next 12-18 months, is expected to be funded through a combination of internal accruals, equity from share warrants, and targeted debt, ensuring the maintenance of comfortable credit metrics.
Future Outlook
The agency expects a recovery in revenue and profitability for the company in FY27. This is predicated on the operational stabilization of the new Indore park, the planned launch of the Ahmedabad facilities, and the expected recovery in footfalls across established parks. The company’s ability to manage its leverage while executing these growth projects remains a key focus for maintaining its current credit standing.
Source: BSE
