Imagicaaworld Entertainment Ltd Management Discussions

Global Economic Overview

The global economy faces renewed uncertainty, with the outbreak of conflict in the Middle East in February 2026 posing a significant risk to macroeconomic stability. This development threatens to disrupt the fragile balance achieved over the past year, where persistent headwinds from rising trade barriers and elevated geopolitical uncertainty were partially offset by strong tailwinds.

Key supportive factors included robust technology-led investments, particularly in artificial intelligence (Al), accommodative financial conditions aided by a weaker US dollar, and continued fiscal and monetary policy support across major economies. However, the ongoing conflict introduces a substantial counterforce, primarily through its impact on commodity markets, inflation expectations, and tightening financial conditions.

Global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, compared to an estimated 3.4% during 202425, reflecting a gradual loss of momentum amid heightened uncertainty.

Downside risks continue to dominate the outlook. Escalation in geopolitical tensions could potentially trigger a severe energy shock, evolving into one of the most significant crises in modern times. Additionally, rising domestic political pressures across key economies may intersect with shifting trade dynamics, amplifying global fragmentation. Trade disputes remain a persistent concern, particularly around critical supply chains such as rare earth elements, which are increasingly becoming strategic points of contention.

Further risks stem from potential reassessment of Al- driven growth expectations. Any moderation in anticipated returns or increased competitive pressures could dampen investment sentiment and lead to financial market corrections. At the same time, rising fiscal deficits and elevated public debt levels amid already constrained fiscal buffers could exert upward pressure on long-term interest rates, tightening overall financial conditions.

On the positive side, sustained momentum in Al investments could enhance productivity and support long-term growth if adoption translates into tangible efficiency gains and business dynamism. Additionally, renewed progress on

structural reforms and easing trade tensions could provide further support to global economic activity.

GDP Growth Rates

Region	2025	2026*	2027*
United States	2.1%	2.3%	2.1%
Japan	1.2%	0.6%	0.6%
United Kingdom	1.3%	0.8%	1.3%
China	5.0%	4.4%	4.0%
India#	7.6%	6.5%	6.5%
Saudi Arabia	4.5%	3.1%	4.5%

*lMF Projections, 2025 actual, "Financial Year Inflation Outlook

Global inflation is expected to temporarily stall in its disinflationary trajectory, with headline inflation projected to increase from 4.1% in 2025 to 4.4% in 2026, driven largely by commodity price pressures and geopolitical disruptions.

Source - https://www.imf.org/-/media/files/publications/ weo/2026/april/english/text.pdf

Indian Economic Overview

Amid heightened global trade tensions and a challenging external environment in FY26, India continued to stand out as the fastest-growing major economy, with GDP growth accelerating to 7.6%, up from 7.1% in FY25. The resilience of the domestic economy was supported by strong macroeconomic fundamentals, a sustained reform agenda, and stable domestic demand.

Macroeconomic stability remained robust, with the current account deficit contained at 1.0% of GDP and continued fiscal consolidation bringing the general government deficit to 7.4% of GDP. The labor market also remained steady, with improving formal job creation supporting income growth and consumption.

Looking ahead, the outlook for FY27 reflects emerging global headwinds, particularly from the Middle East conflict. Economic growth is projected to moderate to 6.6%, as rising geopolitical uncertainty and higher energy prices weigh on domestic and external demand.

Elevated global oil and gas prices are expected to increase inflationary pressures, with headline inflation projected to rise by approximately 90 basis points relative to a no-conflict scenario. This could moderately temper private consumption growth, even as structural drivers such as rising disposable incomes and urbanization continue to support discretionary spending over the medium term.

Government consumption is expected to remain calibrated, balancing growth priorities with higher subsidy outlays for essential commodities such as cooking gas and fertilizers. Investment growth may also see some moderation in the near term due to elevated uncertainty, while net exports are expected to soften amid shipping disruptions and weaker demand from key trading partners.

Despite these near-term challenges, India remains relatively well-positioned, supported by strong macroeconomic buffers and proactive policy interventions. Importantly, underlying consumption trends particularly in discretionary and experiential segments remain structurally intact, providing a supportive backdrop for sectors linked to leisure and entertainment.

Strategic Priorities and Outlook

The evolving global environment underscores the importance of:

• Energy diversification, including accelerated transition to renewable sources

• Prudent fiscal management, maintaining a credible consolidation trajectory

• Trade diversification, through effective implementation of FTAs and new partnerships

These priorities will be critical in strengthening Indias resilience in an increasingly fragmented global landscape.

Over the medium term, Indias structural strengths including its reform momentum, demographic advantage, and expanding consumption base are expected to sustain growth and provide a stable foundation for demand-led sectors.

Source - https://thedocs.worldbank.org/en/

doc/4262elel5b463ecb360cec4ad78cf062-0310012026/

original/April-2026-lndia-Development-Update.pdf

Entertainment Sector in India

Indias entertainment and leisure sector continues to demonstrate structural growth, supported by rising disposable incomes, rapid urbanization, and an increasing preference for experiential consumption. As one of the fastest-growing segments within the broader media and entertainment landscape, the out-of-home entertainment industry including theme parks, water parks, and destination- based experiences is witnessing a steady expansion in demand.

A key structural shift underpinning this growth is the rising share of discretionary spending in household consumption. With a young demographic profile and increasing exposure to global lifestyle trends, Indian consumers are allocating a larger portion of their spending towards leisure, travel, and entertainment experiences. This trend is further reinforced by improved connectivity, digital penetration, and the growing influence of social media in shaping consumption patterns.

Despite macroeconomic headwinds in FY26, including global uncertainty and inflationary pressures, domestic demand for entertainment remained resilient. Footfall recovery across entertainment destinations continued, supported by pent-up demand and a sustained shift towards organized and high-quality experiences. Tier l and Tier ll cities alike are emerging as key growth markets, driven by rising affluence and infrastructure development.

However, the sector is not entirely insulated from external risks. Elevated inflation particularly driven by higher energy and food prices can moderate discretionary spending in the near term. Additionally, volatility in travel patterns, driven by geopolitical developments or economic uncertainty, may impact footfall in destination-based entertainment formats.

While near-term growth may be influenced by macroeconomic factors, including inflation and global uncertainties, the medium- to long-term outlook for Indias entertainment sector remains robust. The continued evolution of consumer preferences toward experiences over products, coupled with supportive demographics and policy focus on tourism, is expected to sustain growth momentum.

For organized players, the opportunity lies in scaling destination offerings, enhancing customer experience,

and leveraging technology to drive engagement and monetization. As the sector matures, operators with strong brand positioning, diversified offerings, and operational excellence are expected to be well-positioned to capture long-term growth.

Growth of Indoor Amusement Centers in India:

Indias entertainment and leisure landscape is witnessing a structural transformation, driven by rising disposable incomes, rapid urbanization, and a clear shift in consumer preferences toward experiential and out-of-home entertainment. As lifestyles evolve and exposure to global formats increases, consumers particularly younger demographics are allocating a greater share of discretionary spending toward immersive, social, and experience-led activities. Within this context, indoor amusement centres (IACs) have emerged as a compelling and scalable format, offering climate-independent, year-round entertainment within organized retail and urban infrastructure.

The growth of this segment is also being supported by the expansion of malls and mixed-use developments, improved accessibility, and the integration of technology-led attractions that enhance engagement and repeat visitation. Increasingly, indoor amusement centres are positioning themselves not just as entertainment venues, but as holistic family and social destinations, catering to a wide demographic spectrum.

Against this backdrop, Indias indoor amusement industry has expanded significantly in recent years and is currently valued at approximately INR 15,000 crore, according to the report by ANAROCK and IAAPI.

The report highlights a strong shift in consumer behavior, with spending on indoor amusement experiences increasing by 30-40% compared to pre-pandemic levels. This growth is underpinned by higher participation rates, longer dwell times, and the increasing adoption of immersive and technology- enabled entertainment formats. Tier I cities continue to lead in terms of monetization, with 10-15% higher per- customer spending compared to Tier II markets, reflecting stronger purchasing power and deeper engagement levels. Additionally, industry suppliers indicate a 15-20% increase in consumer outlay in recent years, reinforcing the trend toward premiumization within the segment.

From a global perspective, the indoor amusement centre industry was valued at approximately USD 51.3 billion in 2024 and is projected to reach USD 84.0 billion by 2030, growing at a CAGR of around 9%. In comparison, India currently accounts for only ~2% of the global market, highlighting significant headroom for growth as the sector continues to formalize and scale across urban and semi-urban markets.

Pricing dynamics within the industry further reflect its evolving positioning. Nearly 73.6% of operators offer experiences priced between INR 500 and INR 1,499, indicating a clear tilt toward accessible premium entertainment, aligned with Indias evolving consumption patterns.

Childrens Entertainment Centers in India

According to IMARC, Indias childrens entertainment centres market was valued at USD 1.3 billion in 2025 and is projected to reach USD 2.2 billion by 2034, driven by rising demand for indoor recreation, family-oriented leisure, and the growing popularity of themed and edutainment experiences.

Technology-led Experiences Gaining Traction

The rapid adoption of digital technologies such as Virtual Reality (VR) and Augmented Reality (AR) is reshaping the segment. Entertainment centres are increasingly incorporating immersive gaming, interactive simulations, and e-sports zones to enhance engagement. These formats not only provide high-quality entertainment but also offer educational value, making them attractive to both children and parents. As digital exposure increases, demand for tech-enabled, immersive experiences is expected to remain strong,

Shift Towards Themed and Edutainment Formats

There is a clear shift toward theme-based and edutainment- driven offerings, where entertainment is combined with learning and skill development. Centres are integrating activities such as role-play, creative workshops, and interactive storytelling, often built around popular characters and immersive themes. This hybrid "learn + play" model is gaining strong traction among families seeking meaningful engagement for children,

Emergence of Hybrid Indoor-Outdoor Destinations

Hybrid formats combining indoor and outdoor attractions are emerging as a key trend. These integrated destinations offer a mix of VR zones, soft play areas, rides, and open-air experiences, along with food, retail, and celebration spaces. Such formats enhance dwell time, broaden appeal across age groups, and drive repeat visitation, aligning with the growing demand for comprehensive, experience-led family entertainment,

Source - https://www.imarcgroup.com/india-childrens- entertainment-centers-market

Imagicaas Strategic Foray into Indoor Entertainment - Hello Park

In line with these evolving industry dynamics, your company has expanded its footprint into the indoor amusement segment through its foray into Hello Park, a globally recognized indoor entertainment concept. This strategic initiative marks a significant step in diversifying the Companys offerings beyond destination-based outdoor parks into scalable, asset-light, and all-weather formats.

Furthermore, the scalable nature of the Hello Park model, combined with strong brand recall and operational expertise, positions your company to capitalize on the significant growth opportunity of Indias indoor amusement market.

Parks Industry In India

Indias amusement park industry continues to evolve as a structurally important segment within the broader tourism and experiential entertainment ecosystem, supported by rising discretionary spending, favorable demographics, and increasing preference for destination-led leisure. The industry is estimated at approximately USD 640 million (~^5,300 crore) in 2025 and is projected to reach ~USD 1.1-1.2 billion by 2033, implying a steady CAGR of around 7-8%. This growth is further reinforced by the formalization of the sector, increasing investments, and the expansion of organized players across formats.

Source -

https://www.grandviewresearch.com/horizon/outlook/

amusement-parks-market/india?utm

https://iaapi.org/blog/2025/06/14/indias-amusement-

industrv-in-2025-has-grown-mto-a-structured-

highpotential-sector-at-the-heart-of-the-countrys-

entertainment-and-tourism-economv-?utm

A key enabler of this growth is the increasing role of government support, particularly through Public- Private Partnership (PPP) models, which are positioning amusement parks as critical tourism infrastructure assets. Several state governments are actively promoting large- scale entertainment and tourism projects by offering capital subsidies in the range of 15-25%, along with land facilitation, faster regulatory approvals, and infrastructure support under tourism policies. These initiatives are improving project viability, lowering entry barriers for private developers, and accelerating the development of integrated entertainment destinations. The emergence of transit-linked and destination-based developments further strengthens accessibility and enhances the attractiveness of such projects.

The industry continues to be anchored by major metropolitan clusters, which serve as primary demand centers due to higher income levels, population density, and tourism inflows. Regions such as the Mumbai Metropolitan Region and Pune in the West; Bengaluru, Hyderabad, and Chennai in the South; and Delhi NCR in the North account for a significant share of organized amusement infrastructure. These clusters benefit from well-developed connectivity, strong urban consumption, and a high propensity for experiential spending, making them key hubs for both outdoor parks and indoor entertainment formats,

At the same time, a notable structural shift is underway with increasing expansion into Tier II and Tier Ill cities, which are emerging as high-growth markets. Cities such as Indore, Jaipur, Lucknow, Coimbatore, Visakhapatnam, and Bhubaneswar are witnessing rising affluence, rapid urbanization, and improving infrastructure, creating favorable conditions for new developments. Lower land costs often 60-70% below metro levels and relatively limited competition further enhance the attractiveness of these markets. As a result, new capacity additions across both amusement parks and indoor centres are increasingly being directed toward these emerging urban clusters.

The sector is also benefiting from its integration into Indias broader tourism ecosystem, with amusement parks increasingly acting as anchor attractions for regional tourism development. Major destinations across cities such as Mumbai, Bengaluru, Hyderabad, Chennai, Delhi, and Kolkata attract substantial footfall, including a meaningful share of outstation visitors, thereby contributing to local economic activity and hospitality demand. This positioning as destination assets enhances the long-term sustainability and scalability of the sector.

In parallel, the industry is undergoing a transformation in terms of format and offering, with a clear shift toward integrated and technology-enabled entertainment experiences. Developers are increasingly combining theme parks, water parks, indoor amusement centres, retail, and hospitality within unified destinations to enhance visitor engagement and increase dwell time. The adoption of digital technologies, including virtual and augmented reality, is further elevating the consumer experience, driving repeat visitation and higher per capita spending.

Overall, the Indian amusement park industry remains well- positioned for sustained long-term growth. The combination of strong policy support, expansion into new city clusters, rising consumer demand for experiences, and continued innovation in formats is expected to significantly expand the addressable market. As the sector matures, operators with diversified offerings, strategic location presence, and strong execution capabilities are likely to benefit from the ongoing shift toward organized and experience-led entertainment.

COMPANY AND BUSINESS OVERVIEW

Imagicaaworld Entertainment Limited has now successfully created Indias First & Only International Standard Entertainment Holiday Destination "IMAGICAA", which includes a Theme Park, a Water Park, a Snow Park & a Luxury Hotel - Novotel Imagicaa Khopoli.

Below are some of the recent achievements at Imagicaa:

• Guinness World Record - 2022 - Most number of people unboxing simultaneously

• Trip Advisors Travellers Choice Award - 2020

• FICCI Travel & Tourism Excellence Award - 2019

• VFS Global Times Travel Awards 2019 - Winner - Adventure Attraction Sector

• IAAPI National Awards For Excellence 2018-2019 - 5 awards

• Indias Retail Champions Award 2019 - Winner - Entertainment Category

• ET Business Icons February 2019 - Winner - Preferred Themed Entertainment Destination

• Guinness World Records - February 2019 - Most number of faces (258) washed by P& G at Imagicaa

• LIMCA BOOK OF RECORDS - Largest collection and distribution of Toys Drive(2018)

• HICSA Awards 2016 - Best New Hotel of the Year - Novotel Imagicaa Khopoli

• Indias Most Attractive Brands - Entertainment Category - Rank 1 (2015)

• Indias Most Trusted Brands 2015 - Theme Park category

• TripAdvisors Travellers Choice Awards 2015

• OTM Award for Excellence - Most Promising New Destination Award (2015)

Imagicaa - The destination

Imagicaa is a magical & fun-filled world of its own, offering entertainment, fun, relaxation, dining, shopping and accommodation at a single location. Offering a world class Theme Park, international standard Water Park, Indias largest Snow Park, & first theme park hotel - the luxurious Novotel Imagicaa, Imagicaa is Indias favourite family holiday destination. The company to add novelty factor and repetitive footfalls had added House of Stars museum which will showcase interactive life-size figurines of leading Bollywood personalities; also added Eyelusion, which is based on illusion of the still picture and making customer as part to enjoy it.

Imagicaa is located off the Mumbai- Pune expressway at Khopoli; approximately a 90 minute drive from Mumbai &

Pune. Due to its proximity, Imagicaa is easily reachable from anywhere in India via air, rail or road. Imagicaa also offers bus and car packages with pick up options from Mumbai and Pune. Spread over 130 acres, this all weather family entertainment destination provides interesting experiences to all its guests, 365 days a year.

Wetn Joy - Lonavala - Water & Amusement parks

WetnJoy Lonavala, located in the lush Western Ghats, on 47 acres of land, with the amusement park located on 33 acres and the water park located on 14 acres. The water park has 25+ international rides, including Indias largest wave pool at 60,000 square feet, 6 restaurants and other merchandise and F&B attractions. The amusement park comprises of 29+ rides and attractions.

Shirdi Parks - Wetn Joy and Sai Teerth

The WetnJoy water park is conveniently located near the famous Sai Baba Temple at Shirdi and adjacent to the water park is Sai Teerth. More than 70,000 pilgrims come to Shirdi every day to visit the Sai Baba temple. Recently, the Vande Bharat Express has also scheduled a halt at Shirdi railway station, making the location more accessible by public transport. Distance from major cities like Mumbai is approximately 240-250 km, Pune approximately 180190 km and Nashik approximately 85-90 km. The WetnJoy water park at Shirdi is constructed on 8.5 acres of land, with 25 water based attractions and other allied facilities and is a popular landmark in the town. Sai Teerth is Indias first devotional theme park which offers guests a blend of faith, innovation, technology and entertainment. With 6+ marquee attractions and experiences, it is fast becoming a must-visit place for visitors to Shirdi.

Aqua Imagicaa - Surat

Aqua Imagicaa Water Park - Surat is located in the city municipal limits and is around a 10-minute drive from the Surat Railway Station and about 30 minutes from the Surat Airport. Aqua Imagicaa is constructed on 4 acres of land, with the entire land currently being occupied for water based attractions & other allied facilities. The Park has a total of 17 attractions, with 16 imported rides and attractions.

Aqua Imagicaa - Indore

Aqua Imagicaa Water Park Indore - is located just 20 mins from two major cities Ujjain and Indore and marks the beginning of the Company presence in Central India. Spread over 18 acres, the park offers 20 rides covering thrilling,

family-friendly destination featuring an array of water slides, attractions and unique experiences designed to delight guests of all ages.

Business Review

After COVID, past year was the first year full operational as compare to previous years The summary of performance for the Company for the year ended March 31, 2026 is as follows:

Average Realization and Operating Costs

Average realisation per visitor (weighted average for Theme Park & Water Park put together) for FY 2025-26 was 1,259/- as compared to 1,267/-s for FY 2024-25. The break-up of the realisation is as follows:

The outstanding bank loan as on March 31, 2026 is 329.12 Crore having an average rate of interest is 8.26% p.a.

Till date nearly 21.27 million people have visited our parks across our brands. While these numbers and guest feedbacks give us a good idea of their expectation and appreciation of the product, we have a long way to go in making this project every Indians must-visit holiday destination.

Novotel Imagicaa Khopoli comprises of 287 rooms, which is the highest room inventory of a hotel near Greater Mumbai. The hotel has been consistently receiving excellent reviews and feedbacks. Novotel Imagicaa in a short period of operations has been able to firmly establish its niche in the leisure and social segments and has firmly established Imagicaas position as complete family holiday destination.

KEY STRENGTHS OF THE COMPANY

The Companys primary competitive strengths are set out below:

• The Company is uniquely positioned to capitalise on the increasing propensity of Indians to spend on entertainment

Favourable macroeconomic and demographic factors such as economic growth, rising disposable income, a growing young population, an expanding middle class and rapid urbanisation have resulted in the Indian population spending more on entertainment. With the rise in education levels and exposure to international trends, Indian consumers are willing to pay a premium for quality entertainment.

Imagicaa is the only One Stop Entertainment Destination in India, designed to provide a wholesome and value for money entertainment option for guests. The Company offers entertainment options for all age groups through a variety of rides and attractions, which the Company believes are comparable to and provide the international standards of experience that leading theme parks and water parks offer globally. Companys offerings are also customised to Indian tastes. This positions Imagicaa to capitalise on the increasing number of Indian customers spending on good quality entertainment.

• The Company is strategically located in an attractive catchment area

Imagicaa is located off the Mumbai - Pune Expressway. Currently, it attracts guests from Mumbai, Pune and the rest of Maharashtra and Gujarat, which are some of the more economically developed areas in India. Mumbai is well connected to other large cities in India by air, road and rail with multiple flight options in a day. Further, Imagicaa is located in a region that experiences suitable weather throughout the year for spending a day outdoors. In addition, the majority of the rides, attractions and queuing areas in the parks are covered to avoid any inconvenience during the monsoon season.

• Rides and Attractions of International Quality Standards which are customised to Indian tastes and preferences

Imagicaa is attractively themed and aims to deliver high- quality entertainment, aesthetic appeal, shopping and dining options.

The Parks have been designed by internationally acclaimed design consultants. The rides and attractions for the theme park have been designed by and sourced from global industry leaders such as Bolliger & Mabillard Inc., Zamperla Asia Pacific Inc., Sally Industries Inc., E2M Technologies B.V. and Santee Fabricators (India) Private Limited, which is a part of the Sanderson Group. The water slides and equipment in the water park have been sourced from global industry leaders such as Whitewater West Industries Limited, Neptune Benson (Defender Water Filtration Systems) and Polin Dis Tie. Ltd. Sti. The Company also follows high levels of park security and safety standards to offer a safe and injury free environment for its guests to enjoy the parks.

• Competitive advantage through entry barriers

The Company has the opportunity to leverage the first-mover advantage through Imagicaa. There are significant barriers to entry in the business of theme and water parks in India and it is difficult to replicate a project of similar scale and size in India. Among the most important of these barriers is the need for significant capital expenditure to set up theme and water parks, the difficulty to identify and purchase large and suitable parcels of land on commercially viable terms and the long lead-time from the conceptualisation to the launch of rides and attractions. The Company believes that its location off the Mumbai - Pune Expressway, the large parcel of land owned by the Company, the rides and attractions of international quality and standards and the qualified management and operations team provide the Company with a significant competitive advantage over any new park. Further with the consolidation of park business owned by the group under single umbrella, will help to optimise the sales and reduce the cost and increase the profitability of the company.

• A well-positioned brand and marketing focus

In the short operational history, the Company has been able to establish strong brand recognition in Mumbai, Pune and the rest of Maharashtra and Gujarat markets.

The Company believes that it has been able to achieve this through a combination of factors:

• Delivering superior visitor experiences in the parks through the diverse offerings of rides and attractions and other entertainment options and thus, developing a brand recall through word of mouth publicity;

• The Company has also actively focused on attracting school groups as the Company believes that school children who visit the parks act as the Companys brand ambassadors and have the potential of bringing the entire family back on another visit;

• Dynamic and attractive pricing strategy to coincide with various events, festivals, seasons and holidays throughout the year;

• Existing well-established position of the Imagicaa brand in the media and entertainment industry; and

• Engaging with various target groups through focused marketing, consisting of regular electronic, print and digital media campaigns and direct sales efforts.

• New Promoters supported by proven and experienced management team

• Malpani Group is well diversified business house active in Renewable energy, FMCG products, Amusement and Water Park, Real estate, Hotels etc. In the Parks business, the group has experience of more than 18 years in park operations as well as project expertise.

• Companys senior management team includes experienced media and entertainment, marketing and consumer businesses executives, with an average tenure of more than 15 years in such industries.

• The promoter is well settled in the field of Park operations and with the experience they hold; merging of park undertaking operated by various other group Companies or concerns and consolidating the same under single roof will boost the income/ sales and reduce the cost towards common expenditure and will have muscle to expand it foot prints to various other states nationally and internationally.

FINANCIAL RATIOS

The Debtor turnover ratio stood at 46.8 times the average debtors in FY26 from 59.5 times in FY25, this was due to drop in the revenue for FY26. The Inventory turnover ratio was at 18.8 times the average inventory in FY26, compared to 22.8 times the average inventory in FY25. The Interest Coverage ratio for FY26 was 6.4 times, this was at 17.2 times in FY25. The current ratio of the company was at 0.51 times in FY26.

The Operating Profit Margin of the company has dropped from 23.3% in FY25 to 7.5% in FY26 and the Net Profit Margin dropped too from 18.4% in FY25 to 0.2% in FY26, mainly due to drop in revenue of the company. The Debt Equity ratio was at 0.27 times.

OUTLOOK AND OPPORTUNITIES

Post COVID, the demand for experiential outdoor entertainment has been on the rise. Footfall of all major parks have reached pre-pandemic levels. Demand for theme and water parks is expected to increase in India over the next few years driven by increasing disposable income, favourable demographics, changing consumer preferences, growing affinity towards experiences, and a dearth of limited outdoor entertainment activities in cities. The state governments in the country are starting to realize the potential of amusement parks and are working with industry to implement conducive policies. The industry constantly needs to innovate and introduce fresh themes, experiences, as well as focus on stronger marketing strategies to draw larger audience.

Medium & Long Term Business Strategies

The Company is adopting the following business strategies to grow the business in the future:

• Expand in newer geographies

The company plans to expand its reach and leverage its brand to newer geographies. In line with this philosophy, the Company has already ventured to a new state - Gujarat and Madhya Pradesh. This year marked the full year operations of Aqua Imagicaa, Water Park, in the city of Indore. Madhya Pradesh is one of the faster growing tourism hubs and the Indore-Ujjain belt has been identified as a corridor of tourism as well as overall economic growth.

• Continue to focus on increasing the number of guests hosted at the parks

The Company plans to increase attendance at the parks through the following strategies:

• Increasing awareness of the parks, and Imagicaa brand through effective media and marketing campaigns, aimed at various target groups including families, young kids, college students and young professionals. The Company will also continue to reach out to a greater number of schools and corporates for increasing attendance at its parks;

• Offering a variety of ticket options and disciplined pricing and promotional strategies to coincide with events and holidays throughout the year. The Company also aims to follow a dynamic pricing model which will enable us to adjust admission prices for the parks based on expected demand and attract diverse segments of customer base;

• By periodically introducing new attractions, differentiating experiences and enhancing service offerings, the Company believes that word of mouth is the most important marketing tool for our product and, therefore, the Companys primary business objective is to make the time spent by the guests in its parks as enjoyable as possible. The Company specifically focuses on entrance and security procedures, queue management, cleanliness, quick availability of F&B products and retail merchandise to make the guests experiences as comfortable and entertaining as possible; and

• Focusing on sales and marketing initiatives in the secondary catchment areas, such as the print campaign from time to time in major cities like Delhi NCR, Bangalore, Hyderabad and Jaipur, to attract tourists visiting the Mumbai - Pune region.

• Diversify our Revenue Streams

Sale of admission tickets comprises a significant portion of the Companys total income and going forward the Company intends to increase its non-ticketing revenue through the following strategies:

• Focus on F&B and retail & merchandise operations by targeting the per capita spending of guests. The Company believes that by providing guests additional and enhanced offerings at various price

points, the Company can increase spending in its parks. The Company will continue to innovate in its F&B offerings to cater to the diverse preferences of its guests.

• Monetise the crowd movement in the parks by offering sponsorship opportunities to advertisers for special events, naming rights for the rides and attractions, partnering in destination advertising and assisting in products and brand activations;

• With the hotel, the Company intends to position Imagicaa as a destination for varying customer requirements, including for entertainment, corporate meetings and off-sites and other social events;

• The Company aims to develop an emotional connect with the guests through its brands and characters developed by the Company, which will provide the opportunities to leverage the intellectual property portfolio, and to develop new media and entertainment options and to increase the sale of consumer products, in and outside Imagicaa.

• Increase profitability and achieve cost optimisation

The Company believes that increased attendance at its parks and an increase in the per capita spending will allow the Company to make its business more profitable because of the relatively fixed cost-base and the high operative leverage involved in the business. The Company will continue to focus on F&B and retail and merchandise spending to improve its operating margins. The Company shall continue to offer more dynamic pricing to account for seasonal fluctuations in attendance. The Company also aims to achieve better cost optimisation through economies of scale by measures such as company-wide and centralised procurement and sourcing strategy and integrated marketing campaigns. In addition, the Company aims to benefit from shared services such as security, ticketing, F&B and general administration of the parks.

PARK SECURITY AND SAFETY

The Company was awarded with an ISO certificate for Integrated Management Systems by Bureau of Indian Standards (BIS) for Imagicaa Theme Park. Following is the list of ISO certifications awarded:

• Quality Management System- IS/ISO 9001:2008

• Environmental Management System-IS /ISO 14001:2004

• Occupational Health and Safety Management system - IS 18001:2007

The Company recognises park security and safety as one of its most important focus areas in ensuring the success of the parks. The park security and safety plan is based on three principles: being proactive, the utilisation of an optimum combination of technology and manpower and meeting international standards on security and safety. Some of the key features of the security and safety plan are set out below:

• Security Agency: The Company has engaged one of the leading security solutions providers in India for its security needs and has developed a security plan based on a study of threats and vulnerabilities. The scope of services provided by its security solutions service provider includes the development of, setting up and operating the security infrastructure in the parks, deploying security personnel and carrying out regular training for the employees for security related issues, particularly emergency response situations.

• Identified Perimeters and Zones: Company has divided its parks into various layers with defined perimeters- for effective monitoring and response. The Company has deployed access control measures at the identified entry and exit points to reduce trespassing and monitor crowd movement. The Company has also divided the parks into various zones to facilitate effective emergency response, evacuation and deployment of resources and manpower.

• Command Centre: The Companys command centre has been planned as an integrated set-up, capable of monitoring and controlling the management of the parks and responding to all circumstances which may have an adverse effect on guest experiences. The functions of the command centre include controlling and monitoring all access controls across the parks, including the entry and exit points and for other rides and attractions; coordinate the response to any situation that requires attention; operate the public address system which is designed for effective communication for functions such as crowd management; Companys security infrastructure consists of necessary equipments such as metal detectors, explosive vapour and trace detectors,

radio sets, forced entry resistant door system, panic buttons, hooters and retractable barriers, which have been deployed at vantage points across the parks.

• Safety Procedures: The most important aspect of the safety procedures is regular training and assessment of the ride operators and attendants to prevent accidents or injuries resulting from unsafe acts and conditions. In addition to monitoring for any hazard or unsafe condition, the ride operators carry out inspections at predesignated intervals and report any unsafe condition to the maintenance department for correction. A detailed inspection and monitoring procedure is followed for some of the critical rides and attractions, such as the roller-coasters. The Company has also engaged qualified lifeguards, who are on duty during the operating hours of the water park.

• Fire and Medical Emergency Plan: The Company also has a comprehensive fire and medical emergency response plan. The Company has installed smoke and heat detectors in its offices and indoor attractions and water sprinkler and fire hydrant systems and fire extinguishers across the parks. In addition, there is a team of fire-men stationed in the theme park throughout the operational hours. There is a medical centre in the theme park & water park including a five- bed ward, which is staffed by a team of one doctor and eight nurses to respond to any medical emergency in the theme park up to such time that the guests are moved to the nearby hospitals. There are two ambulances which are deployed in the parks throughout the operational hours.

MAINTENANCE

The Companys maintenance team is responsible for the inspection, upkeep, repairs and testing of the rides and attractions. The Company has appointed a safety officer as a member of each of its parks management team to supervise the maintenance and ride operations teams, and carry out regular audits and surprise inspections.

Every ride and attraction at the parks is inspected regularly, according to daily, weekly, monthly, and annual schedules. The Company has formulated detailed maintenance guidelines and checklists for each of its rides and attractions with the objective of ensuring that the rides and attractions are operating within the manufacturers criteria and that maintenance is conducted according to internal standards,

industry best practice and standards, as well as the ride designer or manufacturers specifications. The Company has installed a networked enterprise software system which is used to plan and track all the maintenance activities. The maintenance system of some of the rides and attractions is also linked over VPN to the respective vendors to ensure effective monitoring, data sharing and resolution of issues, if any. All ride maintenance personnel are trained to perform their duties according to internal training processes, in addition to recognised industry certification programs for maintenance activities. The Companys infrastructure maintenance function comprises upkeep, repair, preventive maintenance and improvement of the parks infrastructure.

The Company obtains safety certifications from its vendors certifying that the rides and attractions installed at the parks have been designed and manufactured in accordance with international standards such as the American Society for Testing and Materials, or the ASTM standard, the European, or the EN standard or the Deutsches Institut fur Normung e.V., or the DIN standard. Company has also engaged TUV SUD South Asia Pvt. Ltd., a leading global technical services organisation to carry out inspection, testing and installations certifications for the rides and attractions. Company also periodically engage the services of third-party maintenance audit agencies to inspect the maintenance procedures.

RISKS

• The business is seasonal in nature, and may be affected by weather conditions, school vacations, public holidays and weekends.

The theme and water park industry is seasonal in nature. The parks could experience volatility in attendance as a result of school vacations, public holidays, weekends and adverse weather conditions such as excessive heat and monsoons. It is believed that attendance at the theme and water park and revenues from F&B and retail and merchandise operations is, and will continue to be, higher during school vacations, public holidays and weekends. In addition, the water park is expected to generate higher revenues in the summer months. Conversely, the Company may face a reduction in revenues during the monsoon months. Further, unfavourable weather conditions such as forecasts of excessive rainfalls or heat may reduce the attendance at the parks.

• Companys business and results of operations could be adversely affected by changes in public and consumer tastes or a decline in discretionary consumer spending, consumer confidence and general economic conditions.

The success of the parks depends substantially on consumer tastes and preferences that can change in often unpredictable ways. The Company must adapt to these changes to meet consumer tastes and preferences. The Company carries out research and analysis before opening new rides and attractions and often invest substantial time and resources to gauge the extent to which these new rides and attractions will earn consumer acceptance. Further, the success depends to a significant extent on discretionary consumer spending, which is heavily influenced by general economic conditions and the availability of disposable income. Actual or perceived difficult economic conditions and inflationary periods may adversely impact park attendance figures, the frequency with which guests choose to visit the parks and guest spending patterns at the parks. Both attendance and total per capita spending at the parks are key drivers of its revenue and profitability, and reductions in either can adversely affect the business and results of operations.

• Incidents or adverse publicity concerning the parks or the theme or the water park industry generally could harm Companys brands or reputation as well as negatively impact the business.

The Companys brands and reputation are among the most important assets. The ability to attract and retain guests depends, in part, upon the external perceptions of the parks, the quality of the parks and services and performance of the operations team. The operation of the parks involves the risk of accidents, contagious, airborne or waterborne diseases and other incidents that may negatively affect guest satisfaction and the perception of the guests in relation to safety, health and security of the parks, which could negatively impact the brands and reputation and the business and results of operations.

• Impact of Epidemics and Pandemics

The Theme and Amusement park industry has been impacted by the recent pandemic of COVID-19. This is a new risk which has been faced by the industry. The theme park industry operates in a highly crowded environment where physical distancing may be difficult

to maintain. The regulators have been targeting this industry for various restrictions, being categorised as a "non-essential" service.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has internal controls commensurate with its size. It has also adopted standard operating procedures, policies and process guidelines. These guidelines are well documented with clearly defined authority limits corresponding with the level of responsibility for each functional area. They are designed to ensure that transactions are conducted and authorised within their framework. Further, the Companys reporting guidelines ensure that transactions are recorded and reported in conformity with generally accepted accounting principles. These guidelines are regularly reviewed and updated to meet the expectations of the current business environment. The Companys Code of Business Conduct lays down ethical standards expected from each of its personnels and business associates in their day to- day actions. The Companys robust internal audit programme which works to conduct a risk-based audit not only tests the adherence to laid down policies and procedures but also suggests improvements in the current processes and systems. The audit program is agreed upon with the Audit Committee. Internal Audit observations and recommendations are reported to the Audit Committee, which monitors the implementation of such recommendations. Company had appointed M/s Kirtane & Pandit LLP as the internal auditor during the financial year 2025-26.

SIGNIFICANT DEVELOPMENT IN HUMAN RESOURCES

People are one of the key and critical success factors for the Company. The Theme Park and Amusement Park industry in India is in the nascent stages. As such to find skilled manpower having experience of the industry is challenging. The company has developed a very strong on-job training and development program, which cuts across the junior team members as well as the middle management layer. The senior technical & engineering team has been trained under supervision of global experts of theme park industry. The Company engaged these experts during the development and initial operations of the Park.

Being located in the outskirts of Mumbai and Pune, the Company needs to ensure that the employees are motivated enough to travel the distance for work. The Company provides employee friendly transport and local stay facilities for the same. Employee satisfaction is a top priority, and

the Company ensures that all its employees enjoy a safe, healthy and progressive work environment at all its offices. The Companys Human Resource team works cohesively with the employees to help them in their personal as well as professional development. The Company has a well- defined Code of Conduct that guides all employees in their interaction with the various stakeholders of the Company. The Company has a unique work-culture based on team building and bonding through cross-job training.

As of March 31, 2026, the total number of permanent employees on the rolls of the Company were 738.

CAUTIONARY STATEMENT

This document contains statements about expected future

events, financial and operating results of Imagicaaworld Entertainment Limited, which are forward looking. By their nature, forward- looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis section.