Nicco Parks & Resorts Ltd Management Discussions

1. ECONOMIC OVERVIEW

A. GLOBAL OUTLOOK

The global economy continued to demonstrate resilience through 2025 and into 2026, navigating heightened geopolitical tensions, evolving trade policies, and uneven disinflation paths. According to the IMFs World Economic Outlook (April 2026), global growth is projected at 3.1% in 2026 and 3.2% in 2027, somewhat slower than the recent pace of about 3.4% recorded in 2024–25, and below the historical (2000–19) average of 3.7%.¹

Advanced economies remained broadly steady, supported by technology-led investment, accommodative financial conditions, and private sector adaptability. Emerging market and developing economies (EMDEs) continued to drive global momentum, though commodity-importing EMDEs with pre-existing fragilities have been more exposed to recent shocks. Global headline inflation is expected to tick up to 4.4% in 2026 before easing to 3.7% in 2027, reflecting the impact of energy market disruptions linked to ongoing geopolitical conflicts.¹

The medium-term outlook remains conditioned by structural priorities — accelerating AI adoption, green energy transition, infrastructure modernization, and digital transformation — alongside risks from trade fragmentation, fiscal pressures, and potential escalation of geopolitical conflicts.

B. INDIAN OUTLOOK

India continued to be a bright spot in the global economy, with real GDP growth for FY 2024–25 projected at 6.5% (NSO Second Advance Estimates, February 2025), following a high base of 9.2% in the previous year. Growth was underpinned by robust domestic demand, sustained public capital expenditure, and steady momentum across construction, industry, and services. The infrastructure-led growth strategy drove an estimated 8.6% expansion in industry and construction, while services grew by 7.3%, led by financial, real estate, professional services, and trade-related sectors. Agriculture output is estimated to have risen by 4.6%, supported by favourable monsoon conditions.

Private consumption, constituting 56.7% of GDP, grew by 7.6%, while Gross Fixed Capital Formation—at 33.4% of GDP—expanded by 6.1%, reflecting strong public investment and improving private sector sentiment. External trade conditions showed signs of stability, with exports rising 7.1% and imports marginally declining 1.1%.

Inflation moderated, averaging 4.7% in FY 2024–25 compared to 5.4% in the prior year, with core inflation easing to a four-year low of 3.5%. The Reserve Bank of India reduced the policy repo rate twice in early 2025—bringing it to 6.0%—to support liquidity and growth, while maintaining a neutral policy stance. External fundamentals remained sound, with foreign exchange reserves at USD 645 billion (March 7, 2025) and a contained current account deficit of 1.1% of GDP in Q3 FY 2025.

India retained its position as the worlds fifth-largest economy in nominal GDP terms and third-largest in purchasing power parity (PPP), with macroeconomic stability, improving infrastructure, and digital transformation expected to sustain its growth momentum into FY 2025–26.

Indicator	2024	2025E	2026F	2027F
World GDP growth (%)	3.3	3.4	3.1	3.2
Global headline inflation (%)	5.7	4.3	4.4	3.7

Source: IMF, World Economic Outlook, April 2026.¹

B. Indian Outlook

India retained its position as the fastest-growing major economy. According to the First Advance Estimates released by the NSO, Ministry of Statistics and Programme Implementation (January 2026), Indias real GDP is estimated to have grown by 7.4% in FY 2025–26, up from 6.5% in FY 2024–25.² The Second Advance Estimates (February 2026) further reinforced this momentum, with real GDP growth revised upward to 7.6% under the new base year series (2022–23), and nominal GDP growth at 8.6%.³

India Key Macro Indicators — FY 2024–25 vs FY 2025–26

Indicator	FY 2024–25	FY 2025–26
Real GDP growth (%)	6.5	7.4
Private consumption growth (%)	7.6	7.0
Gross Fixed Capital Formation growth (%)	7.1	7.8
Repo rate (% end-period)	6.00	5.25

Sources: NSO/MoSPI First Advance Estimates, January 2026²; RBI Monetary Policy Statement, April 2026.⁴

2. INDUSTRY STRUCTURE & DEVELOPMENT

A. Global Amusement Park Industry

The global amusement park industry continued its growth trajectory in 2025–26, supported by sustained consumer demand for experiential leisure, the rebound in international tourism, and operator investments in immersive technology and IP-led attractions. According to Allied Market Research (February 2026), the global amusement parks market is projected to reach USD 138.7 billion by 2034, growing at a CAGR of 6.8% from the 2025 base.⁵ Mordor Intelligence (January 2026) highlights that theme parks captured 51.92% of revenue share in 2025, with water parks projected to expand at a 7.08% CAGR through 2031.⁶ Asia-Pacific remains the fastest-growing regional market, supported by urbanization, rising middle-class incomes, and large-scale new destination investments. Key Development Themes:

• Technology and immersion: Operators are deploying AI for dynamic pricing, queue and flow optimization, and personalized guest engagement. AR/VR-enhanced experiences and projection mapping are raising throughput and storytelling depth.

• IP-led destinations: Major expansions anchored on globally recognized intellectual property continue to drive premiumization, attendance, and merchandising revenue.

• Sustainability: Electrification of rides and vehicles, solar deployment, water recycling, and waste circularity have become operational imperatives, lowering long-run costs and aligning with stakeholder expectations.

• Revenue mix optimization: Industry benchmarks indicate non-ticket spend now contributes 30–35% of per-capita revenue at scale, through F&B, retail, premium experiences, events, and hospitality tie-ins.

Global Amusement Parks Market — Size & Growth Outlook

Metric	Value
2025 market size (USD bn, estimated)	84–95
2034 projected market size (USD bn)	138.7
Forecast CAGR (2025–2034)	6.8%
Theme parks share of total (2025)	51.92%
Water parks projected CAGR (2025–2031)	7.08%

Sources: Allied Market Research, February 2026⁵ ; Mordor Intelligence, January 2026.⁶

B. Indian Amusement Park Industry

Indias amusement park industry is at an inflection point. According to IAAPI (Indian Association of Amusement Parks & Industries), the Indian amusement industry is projected to nearly double in size to INR 22,000 crore by 2030, with strong tailwinds from rising urban affluence, expanding tourism infrastructure, and evolving consumer preferences for experiential leisure.⁷

A complementary ANAROCK–IAAPI report (March 2026) indicates that Indias indoor amusement market alone has already reached approximately INR 15,000 crore, with experiential spending rising by 40% year-on-year. More than half of all visitors now spend over Rs 1,000 per visit beyond ticket purchases — underscoring the rising importance of ancillary monetization through F&B, merchandise, and premium experiences. ⁸ The indoor amusement segment is independently projected to reach INR 15,600 crore by 2030.⁹

Growth Drivers:

Demographic and consumption tailwinds: Rising disposable incomes, a growing middle class, and a young population are powering demand for modern, family-oriented leisure formats.

Tourism infrastructure & policy support: Government schemes such as Swadesh Darshan 2.0 and improved last-mile connectivity around leisure hubs are catalysing investment.

Digital adoption: UPI-enabled cashless ticketing and in-park spends, dynamic pricing, and CRM-driven loyalty engagement are improving yield and operational efficiency.

Thematic and experiential design: Story-driven, IP-anchored environments are increasingly central to differentiation and repeat visitation.

India Amusement Industry — Size Trajectory (INR crore)

Year	Market Size (INR crore)
2023	11,500
2025E	14,500
2030F	22,000

Source: IAAPI estimates (May 2026).⁷

Indian Visitor Spend Pattern (ANAROCK–IAAPI, 2026)

Spend Bucket	Share of Visitors
Spending Rs 1,000 or more beyond ticket	>50%
Spending below Rs 1,000 beyond ticket	<50%

Source: ANAROCK–IAAPI Report, March 2026.⁸

C. SWOT Analysis — Amusement Park Industry

Strengths	Weaknesses	Opportunities	Threats
Strong domestic tourism base; UPI-enabled cashless ticketing ecosystem; GST stability at 18% on park admissions;	High upfront capital intensi- ty and long gestation; Multi-agency compliance load; Seasonality and weather sensitivity;	Tier-2/3 city expansion and drive-to leisure; Ancillary monetisation through F&B, retail, events, hospitality; School/MICE/edutainment	Climate variability — heatwaves and erratic monsoons affecting outdoor footfalls; Potential changes in tax or regulatory regime;
Favourable demographics; Fxpanding tourism infrastructure.	Dependence on third-party online ticketing platforms.	for weekday traffic; Dynamic pricing and loyalty programmes; Sustainability as a differentiator.	Safety incident risk; Competition from OTT, malls, live events, and gaming for discretionary leisure spend; Input cost and FX volatility on imported equipment.

D. Nicco Parks — Industry Positioning

Nicco Parks remains anchored in strong brand equity in Eastern India, a diversified portfolio spanning water rides, dry rides, and edutainment, and a strategic Salt Lake location with strong urban connectivity. Operational resilience is reinforced by:

• Sustainability infrastructure: Waste recycling systems, solar energy adoption, and structured waste management.

• Digital enablement: Online ticketing, mobile-first guest engagement, and cashless in-park transactions.

• Safety leadership: Daily inspections by certified technicians supported by independent audits from internationally recognized firms.

Strategic priorities for FY 2026–27 include continued investment in climate-resilient attractions and shaded zones, deeper digital and loyalty engagement, expansion of ancillary revenue streams, scaling the B2B consultancy and ride manufacturing business, and progressing the marquee Steel Rollercoaster and Snow Park additions to broaden the Companys demographic appeal and reinforce its position as Eastern Indias leading leisure destination.

Segment-wise Performance (FY 2025–26)

Nicco Parks & Resorts Limited operates through three reportable segments:

(i) Park Operations, (ii) Consultancy, Contracts & Sale of Ride Components, and (iii) Food & Beverages (F&B) & Other Recreational Facilities.

1. Park Operations

Park Operations remain the Companys principal business driver, comprising the Amusement Park, Water Park, and associated ride-based offerings.

• Revenue Performance:

Segment revenue stood at Rs 5,698.65 lakhs during FY 2025–26 as against Rs 6,093.06 lakhs in the previous year, reflecting moderated visitor volumes during the year.

• Operational Trends:

The year witnessed a decline in overall footfall across retail, institutional and group segments. However, the Company demonstrated resilience through improved per-capita realisation, supported by calibrated ticket pricing and enhanced in-park monetisation through rides, games and ancillary services.

• Business Dynamics:

Entry fee revenues remained stable, while revenues from rides and attractions were impacted by lower throughput. Despite this, the Company maintained strong guest engagement through improved experience management and targeted promotional initiatives.

• Assessment:

While volume softness impacted topline performance, the segment continued to demonstrate robust operational fundamentals, with steady realisation metrics and ongoing investments in new attractions and capacity enhancement.

2. Consultancy, Contracts & Sale of Ride Components

This segment comprises technical consultancy, project execution, and supply of amusement ride components.

• Revenue Performance:

Revenue increased to Rs 230.26 lakhs in FY 2025–26 from Rs 218.09 lakhs in FY 2024–25, indicating steady growth and continued traction in project execution.

• Operational Highlights:

The segment benefited from successful completion of projects and continued demand for ride components and technical expertise from both internal and third-party developments.

• Strategic Positioning:

This segment plays a complementary role by leveraging the Companys technical capabilities and intellectual capital, supporting asset expansion and creating additional revenue streams.

• Assessment:

The segment remains stable and strategically relevant, providing diversification and supporting long-term scalability of operations.

3. Food & Beverages (F&B) & Other Recreational Facilities

This segment includes in-park F&B operations, events and banqueting, and revenues from leased or licensed recreational faciliti es.

• Revenue Performance:

Segment revenue stood at Rs 705.76 lakhs in FY 2025–26 compared to Rs 1,190.52 lakhs in FY 2024–25.

• Key Drivers:

The decline was attributable to: o Lower Park footfall impacting consumption-driven revenues, and o Operational transition of certain F&B and recreational facilities pursuant to Government actions during the year.

• Operational Developments:

The Company continued to manage certain facilities on behalf of the relevant authority, recognising management and supervision charges in line with prevailing arrangements, while maintaining continuity of customer services.

• Resilience Indicators:

Despite lower volumes, per-customer spending improved, reflecting effective menu engineering, pricing strategies, and targeted offerings.

• Assessment:

While external factors impacted segment revenue, the business continues to demonstrate inherent strength in customer monetisation and remains integral to the overall visitor experience.

Segment Profitability

Segment Results (before unallocable items): o Park Operations: Rs 792.42 lakhs (PY: Rs 1,473.02 lakhs) o Consultancy & Projects: Rs 33.66 lakhs (PY: Rs 57.64 lakhs) o F&B & Recreation: Rs 346.91 lakhs (PY: Rs 718.17 lakhs)

The overall moderation in segment profitability reflects the impact of lower volumes and operating leverage, partially offset by cost optimisation measures and improved realisation per visitor.

Capital Deployment and Segment Assets

Segment assets as at 31 March 2026 were: o Park Operations: Rs 4,915.43 lakhs o Consultancy: Rs 208.62 lakhs o F&B & Recreation: Rs 292.83 lakhs

Capital expenditure of Rs 1912.25 lakhs during the year was primarily directed toward capacity expansion and new attractions, including the Super Spinning Coaster, Snow Park project and other infrastructure enhancements.

Overall Segment Outlook

During the financial year ended 31 March 2026, the Company experienced a decline in footfalls, with visitor volumes reducing to 7.38 lakhs, reflecting structural pressures arising from evolving consumer preferences, increased competition within the existing catchment, and limited recent product refresh impacting repeat visitation.

Recognising the structural nature of this trend, the Company has undertaken a focused and aggressive turnaround strategy. Marketing initiatives have been significantly strengthened with a clear shift towards digital-first campaigns, enhanced social media engagement, and activation of alternate outreach channels to improve reach and customer conversion. Concurrently, the Company has accelerated its product enhancement pipeline with the launch of the "SKYLOOP" spinning coaster on 8 May 2026, augmenting its high-thrill offerings alongside the iconic "Cyclone" ride. Further, the development of Eastern Indias first all-weather Snow Park, themed on the Northern Lights and targeted for launch in Q3 FY 2026–27, is expected to mitigate seasonality risks and enhance year-round visitation.

The performance during FY 2025–26 reflects a combination of external challenges and transition-related factors. Notwithstanding these, the Company has sustained strong realisation metrics, continued investments in park infrastructure, maintained operational continuity, and strengthened its project capabilities.

Going forward, management remains focused on footfall recovery, enhancement of visitor experience, and optimisation of ancillary revenue streams, while leveraging its diversified business segments to deliver sustainable and long-term growth.

Financial Performance

The financial performance of the Company during FY 2025–26 reflected a phase of operational normalisation and transition, following the post-pandemic high base observed in the previous years.

Revenue & Profitability:

The moderation in revenue was primarily attributable to softer park footfalls during the year, impacting core ticketing income and ancillary consumption streams. However, the decline in profitability remained proportionately lower than the decline in volumes, demonstrating the Companys operational resilience.

Cost Efficiency & Margin Management:

The Company adopted a disciplined approach toward cost optimisation, including: o Rationalisation of operating expenses, o Enhanced utilisation of high-margin attractions and premium offerings, and o Sustainability-led initiatives such as energy optimisation and water recycling.

These measures helped partially offset the impact of revenue moderation and preserve operating margins.

Revenue Mix Evolution:

A diversified revenue mix comprising park operations, food & beverages, recreational facilities, and consultancy services continued to provide stability, reducing dependence on ticketing revenues.

Financial Position:

The Company maintained a strong balance sheet position, supported by: o Healthy internal accruals, o Robust cash flow generation from operations, and o Prudent capital allocation toward expansion and new attractions.

Overall, the financial performance underscores the Companys ability to navigate demand volatility while sustaining profitability and liquidity, thereby creating long-term shareholder value.

Operational Review

During the financial year ended 31 March 2026, the Companys performance reflected a phase of operational moderation, primarily attributable to a decline in visitor volumes and structural disruptions in certain revenue streams. Total income decreased by 11.0% year-on-year to Rs 7,087.97 lakhs, led by reduced footfall, with overall visitors declining by 17.6%, which impacted core revenue streams such as rides, games and ancillary consumption. In addition, revenues from recreational facilities and venue-based activities witnessed a significant contraction of over 67%, reflecting the adverse impact of changes in operational arrangements during the year and highlighting the sensitivity of event-led revenues to such disruptions.

Operational profitability remained under pressure, with profit before exceptional items declining by 49.1%, largely due to lower operating leverage arising from reduced volumes and relatively fixed cost structures. However, the Company demonstrated resilience through improved per capita realisation, which increased by approximately 14.6%, indicating strengthened pricing discipline and enhanced in-park monetisation strategies. Reported profitability remained stable, with profit after tax growing by 5.0% to Rs 1,969.49 lakhs, supported by exceptional gains during the year; however, this improvement is not reflective of the underlying operating performance and underscores the need to restore core earnings momentum.

On the cost front, the Company maintained a disciplined approach to expenditure management, with rationalisation across key heads helping contain the impact of revenue decline, although inherent cost rigidity continues to influence margins during periods of volume contraction. The balance sheet remains strong, with a debt-free position and robust liquidity base exceeding Rs 6,000 lakhs, enabling the Company to continue its strategic investments in capacity expansion and new attractions, including the Snow Park project, which are expected to support medium-term recovery.

Footfall & Visitor Trends:

The Company witnessed a decline in overall footfall across segments, reflecting a normalisation from elevated post-pandemic levels and the impact of weather-related disruptions.

Experience & Product Development:

The Company continued to strengthen its value proposition through: o Introduction of new rides and attractions across water and dry park segments, o Enhancement of thematic offerings and guest engagement initiatives, and o Continuous refresh of existing attractions to maintain relevance.

Per Capita Realisation:

Despite softer volumes, per-capita spending remained resilient, supported by: o Improved digital ticketing platforms, and o Targeted promotional campaigns.

Ancillary Revenue Streams:

Focus on non-ticket revenue streams such as F&B, recreational activities, and events contributed to stabilising revenue, in line with emerging industry trends.

Operational Efficiency:

Continuous improvements in maintenance, safety practices, and resource utilisation ensured efficient operations and sustained service quality.

The Company remains committed to enhancing visitor experience, increasing repeat visitation, and strengthening operational resilience.

Risks, Concerns & Risk Management Framework

The Company operates in a dynamic environment with exposure to operational, financial, regulatory, and reputational risks. A structured enterprise risk management framework is in place, overseen by the Board through the Audit Committee.

Key Risk Categories:

1. Operational Risks

• Weather dependency and seasonality impacting footfalls

• Ride maintenance and operational disruptions

Guest safety and crowd management Mitigation:

Diversified attractions, preventive maintenance systems, and flexible operating models.

2. Safety & Security Risks

• Potential ride malfunction or human error

• Crowd-related security concerns

Mitigation:

Daily inspections by certified technicians

Independent safety checks by global agencies

CCTV surveillance, trained personnel, and structured safety protocols

3. Financial Risks

• Revenue variability due to demand fluctuations

• Cost pressures from utilities, maintenance, and compliance

Mitigation:

Prudent budgeting, operational efficiencies, and diversified revenue streams.

4. Regulatory & Compliance Risks

• Evolving safety, environmental, and operational regulations

Mitigation:

Dedicated compliance monitoring mechanisms and proactive adherence to statutory requirements.

5. Technology & Cyber Risks

• Digital platform vulnerabilities and data security risks

Mitigation:

Investment in secure digital infrastructure and robust data protection measures.

Risk Governance

The Audit Committee provides oversight of risk identification and mitigation.

Periodic reviews ensure alignment with evolving business and regulatory landscape.

Risk management is embedded in operational and strategic decision-making processes.

Internal Control Systems and Their Adequacy

The Company has established a comprehensive internal control framework commensurate with its size and nature of operations.

Key features include:

Robust Control Environment:

Documented policies, procedures, and standard operating practices across all functions.

Compliance Assurance:

Systems designed to ensure adherence to statutory, regulatory, and internal guidelines.

Asset Protection:

Controls to safeguard physical assets, intellectual property, and brand reputation.

Audit Mechanisms: o Internal audit covering all operational areas, o Statutory audit validating financial reporting, and o Independent reviews by external experts.

Governance Oversight:

The Audit Committee regularly reviews internal audit findings, recommends improvements, and ensures timely implementation of corrective actions.

The internal control systems are adequate, effective, and continuously strengthened, ensuring transparency, accountability, and reliability of financial and operational reporting.

Opportunities & Threats

Opportunities

Growth of Domestic Leisure Market:

Rising disposable income and urbanisation continue to expand the addressable market.

Ancillary Revenue Expansion:

Increasing contribution from F&B, retail, events, and premium experiences offers significant monetisation potential.

Digital Transformation:

Adoption of dynamic pricing, CRM, and digital engagement tools enhances revenue realisation and customer retention.

Experience-led Differentiation:

Investment in themed attractions, new rides, and immersive experiences drives repeat visitation.

Consultancy & B2B Opportunities:

Technical expertise provides scalability through project execution and ride components business.

Threats

Climate Variability:

Heatwaves, monsoons, and weather disruptions impacting park attendance.

Rising Operating Costs:

Increase in energy, water, and maintenance expenses.

Competition for Discretionary Spend:

Competition from malls, OTT platforms, gaming, and live entertainment.

Regulatory Changes:

Changes in taxation, safety norms, or environmental regulations.

Safety & Reputational Risks:

Any operational incident could impact brand perception and regulatory scrutiny.

Outlook

The Company remains well-positioned to capitalise on long-term growth opportunities in the Indian leisure and amusement industry.

Key strategic priorities include:

Capacity Expansion & New Attractions:

Planned additions of marquee attractions to enhance visitor experience and broaden demographic appeal.

Climate Resilience Initiatives:

Development of shaded zones and heat-resilient attractions to mitigate weather-related risks.

Digital & Customer Engagement:

Strengthening digital platforms for ticketing, loyalty programmes, and targeted marketing.

Revenue Diversification:

Expansion of F&B, events, and experiential offerings to improve per-capita spend.

Operational Efficiency:

Continued focus on cost optimisation, sustainability initiatives, and process improvements.

Despite near-term challenges, the Companys strong brand equity, diversified business model, and robust governance framework provide confidence in its ability to deliver sustainable growth and long-term value creation.

Human Resource Management

The Human Resources Management function continued to play a critical role in supporting the Companys strategic and operational objectives through structured talent management, employee engagement, and capability enhancement initiatives. The focus remained on strengthening organisational capability, fostering a positive workplace culture, and ensuring alignment with evolving business requirements.

During the year, emphasis was placed on talent development, safety training, technical skill enhancement, and customer service excellence to ensure that employees are well-equipped to meet industry standards and deliver superior guest experiences. Employee wellness initiatives and work-life balance programmes further contributed to sustaining a motivated and productive workforce.

Industrial relations remained peaceful and harmonious throughout the year, with a cordial employer–employee relationship, reinforcing operational stability and continuity.

As on March 31, 2026, the Company had a total workforce strength of 223 employees, including 124 unionised staff on its payroll, reflecting a well-balanced workforce structure across operational and administrative functions.

The Company continues to focus on attracting, developing, and retaining quality talent through structured career progression opportunities and continuous skill upgradation initiatives.

Labour Code Implementation

The Government of India has introduced a comprehensive set of labour reforms through the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, with the objective of consolidating and modernising the existing labour framework.

The Company has taken proactive steps toward aligning its policies and practices with the evolving labour code framework. Certain provisions have already been implemented, while other elements are under phased implementation, ensuring a smooth transition in line with regulatory developments.

In accordance with applicable accounting standards, the Company has recognised the impact of these changes. Specifically, the financial statements reflect the recognition of employee benefit cost adjustments arising from labour code-related changes, including the impact of past service cost as assessed.

The Company continues to closely monitor regulatory developments and clarifications in this regard, and any further adjustments, if required, will be evaluated and implemented in a timely manner. As per managements assessment, such future impacts are not expected to be material.

Overall, the Companys approach to labour code implementation underscores its commitment to responsible governance, employee welfare, and regulatory compliance, while maintaining operational efficiency and workforce stability.

Repossession of Venues by Government of West Bengal

During the financial year ended March 31, 2026, the Department of Tourism, Government of West Bengal, vide Memo No. 1399-DT dated November 08, 2025, repossessed certain parcels of land aggregating approximately 1.46 acres, forming part of the premises earlier utilised by the Company for its F&B and Other Recreational Facilities segment, including the Eastside Pavilion, Royal Courtyard and Westside Pavilion. Consequent to the said repossession, the Companys event and banquet operations from these venues ceased, resulting in a reduction in the operational area available to the Company and impacting the revenue-generating activities carried out from the said premises.

Pending renewal of the lease and formalisation of the operational arrangement, and in the interest of continuity of public operations and customer service, the Company continued to undertake and manage certain operations on behalf of West Bengal Tourism Development Corporation Limited on an interim basis. In this regard, the audited financial results for the year ended March 31, 2026 disclose that receipts/ proceeds amounting to Rs 503.29 lakhs, together with customer advances aggregating to Rs 122.03 lakhs, have been disclosed as liability payable to WBTDCL, against which payments aggregating to Rs 209.87 lakhs had been made up to March 31, 2026. Further, management and supervision charges amounting to Rs 31.10 lakhs have been recognised under Other Income, and expenditure amounting to Rs 100.50 lakhs incurred and/or allocated in connection with such operations has been considered recoverable from WBTDCL.

The financial impact of the aforesaid development is also reflected in the segment performance of the Company. Revenue from the F&B and Other Recreational Facilities segment stood at Rs 705.76 lakhs for FY 2025–26 as compared to Rs 1,190.52 lakhs in FY 2024–25, while the segment result stood at Rs 346.91 lakhs as compared to Rs 718.17 lakhs in the previous year. The reduction was attributable, inter alia, to the cessation/transition of operations from the repossessed venues during the year.

The Statutory Auditors have also drawn attention to the matter in their audit report, stating that the impact on the financial results would be determinable upon finalisation of the arrangement, and therefore could not be commented upon at this stage. The Company is in active discussion with the concerned Government authorities/entities for formalisation of the arrangement and will give effect to necessary accounting adjustments, if any, upon finalisation/determination of the matter.

The Board has taken note of the development and its impact on the Companys turnover and income. While the repossession has affected the Companys event and banquet business during the year, the Company continues to focus on consolidating its existing operations, maintaining continuity of customer service, safeguarding operational interests including the Food Court and proposed Snow Park-related access requirements, and exploring suitable opportunities for future business growth.

J. Details of Key Financial Ratios

Ratios	Year 2025-2026	Year 2024-2025	% changes Inc./(dec)	Reason for variation over 25%
1 Debtors turnover ratio (Credit Sales or income /Average receivables	3.63	8.10	-55.16	Increase in Project (Kanpur ) debtors
2 Inventory Turnover ratio (COGS/ Average Inventory )	17.33	17.81	-2.67	With in 25%
3 Interest coverage ratio (EBIT/ Finance Cost)	-	-		Company is Debt free
4 Current Ratio (Current Assets/ Current Liabilities )	2.54	3.19	-20.39	With in 25%
5 Debt Equity Ratio ( Total Liabilities/Equity )	-	-	-	There in no bowwowing by the Company
6 Operating Profit Margin (% ) (EBIT/ Total Turnover	0.17	0.30	-42.76	Mainly decrease in Recreational Facility Income
7 Net Profit Margin (%) ( PAT/ Total Turnover)	0.28	0.24	15.85	With in 25%
8 Return on Net Worth (%) :PAT/ Net Worth	0.20	0.23	-11.04	With in 25%

K. Cautionary Statement

The Management Discussion and Analysis Report contains forward-looking statements, including projections, estimates, and expectations, which reflect managements current assessment of future prospects. However, various unforeseen factors may emerge, leading to outcomes that differ from those anticipated by the Directors in their evaluation of future performance and outlook.

The industry information provided within this report has been sourced from published and unpublished materials, market research reports, and industry analyses. While every effort has been made to ensure accuracy, reliability, and completeness of this information, absolute certainty cannot be assured due to the dynamic nature of economic and industry conditions.

Stakeholders are advised to consider inherent uncertainties and the potential impact of unforeseen events when interpreting the statements and data presented in this report. The company remains committed to transparency and will provide updates as necessary to reflect any significant changes in future performance and outlook.

	For & On behalf of the Board of Directors
Registered Office:	NICCO PARKS & RESORTS LIMITED
‘Jheel Meel,	S/d	S/d
Sector IV, Salt Lake City,	Vijay Dewan	Rahul Mitra
Kolkata – 700 106	Independent Director	Managing Director & CEO
Date: 14th May, 2026	DIN: -00051164	DIN: -07119881