Wonderla Holidays Ltd Management Discussions

Economic overview Global economic overview

The global economy demonstrated resilience in CY2025, recording growth of 3.4%. This performance was supported by sustained private consumption, continued expansion in the services sector, a strong investment in technology-driven domains.

Despite this momentum, the year faced a complex mix of challenges. Geopolitical tensions intensified, while trade policies increasingly reflected political and security considerations rather than efficiency or multilateral agreements.

Advanced economies grew by 1.9%, while emerging market and developing economies (EMDEs) grew at a stronger pace of 4.4%. Global trade continued to be influenced by persistent frictions and ongoing supply chain realignments. Concurrently, regional conflicts disrupted commodity markets. Rising energy prices created supply chain bottlenecks, exerting pressure on global cost structures.

Overall, the global economy shifted from a phase of steady, technology-supported growth to an environment defined by heightened geopolitical uncertainty, supply-side disruptions and renewed inflationary prices.

Outlook

The global economic outlook has moderated amid recent geopolitical developments, with growth expected to remain stable but below earlier trends. Global GDP is projected to expand by 3.1% in CY 2026 and 3.2% in CY 2027, reflecting the impact of supply-side constraints and evolving financial conditions.

Global inflation is projected to rise to 4.4% in CY 2026 before easing to 3.7% in CY 2027, indicating continued near-term price pressures.

The outlook remains exposed to downside risks, particularly from ongoing geopolitical tensions and continued regional conflicts, which are contributing to disruptions in energy markets and supply chains. Under adverse scenarios, global growth could weaken to around 2.5%, with inflation rising to approximately 5.4%. In more severe scenarios, growth could decline further to near 2%. Overall, the global economy is expected to maintain a relatively stable growth trajectory, albeit under heightened uncertainty and persistent inflationary pressures.

World Economic Outlook Growth Projections

(Real GDP, annual percent change - Source - IMF, World Economic Outlook, April 2026)

The Indian economy demonstrated strong resilience during FY 2025-26, supported by robust macroeconomic fundamentals, sustained by policy support and broad- based sectoral performance. Real GDP growth stood at 7.7%, higher than 7.1% in FY 2024-25, reflecting sustained economic momentum.

Growth was driven by strong domestic demand, with private consumption and investment remaining key contributors. This was further supported by favourable financial conditions and continued infrastructure spending. The services sector continued to lead growth, while manufacturing recorded robust expansion, indicating improving industrial activity and capacity utilisation.

Inflation moderated during the year, with CPI inflation easing to approximately 3.4% by March 2026, aided by softening food prices and improved supply-side conditions. Monetary conditions remained accommodative, with the policy repo rate maintained at 5.25%, alongside adequate liquidity conditions to support economic activity.

Indias external position remained stable, supported by resilient service exports, steady remittance inflows and foreign exchange reserves of around USD 697 billion, providing a strong buffer against global uncertainties.

Indias tourism sector continued to emerge as a significant contributor to economic growth, supported by strong policy impetus and increasing domestic demand. The tourism sector is recognised as a strategic growth driver due to its multiplier effect on employment, foreign exchange earnings and regional development. The sector contributes over 5.22% to Indias GDP and accounts for 13.34% of total employment, with a direct employment share of 5.82%, reflecting its importance in driving inclusive growth.

Government initiatives, including thematic tourism circuits, eco-tourism development and destination-focused infrastructure under schemes such as Swadesh Darshan have strengthened Indias tourism ecosystem. Additionally, rising domestic tourist visits and the recovery in foreign tourist arrivals indicate sustained momentum in leisure and experiential travel, reinforcing long-term demand visibility.

In parallel, infrastructure development remained a key enabler of economic expansion, with a strong focus on improving connectivity, logistics efficiency and regional accessibility. The government continues to invest significantly in large-scale infrastructure projects, with over 1,900 central sector projects under active implementation, reflecting sustained capital expenditure and execution momentum.

A significant share of these projects is concentrated in transport and logistics, highlighting the emphasis on improving mobility and supporting tourism growth. Enhanced road, rail and urban infrastructure, along with expanding digital and physical connectivity, are expected to facilitate higher tourist inflows and improve access to leisure destinations. This integrated development of infrastructure boosts economic activity and strengthens the foundation for sustained growth in tourism and allied sectors.

Outlook

The Indian economy is expected to sustain steady growth in FY 2026-27, with real GDP projected at 6.6% , reflecting resilience amid global uncertainties. Domestic demand is likely to remain the primary growth driver, supported by stable consumption trends and continued infrastructure-led capital expenditure.

Policy initiatives, including a focus on digital transformation and supply chain strengthening, are expected to support investment momentum and enhance productivity across sectors. Inflation is projected to remain moderate at around 4.5%-4.6%, supported by stable food prices, easing supply- side pressures and effective policy measures.

On the policy front, the Union Budget FY 2026-27 continues to prioritise infrastructure-led growth, with capital expenditure increasing to approximately Rs.12.2 lakh crore. This reflects the Governments sustained focus on asset creation and economic expansion.

Public investment remains a key growth driver, supported by initiatives such as the proposed Infrastructure Risk Guarantee Fund, aimed at mitigating project risks and encouraging greater private sector participation and the development of City Economic Regions to promote integrated urban planning and regional economic growth.

These measures, along with continued emphasis on asset monetisation and public-private partnerships, are expected to enhance project execution and financing efficiency. While global uncertainties may influence investment flows, strong policy support, rising capex and integrated infrastructure planning are likely to sustain momentum in the sector and reinforce its role as a key driver of long-term economic growth.

Industry overview

Global amusement park industry

The global amusement parks industry has demonstrated steady expansion, with the market valued at approximately USD 106.79 billion in CY2025. Growth has been supported by rising discretionary spending and increasing demand for experiential entertainment. Rapid urbanisation and the expansion of middle-class populations across developing economies have contributed to higher footfall and increased consumption of leisure services. This has positioned amusement parks as a key segment within the broader tourism and entertainment ecosystem.

Regionally, Asia-Pacific accounted for the largest share of the global market, contributing around 37.9% in 2025. This was driven by strong economic growth, improving tourism infrastructure and a rapidly expanding consumer base. Emerging markets such as China, India, and Southeast Asia continue to witness strong demand momentum. In contrast, developed markets, including North America and Europe, maintain stable performance, supported by well-established park ecosystems, continuous innovation in attractions and customer loyalty programmes.

From a demographic perspective, the 19-35 age group accounted for the largest revenue share of approximately 32.6% in 2025, reflecting a strong preference for immersive and technology-enabled experiences.

The industry is increasingly integrating advanced technologies such as augmented reality (AR), virtual reality (VR) and robotics into attractions, enhancing visitor engagement and enabling differentiation. Simultaneously, digital innovations in ticketing and park management systems are improving operational efficiency and customer experience.

In terms of offerings, mechanical rides continued to dominate the market, driven by themed attractions linked to popular intellectual properties. At the same time, water-based attractions are gaining traction globally, supported by their broader appeal and seasonal demand patterns.

On the revenue side, ticketing remained the primary contributor. However, there is a growing shift towards non-ticket revenue streams, including hospitality, food and beverage, and retail. Integrated park models that combine entertainment with resort-style experiences are increasingly being adopted, encouraging longer visitor stays and higher per capita spending. Additionally, the recovery in global tourism has further supported demand, with amusement parks emerging as a key destinations within travel Itineraries.

Outlook

The global amusement parks market is projected to reach approximately USD 151.02 billion by 2033, registering a CAGR of around 4.2% over the forecast period. Growth is expected to be supported by continued expansion in emerging economies, a recovery in global tourism and sustained investments in technology-driven and integrated destinations.

The industry continues to navigate challenges such as labour constraints and safety-related considerations. However, increasing adoption of advanced technologies and a growing consumer preference for unique, experience-driven offerings present significant growth opportunities. Overall, the amusement park sector remains well-positioned on these trends and sustain its ability to deliver engaging and memorable experiences globally.

Innovation and sustainability in leisure

Theme parks are increasingly designing their offerings around immersive storytelling, leveraging fictional characters and cinematic universes to enhance visitor engagement. At the same time, technological innovation has emerged as a key differentiator, with advancements such as augmented reality (AR), virtual reality (VR) and holographic experiences has emerged as a key differentiator in delivering interactive and personalised attractions.

In parallel, sustainability is becoming a core focus area across the industry. Operators are adopting energy-efficient systems, advanced water recycling technologies, renewable energy integration and eco-friendly infrastructure. These efforts are complemented by initiatives such as waste reduction and responsible food and beverage practices.

Such measures not only reduce environmental impact and optimise operational efficiency but also align with evolving consumer preferences. Visitors are increasingly prioritising clean energy usage, ethical sourcing and plant-based offerings as part of their leisure experiences. As a result, sustainability transitions from a value-add to a fundamental component of long-term operational strategy.

Supported by ongoing urbanisation, recovery in global travel and continued investments in technology-driven and sustainable innovations, the amusement park industry remains well-positioned for steady long-term growth and evolving consumer demand.

Indian entertainment and amusement sector Overview

The India amusement parks market generated revenue of USD 6,394.2 million in FY 2025, accounting for approximately 6% of the global amusement parks market. This reflects its growing significance within the global landscape.

The industry continues to benefit from increasing consumer preference for experiential entertainment and increasing discretionary spending on leisure activities. Mechanical rides accounted for the largest share of industry revenue, highlighting sustained demand for high thrill and technologyintensive attractions. At the same time, the market is gradually evolving towards more diversified offerings, including water- based attractions and integrated entertainment formats, supporting overall industry expansion.

Outlook

The India amusement parks market is projected to reach USD 11,358.8 million by 2033, registering a CAGR of 7.2% over the forecast period from 2026 to 2033, indicating strong medium- term growth potential.

The outlook is supported by rising demand for experiential leisure, increasing investments in new park developments and the continued expansion of integrated entertainment destinations. Mechanical rides are expected to remain the fastest-growing segment, reflecting sustained consumer preference for high- intensity and technology-enabled attractions.

Overall, the industry is expected to maintain steady growth momentum, supported by favourable demographic trends and evolving consumption patterns in the leisure and tourism sector.

Economic Growth and Rising Disposable Incomes

Increasing income levels and rapid urbanisation are driving higher discretionary spending on leisure and entertainment activities.

Demographic Dividend

A large and youthful population, along with growing middle-class families, is driving demand for recreational and family-oriented entertainment experiences.

Tourism Development Initiatives

Government initiatives such as “Incredible India” and “Dekho Apna Desh” are promoting domestic tourism and increasing footfall to amusement destinations.

Innovation and Global Standards

Operators are upgrading parks with advanced rides and international standards, enhancing safety, design and customer experience.

New Developments and Investments

The development of new parks and the expansion of existing ones with modern infrastructure is supporting industry growth.

Diverse Attractions and Experiences

Integration of cultural themes, water parks and resort-style offerings is enhancing visitor appeal and broadening the experience mix.

Integrated Entertainment Ecosystems

Emergence of theme-based entertainment hubs combining rides, hospitality and retail is strengthening the industrys value proposition.

Competitive and Evolving Leisure Landscape

The sector is evolving amidst competition from alternative entertainment formats, driving continuous innovation and experience enhancement.

Wonderla Holidays Limited is one of Indias most prominent and widely visited amusement park operator, offering a differentiated portfolio of high-thrill rides, family-oriented attractions and immersive entertainment experiences.

Over the years, the Company has evolved into a multilocation operator with a strong focus on safety, operational efficiency and consistent guest experience delivery. With over two decades of presence, Wonderla has built a strong brand recall in the domestic leisure segment, supported by repeat visitation and a continued focus on enhancing per capita spend through innovation-led offerings.

Geographic Footprint and Expansion Strategy

The Company operates amusement parks across Kochi, Bengaluru, Hyderabad and Bhubaneswar, with a recent expansion into Chennai further strengthening its geographic footprint. This expansion reflects a strategic focus on high- growth urban markets and emerging consumption centres.

Each park offers a balanced mix of thrill, water and family attractions, supported by in-house capabilities in ride design and maintenance. This enables cost efficiencies, operational reliability and enhanced safety standards.

In addition, the Bengaluru resort, Isle by Wonderla, complements the core park offering by enhancing visitor engagement and contributing to non-ticket revenue growth. The Company continues to evaluate expansion opportunities across select locations, indicating a visible pipeline for future growth.

Integrated Experience and Revenue Model

Wonderla has evolved into an integrated entertainment platform, extending beyond rides to include hospitality, food and beverage, retail and event-led offerings.

The introduction of premium formats such as ‘Isle by Wonderla reflects a strategic focus on strengthening nonticket revenues and enhancing overall visitor engagement. Seasonal events, themed experiences and curated offerings continue to drive footfalls and repeat visits.

The Company is also witnessing increasing digital adoption, with a growing share of bookings through online channels. With a continued focus on improving ARPU, enhancing guest experience and leveraging technology-driven efficiencies, Wonderla remains well-positioned within Indias evolving leisure and entertainment landscape.

Chennai Park - New Market Entry and Ramp-up

During the year, the Company commenced operations of its Chennai park during the year, marking a significant milestone in its expansion strategy. The project was executed within defined timeline and capital outlay, reflecting strong execution capabilities.

In its initial phase, the park has reported early revenue contribution and positive operating performance, despite incurring launch-related costs. The Company is adopting a phased ramp-up approach, with a near-term focus on brand building and market development. Margins are expected to remain below those of mature parks in the initial stages, with gradual improvement anticipated as operations stabilise over time.

Strategic strengths Wonderlas success is anchored in:

• Strong brand recall and customer loyalty, driven by consistent guest experience delivery and improving customer satisfaction metrics.

• In-house ride design and operational capabilities, enabling cost efficiencies, faster maintenance and enhanced safety standards.

• Strategic presence across key urban markets, with parks located in high-demand cities and continued expansion into new geographies, including Chennai.

• Focus on ARPU-led growth and monetization, driven by increasing contribution from non-ticket revenues including F&B, retail and hospitality.

• Integrated digital and marketing capabilities, with a growing share of online bookings and data-driven customer engagement strategies.

• Disciplined capital allocation and scalable expansion model, backed by a strong balance sheet and a pipeline of new park developments under evaluation.

Financial performance summary Revenue and Margin Overview

During the year, the Company commenced operations of its Chennai park during the year, marking a significant milestone in its expansion strategy. The project was executed within defined timeline and capital outlay, reflecting strong execution capabilities.

In its initial phase, the park has reported early revenue contribution and positive operating performance, despite incurring launch-related costs. The Company is adopting a phased ramp-up approach, with a near-term focus on brand building and market development. Margins are expected to remain below those of mature parks in the initial stages, with gradual improvement anticipated as operations stabilise over time.

The Companys balance sheet remained strong with total equity of Rs.1,79,689.68 lakhs and investments of Rs.40,248.11 lakhs as at 31 March 2026, providing adequate financial flexibility to pursue future growth opportunities.

Particulars	FY25	FY26	YoY (%)
Revenue from Operations (Rs. lakhs)	45,857.08	51,877.23	13.13
Total Income (Rs. lakhs)	48,278.11	55,107.90	14.15
EBITDA (Rs. lakhs)	17,140.12	19,245.47	12.28
EBITDA Margin (%)	35.50	34.92	-58 bps
PAT (Rs. lakhs)	10,927.44	8,173.44	-25.20
PAT Margin (%)	22.63	14.83	-780 bps
Footfalls (lakhs)	30.49	32.19	5.58
ARPU (Rs.)	1,449	1,530	5.59
Employee Expenses (Rs. lakhs)	8,153.07	9,386.26	15.13

Wonderla advantages Established Brand Recognition

Wonderla has established itself as one of Indias leading amusement park brands through consistent delivery of high-quality guest experiences. Strong brand recall, customer engagement and repeat visitation continue to reinforce its competitive positioning.

Strategic Locations

The Company operates parks across key metropolitan and high-growth urban centres, providing access to large and diverse consumer catchments. Its geographic presence supports steady visitor traffic from both local residents and destination travellers.

High Asset Quality and Operational Excellence

Continuous investments in ride safety, maintenance and infrastructure ensure high operational standards across all parks. A strong focus on safety, hygiene and service quality enhances guest satisfaction and differentiates the Company in the market.

Diversified Revenue Streams

Revenue is generated through a balanced mix of ticket sales and non-ticket offerings, including food & beverages, retail and hospitality. This diversified model supports higher visitor monetisation and improves earnings resilience.

Integrated Resort and Experience Offerings

Premium hospitality offerings, including Isle by Wonderla, extend the visitor experience beyond amusement parks. The integrated stay-and-play model enhances customer engagement while increasing per capita spending opportunities.

Innovation and In-house Capabilities

Strong in-house ride design and engineering capabilities enable efficient maintenance, cost optimisation and faster execution of projects. These capabilities also support continuous innovation in attractions and park infrastructure.

Customer-Centric and Experience-Led Approach

The Company offers a balanced portfolio of thrill, family and childrens attractions, catering to a broad customer demographic. Seasonal events, themed experiences and digital engagement initiatives help strengthen customer loyalty and repeat visitation.

Digital and Monetisation Focus

Increasing adoption of digital booking platforms and data- driven marketing initiatives is expanding customer reach and improving engagement. Optimised pricing strategies and growing non-ticket revenue streams continue to support ARPU growth.

Marketing initiatives

Wonderla Holidays Ltd. has adopted an experience-led marketing approach focused on driving footfalls, enhancing visitor engagement and strengthening brand recall across its parks.

A key element of this strategy is the use of seasonal and festival-based campaigns, including region-specific initiatives such as Onam Mood, Dussehra, Puja celebrations and Diwali- themed campaigns. These are designed to align with cultural occasions and attract diverse visitor segments.

These initiatives are complemented by targeted promotional and pricing-led campaigns, including limited-time discounts and tactical programmes such as Black Friday Sale, Monsoon Flash Sale and festive offers, aimed at improving conversion and stimulating demand during key periods. In addition, curated experiences and attraction-led promotions such as ‘First Day First Ride for the Chennai launch, are leveraged to generate excitement and reinforce brand positioning.

The Company continues to strengthen its digital marketing capabilities, with a growing share of bookings driven through online channels and supported by data-led customer engagement strategies. Targeted initiatives such as ‘Turbo Tuesdays and weekday-focused campaigns are designed to improve mid-week footfalls and optimise capacity utilisation.

The marketing approach also integrates experiential elements, including themed decor, special attractions and food and merchandise offerings, to enhance overall visitor engagement. These initiatives, aligned with the Companys focus on improving Average Revenue Per User (ARPU), support sustained growth, improved monetisation and stronger customer engagement across its parks.

Risks and mitigation

Risk Area	Description	Mitigation Measures
Safety	Risks arising from ride malfunctions, operational lapses, or inappropriate guest behaviour that could impact safety and lead to accidents.	• Periodic safety audits and adherence to applicable regulatory and internal standards. • Preventive maintenance supported by in-house technical expertise. • Deployment of trained personnel and established emergency response protocols. • Ongoing monitoring and enhancement of safety systems across parks.
Security	Exposure to potential security threats such as theft, crowd-related incidents, or breaches due to high visitor volumes and open environments.	• Controlled entry systems and comprehensive surveillance across park premises. • Deployment of trained security personnel at critical locations. • Regular infrastructure and safety reviews. • Adequate insurance coverage to mitigate operational risks.
Guest Health	Health-related risks, including dehydration, heat stress, or medical emergencies, are particularly prevalent during peak seasons or extreme weather conditions.	• Availability of on-site medical facilities and trained first-aid personnel. • Provision of shaded zones, hydration facilities and cooling infrastructure. • Established emergency response mechanisms for timely medical intervention.
Liability Exposure	Risk of legal claims arising from accidents, service-related issues, or unforeseen incidents despite precautionary measures.	• Comprehensive public liability insurance coverage for operational risks. • Strict compliance with safety standards and operational protocols. • Continuous monitoring and documentation of key operational processes.
Changing Consumer Preferences	Risk of reduced competitiveness if offerings do not keep pace with evolving customer expectations and experience trends.	• Ongoing investment in new attractions and ride enhancements. • Utilisation of in-house development capabilities to support innovation. • Use of customer insights and engagement tools to track and respond to evolving preferences.
Demand Volatility & Seasonality	Variability in footfalls due to seasonal trends, weather conditions and reliance on holiday-driven demand.	• Emphasis on improving ARPU through pricing strategies and non-ticket offerings. • Use of seasonal events and targeted campaigns to stabilise demand. • Capacity management to ensure optimal visitor experience during peak periods.

Information technology

Wonderla Holidays Limited continues to strengthen its digital capabilities with a focus on enhancing operational efficiency, customer engagement and revenue optimisation across its parks. The Company is increasingly leveraging digital platforms to streamline booking processes, improve data visibility and support decision-making. An increasing proportion of bookings is being generated via digital channels, underscoring the Companys focus on digital adoption and direct customer engagement. These initiatives are enabling improved conversion rates and supporting the Companys broader monetisation strategy.

To enhance the overall guest experience, Wonderla is integrating digital touchpoints across its operations, including online ticketing, targeted customer engagement and data- driven marketing strategies. These efforts are aimed at delivering a seamless and personalised experience while improving operational responsiveness.

The Company continues to utilise digital tools to optimise capacity utilisation, manage demand patterns and enhance visitor engagement, aligning its technology initiatives with its focus on improving Average Revenue Per User (ARPU) and overall customer experience.

Internal controls

Ensuring strong internal controls is a key strategic priority at Wonderla Holidays Limited. To maintain operational integrity and accountability, the Company has engaged an external agency to assess its internal control systems independently. This thorough review helps safeguard assets against unauthorised use or loss and ensures the accuracy and authenticity of financial transactions in line with prevailing accounting standards.

Additionally, Wonderla has implemented a comprehensive compliance system to ensure adherence to all applicable legal and regulatory requirements. The Companys Audit Committee and Board of Directors conduct regular reviews to monitor performance, assess policy compliance and evaluate progress against defined objectives. These oversight functions are complemented by the internal audit team, which plays a crucial role in strengthening the Companys risk management framework.

The internal audit function plays a crucial role in identifying emerging risks, enhancing risk awareness, establishing effective reporting protocols and recommending strategic responses. Through these efforts, Wonderla maintains a proactive and vigilant stance toward risk mitigation, thereby reinforcing the resilience of its operations.

Cautionary statement

This Management Discussion and Analysis includes certain forward-looking statements that reflect the Companys current views regarding future events. These statements, which may relate to objectives, projections, estimates, or expectations, are made in accordance with applicable securities laws and regulations.

However, actual outcomes may differ materially from those expressed or implied due to various factors. These include domestic and global economic conditions, changes in government regulations and tax laws, statutory amendments, and unforeseen circumstances such as force majeure events. The Company assumes no obligation to update these statements in light of future developments, and readers are cautioned not to place undue reliance on these forwardlooking statements.