Wonderla Holidays Ltd Management Discussions

Global economic environment

The global economy in 2024 is advancing at a measured pace, with growth estimated at around 3.2 per cent as per data published by the International Monetary Fund. Although this reflects marginal improvement over earlier forecasts, it remains notably lower than the average expansion rate witnessed in the pre-pandemic decades. The recovery continues to be constrained by sluggish productivity growth, tightening financial conditions, and the persistence of inflation in several service-intensive economies. Central banks, particularly in developed nations, have maintained a cautious stance, with interest rates staying elevated to prevent inflationary rebounds. In this environment, the efficacy of conventional monetary easing appears increasingly limited. As a result, attention is gradually shifting toward strategic investments in sectors such as green energy, infrastructure modernisation, and digital transformation. These interventions are seen not merely as counter-cyclical responses but as foundational to reigniting global productivity and addressing long-term structural bottlenecks.

Indias macroeconomic outlook

India, in contrast, remains a bright spot in the global growth landscape. The countrys economy is projected to expand by 6.4 to 6.5 per cent in FY25, as reported by the National Statistical Office and other independent agencies. While this represents a moderation from the previous years high base, the outlook remains robust. The resilience is underpinned by strong domestic demand, healthy government expenditure, and steady momentum across key sectors. Construction activity has sustained high levels of growth, agriculture is expected to perform better following favourable monsoon conditions, and manufacturing is regaining traction after a period of subdued performance. The services sector continues to anchor the economy with consistent contributions to both output and employment.

Drivers of growth and investment momentum

The fiscal policy framework for the current year emphasises capital expenditure, with public investment in infrastructure remaining a primary driver of growth. As reported by the government, capital outlay as a percentage of GDP has remained elevated, with significant allocations toward transport, logistics, and renewable energy. Major infrastructure corridors, renewable energy capacity additions, and logistics modernisation programmes are all contributing to employment creation and productivity improvements. Private investment, too, has begun to respond positively, supported by tax reforms, production-linked incentive schemes, and a generally stable macroeconomic environment. Corporate profitability, easing input costs, and improved capacity utilisation are encouraging businesses to expand their capital expenditure plans.

Rise of Indias services sector

The services economy, particularly information technology, consulting, legal processing, and analytics, continues to deepen its global footprint. Indias emergence as a hub for global capability centres has been further reinforced, with companies across sectors establishing dedicated offshore units to manage research, operations, and strategic functions. These centres are not only generating employment but also facilitating technology transfer and enhancing the skill base. As reported by industry bodies, services exports remain one of the strongest components of Indias external sector, mitigating some of the impact of global trade imbalances.

Digital infrastructure and social inclusion

Indias semi-urban and rural economy continues to be a priority in policymaking. The governments welfare delivery mechanism, anchored in digital public infrastructure, ensures direct and targeted support to lower-income households. Through Aadhaar-linked bank accounts and digital benefit transfers, the system has helped eliminate leakages and ensure that subsidies and welfare entitlements reach intended beneficiaries. The success of these systems, as reflected in official data, is visible in improved poverty outcomes and broader financial inclusion. The digital ecosystem is also supporting small businesses and local entrepreneurs by facilitating access to credit, payments, and markets.

Economic outlook and risks

While the Indian economy is expected to sustain its current trajectory through FY25, there are potential risks that require monitoring. These include volatility in global energy prices, adverse weather events affecting agriculture, and any resurgence in geopolitical tensions that could disrupt trade or capital flows. Nonetheless, Indias macroeconomic fundamentals remain strong. Inflation is moderating, foreign exchange reserves are stable, and the banking system is well-capitalised. As reported by the Reserve Bank of India, inflation is expected to average between 4 and 4.6 percent during the fiscal year, allowing for a more flexible monetary policy stance going forward. The continued focus on fiscal consolidation, with a roadmap for reducing the fiscal deficit over the medium term, provides confidence to both domestic and foreign investors.

Global amusement park industry

The global amusement park industry has rebounded strongly following the disruptions of the pandemic years. This resurgence is driven by increased mobility, rising discretionary incomes, and evolving consumer preferences that prioritise experiential and immersive entertainment. Parks have evolved into integrated entertainment destinations, combining rides, resorts, virtual reality zones, cinematic experiences, and curated retail offerings. These venues now serve as multi-generational destinations, appealing to children and adults alike.

Innovation and sustainability in leisure

Theme parks increasingly centre their experiences around storytelling, fictional characters, and cinematic universes. From augmented reality rides to holographic shows, innovation is a core differentiator. A growing number of parks are also aligning with sustainability trends, reducing their environmental footprint through energy-efficient systems, water recycling, and eco-friendly food and beverage options. As reported by global trend analyses, visitors are increasingly valuing clean energy practices, ethical sourcing, and plant-based menu offerings—all of which are becoming part of the mainstream experience in leading amusement destinations. The industrys long-term prospects remain favourable, with urbanisation, global travel recovery, and digital integration continuing to shape demand and investment in this dynamic sector.

Indian Entertainment and Amusement Sector – Key Drivers

Indias amusement park industry is witnessing a vibrant transformation, reflecting broader shifts in consumer behaviour, urban leisure trends, and domestic tourism patterns. With rising aspirations among urban and semi-urban populations, amusement parks are increasingly viewed not just as entertainment destinations, but as weekend getaways and family recreation hubs. This evolution has been further shaped by the growth of themed experiences, improved park infrastructure, and the diversification of offerings, which now range from water parks and roller coasters to indoor play zones and interactive attractions. Several cities are now home to multi-format entertainment zones that integrate hospitality, retail, and dining with amusement-based experiences, catering to the evolving preferences of a young and experience-seeking audience.

A combination of demographic, economic, and technological factors is driving the industrys growth. The increasing share of the working-age population, higher disposable incomes, and growing domestic travel have contributed to the steady rise in footfalls across parks. Additionally, the influence of global media and cinematic universes has spurred demand for immersive, story-driven environments, prompting Indian operators to adopt international best practices in safety, design, and guest engagement. Technological enhancements, such as digital ticketing, virtual reality integrations, and mobile-based experience mapping, have also played a role in enhancing customer satisfaction and operational efficiency. Furthermore, policy support for tourism development, including streamlined approvals and public-private partnership models, is encouraging investment in new parks and upgrades to existing ones, reinforcing the sectors potential as a mainstream component of Indias leisure and tourism ecosystem.

Based on the data published by CMI-Custom Market Insights and Geojit Research, the Indian amusement park industry has

About Wonderla

Wonderla Holidays Limited is Indias most loved and visited amusement park operator, offering a unique blend of thrilling rides, family-friendly attractions, and immersive experiences across multiple cities. Since its inception in 2000 with the launch of its first park in Kochi (initially branded as Veegaland), Wonderla has emerged as a leader in the amusement park segment by welcoming approximately 45 million visitors.

Diverse Presence Across India

Operating four major amusement parks in Kochi, Bengaluru, Hyderabad, and the recently launched Bhubaneswar, Wonderla delivers high-energy, safe, and hygienic entertainment experiences. Each park is equipped with an array of signature rides such as Recoil, Wonder Splash, Wave Pool, and Equinox, offering a balanced mix of thrill and leisure for all age groups.

A Complete Family Entertainment Destination

With 187 fun rides, 18 restaurants, 5 banquet halls, 6 food courts, and 2 lounge bars, Wonderla Parks and Resort provide a wholesome entertainment ecosystem. These destinations witnessed a sharp turnaround since the COVID-19 pandemic disrupted operations in 2020. The sector, which was valued at 23 billion in CY19, experienced a drastic contraction to 4 billion in CY20 due to prolonged park closures and diminished foot traffic. However, recovery efforts post-pandemic have been promising, with the market size steadily increasing each year. By CY23, the sector had rebounded to

54 billion and is projected to reach 125 billion by CY29, registering a compound annual growth rate (CAGR) of 15% from CY23 onwards. This growth trajectory underscores the sectors resilience and its evolving role within Indias broader tourism and leisure economy.

The expansion of Indias amusement park industry is expected to be driven by growing urbanisation, rising disposable incomes, and an increasing appetite for leisure and recreational activities. The sector benefits from a demographic dividend, with a young population eager for modern entertainment experiences, as well as policy-level support that encourages the development of tourism infrastructure. As lifestyle aspirations evolve, demand for immersive, clean, and safe amusement spaces is accelerating, encouraging private sector investment and innovation. The industrys continued growth is also supported by the integration of ancillary services such as food, retail, and hospitality, which help create destination-driven experiences for families and tourists alike.

offer more than just rides—they serve as spaces for bonding, celebration, and unforgettable memories. Seasonal events like Valentines Day, Holi, Republic Day, and food festivals enhance visitor engagement and keep the experience fresh and dynamic throughout the year.

Strategic Strengths

Wonderlas success rests on:

• Strong brand recall, with consistently high customer ratings.

• In-house ride design and manufacturing, offering customisation and cost advantages.

• Strategic park locations, well-connected to major urban centers.

• Debt-free balance sheet, with prudent capital allocation over the years.

• Experienced leadership, blending promoter vision with professional management.

Financial Performance Summary (FY25)

For the full year ended FY25, Wonderla Holidays Ltd. reported a 5.1% decline in revenue from operations to 45,857 lakhs from 48,304 lakhs in FY24. Despite continued recovery efforts and event-driven marketing, this decline reflects broader demand fluctuations and the impact of increased operating costs.

EBITDA declined by 31.5% YoY to 17,140 lakhs from 25,017 lakhs, with EBITDA margin narrowing to 35.5%, compared to 49.4% in the previous year. Adjusted EBITDA stood at 17,885 lakhs with a margin of 37% against 50% last year.

The Profit After Tax (PAT) also witnessed a steep fall of 30.8%, coming in at 10,927 lakhs as compared to 15,796 lakhs in

FY24. PAT margin correspondingly declined from 31.2% to 22.6%.

Operationally, footfalls marginally declined to 30.49 lakh (from 32.52 lakh), while Average Revenue Per User (ARPU) slightly increased to 1,449 from 1,430, indicating modest ticket pricing and in-park spend growth despite footfall contraction.

Table 1: Revenue and Margin Overview

Particulars	FY24	FY25	YoY Change
Revenue from	48,304.4	45,857.1	-5.1%
Operations ( lakhs)
Total Income ( lakhs)	50,602.8	48,278.1	-4.6%
EBITDA ( lakhs)	25,016.8	17,140.1	-31.5%
EBITDA Margin (%)	49.4%	35.5%	-13.9 bps
Adjusted EBITDA ( lakhs)	25,149.2	17,884.7	-28.9%
Adjusted EBITDA	50.0%	37.0%	-13.0 bps
Margin (%)
PAT ( lakhs)	15,796.5	10,927.4	-30.8%
PAT Margin (%)	31.2%	22.6%	-8.6 bps

Table 2: Key Operating Metrics

Metric	FY24	FY25	YoY Change
Footfalls (in lakhs)	32.52	30.49	-6.2%
ARPU ( )	1,430	1,449	+1.3%
Employee Expenses ( lakhs)	6,257.9	8,153.1	+30.3%

Wonderla Advantages Established Brand Recognition

Wonderla is a well-recognised and trusted brand in the amusement park industry in India. With a track record of operating some of the countrys best-performing amusement parks, the brand has created strong emotional and experiential connections with its visitors.

Strategic Locations

The company operates parks in Bengaluru, Kochi, Hyderabad and Bhubaneswar— all in high footfall cities with favourable demographics and tourist appeal. The locations are well-connected, easily accessible, and benefit from year-round patronage from both locals and tourists.

High Asset Quality

Wonderla maintains its parks with high standards of hygiene, safety, and innovation. This focus on quality infrastructure and operational efficiency helps it stand out in a sector where many players fail to meet basic service benchmarks.

Diversified Revenue Streams

Revenue sources include entry fees, food and beverage (F&B) sales, merchandise, events, and resort operations. This diversification supports stability in cash flows, even during periods of seasonality or unexpected disruptions.

Integrated Resort Offering

In Bengaluru, Wonderla has extended its integrated amusement and hospitality offering with The Isle—a resort that elevates the stay-and-play experience for its guests. Strategically located alongside the amusement park, this 39-key retreat is spread across 4.5 acres and features glamping tents, cottages, and other thoughtfully designed accommodations. With this debut in the experiential retreat segment, Wonderla strengthens its hospitality foray while enhancing customer convenience and driving higher average revenue per visitor.

Innovation and In-house Capabilities

Wonderla has in-house ride design and manufacturing capabilities, allowing it to innovate and control costs continuously. Its own engineering team manages ride design, safety audits, and maintenance, ensuring operational excellence.

Commitment to Sustainability

The parks prioritise eco-friendly operations — including rainwater harvesting, solar energy use, and zero-liquid discharge systems — showcasing a commitment to environmental stewardship.

Customer-Centric Experience

Known for consistent quality and superior customer experience, Wonderla emphasises safety, cleanliness, and service. The parks feature a balanced mix of thrill and family rides that appeal to people of all ages.

Strong Financial Discipline

Wonderlas focus on prudent capital allocation and cost controls has enabled it to weather downturns like the pandemic and emerge with a strong balance sheet. Debt-free status adds to its financial stability.

Marketing Initiatives

Wonderla Holidays Ltd. has adopted a vibrant, theme-driven marketing approach that combines festive, digital, and experiential strategies to enhance brand engagement across its amusement parks. Through seasonally timed campaigns such as "Laugh Like Never Before," "University of Adventure," and Womens Day special offers, the company targeted diverse audience segments while promoting inclusivity and excitement. Major festivals like Republic Day, Holi, and Valentines Day were transformed into high-energy events filled with cultural activities, DJ parties, and thematic d?cor, adding depth to customer experience and enhancing footfalls. The launch of new rides was treated as a brand activation opportunity, supported by media outreach and a celebrity presence, which helped reinforce Wonderlas identity as a destination for thrills and family bonding.

Complementing these initiatives, Wonderlas branding extended into culinary experiences with unique offerings like "Momo Mania," "Ola Mexicana," Ugadi Thali, and the Aamras Festival—positioning food as a part of the amusement journey. With a strategic focus on digital channels, the company is also increasing its reliance on social media and customer analytics to promote value-added services and personalise visitor engagement. These efforts, along with consistent innovation in rides and entertainment, have cemented Wonderlas position as Indias most loved amusement park brand, supported by strong customer recall and an immersive, memorable visitor experience.

Risks and Risk Mitigation

Risk Area	Description	Mitigation Measures
Safety	Risks of ride malfunctions, improper operation by staff, or guest misbehavior can lead to accidents, including serious injuries or fatalities.	• Robust safety audit mechanisms ensure compliance with internal and statutory standards.
		• Daily maintenance checks by qualified staff.
		• Emergency-trained staff and first aid availability.
		• Fire safety systems maintained as per regulations.
Security	Vulnerability to theft, crime, or acts of violence due to large crowds and open spaces.	• Detailed entry security protocols.
		• CCTV surveillance across key zones.
		• Deployment of trained security personnel at critical points.
		• Regular infrastructure assessments.
		• Comprehensive insurance coverage for staff and guests.
Guest Health	Physical strain, dehydration, heat strokes or cardiac issues especially during hot weather or crowded peak seasons.	• Availability of shaded areas and cooling zones.
		• Access to drinking water and medical attention.
		• First-aid trained staff and emergency response arrangements.
Liability Exposure	Legal claims arising from injuries, damages, or service-related lapses, even when precautions are taken.	• Public liability insurance in place to cover injury-related claims.
		• Operational vigilance and adherence to safety norms.
Changing Preferences	Risk of stagnation if the park fails to keep up with evolving consumer trends and expectations.	• Continuous investment in innovation and ride upgrades.
		• In-house ride development capabilities enable faster adaptability.

Information Technology

Wonderla Holidays Limited continues to invest in a robust digital reinvention platform aimed at enhancing efficiency, accuracy, and agility across its operations. The Company is actively automating multiple business processes to streamline workflows and harness the advantages of advanced technologies. A well-defined framework has been established to capitalise on the opportunities emerging from cutting-edge digital solutions, positioning Wonderla as a digitally adept organisation.

To deliver a seamless and superior experience to its customers, Wonderla has integrated a range of innovative technologies and platforms as part of its broader digital transformation roadmap. These initiatives are designed to offer guests a more immersive and connected journey across its amusement parks—leveraging digital capabilities to enrich every touchpoint and interaction.

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 forward-looking statements.