Imagicaaworld Entertainment Board Approves Investment Agreement with Keshav Holiday Resort for Shanku's Water Park in Gujarat

Imagicaaworld Entertainment Limited's Board of Directors, at its meeting held on May 15, 2026, approved a significant investment proposal in the Gujarat-based water park and amusement park business. The approval follows earlier disclosures made to the stock exchanges on January 20, 2026 and April 02, 2026 regarding a proposed transaction with Keshav Holiday Resort Private Limited, Gujarat, operating under the brand name Shanku's Water Park.

Investment Agreement with Keshav Holiday Resort

The Board has approved entering into an Investment Agreement along with other agreements, arrangements, and documentation required to execute the contemplated transactions with Keshav Holiday Resort Private Limited (KHRPL) and/or Mehsana Next Parks Private Limited (MNPPL), a subsidiary of KHRPL. The purpose of this collaboration is to carry out the business of water park and amusement park under the Shanku's Water Park brand through the special purpose vehicle, Mehsana Next Parks Private Limited.

The key details of the approved investment are outlined below:

Parameter: Details Investment Vehicle: Mehsana Next Parks Private Limited (MNPPL) Maximum Investment Amount: ₹100 Crore Investment Instruments: Combination of equity contribution and debt securities Business Purpose: Water park and amusement park (Shanku's Water Park) Location: Gujarat Board Meeting Date: May 15, 2026 Board Meeting Commencement: 01:14 p.m. (IST) Board Meeting Conclusion: 03:38 p.m. (IST)

Transaction Structure and Regulatory Disclosure

Imagicaaworld Entertainment will make an investment of an amount not exceeding ₹100 Crore in MNPPL through a combination of equity contribution and debt securities, with the specific mix to be decided mutually by the company with KHRPL and MNPPL. The requisite details required to be disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 updated on January 30, 2026, will be submitted to the stock exchanges upon execution of the definitive agreement(s).

This disclosure was made under Regulation 30 of the SEBI Listing Regulations and was communicated to both BSE Limited and the National Stock Exchange of India Limited. The announcement was signed by Reshma Poojari, Company Secretary & Compliance Officer of Imagicaaworld Entertainment Limited.

Imagicaaworld Entertainment Limited reported a sharp decline in profitability for the financial year ended March 31, 2026, with its Board of Directors approving the audited standalone and consolidated financial results at a meeting held on May 15, 2026. The board meeting commenced at 01:14 p.m. (IST) and concluded at 03:38 p.m. (IST). Statutory auditors Suresh Surana & Associates LLP issued an unmodified opinion on both sets of financial results, as confirmed by the company's Chief Financial Officer.

Standalone Financial Performance

On a standalone basis, Imagicaaworld Entertainment's revenue from operations declined to Rs. 35,900.70 Lakhs in FY26 from Rs. 40,999.61 Lakhs in FY25. Total income, including other income of Rs. 2,213.91 Lakhs, stood at Rs. 38,114.61 Lakhs, compared to Rs. 41,908.08 Lakhs in the prior year. The company's net profit for FY26 fell significantly to Rs. 2,004.83 Lakhs from Rs. 7,779.18 Lakhs in FY25. Total comprehensive income for the year was Rs. 2,064.35 Lakhs against Rs. 7,763.82 Lakhs in FY25.

The following table summarises the standalone financial results:

Metric: FY26 (Audited) FY25 (Audited) Revenue from Operations: Rs. 35,900.70 Lakhs Rs. 40,999.61 Lakhs Other Income: Rs. 2,213.91 Lakhs Rs. 908.47 Lakhs Total Income: Rs. 38,114.61 Lakhs Rs. 41,908.08 Lakhs Total Expenses: Rs. 35,367.08 Lakhs Rs. 33,332.02 Lakhs Profit Before Tax: Rs. 2,747.53 Lakhs Rs. 8,576.06 Lakhs Net Profit: Rs. 2,004.83 Lakhs Rs. 7,779.18 Lakhs Total Comprehensive Income: Rs. 2,064.35 Lakhs Rs. 7,763.82 Lakhs Basic EPS (Rs.): 0.35 1.44 Diluted EPS (Rs.): 0.35 1.44

For the quarter ended March 31, 2026, standalone revenue from operations was Rs. 8,940.39 Lakhs, with a net profit of Rs. 552.54 Lakhs. Total expenses for the full year rose to Rs. 35,367.08 Lakhs from Rs. 33,332.02 Lakhs, driven by higher employee benefit expenses of Rs. 5,037.61 Lakhs (vs Rs. 4,602.63 Lakhs), finance costs of Rs. 1,828.26 Lakhs (vs Rs. 1,053.03 Lakhs), and other expenses of Rs. 12,638.55 Lakhs (vs Rs. 11,731.96 Lakhs).

Consolidated Financial Performance

On a consolidated basis, Imagicaaworld Entertainment's revenue from operations for FY26 stood at Rs. 37,385.38 Lakhs, compared to Rs. 41,022.30 Lakhs in FY25. Total consolidated income was Rs. 38,399.62 Lakhs against Rs. 41,939.02 Lakhs in the prior year. Consolidated net profit declined sharply to Rs. 63.64 Lakhs from Rs. 7,717.33 Lakhs, while total comprehensive income fell to Rs. 124.32 Lakhs from Rs. 7,701.97 Lakhs.

Metric: FY26 (Audited) FY25 (Audited) Revenue from Operations: Rs. 37,385.38 Lakhs Rs. 41,022.30 Lakhs Other Income: Rs. 1,014.24 Lakhs Rs. 916.72 Lakhs Total Income: Rs. 38,399.62 Lakhs Rs. 41,939.02 Lakhs Total Expenses: Rs. 37,562.96 Lakhs Rs. 33,455.13 Lakhs Profit Before Tax (after exceptional items): Rs. 855.94 Lakhs Rs. 8,315.95 Lakhs Net Profit: Rs. 63.64 Lakhs Rs. 7,717.33 Lakhs Total Comprehensive Income: Rs. 124.32 Lakhs Rs. 7,701.97 Lakhs Basic EPS (Rs.): 0.01 1.43 Diluted EPS (Rs.): 0.01 1.43

Segment-Wise Performance

The company operates through two reportable segments — Parks Division and Hotel Division. The Parks Division encompasses revenue from theme parks, amusement parks, water parks, snow parks, devotional parks, park restaurants, retail/merchandise, and other operating income. The Hotel Division covers hotel accommodation, hotel restaurants, and merchandise.

Segment: FY26 Revenue (Lakhs) FY25 Revenue (Lakhs) FY26 Results (Lakhs) FY25 Results (Lakhs) Parks Division: 31,680.14 34,870.08 639.81 7,022.26 Hotel Division: 5,705.24 6,146.22 1,159.78 1,616.35 Total: 37,385.38 41,016.30 1,799.59 8,638.61

Consolidated segment assets for the Parks Division stood at Rs. 1,45,945.61 Lakhs and for the Hotel Division at Rs. 11,250.23 Lakhs as at March 31, 2026. Total capital employed across the group was Rs. 1,25,404.23 Lakhs.

Balance Sheet and Cash Flow Highlights

On a standalone basis, total assets as at March 31, 2026 were Rs. 1,75,284.79 Lakhs, compared to Rs. 1,92,837.62 Lakhs as at March 31, 2025. Total equity stood at Rs. 1,32,919.50 Lakhs. Standalone cash and cash equivalents at year-end were Rs. 1,337.79 Lakhs, down from Rs. 3,701.82 Lakhs at the start of the year. Net cash generated from operating activities on a standalone basis was Rs. 12,139.41 Lakhs, while net cash used in investing activities was Rs. (22,761.83) Lakhs, largely on account of a payment of Rs. (30,000.00) Lakhs towards acquisition through business combination.

On a consolidated basis, total assets were Rs. 1,75,414.83 Lakhs as at March 31, 2026, against Rs. 1,88,779.60 Lakhs in the prior year. Consolidated cash and cash equivalents at year-end stood at Rs. 1,612.15 Lakhs. Net cash from consolidated operating activities was Rs. 10,991.75 Lakhs, while net cash used in investing activities was Rs. (28,709.66) Lakhs.

Key Corporate Developments

Several notable corporate developments were disclosed alongside the financial results:

Preferential Issue: The Board approved the issuance of up to 2,34,82,500 equity shares at Rs. 73.50/- per share and up to 2,34,82,500 Convertible Warrants at Rs. 73.50/- per warrant, each aggregating to Rs. 17,259.64 Lakhs. Out of total proceeds, Rs. 21,574.14 Lakhs had been utilised up to March 31, 2026, including Rs. 13,917.24 Lakhs as a loan to Malpani Parks Indore Private Limited, Rs. 5,500.00 Lakhs for repayment of a related-party loan, Rs. 2,155.00 Lakhs towards a Business Transfer Agreement with Giriraj Enterprises, and Rs. 1.90 Lakhs for general corporate purposes.

New Subsidiary: During the quarter ended June 30, 2025, the company incorporated a wholly owned subsidiary, Imagicaa Next Private Limited, which had not commenced business operations as of the reporting date.

New Labour Codes: The Government of India's New Labour Codes became effective from November 21, 2025. The estimated incremental impact on the standalone entity is Rs. 53.62 Lakhs and on the consolidated group is Rs. 53.66 Lakhs, recognised under employee benefit costs.

Exceptional Items: For FY26, exceptional items resulted in a net gain of Rs. 19.28 Lakhs, primarily comprising a gain of Rs. 157.98 Lakhs on fair value change in NCRPS, offset by Rs. 138.70 Lakhs of costs related to a previously contemplated Qualified Institutional Placement (QIP) expensed during the quarter ended June 30, 2025.

Tax Position: The company has unabsorbed business losses and depreciation under the Income Tax Act, 1961, and accordingly no provision for current tax has been considered necessary.

The consolidated financial results include the results of subsidiaries Blue Haven Entertainment Private Limited, Malpani Parks Indore Private Limited, and Imagicaa Next Private Limited. The results are available on the company's website at www.imagicaaworld.com .

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