Imagicaaworld Entertainment Limited has officially entered into an Operation and Management Agreement with Keshav Holiday Resort Private Limited for the management of Shankus Water Park in Ahmedabad, Gujarat. The company disclosed this development to stock exchanges on April 2, 2026, confirming the partnership that became effective from April 1, 2026.

Agreement Details and Regulatory Disclosure

The company filed the disclosure under Regulation 30 of the SEBI Listing Regulations, providing comprehensive details about the operations agreement. This follows an earlier intimation dated January 20, 2026, regarding potential joint venture discussions with Keshav Holiday Resort Private Limited, which is part of the Shanku Group.

Clarification on Typographical Error

Later on April 2, 2026, Imagicaaworld Entertainment Limited issued a clarification letter to both BSE and NSE regarding a typographical error in their earlier disclosure. The company, through Company Secretary & Compliance Officer Reshma Poojari, clarified that they had inadvertently mentioned "Operation and Maintenance Agreement" instead of "Operation and Management Agreement" in the second paragraph of the original disclosure.

Scope of Operations and Services

Under the agreement, Imagicaaworld Entertainment will provide comprehensive operation and management services for the water park business. The arrangement includes the option for Keshav Holiday Resort to utilize Imagicaaworld's intellectual property, leveraging the company's established brand recognition and operational expertise in the entertainment sector.

The milestone-based management fee structure ensures performance-oriented compensation, aligning the interests of both parties toward achieving operational excellence and visitor satisfaction at Shankus Water Park.

Strategic Benefits and Business Rationale

The partnership enables Imagicaaworld Entertainment to expand its geographical presence and add another destination to its portfolio. According to the regulatory filing, the company expects to leverage its capabilities across multiple areas including marketing, guest experience, strategic alliances, processes, food and beverage operations, and retail business development.

Imagicaaworld Entertainment Limited has received credit rating affirmation from India Ratings and Research (Ind-Ra), which maintained the company's bank loan facilities rating at IND A/Stable/IND A1 for Rs 3,750 million. The rating action, announced on March 16, 2026, reflects the company's established position in India's entertainment and amusement park industry.

Rating Details and Rationale

The affirmation is based on Imagicaaworld Entertainment's strong market position in India, supported by a robust portfolio of different theme parks and water parks. The rating agency takes comfort from the company's promoters, Malpani Parks Private Limited, which has over two decades of experience in the theme park business.

Financial Performance Analysis

The company's consolidated revenue grew significantly by 52% year-on-year to Rs 4,102 million in FY25, driven by increased footfall to 2.7 million visitors compared to 1.36 million in FY24. This growth was largely supported by the addition of four new parks acquired from Giriraj Enterprises during FY25.

However, performance moderated in 9MFY26, with revenue declining to Rs 2,820 million from Rs 3,158 million in 9MFY25. The decline was attributed to weak first quarter performance due to early onset of monsoons and heavy rains in the western region.

Business Portfolio and Expansion

Imagecaaworld Entertainment operates a comprehensive entertainment portfolio comprising nine parks: five water parks, one theme park, one amusement park, one snow park, and one devotional park, along with a five-star hotel. The company's market position strengthened after acquiring four parks from the Malpani Group's Giriraj Enterprises, effective April 1, 2024.

The company's flagship operations include:

• Parks in Khopoli covering 110 acres with theme park, water park, and snow park
• Waterpark in Surat
• Recently acquired parks in Lonavala and Shirdi
• Five-star Novotel hotel

Future Growth Plans

The company continues expanding its presence with planned developments including a water park in Ahmedabad, a multi-attraction entertainment hub at the Sabarmati Riverfront in Ahmedabad, and indoor entertainment parks called Hello Parks across India. These expansion plans are expected to enhance geographical diversification and strengthen market position.

Credit Metrics and Financial Position

The company maintains comfortable credit metrics with consolidated debt reduced to Rs 1,671 million at FY25-end from Rs 3,403 million in FY24, mainly following conversion of preference shares worth Rs 2,203 million. The consolidated gross interest coverage remained strong at 16.4x in FY25, though lower than the previous year's 67.5x due to increased interest-bearing debt.

Key Rating Considerations

India Ratings highlighted several strengths including strong market position and comfortable credit metrics, while noting weaknesses such as ongoing capital expenditure plans and vulnerability to seasonal demand fluctuations. The rating agency expects revenue and EBITDA recovery in the medium term, supported by newly added parks and increased footfall at existing facilities.

The company's ability to manage its capital structure amid capital-intensive operations and achieve projected growth in footfalls will remain key rating monitorables for the agency.