Imagicaaworld Entertainment Limited has reported the utilization of funds raised through its preferential issue, according to the monitoring agency report for the quarter ended September 30, 2025. The company, known for its theme parks and entertainment ventures, had raised a total of INR 215.75 crore through the issuance of equity shares and convertible warrants.

Fund Allocation and Utilization

The funds were allocated for three main purposes:

As of September 30, 2025, the company has utilized INR 215.74 crore, leaving a balance of INR 0.02 crore in bank accounts. This represents a near-complete deployment of the raised funds.

Timely Completion of Objectives

Imagicaaworld Entertainment has reported progress in meeting its stated goals:

• Two of the three objectives were completed within the stipulated one-month timeline.
• The part payment for operational parks remains ongoing, with an 18-month completion period still in effect.

Monitoring Agency Findings

India Ratings Research Private Limited, the appointed monitoring agency, has reported no deviation from the stated objects of the issue.

Preferential Issue Details

The preferential issue comprised:

• 2,34,82,500 equity shares of face value INR 10 each
• An equal number of convertible warrants
• Issue price of INR 73.50 per share/warrant

This financial move has enabled Imagicaaworld Entertainment to address its balance sheet and invest in growth opportunities within the entertainment sector.

Partnership with HelloPark

Imagicaaworld Entertainment Limited has announced a partnership with HelloPark, the world's largest chain of immersive digital-physical playground parks for children. The collaboration, executed through its wholly owned subsidiary Imagicaa Next Private Limited, grants exclusive rights to launch HelloPark in India, marking the company's entry into the Family Entertainment Centre category.

Key points of the partnership include:

• HelloPark operates across 50 locations globally.
• The concept combines interactive projections, gaming, creativity, movement, and learning in intelligent, digital-enabled activity zones.
• HelloPark will provide global-standard software, hardware specifications, training, and operational support including regular upgrades.
• Imagicaa Next will roll out multiple HelloPark locations across feasible, high-footfall locations in India.
• The partnership introduces an asset-light, in-city format to be rolled out in malls and high footfall locations across the country.

Outlook

The utilization of funds raised through the preferential issue, coupled with the new partnership with HelloPark, positions Imagicaaworld Entertainment for future growth and diversification. The company's focus on debt repayment, strategic acquisitions, and expansion into new entertainment formats suggests a path towards financial consolidation and operational expansion.

As the entertainment industry evolves, Imagicaaworld's financial management, strategic investments, and innovative partnerships may contribute to its positioning in the market. Investors and stakeholders may keep a watch on how these investments and new ventures translate into operational improvements and financial performance in the coming quarters.

Imagicaaworld Entertainment Limited has reported a significant increase in net loss for the second quarter, despite a marginal growth in revenue. The company's financial performance reflects the challenges faced in the entertainment and hospitality sector.

Financial Highlights

Revenue Growth Amid Challenges

Imagicaaworld Entertainment saw a modest increase in revenue, rising to 410.00 million rupees in Q2 FY2025 from 399.70 million rupees in the same period last year, representing a growth of 2.58%. This slight improvement in top-line performance suggests that the company has been able to attract visitors to its entertainment parks and hotels, despite the challenging economic environment.

Widening Losses

Despite the revenue growth, the company's bottom line has been significantly impacted:

• The EBITDA loss expanded to 62.00 million rupees, up from 38.00 million rupees in the corresponding quarter of the previous year, marking a 63.16% increase.
• Net loss for the quarter surged to 300.00 million rupees, a substantial rise from the 66.00 million rupees loss reported in Q2 FY2024. This represents a 354.55% increase in net loss year-over-year.

Factors Influencing Performance

While the specific reasons for the widened losses were not detailed in the provided information, several factors typically impact the performance of entertainment and hospitality businesses:

1. Operational costs: Increased expenses related to park maintenance, staff, and energy costs may have contributed to the higher losses.
2. Seasonal fluctuations: The second quarter might coincide with a traditionally slower period for theme park attendance.
3. Marketing expenses: Higher spending on promotions to drive visitor numbers could have affected profitability.
4. Depreciation and finance costs: As the company operates capital-intensive assets, these non-cash expenses may have impacted the bottom line.

Looking Ahead

Imagicaaworld Entertainment faces the challenge of narrowing its losses while continuing to grow its revenue. The company may need to focus on cost optimization strategies and explore new revenue streams to improve its financial health in the coming quarters.

Investors and stakeholders will be watching closely to see how management plans to address the widening losses and return the company to profitability. Future announcements regarding strategic initiatives, cost-cutting measures, or potential restructuring could provide more insight into the company's path forward.

As the entertainment industry continues to recover from the impacts of recent global events, Imagicaaworld Entertainment's performance in subsequent quarters will be crucial in determining its long-term financial trajectory.