Imagicaaworld Entertainment has reported a consolidated net loss of ₹52 million for the third quarter, marking a significant shift from the ₹32 million profit recorded in the corresponding quarter of the previous year. Despite this loss, the company achieved marginal revenue growth with Q3 revenue reaching ₹921 million compared to ₹918 million in the year-ago period.

Financial Performance Overview

The entertainment company's quarterly results demonstrate a mixed performance with revenue growth offset by profitability challenges. While revenue showed a modest increase, the EBITDA for the third quarter stood at ₹222 million compared to ₹296 million in the year-ago period, reflecting operational challenges.

Revenue Growth Amid Profitability Pressure

The company managed to achieve a marginal revenue increase of ₹3 million year-on-year, indicating stable top-line performance. However, this modest revenue growth was insufficient to offset the significant decline in profitability and operational efficiency during the quarter.

Margin Compression Analysis

The EBITDA margin compression from 32.24% to 24.10% indicates substantial pressure on the company's operational efficiency. This margin decline of over 8 percentage points suggests that despite maintaining revenue levels, the company faced challenges in controlling costs and maintaining operational leverage.

Overall Performance Assessment

The company's transition from profitability to loss, combined with the EBITDA decline, represents a challenging period for Imagicaaworld Entertainment. The ₹84 million swing in net results and the ₹74 million decrease in EBITDA highlight the significant impact on the company's overall financial performance, despite achieving marginal revenue growth during the third quarter.

Imagicaaworld Entertainment Limited has announced its entry into non-binding discussions for a potential joint venture opportunity in Gujarat. The entertainment company disclosed on January 20, 2026, that it has initiated talks with Keshav Holiday Resort Private Limited, operating as Shanku's Water Park, which is part of the Shanku Group.

Joint Venture Framework

The company has formalized its interest through a non-binding offer that has been accepted by Keshav Holiday Resort Private Limited on similar terms. This development marks the initial step toward establishing a collaborative venture in Gujarat's entertainment and hospitality sector.

Regulatory and Approval Requirements

The proposed joint venture remains subject to several critical conditions that must be fulfilled before finalization. These comprehensive requirements ensure proper due diligence and regulatory compliance throughout the process.

Key conditions include:

• Finalization of joint venture structure and terms
• Board approval from Imagicaaworld Entertainment Limited
• Satisfactory completion of due diligence exercise
• Receipt of necessary regulatory approvals
• Obtaining lender and third-party approvals
• Negotiation and execution of definitive agreements between parties

Exclusivity Period and Next Steps

Both parties have agreed to an exclusivity period of 180 days to facilitate comprehensive discussions and negotiations. This timeframe provides sufficient opportunity for detailed exploration of the joint venture structure and terms.

The company has committed to providing regular updates in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency throughout the joint venture development process.

Corporate Disclosure

The announcement was made through an official disclosure to both BSE Limited and National Stock Exchange of India Limited. Company Secretary and Compliance Officer Reshma Poojari signed the disclosure document, emphasizing the company's commitment to regulatory compliance and stakeholder communication during this strategic initiative.