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.

Imagicaaworld Entertainment , a leading player in the Indian amusement park industry, is set to strengthen its market position with strategic expansions in Indore and Ahmedabad. The company, which currently operates eight parks, is developing two additional locations to enhance its regional presence and drive growth.

Expansion Strategy

Imagicaaworld is focusing on regional penetration by establishing new parks in key markets:

• Indore: A new water park spread across 18 acres with over 20 rides and 3 multi-cuisine restaurants has been launched. The park is strategically located near the key cities of Indore and Ujjain.
• Ahmedabad: The company has won a bid to establish a landmark entertainment hub at the iconic Sabarmati Riverfront. This project, spread across 11 acres, will feature multiple indoor and outdoor attractions, including a Ferris wheel and racing track.

These expansions are part of Imagicaaworld's broader strategy to create a pan-India entertainment park network, targeting cities with populations over 4 million and regions with large catchment areas.

Operational Consolidation

Imagicaaworld is also focusing on consolidating its operations across existing locations:

• The company expects the consolidation of parks in Shirdi, Khopoli, and Lonavala to potentially double its EBITDA.
• This consolidation is anticipated to result in a 2x increase in footfall and a 1.5x increase in revenue.

Financial Performance

The company's recent financial results reflect the impact of its expansion efforts:

While revenue showed a modest increase, the company reported a wider loss in Q2 FY26 compared to the same period last year. This could be attributed to the ongoing expansion and consolidation efforts, which often involve significant upfront costs.

Growth Initiatives

Imagicaaworld is implementing several initiatives to drive future growth:

1. New Attractions: The company is continuously adding new rides and attractions to increase daily capacity and attract repeat visitors.
2. Diversified Revenue Streams: There's a high focus on F&B and retail merchandise operations to increase consumption and Average Revenue Per User (ARPU).
3. Strategic Collaborations: The company is pursuing partnerships to expand its portfolio and provide more offerings to customers.

Market Outlook

The Indian amusement and theme park industry is expected to grow at a 9-11% CAGR from FY2024 to FY2030, according to industry reports. Imagicaaworld's expansion strategy aligns with this projected growth, positioning the company to capitalize on the increasing demand for entertainment options in tier-2 and tier-3 cities.

As Imagicaaworld continues to expand its footprint and consolidate operations, investors will be watching closely to see how these strategic moves translate into financial performance in the coming quarters. The company's focus on regional expansion and operational efficiency could potentially lead to improved profitability in the medium to long term, despite the current widening of losses due to expansion-related expenses.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions.