Imagicaaworld Entertainment Limited has filed its monitoring agency report for the quarter ended December 31, 2025, as mandated under SEBI regulations. The report, prepared by India Ratings & Research Private Limited and reviewed by the company's Audit Committee, confirms compliance with the stated objectives of the preferential issue.

Issue Details and Fund Utilization

The preferential issue, conducted from March 24, 2025, to March 26, 2025, comprised both equity shares and convertible warrants with specific utilization targets.

As of December 31, 2025, the company received INR 215.75 crores, including the full amount for equity shares and 25% upfront consideration for convertible warrants at INR 18.375 per warrant.

Fund Deployment Progress

The monitoring agency report shows substantial progress in utilizing the raised funds across all stated objectives.

Compliance and Monitoring

The report confirms no deviation from the disclosed objects of the issue. The company has successfully completed the repayment of loans availed by Malpani Parks Indore Private Limited through intercorporate deposits and fully repaid intercorporate loans related to equity share purchases. Both objectives were completed within the stipulated one-month timeline.

The remaining objectives, including part payment for operational parks acquired from Giriraj Enterprises and general corporate purposes, are progressing as planned within the 18-month utilization timeline. The unutilized amount of INR 41,187.50 remains in the designated bank account.

Regulatory Framework

This monitoring report fulfills requirements under Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. India Ratings & Research Private Limited, serving as the monitoring agency, has confirmed no conflicts of interest in their assessment.

The company operates in the entertainment and service industry, managing theme parks, amusement parks, water parks, hotels, and ancillary activities. Malpani Parks Private Limited serves as the promoter entity for the organization.

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.