Wonderla Holidays Expects 5–10% Footfall Growth In FY26, Projects 6% Rise In ARPU

Wonderla Holidays Ltd. expects its footfall to grow by at least 5% to 10% in the current financial year as the amusement park chain operator is banking on the opening of new parks, addition of attractions, expansion of capacity and the normalisation of demand.

The range is a "conservative number" as it is difficult to project the trajectory of footfall growth, according to Chairperson Arun Chittilappilly.

"We are hoping that there will be a 5% to 10% growth in footfall this coming year. One reason for that is the opening of new parks. We are also adding new attractions to our parks at regular intervals," Chittilappilly said during a conversation with NDTV Profit.

"We have added extra capacity over the years. So, these are the three reasons why we are expecting to grow this year," he said.

He highlighted the uncertainties in the business, including the India-Pakistan conflict. "If we see huge demand in Chennai in Q1, then of course, the numbers will be better than that. But we are being cautious about it."

Commenting on the ambitious growth projection as Wonderla has not seen 5% to 10% growth in the last two years, he said the company had witnessed a surge in footfall in FY23 and growing on top of that was difficult.

"Extraordinary growth in footfalls leads to negative reviews and then people don't come," the MD said, while outlining weather conditions as another major factor affecting footfalls. "I think two years is a good time for those effects to normalise." 

The largest amusement park chain in the country anticipates a 5% to 6% growth in average revenue per user in FY26. He doesn't expect much ARPU growth as the company is adding new parks and this means there will be more discounts at these parks in the first year.

"ARPU has grown tremendously in the last three years. If you look at our pre-Covid ARPU and post-Covid ARPU, we are almost double of double in that sense. So, I don't see much growth there," he said.

On being asked if a 15% to 20% growth in top line is reasonable to expect, he said: "Could be reasonable. We will have to wait and see."

Calling FY26 a "bit of a wild card", he expressed optimism about substantial growth in FY27 on the back of Bhubaneswar and Chennai parks running at full capacity. The company will open a large park in Chennai in December, which will be comparable in scale to one of its largest parks in Bengaluru, according to the top executive.

Chittilappilly expects to see some margin pressure in FY26 because of the opening of new parks and increased marketing expenses. It is also hiring a lot of people and issuing employee stock ownership plans, which is increasing cost pressure. He added that margin will start coming back in FY27 with an increase in footfalls.

"Last year, we had our highest-ever margin. That is at a stage where we have fully matured parks, very low depreciation and each park generates high ARPU growth," he said. "For our margin to come to that 50% kind of Ebitda margin, maybe it will take a few more years."

Shares of Wonderla Holidays closed 4.4% lower at Rs 623.5 apiece on the BSE on Friday, compared to a 1.11% decline in the benchmark Sensex.