India Ratings stated that the ratings reflect IEL's established market position along with a healthy consolidated financial profile.
IEL's promoters —the Malpani Parks Private Limited — a part of Malpani Group — have consolidated the entire theme park business under IEL in FY25, which has given the company a strong portfolio of assets and enhanced business and geographic diversification.
The agency also takes comfort from the promoters' over two decades of experience in the theme park business and the operational performance history of such parks.
The ratings, however, are constrained by the seasonality of theme park and water park revenues and vulnerability of the business to discretionary spending by customers.
IEL's ability to manage its capital structure is a key rating monitorable, given (a) the inherent capital-intensive nature of park operations, (b) the company's ongoing capex plans, and (c) payment consideration towards the promoter group entities for the parks acquired in FY25.
IEL ability to achieve the envisaged growth in footfalls and scale of operations thereby improving profitability metrics as well as timely completion of under-construction parks also is a key monitorable.
Imagicaaworld Entertainment (IEL) operates a large amusement park in Khopoli, covering 110 acres which includes a combination of theme park, water park, snow park, and Novotel, a five-star hotel. IEL has acquired four operational parks, two each in Lonavala and Shirdi each. IEL has further planned to build a water park in Indore and a recreational park in Ahmedabad.
The scrip shed 0.08% to currently trade at Rs 75.70 on the BSE.