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    Mahindra Holidays & Resorts India Limited

    MHRIL
    Consumer Services·29 Jan 2026
    Management Summary

    Mahindra Holidays reported a strong Q3 FY26 for its standalone business, with consolidated revenue up 10% and standalone EBITDA growing 17% with significant margin expansion. The company continued its inventory expansion, adding 273 keys and three new resorts, and saw a 58% rise in AUR for new members. However, consolidated PAT was severely impacted by the underperformance of the international HCR business due to weather and geopolitical factors, alongside one-off charges.

    Highlights

    8

    • Consolidated revenue grew 10% YoY to Rs. 783 crores.

    • Standalone total income increased 6% YoY to Rs. 415 crores, with resort income up 14%.

    • Standalone EBITDA rose 17% YoY to Rs. 149 crores, and EBITDA margins expanded by 350 bps YoY to 36%.

    • Standalone PAT was up 8% YoY to Rs. 55 crores.

    • Added 273 keys during the quarter, bringing total inventory to 6,015 keys, and added three new resorts.

    • Average unit realization (AUR) for new members increased 58% to 9.7 lakh per member added.

    • Occupancy rate was 81.5% on a much larger inventory base, with resort revenue growing 16% YoY.

    • Cash position remains healthy at Rs. 1,470 crores as on 31st December 2025.

    Concerns

    3

    • Consolidated PAT was significantly impacted, reporting Rs. 1.4 crores, which includes a FOREX loss of Rs. 6 crores and a new labour code impact of Rs. 11 crores.

    • The HCR (international) business performance was lower than expected in Q3, primarily due to adverse weather conditions (lack of snow, flooding in Finland) and the economic impact of the Russia-Ukraine war, resulting in a negative PAT for the segment.

    • Inventory addition targets faced cumulative delays of 150-200 keys, which will move into the next financial year, primarily due to challenges with partner-led models.

    What Changed2

    vs Q4 FY26

    Guidance items10 → 11 (+1)Risks discussed5 → 3 (-2)

    Key financials

    Single quarter

    13 metrics
    1. 01Consolidated Income₹783 Cr+10%YoY
    2. 02Consolidated EBITDA₹174 Cr
    3. 03Consolidated EBITDA Margin22.2%
    4. 04Consolidated PAT (Reported)₹1.4 Cr
    5. 05Consolidated PAT (Excl. One-offs)₹16.5 Cr

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Liquidity

    Cash ₹1,470 crores

    Guidance & targets

    11
    CategoryTargetPriority
    Inventory
    Gross key additions
    1,000 keys
    		High
    Inventory
    Net inventory addition
    450-500 keys
    		High
    Inventory
    Gross key additions
    about 1,000 plus additions
    		Medium
    AUR
    Keystone plan AUR increase
    15-20%
    		Medium
    Resort Operations
    Theog resort ramp up
    latter half of next financial year
    		High
    Resort Operations
    Munnar, Jaisalmer, Gir resort start
    Q1
    		High
    Resort Operations
    Ganpatipule resort availability
    Q3
    		High
    Debt
    HCRO external debt
    €26-27 million
    		High
    Profitability
    HCR EBIT level
    close to break-even
    		Medium
    Expansion Model
    Capital-light expansion
    70%
    		High
    Sales
    Sales productivity
    go up
    		Low

    HCR EBIT Performance

    FY26 end (next quarter's results)
    CurrentNegative PAT in Q3 FY26
    TargetClose to break-even at EBIT level for FY26

    Why it matters

    To confirm recovery and reduced drag from the international business on consolidated profitability.

    I think this financial year at the EBIT level, we will be close to break-even. At the PAT level, probably not.

    How to verify

    detailed_narrative

    Risks & concerns

    3
    RiskSeverity

    Underperformance of HCR Business

    The international HCR business reported a negative PAT in Q3 due to adverse weather (lack of snow, flooding in Finland) and economic impacts from the Russia-Ukraine war, significantly dragging down consolidated PAT. — Management acknowledged

    high

    Inventory Addition Delays

    Cumulative delays of 150-200 keys in inventory addition are expected to push into the next financial year, primarily due to challenges with the partner-led model. — Management acknowledged

    medium

    One-off Financial Impacts

    Consolidated PAT was impacted by a Rs. 6 crores FOREX loss and a Rs. 11 crores provision for new labor code, though the latter is largely a one-time expense. — Management acknowledged

    low

    Q&A highlights

    7

    “I do believe that we are still on track to achieve that gross number for this year. Of course, in this area, sometimes it slips by a month or two. But I think broadly we are on track from a near-term perspective also. The other thing I had mentioned is that we are looking at relinquishing inventory. So, this year I think we have relinquished around 450 keys already. And I think we will relinquish another probably 150 or so in the 4th Quarter. And that's, I think a net number of inventory addition probably will be between 450 and 500 keys during this year.”

    Clarified the gross and net inventory addition targets for FY26, acknowledging some delays.

    asked by Navin from ithought PMS

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Financial Performance Highlights

    Mahindra Holidays reported a consolidated income of Rs. 783 crores for Q3 FY26, marking a 10% year-on-year increase. Standalone total income grew 6% to Rs. 415 crores, with resort income specifically increasing by 14%. Standalone EBITDA reached Rs. 149 crores, up 17% YoY, leading to a 350 basis points expansion in EBITDA margins to 36%. Standalone PAT also saw an 8% rise, reaching Rs. 55 crores for the quarter.

    02

    Inventory Expansion and Portfolio Enhancement

    The company added 273 keys during Q3, bringing its total inventory to 6,015 keys, and expanded its network with three new resorts in Ambhaghat, Bandhavgarh, and Corbett. For FY26, Mahindra Holidays aims for a gross addition of 1,000 keys, with a net addition projected to be between 450 and 500 keys after accounting for relinquished inventory. Two greenfield projects in Ganpatipule and Theog are underway, alongside ongoing expansion at the Puducherry Resort.

    03

    Launch of Keystone Membership Plan

    In December 2025, Mahindra Holidays launched its most extensive membership plan refresh, named 'Keystone'. Early indicators suggest strong member appreciation and prospect interest, with an observed 15-20% increase in Average Unit Realization (AUR) based on initial one-month data. The new plan aims to enhance member experience by including breakfast, concierge services, simplified rules, and a buyback option.

    04

    Challenges in HCR (International) Business

    The international HCR business experienced a challenging Q3, with performance falling below expectations. This was primarily attributed to adverse weather conditions, including a lack of snow in Finland and flooding, which impacted revenue streams and timeshare sales. The lingering economic effects of the Russia-Ukraine war also contributed to the downturn. As a result, HCR recorded a negative PAT, contributing to a significantly lower consolidated PAT of Rs. 1.4 crores, which also absorbed Rs. 6 crores in FOREX losses and Rs. 11 crores from new labor code impacts.

    05

    Capital Allocation and Expansion Strategy

    Mahindra Holidays is adopting a capital-light expansion model, with approximately 70% of future growth expected to come from partner-led or lease-based arrangements, and only about 30% from owned capital expenditure for strategic locations. The company continues to build its land bank for future investments, having added 3-4 new land parcels this year. This strategy aims to balance growth with efficient capital deployment.

    06

    Resort Transformation and Operational Timelines

    Two resorts, Kumbhalgarh (80-90 keys) and Poovar (about 70 keys), are currently undergoing transformation, with expected completion within 7-10 months. Additionally, three more resorts in Munnar, Jaisalmer, and Gir are planned for transformation, with Munnar projected to take 10-11 months. The new Theog resort, a key part of the Signature Resorts strategy, is expected to ramp up in the latter half of FY27, while Ganpatipule is anticipated to be available for members by Q3 FY27.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.