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Mahindra Holidays and Resorts India Ltd
NSE: MHRIL BSE: 533088 INE998I01010 Consumer Discretionary Leisure Services 🔎 Screen
₹4,354 Cr
Market Cap
82.4
P/E
1.96
PEG
8.1%
ROCE
9.9%
ROE
4.92
D/E
19.9%
OPM
+41.5%
% from 52W High
8
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Mahindra Holidays & Resorts India Ltd. (MHRIL), a part of the Leisure and Hospitality sector of the Mahindra Group offers family holidays primarily through vacation ownership memberships. Started in 1996, the company's flagship brand ‘Club Mahindra’ has over 250,000 members. The Company is the largest Vacation Ownership company outside the US and is 6th largest globally

✓ Strengths

No strengths data yet.

! Concerns 7
  • Stock is trading at 5.67 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 11.6% over past five years.
  • Contingent liabilities of Rs.1,510 Cr.
  • Company might be capitalizing the interest cost
  • Working capital days have increased from 4.84 days to 63.3 days
Key Ratios Snapshot
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📈 Growth Pattern
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Weak quarter: Revenue grew 3% YoY on standalone basis, but EBITDA fell 12% and PAT dropped 29% due to cost pressures and HCR losses. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹423.5 Cr
+3% YoY (standalone)
EBITDA Margin
33.4%
-580 bps YoY (standalone)
PAT
₹54.3 Cr
-29% YoY (standalone)
Sales Value (incl. Upgrades)
₹154 Cr
+22% YoY; AUR ₹14.4 Lakh, +73% YoY
What Went Right
  • Sales value grew 22% YoY to ₹154 Cr, led by premiumization and upgrades (up 58% YoY).
  • Resort revenue rose 10% YoY to ₹126 Cr despite temporary room unavailability from ongoing transformations.
  • Occupancy improved 130 bps YoY to 86.7%, with 87% in standalone operations.
  • Network rationalization accelerated: exited ~350 keys based on guest feedback, 8 greenfield projects adding ~1k keys ongoing.
  • Member additions via referral & digital channels increased to 71% vs 65% YoY.
What to Watch
  • Standalone EBITDA margin contracted 580 bps YoY to 33.4%, with employee costs up 15% and other expenses up 16.3%.
  • Standalone PAT fell 29% YoY to ₹54.3 Cr, weighed by higher finance costs (+34% YoY) and depreciation (+13%).
  • Holiday Club Resorts (HCR) loss widened to €5.1 Mn from €3.2 Mn in Q1 FY26, with revenue down 6% YoY.
  • Consolidated net loss of ₹8.6 Cr vs profit of ₹7.2 Cr a year ago, despite 4.5% revenue growth.
  • PBT on consolidated basis turned negative (-₹3.2 Cr) vs positive ₹26.3 Cr in Q1 FY26.
Investor Lens
The thesis of India’s leisure consumption supercycle remains intact, with demand outpacing supply (branded room demand CAGR 10.4% vs supply ~9%). MHRIL’s core metrics — sales value (+22%), resort revenue (+10%), and occupancy (87%) — point to healthy underlying demand. However, near-term profitability suffered as management chose to invest in growth-linked costs (employee and other expenses) and resort transformations, which temporarily removed ~350 keys and disrupted operations. HCR’s deepening losses in Finland added drag. With 8 greenfield projects adding ~1k keys and continued premiumization (AUR +73%, Keystone product launch), the revenue growth trajectory is promising, but margin recovery is critical. Next quarter: watch if EBITDA margin stabilizes above 35% and HCR losses narrow. Without explicit numerical guidance, execution on cost control and HCR turnaround will be key.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Net loss of ₹8.6 Cr as margins shrink; revenue growth slow.
Revenue
Revenue grew 4.5% YoY to ₹732.8 Cr but fell 10.7% QoQ, indicating a seasonal slowdown in the June quarter.
Profitability
Net loss of ₹8.6 Cr vs net profit a year ago, with EPS at -₹0.43 compared to ₹0.39. High depreciation and interest costs dragged profitability.
Margins
Operating margin contracted to 15.36% from 17.38% YoY, driven by cost pressures despite revenue growth.
Cash Flow
No cash flow data provided in the report.
Balance Sheet
Debt-to-equity ratio of 4.92 indicates very high leverage, raising concerns about financial stability.
Key Risks
High debt burden (D/E 4.92), negative net profit, and declining operating margins pose significant financial risks.
Outlook
Seasonal recovery expected in coming quarters, but high leverage and margin compression remain key challenges for sustained improvement.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
HCRO
360
EBIT -45
437
EBIT 11
MHRIL
422
EBIT 72
407
EBIT 72
Total 782 844

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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📊 Analysis Methodology

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