MHRIL - Mahindra Holiday

📊 NSE: MHRIL 🏢 Hotels 📅 Last Updated: 12/14/2025 9:27

💰 Financial Performance

Revenue Growth by Segment

Standalone Total Income grew 7.7% YoY to INR 1,544.9 Cr. Vacation ownership income (including ASF) grew 6.4% to INR 1,039.5 Cr, while Resort Income grew 7.2% to INR 360.7 Cr. Consolidated income reached INR 2,909.9 Cr, a 3.2% increase from INR 2,819.6 Cr.

Geographic Revenue Split

Standalone operations (primarily India) contribute INR 1,544.9 Cr (53% of consolidated income), while international operations and subsidiaries (primarily HCR in Finland) contribute the remaining INR 1,365 Cr (47%).

Profitability Margins

Standalone Operating Profit Margin improved significantly from 31.60% to 35.10% (up 350 bps). Standalone PAT margin increased from 12.60% to 13.00%. Consolidated PAT margin stands at 4.3% (INR 126 Cr on INR 2,909.9 Cr).

EBITDA Margin

Standalone Operating Profit Margin is 35.10% for FY25, up from 31.60% in FY24. This improvement is driven by a 33% increase in Average Unit Realisation (AUR) and cost optimization measures.

Capital Expenditure

The company is transitioning to a capital-light model where only 30% of incremental inventory will be owned. Capex will be funded through internal accruals of INR 1,555 Cr (standalone cash balance) to avoid new debt.

Credit Rating & Borrowing

MHRIL remains a zero-debt entity on a standalone basis. Consolidated long-term debt increased 11.7% to INR 987.5 Cr from INR 884.1 Cr, primarily associated with overseas subsidiaries (HCR).

⚙️ Operational Drivers

Raw Materials

Food and Beverage (F&B) consumables and resort supplies represent the primary variable costs, though specific % of total cost is not disclosed.

Import Sources

Sourcing is primarily domestic (India) for standalone operations, with centralized procurement used to manage costs across resort locations.

Key Suppliers

Not specifically named; however, the company utilizes centralized procurement to leverage scale and mitigate price volatility.

Capacity Expansion

Member base reached 2,97,771 as of March 31, 2025. Expansion focuses on 'Mahindra Signature Resorts' and 'Keystone' venture using a mix of lease (70%) and owned (30%) models.

Raw Material Costs

Operating and other expenses grew 3.4% YoY to INR 1,053.1 Cr on a standalone basis, representing 68% of total income. Procurement strategies include centralized buying to offset F&B inflation.

Manufacturing Efficiency

Resort revenue growth of 7.2% indicates healthy occupancy and utilization. The company is focusing on 'premium members' to drive higher revenue per available room.

Logistics & Distribution

Not applicable as a traditional % of revenue; distribution is focused on digital and direct sales for membership products.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

The company targets a 4x increase in PAT between FY20 and FY30. This will be achieved through a 15% Revenue/Earnings CAGR driven by: 1) Increasing Average Unit Realisation (up 33% currently), 2) Launching the 'Mahindra Signature Resorts' brand, 3) Expanding via a capital-light model (leasing/management contracts), and 4) Scaling the 'Keystone' venture.

Products & Services

Vacation ownership memberships (Club Mahindra), resort stays, food and beverage services, and curated holiday experiences.

Brand Portfolio

Club Mahindra, Mahindra Signature Resorts, Holiday Club Resorts (HCR), Keystone.

New Products/Services

Mahindra Signature Resorts and the Keystone venture are expected to contribute to the 15% revenue CAGR guidance through FY30.

Market Expansion

Focusing on premium market segments in India and optimizing the international portfolio (HCR) when market situations improve.

Market Share & Ranking

Not disclosed, but MHRIL is a leading player in the Indian vacation ownership market.

Strategic Alliances

The company is increasingly using management contracts and partnerships where third parties build resorts to MHRIL specifications.

🌍 External Factors

Industry Trends

The industry is shifting toward premiumization and 'asset-light' hospitality. MHRIL is positioning itself by focusing on premium member upgrades and management contracts to improve ROCE.

Competitive Landscape

Competes with traditional hotels and other vacation ownership providers; MHRIL differentiates through its large resort network and Mahindra brand trust.

Competitive Moat

The moat is built on a massive INR 5,736 Cr deferred revenue pool and a 2.97 lakh member base, which creates high switching costs and predictable long-term cash flows.

Macro Economic Sensitivity

Sensitive to global economic uncertainty and new tariff policies which impact international travel and subsidiary performance.

Consumer Behavior

Shift toward premium holiday experiences and higher spending on F&B at resorts, supporting the 7.2% growth in resort income.

Geopolitical Risks

Global uncertainty and tariff changes are identified as macroeconomic threats to the international business (HCR).

⚖️ Regulatory & Governance

Industry Regulations

Operations are impacted by land acquisition laws, commercial land usage conversion, and environmental approvals for resort construction.

Environmental Compliance

Resort development is subject to environmental clearances and sustainability (ESG) risks monitored by the Risk Management Committee.

Taxation Policy Impact

Standalone tax expenses were INR 69.1 Cr on PBT of INR 269.6 Cr, implying an effective tax rate of ~25.6%.

Legal Contingencies

The company received 3 shareholder complaints during FY25, all of which were resolved with zero complaints pending as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of capex on treasury income, which may temporarily mute PAT growth relative to revenue. Operational risk involves maintaining service quality for 2.97 lakh members.