Mahindra Holidays Reports 18% EBITDA Growth in Q2 Despite Weather Challenges

Mahindra Holidays & Resorts India Limited (MHRIL) has delivered a robust performance in the second quarter, showcasing resilience in the face of weather-related challenges. The company reported significant growth in key financial metrics while maintaining a strong focus on expansion and member experience.

Financial Highlights

MHRIL's Q2 results demonstrate solid growth across key financial parameters:

Metric	Q2	YoY Growth
Total Income	₹381.00 crores	3%
EBITDA	₹141.00 crores	18%
EBITDA Margin	37.00%	-
PAT	₹52.00 crores	10%
Cash Position	₹1,532.00 crores	6%

The company's EBITDA margin improvement to 37.00% is particularly noteworthy, indicating enhanced operational efficiency.

Operational Performance

Despite facing weather-related challenges, MHRIL maintained a healthy occupancy rate of 73.40%. This is impressive considering the company lost an estimated 10,000 nights due to cancellations in the Himachal and Uttarakhand clusters. Resort revenue reached ₹84.00 crores, marking an 8% growth year-on-year.

Expansion and Inventory Optimization

MHRIL continues to execute its growth strategy:

Added a new resort in Mahabaleshwar, Maharashtra
Completed four expansion projects in Kandaghat, Dindi, Patkote, and Jaipur
Added 209 keys while exiting 261 keys as part of quality optimization efforts
Current inventory stands at 5,742 keys across 118 resorts

The company plans to add about 1,000 keys at the gross level in the second half, further improving room availability for members.

Member Additions and Sales Strategy

MHRIL's focus on selective customer acquisition is yielding results:

Added 1,432 new members in Q2
Average Unit Realization (AUR) surged by 85% to ₹9.30 lakhs
66% of sales now come through referrals and digital channels, up from 58% last year
Member-to-room ratio improved to 53 from 55 in the same quarter last year

Future Outlook

Manoj Bhat, MD and CEO of MHRIL, reaffirmed the company's target of reaching 10,000 keys by FY30. The company is exploring capital-light models, with plans to have about 30% of future inventory coming from owned properties and 70% from leased or other capital-light models.

MHRIL is also working on strategic initiatives beyond the vacation ownership model, with announcements expected in the near future. The company continues to focus on enhancing member experiences, leveraging AI for inventory optimization, and improving operational efficiencies.

As Mahindra Holidays & Resorts India Limited navigates through the evolving travel and leisure landscape, its strong financial performance and strategic initiatives position it well for future growth in the Indian hospitality sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.92%	-1.70%	-6.55%	+5.30%	-14.66%	+178.43%

Mahindra Holidays & Resorts India Limited (MHRIL), India's leading leisure hospitality provider, has reported robust financial results for the second quarter of fiscal year 2026, while outlining plans to strengthen its domestic and European timeshare portfolio.

Q2 FY26 Financial Highlights

MHRIL's consolidated performance for Q2 FY26 showed significant improvement:

Total Income: ₹749.50 crore, up 6.1% year-over-year (YoY)
EBITDA: ₹184.90 crore, increased by 16.4% YoY
Profit After Tax (PAT): ₹16.90 crore, surged 47% YoY

On a standalone basis, the company reported:

Total Income: ₹380.70 crore, a 2.6% increase YoY
EBITDA: ₹140.50 crore, up 17.6% YoY
PAT: ₹51.70 crore, grew 9.8% YoY

Resort Portfolio Expansion

MHRIL has accelerated its inventory expansion efforts:

Added a new resort in Mahabaleshwar, Maharashtra
Expanded four existing resorts: Kandaghat (Himachal Pradesh), Dindi (Andhra Pradesh), Patkot (Uttarakhand), and Jaipur (Rajasthan)
Total inventory base reached 5,742 keys across 118 resorts
Three ongoing greenfield/brownfield projects progressing well

Operational Performance

The company's operational metrics remained strong:

Resort revenue grew 8% YoY to ₹84.00 crore
Resort occupancy stood at 73.4% on an expanded inventory base
Membership base increased to 304,000 with the addition of 1,432 new members
Average Unit Realization (AUR) rose significantly to ₹9.30 lakh, up 85% YoY

Digital-Led Growth Strategy

MHRIL is focusing on digital-led member acquisition strategies to enhance its growth:

66% of member additions in Q2 FY26 came through referrals (Happy Family Referral Program) and digital routes, up from 58% in Q2 FY25
The company is leveraging digital platforms to improve customer engagement and streamline the membership process

European Operations

Holiday Club Resorts Oy (HCR), MHRIL's European subsidiary, faced challenges but maintained stability:

Revenue remained steady at €34.00 million in Q2 FY26
Operating profit decreased slightly to €1.30 million
Timeshare sales were impacted due to changes in credit policy, but spa and renting revenue improved

Future Outlook

Manoj Bhat, Managing Director and CEO of Mahindra Holidays & Resorts India Ltd., commented on the performance: "We have delivered a strong performance despite being affected by unprecedented rain in Himachal & Uttarakhand clusters. We accelerated inventory expansion to add a new resort & expanded 4 existing resorts. Growth in resort revenue & membership upgrade continues as we deliver superlative customer experience across touchpoints."

The company aims to enhance occupancy rates and targets sustained Average Room Rate (ARR) growth by increasing premium inventory and leveraging cross-market synergies between its operations.

MHRIL's focus on portfolio expansion, digital growth strategies, and improving operational efficiencies positions it well to capitalize on the growing demand for quality family holidays in India and Europe.