Mahindra Holidays & Resorts India Ltd (MHRIL), a leading player in the vacation ownership and leisure hospitality sector, has reported a robust financial performance for the second quarter ended September 30, 2025.

Key Financial Highlights

• Consolidated PAT: Grew 47% year-over-year
• Consolidated Total Income: Reached Rs 749.50 crore, up from Rs 706.20 crore in the previous year
• Consolidated EBITDA: Rs 184.90 crore, a 16.4% increase year-over-year
• Standalone EBITDA: Rs 140.50 crore, up 17.6% year-over-year

Operational Performance

• Resort Expansion: Added one new resort in Mahabaleshwar, Maharashtra
• Existing Resort Expansion: Expanded four resorts across Kandaghat, Dindi, Patkot, and Jaipur
• Resort Revenue: Grew 8% year-over-year to Rs 84.00 crore
• Occupancy Rate: 73.4% across an expanded inventory base of 5,742 keys spanning 118 resorts
• Membership Sales Value: Reached Rs 134.00 crore
• Average Unit Realization: Rs 9.30 lakh, marking a 485% year-over-year increase
• New Members Added: 1,432, bringing cumulative membership to 304,000

Financial Position

• Cash Position: Strengthened 45% year-over-year to Rs 1,532.00 crore
• Deferred Revenue: Stands at Rs 5,747.00 crore

Management Commentary

Managing Director Manoj Bhat noted strong performance despite weather challenges in Himachal and Uttarakhand clusters. He highlighted continued growth in resort revenue and membership upgrades through their premiumization strategy.

Industry Context

The leisure and hospitality sector has been showing signs of recovery post-pandemic, and Mahindra Holidays' results reflect this broader trend. The company's ability to significantly increase its profits and EBITDA amidst moderate revenue growth indicates successful adaptation to market conditions and effective management strategies.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.

Mahindra Holidays & Resorts India Limited (MHRIL), a prominent player in the hospitality sector, has received Goods and Services Tax (GST) show-cause notices totaling ₹6.53 crore, covering the fiscal years 2020-21 to 2023-24. The notices, issued by the Assistant Commissioner (ST) Anna Salai, Central-III, Chennai, Tamil Nadu, relate to GST compliance matters for the company.

Details of the Show-Cause Notices

According to a regulatory filing by MHRIL, the company received four show-cause notices (SCNs) via email on September 19, 2025. The SCNs demand an aggregate amount of ₹6,52,77,394, which includes:

The notices pertain to the applicability of Goods and Services Tax on Corporate Guarantee under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017 & Central Goods and Service Tax Act, 2017.

Company's Response

Mahindra Holidays & Resorts has stated that based on their assessment and advice from their counsel, they do not expect these show-cause notices to have any material financial impact on the company. The hospitality firm has announced its intention to pursue appropriate legal remedies before the relevant authorities regarding this matter.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, MHRIL has promptly disclosed this information to the stock exchanges. The company has also made this information available on its official website for investor reference.

Market Implications

While the GST show-cause notices represent a significant amount, Mahindra Holidays & Resorts' confident stance regarding the lack of material financial impact suggests that the company is well-prepared to address these regulatory challenges. Investors and market watchers will likely keep a close eye on how this situation develops and its potential implications for the company's financial health and regulatory compliance record.

As the matter unfolds, it will be crucial to monitor any updates from Mahindra Holidays & Resorts regarding their legal proceedings and the final outcome of these show-cause notices.