Mahindra Holidays reports 12% dip in net profit despite strong operational performance – ET TravelWorld

Mahindra Holidays & Resorts India Ltd (MHRIL) reported an 11.4% year-on-year (YoY) decline in its net profit to ₹73 crore for the quarter ended March 31, 2025, compared to ₹82.3 crore in the corresponding quarter of the previous fiscal. Revenue from operations also witnessed a modest dip of 2.7% YoY, settling at ₹778.8 crore in Q4 FY25 from ₹800.2 crore a year ago.

Despite the dip in top-line and bottom-line figures, the company demonstrated significant operational resilience. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew 8.9% YoY to ₹204.4 crore in Q4 FY25, compared to ₹187.7 crore in Q4 FY24. EBITDA margins improved sharply to 26.3% during the quarter, up from 23.5% a year earlier, supported by enhanced operational efficiency.

The quarter also marked notable expansion efforts by MHRIL. The company added 149 keys during Q4 FY25 with the launch of new managed resorts at Dindi (Andhra Pradesh) and Ranthambore (Rajasthan), along with the completion of the second phase of its development at Pavagadh (Gujarat). Resort revenue rose 14% YoY to ₹107 crore, driven by a robust 85% occupancy rate across its properties.

On an annual basis, FY25 saw Mahindra Holidays record its highest-ever inventory addition, expanding its resort base by 520 keys to a total of 5,847 keys as of March 2025. Over 1.4 million guests visited its resorts during the year, underscoring the strong demand for its vacation offerings. Average Unit Realization (AUR) for FY25 also surged 39% to ₹5.73 lakh, and for Q4 alone, AUR jumped 82% YoY to ₹7.72 lakh, reflecting increased focus on high-value products and deeper guest engagement. The company’s deferred revenue stood at a healthy ₹5,736 crore, while its cash reserves totaled ₹1,555 crore as of March 31, 2025, indicating strong financial stability.

Commenting on the performance, Manoj Bhat, Managing Director and CEO of Mahindra Holidays & Resorts, said, “We have maintained our aggressive expansion strategy with over 500 keys added in FY25. Our focus on delivering outstanding customer experiences has led to sustained double-digit resort revenue growth over two consecutive quarters.”

With a growing member base now at 3,04,508 members, the company said it remains firmly positioned to drive stable, annuity-based revenue growth going forward.