Mahindra Holidays Q2 FY27: net profit up 16% to ₹20 crore, income up 9%
Earnings
Hospitality
Blacklitt Research5 min read
Mahindra Holidays & Resorts India (NSE: MHRIL) reported consolidated net profit of ₹19.72 crore for the quarter ended 30 Sep 2026, up 16.4% from ₹16.94 crore a year earlier. Total income was ₹819.68 crore, up 9.4% from ₹749.45 crore. Standalone net profit was ₹43.26 crore, down 16.2% from ₹51.65 crore, on total income of ₹395.30 crore, up 3.8% from ₹380.67 crore.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹819.68 crore, up 9.4% from ₹749.45 crore in Q2 FY26.
Net profit: ₹19.72 crore, up 16.4% from ₹16.94 crore; net profit margin 2.4% against 2.3%.
EPS: basic ₹0.99, up 11.2% from ₹0.89.
Tax rate: 41.2% of profit before tax, against 51.4%.
Standalone
The company on its own, without its subsidiaries
Total income: ₹395.30 crore, up 3.8% from ₹380.67 crore in Q2 FY26.
Net profit: ₹43.26 crore, down 16.2% from ₹51.65 crore.
EPS: basic ₹2.14, down 16.4% from ₹2.56.
Tax rate: 26.2% of profit before tax, against 27.2%.
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
819.68
749.45
+9.4%
773.54
+6.0%
Revenue from operations
784.13
717.34
+9.3%
732.81
+7.0%
Other income
35.55
32.11
+10.7%
40.73
-12.7%
19.72
16.94
+16.4%
-8.56
n/a
Finance costs
53.44
48.13
+11.0%
47.07
+13.5%
Depreciation
106.55
100.60
+5.9%
109.40
-2.6%
Tax expense
14.42
18.57
-22.3%
5.36
+169.0%
Net profit margin
2.41%
2.26%
+0.15 pp
-1.11%
n/a
Tax as share of profit before tax
41.25%
51.40%
-10.15 pp
n/a
n/a
EPS (₹)
0.99
0.89
+11.2%
-0.43
n/a
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Lower tax, not higher pre-tax profit, lifted net profit. Pre-tax profit fell 3.2% to ₹34.96 crore, but tax expense fell 22.3% to ₹14.42 crore. Revenue from operations rose 9.3% to ₹784.13 crore, and total expenses rose 10.0% to ₹784.72 crore, so costs grew faster than revenue.
Cost of vacation ownership weeks rose 21.9% to ₹52.32 crore, employee benefit expense rose 16.4% to ₹218.74 crore, and other expenses rose 6.0% to ₹353.68 crore. Finance costs rose 11.0% to ₹53.44 crore. The filing does not explain the rise in employee costs.
The quarter had no exceptional items. The June quarter's tax charge of ₹5.36 crore, on a pre-tax loss, is stated after a deferred tax credit of ₹8.49 crore. The notes put the new Labour Codes charge at ₹11.06 crore on a consolidated basis, shown as an exceptional item, and the year to 31 Mar 2026 included an impairment of ₹233.70 crore on the investment in MHR Holdings (Mauritius) in the standalone accounts.
Segment revenue for Club Mahindra (MHRIL) rose 4.3% to ₹398.15 crore, and for the Finland-based Holiday Club Resorts Oy segment it rose 15.0% to ₹422.96 crore, before unallocated items. Club Mahindra's pre-tax profit was ₹51.58 crore, against ₹60.22 crore a year earlier; the Finnish segment made a pre-tax loss of ₹4.18 crore, against ₹3.95 crore.
Borrowings rose to ₹1,333.05 crore at 30 Sep 2026 from ₹1,233.99 crore at 31 Mar 2026, and cash and cash equivalents fell to ₹26.17 crore from ₹35.93 crore. The company drew ₹536.33 crore of borrowings and repaid ₹454.62 crore in the six months. Operating cash flow after tax was ₹2,522.10 crore, against ₹2,581.33 crore; capital spending on property, plant and equipment and intangibles was ₹298.35 crore, against ₹226.99 crore, and lease payments were ₹112.20 crore. The statement shows no dividend paid in the half year.
B S R and Co. LLP issued an unmodified review conclusion on both sets of results. It added an emphasis paragraph on an NFRA order dated 29 Mar 2023, which asked the company to review its operating-segment disclosure and its revenue recognition over membership periods. The company says its current policies comply with Ind AS, and the auditors verified the company's review and reported to NFRA. Other auditors reviewed eleven subsidiaries that the statement includes; before consolidation they had revenue of ₹400.00 crore for the quarter and ₹722.04 crore for the half year, and net losses after tax of ₹3.14 crore and ₹58.68 crore.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
395.30
380.67
+3.8%
423.48
-6.7%
Revenue from operations
354.30
344.17
+2.9%
379.73
-6.7%
Other income
41.00
36.50
+12.3%
43.76
-6.3%
43.26
51.65
-16.2%
54.31
-20.3%
Finance costs
16.37
21.74
-24.7%
17.72
-7.6%
Depreciation
49.35
47.79
+3.3%
51.02
-3.3%
Tax expense
15.33
19.34
-20.7%
18.58
-17.5%
Net profit margin
10.94%
13.57%
-2.62 pp
12.82%
-1.88 pp
Tax as share of profit before tax
26.16%
27.24%
-1.07 pp
25.49%
+0.67 pp
EPS (₹)
2.14
2.56
-16.4%
2.69
-20.4%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Standalone profit fell as employee costs and depreciation rose faster than revenue. Revenue from operations rose 2.9% to ₹354.30 crore, while employee benefit expense rose 16.9% to ₹110.22 crore and total expenses rose 8.7% to ₹336.71 crore. Pre-tax profit fell 17.5% to ₹58.59 crore.
Standalone finance costs fell 24.7% to ₹16.37 crore, and tax expense fell 20.7% to ₹15.33 crore. Standalone net profit was 10.9% of total income, against 13.6% a year earlier.
What the results mean for shareholders
Basic EPS was ₹0.99 consolidated and ₹2.14 standalone for the quarter, against ₹0.89 and ₹2.56 a year earlier. For the six months, profit attributable to owners of the company was ₹11.29 crore, against ₹25.73 crore, and consolidated basic EPS was ₹0.56, against ₹1.28.
The filing gives no guidance and reports no dividend declaration. It records that Aditatva Estates Private Limited became a wholly owned subsidiary on 15 Jun 2026, in a deal accounted for as an asset acquisition, and that a director or key managerial resignation was filed on 15 Oct 2026. No further dated step is stated.
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MHRILMahindra Holidays & Resorts India Ltd.
