Mahindra Holidays & Resorts India Ltd Q2FY26 – “The ₹749 Cr Vacation That Refused To Pay Dividends”
1. At a Glance
Welcome to Club Mahindra — where every quarter feels like a long weekend, and yet, no dividends ever arrive in your account. Mahindra Holidays & Resorts India Ltd (MHRIL), the crown jewel of Mahindra Group’s hospitality dreams, clocked ₹749.5 crore revenue in Q2FY26, up 6.9% YoY, while PAT stood at ₹16.9 crore, jumping 47%. The company’s market cap sits at ₹6,639 crore, its current price is ₹329, and the stock P/E chills at 49.7x, probably because profits are on a holiday too. ROE stands tall at 19.6%, while ROCE barely stretches to 9.7%, suggesting that management returns from vacations a bit slower than shareholders might like.
Despite all that glamour, the stock has fallen 13% in the last year, making investors feel like the only ones who didn’t get a “Club Mahindra experience.” No dividends, no freebies, and no stay coupons — just faith. But wait, they’re the largest vacation ownership company outside the US, so maybe patience is part of the membership package.
2. Introduction
Mahindra Holidays has been selling the dream of “family vacations forever” since 1996. It’s the corporate version of your overenthusiastic cousin who keeps saying “let’s plan Goa” but never books the tickets. The company’s flagship brand, Club Mahindra, now boasts over 3 lakh members, each of whom likely spent a small fortune for “25 years of happiness” — or as the finance team calls it, “25 years of deferred revenue.”
But here’s the thing: while most of us go to work to afford vacations, Mahindra Holidays goes on vacation to afford work. The company’s operational model thrives on vacation ownership memberships, where members prepay for future holidays. Imagine selling a 2045 vacation in 2025 — that’s MHRIL’s business in one line.
Yet, one must admire their resilience. They survived COVID, demonetisation, GST audits, and more resignations than a corporate HR WhatsApp group (three CXOs quit in 2025 alone). And still, every quarter, they build new resorts — from Patkote (near Corbett) to Kandaghat (Himachal) to North Goa villas — because dreams, like resorts, need more rooms.
3. Business Model – WTF Do They Even Do?
Think of Mahindra Holidays as the EMI version of vacations. You don’t just buy a room; you buy “rights” to spend a few nights a year for the next 10 or 25 years. These memberships, once sold, fund resort construction, payroll, and Mahindra Group’s chai bills.
They have two main businesses:
(A) Club Mahindra – India (55% of 9M FY25 revenue): The desi engine. With 126 resorts and 5,698 rooms, this segment milks family dreams and Instagram captions. You can choose between 10-, 15-, and 25-year memberships. The average price per new member? Around ₹6.16 lakh in Q3FY25. But member additions fell from 4,708 to 3,000, proving that even wanderlust has EMIs.
(B) Holiday Club Resorts Oy – Finland (45% of 9M FY25 revenue): Because who doesn’t want to own a timeshare in sub-zero weather? MHRIL’s Finnish subsidiary runs 33 properties across Finland, Sweden, and Spain. While spa hotels account for 54% of the pie, timeshares make up 30%. Spain adds sunshine, Finland adds frostbite, and together, they add foreign exchange.
Their revenue split is almost like a thali:
Vacation Ownership – 35%
Annual Subscription – 26%
Resort Income – 23%
Non-Operating – 9%
Interest & Others – 7%
Essentially, half their income is from members who already paid, and the rest is from keeping those members slightly happy enough to renew.
4. Financials Overview
Source table
Metric
Latest Qtr (Q2FY26)
Same Qtr Last Yr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue
₹749.5 Cr
₹700 Cr
₹701 Cr
7.1%
6.9%
EBITDA
₹162 Cr
₹146 Cr
₹122 Cr
10.9%
32.8%
PAT
₹16.9 Cr
₹11.3 Cr
₹7 Cr
49.6%
141%
EPS (₹)
0.84
0.56
0.39
50%
115%
Commentary: EBITDA margins hover around 21%, which is decent considering half their customers are busy complaining about booking availability. EPS at ₹0.84 means you’d need 400 quarters (that’s 100 years) to get your share price back — unless you own a time machine or a timeshare.
