Mahindra Holidays Q3 FY26 profit plunges 96% to Rs 1.4 crore

Mahindra Holidays & Resorts India Ltd on Thursday reported a sharp decline in profitability for the third quarter of FY26, even as revenues posted double-digit growth driven by strong resort performance in India.

The leisure hospitality firm reported a net profit of Rs 1.40 crore for the quarter ended December 31, compared with Rs 35.42 crore in Q3 FY25. Sequentially, profit fell sharply from Rs 16.93 crore in Q2 FY26.

Revenue from operations rose 10.9% year-on-year to Rs 752 crore, up from Rs 678 crore in the year-ago period.

“We had a good quarter with revenue up 10% year-on-year. This was led by strong resort revenue growth of 16% year-on-year in our India business,” said Manoj Bhat, Managing Director and Chief Executive Officer, Mahindra Holidays & Resorts India Ltd.

Resort revenue grew 16% YoY to Rs 125 crore during the quarter, supported by a healthy occupancy rate of 81.5%. The company’s room inventory crossed the 6,000-key milestone following the addition of 273 rooms during the quarter.

Membership sales value stood at Rs 145 crore in Q3 FY26, while average unit realisation came in at Rs 9.7 lakh, the company said.

However, profitability remained under pressure, with consolidated EBITDA declining 2.1% year-on-year to Rs 173.9 crore, compared with Rs 177.7 crore in the corresponding quarter last year.

Mahindra Holidays said its leisure segment contributes 8% of total membership revenues, with the remaining share coming from non-membership businesses. The company noted that the leisure segment has recorded a CAGR nearly twice that of in-city stays, underscoring a structural shift in travel demand.

The company also highlighted emerging trends in the travel industry, noting that around 80% of travellers now prefer experiential travel, while 56% make bookings within a week of travel. Additionally, weddings and the MICE (Meetings, Incentives, Conferences and Exhibitions) segment are emerging as the fastest-growing demand drivers.

Bhat said the company continued to expand capacity in line with its long-term strategy. “In line with our inventory expansion strategy, we added three new resorts during the quarter and added 273 rooms to our inventory base. Our India standalone business profits grew 8% despite an exceptional charge on account of labour code changes,” he said.