20.33% operating margin stands 10.36 points above peer median
Resort revenue rose 15% and occupancy reached 75.6%, but other income exceeded pre-tax profit.
Filed 21 Oct 2026, 13:17 IST · Mahindra Holidays & Resorts India Ltd (MHRIL)
Key takeaways
- Mahindra Holidays reported a consolidated operating margin of 20.33%, 10.36 percentage points above the 22-peer Consumer Discretionary median.
- Resort revenue rose 15% year on year in Q2FY27 and occupancy reached 75.6%, up 2.2 percentage points, management said.
- Other income of Rs 34.73 cr exceeded profit before tax of Rs 34.14 cr, while net profit was Rs 19.72 cr.
Price around the results
Interest and depreciation limited profit conversion
The consolidated operating profit of Rs 159.40 cr was reduced by interest of Rs 53.44 cr and depreciation of Rs 106.55 cr before reaching profit before tax of Rs 34.14 cr. Other income of Rs 34.73 cr exceeded profit before tax, making reported net profit of Rs 19.72 cr dependent on a significant non-operating contribution. A 42.24% tax rate further reduced the conversion of pre-tax profit into net profit.
Resort occupancy improved as the portfolio changed
Management said resort revenue increased 15% year on year, while occupancy rose 2.2 percentage points to 75.6%. The company said two resorts were expanded during Q2FY27 and six exited the portfolio. Management also said ongoing capex covers the transformation of seven existing resorts and new inventory addition projects.
Operating margin was well above the sector comparison
Mahindra Holidays' 20.33% operating margin was 10.36 percentage points above the median of 22 Consumer Discretionary peers that had reported the quarter. Its position was 18th from the bottom of that peer set, indicating that the margin was higher than most reported peers.
Management framed leisure spending as a long-term growth area
Management's presentation projected discretionary consumer, lifestyle and e-commerce spending at about Rs 1.8 trillion by 2030, with a 19% CAGR from 2022 to 2030E. It also projected a 2.2-times expansion in the leisure wallet by FY30, linked to more trips, higher travel spend and wider destination choices. Separately, the presentation said eight resorts received new Net Zero Waste to Landfill certifications.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹784 cr |
| Other income | ₹35 cr |
| Expenses | ₹625 cr |
| Operating profit | ₹159 cr |
| Operating margin (%) | 20.33% |
| Interest | ₹53 cr |
| Depreciation | ₹107 cr |
| Profit before tax | ₹34 cr |
| Tax | ₹14 cr |
| Net profit | ₹20 cr |
| EPS (₹) | ₹0.99 |
Operating margin of 20.33% compares with a Consumer Discretionary sector median of 9.97% across 22 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.22% | -2.68% |
Volume on the results session was 1.36× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Resort revenue increased 15% year on year in Q2 FY27, while occupancy rose 2.2 percentage points to 75.6%.
Guidance & outlook
- Discretionary consumer, lifestyle and e-commerce spending is projected to reach ~₹1.8 trillion by 2030, with a 19% CAGR from 2022 to 2030E.
- Leisure wallet expansion is projected at 2.2 times by FY30, driven by more trips, higher travel spend and richer destination choices.
Expansion
- The company is undertaking ongoing capex for transforming seven existing resorts and adding new inventory.
- Two resorts were expanded during Q2 FY27, while six resorts exited the portfolio.
New initiatives
- Eight resorts received new Net Zero Waste to Landfill certifications.
What to watch
- Whether occupancy holds above 75.6% after the reported 2.2-percentage-point increase.
- Whether operating margin remains near 20.33% while capex continues across seven existing resorts and new inventory projects.
- Whether the gap between other income of Rs 34.73 cr and profit before tax of Rs 34.14 cr narrows.