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Mahindra Holidays & Resorts India Ltd (MHRIL) reported a consolidated net loss of INR 8.56 crore for the first quarter of FY27, compared with a profit of INR 7.17 crore in the corresponding period last year. The company attributed the decline to growth-related costs in its domestic business and geopolitical uncertainties affecting its international operations. Despite the loss, revenue from operations increased to INR 732.81 crore from INR 701.40 crore a year earlier. MHRIL said it remains on track to add around 1,000 resort keys during FY27 and continues to target a portfolio of 10,000 keys by FY30, despite project execution challenges linked to supply chain constraints and labour shortages.
Mahindra Holidays & Resorts India Ltd (MHRIL) reported a consolidated net loss of INR 8.56 crore for the quarter ended 30 June 2026, as higher expansion-related expenditure in India and continued challenges in its international business weighed on profitability.
According to a regulatory filing released in the past week, the company had reported a consolidated profit after tax of INR 7.17 crore during the corresponding quarter of the previous financial year.
Despite the decline in earnings, consolidated revenue from operations increased to INR 732.81 crore during the April–June quarter of FY27, compared with INR 701.40 crore in the same period last year. However, total expenses rose to INR 776.48 crore, up from INR 713.33 crore a year earlier, contributing to the quarterly loss.
Commenting on the financial performance, Manoj Bhat, Managing Director and Chief Executive Officer of MHRIL, said profitability in the company's India business was affected by costs associated with ongoing expansion initiatives. He added that the international business continued to face pressure from geopolitical uncertainties as well as a slowdown in the Finnish economy during the quarter.
The company said it remains focused on improving the quality of its resort portfolio through the continued refurbishment of existing properties and the accelerated rationalisation of selected resorts based on guest feedback and performance ratings.
MHRIL also acknowledged that some inventory expansion projects were affected by supply chain disruptions, shortages of construction materials and labour availability issues, which slowed project execution during the quarter. However, the company stated that these challenges have not altered its broader development plans.
According to the management, MHRIL continues to expect the addition of approximately 1,000 resort keys during the current financial year. The company also reiterated that it has clear visibility towards achieving its long-term target of 10,000 operational keys by FY30, reflecting its continued investment in expanding hospitality capacity.
Mahindra Holidays, which operates vacation ownership and resort businesses in India and overseas, has been strengthening its hospitality network through new developments while upgrading existing assets to enhance guest experience. The company's strategy combines capacity expansion with improvements to resort quality as it seeks to support long-term growth in the leisure hospitality segment.
The latest quarterly results indicate that while revenue growth remains steady, higher investment in business expansion and external economic challenges in overseas markets affected overall profitability during the opening quarter of FY27.
Source - PTI
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