Mahindra Holidays & Resorts India Ltd (MHRIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Mahindra Holidays & Resorts India Limited Q2 FY27 earnings conference call. As a reminder, all participants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Manoj Bhat, MD and CEO. Thank you, and over to you, sir.
Manoj Bhat (Mahindra Holidays & Resorts India Ltd): Thank you. Good evening everyone and welcome to Mahindra Holidays Q2 F27 earnings call. Joining me is our CFO Rajiv Vimal. I'll quickly outline our progress against the strategy and our priorities before Rajiv takes you through the financial results. Our strategy to recap was to scale our core business by enhancing guest experience, while building a new luxury leisure hospitality offering. For the core business I think what we were focused on was strengthening and building our Keystone proposition which we have launched about nine months back, widening and getting more premium resorts over a period of time, and ensuring greater availability for for our guests. In line with the same we worked on we saw progress on all fronts in Q2. So we saw that there was higher resort utilization, we saw premiumization in our product portfolio while we continue to invest in our network. Our new product Keystone offers greater simplicity, flexibility and enhanced privileges. If I look at the quarter, the total sales value including upgrades grew 6% year-on-year to 141 crores, while the upgrade value grew at 26% to 83 crores. And upgrades are a really a reflection of the confidence our members have in in the product and that's that's a strong growth which we have seen continuously over many many quarters. Our average unit realization, including upgrades, grew up by 43% to 13.4 lakhs. So if I look at from this perspective we saw growth overall, we saw growth in upgrades and we saw growth in AUR, so it's been a good quarter on many fronts from that perspective. This upgrade opportunity is supported by our base of about 3 lakh 2000, 3 lakh 3000 members. If I look at the breakup of how we have added members, organic and digital have contributed 66% of member additions in the quarter, so so clearly we are seeing that we are sustaining the momentum from referrals, which is again an indication of the strength of the program and that on the satisfaction of the members. And of course, digital is is something which is a new channel which have, we have been investing in some time. The the premiumization which we have seen is supported by really the holiday experience which has been, become better for most of our members as we look at the scores from a satisfaction perspective. So overall, from that perspective, this has been a satisfactory quarter. The other area which we have talked about in the past is our resort transformation or the portfolio transformation journey. In Q2, we transformed two existing properties and I think they are both open. I think we are a, there are about five transformations underway as we speak. if I look at from a continued focus on exiting parts of the portfolio with based on guest feedback and ratings, we continue to on that journey, so overall during the quarter, we exited six resorts, taking the network to 5,762 keys across 106 resorts in September. So overall, there was a net reduction of 103 keys in the quarter. While these exits and ongoing transformation limit near-term visibility, I think overall we are on track to add about 1,000 gross keys in the next six months. That is the current plan, and as they come on stream, they will broaden holiday choice and improve availability
Manoj Bhat (Mahindra Holidays & Resorts India Ltd): During the quarter, occupancy also grew by quick 220 basis points to 75.6% and our resort revenue grew by 15%, which is I think the highest it has been in the last 8 quarters. And so really, our journey of focusing on premiumization, focusing on getting the right portfolio, and also focusing on expanding guest experience, I think that is something which is showing results. The new metric which we have started tracking is TRevPAR across our portfolio. As of as of September end, it is up 6% YoY to ₹8,777 per room. And to me, this is indicative of the the basic yield going up across our properties. Beyond the near term additions, our objective to reach 10,000 keys by F30 is very much on track. Currently, we have eight ongoing Greenfield and Brownfield projects. And in terms of our funnel, we have a 85% visibility on the F30 target. This larger, better quality network will will provide a broader base for resort-led revenue growth in the future. Coming to the investments, on the capital side, we are allocating capital to both scale up the network as well as improve the quality. H1 CapEx was about 312 crores. This is supporting some of the resort transformation and the new inventory projects. This is sharply up from 166 crores a year ago. To to summarize what this investment will support is both from our VO and income as well as income from stays, food and beverage, and experiences of various kinds including spa and wellness. And to me, this is a journey which will start bearing results as we go into the next few quarters. From our technology and AI journey, I think there are multiple areas where we are using AI capabilities to with one focus, which is about how do we improve guest engagement across both service and operations. If I look at the various things around paperless check-ins, around WhatsApp billing, around various tools where we are using it to anticipate guest needs and serve them better, I think that's also going very well. Quickly coming to our international operations, HCRO delivered a stable performance compared to the same quarter next next year, although it continued to report a net loss amid challenging finishing economic environment. Overall, the Finnish economy is doing better than where it was a year back. And I think as as the quarters progress, some of that will translate possibly into better results in in terms of growth in in the HCRO business. But that is something which we will monitor as we go along. Consolidated PAT grew 17% year-on-year reflecting the financial performance. H2, I think, our focus is on execution. The first thing is about adding capacity which I spoke about, 1,000 keys. Second is actually, accelerating Keystone's sales and upgrades and to me, that is one element where there are some interesting developments in new channels and so on and so forth. And, lastly, I think, working on operating efficiency, because even today, for example, we have 442 keys, which are under renovation, which are not contributing anything to revenue. So, overall, I think, this is where the next two quarters are focused on. Looking ahead, I think, we will continue to progress on our core business, while developing our luxury offering. And to me, that is a journey which, I think, will play out over the next few quarters. With that, I'll hand over to Rajiv Vimal for the financial review.
Rajiv Vimal (Mahindra Holidays & Resorts India Ltd): Thank you, Manoj, and good evening, everyone. Let me briefly take you through the financial performance for quarter 2 FY27. At a standalone level, total income grew by 4% year-on-year to 395 crores, supported by a double-digit growth in resort revenues and broadly stable membership income. EBITDA stood at 124 crores versus 141 crores last year, and PAT at 43 crores versus 52 crores last year, down by 12% and 16% respectively, reflecting the impact of growth-linked costs. Holiday Club Resorts recorded
Rajiv Vimal (Mahindra Holidays & Resorts India Ltd): 15% revenue growth to 36.5 million euros with an EBITA of 1.7 million euros compared to 1.3 million last year. The net loss remained at 0.3 million euros amid continued challenges in Finland. The SCRO loss in the Indian books, including interest and forex, is at 18 crores vis-a-vis 27 crores last year in quarter two. At a consolidated level, total income grew by 9% to 819 crores and EBITA increased 5% to 194.8 crores. PAT rose by 17% to 19.7 crores. Our stand-alone balance sheet continues to provide financial flexibility for expansion and transformation. As of September end, the deferred revenue stood at 5,828 crores and the cash balance stood at 1,329 crores. Our focus remains on funding planned planned growth and improving operating efficiency. And with that, we would be happy to open the floor for questions.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Yash Mehta from JKP Capital. Please go ahead.
Yash Mehta (JKP Capital): Yeah. So good afternoon, sir. So I've got a few set of questions. So firstly, like how is the key stone portfolio performing across Ebony, Ivory, and Jade membership categories? And like, which offering is attracting the strongest customer interest, and what like what are the management expectations for membership sales and realizations for FY27?
Manoj Bhat (Mahindra Holidays & Resorts India Ltd): Thanks good evening, Yash. So your question was about the mix which we're seeing. So I think it's it's about 3 to 4 quarters data, but if I look at what is emerging as data is that our 10-year Ivory product is where the maximum membership is. And overall, the 10-year is the most preferred kind of mix by preferred kind of product by customers today followed by the 5-year product. And both of these put together is about 80% of the portfolio. To me, the journey of Keystone was something which, I think we are seeing two things. One is from a sales perspective, I think initially there was a phase of familiarization and people understanding what the product is because it was different from our previous products and that includes internal and external teams, followed by a period of kind of acceleration which we are actually continuing to see now in sales growth. Another second thing was is really upgrade. So it is it is a product which is well liked by existing members and we're seeing a good upgrade momentum in in in that product. So if I look at upgrades, they have grown almost roughly about 25% to 27% from a Q2 to Q2 perspective. So I think that's that's where we are. As we look at the the current kind of net member addition is what we report. I I do expect that over the next one or two quarters, we should see that number increasing because I think we are seeing traction. We don't give guidance on exactly where where we would be, but that's that's where I think I'll give you. That's a quick color on what you wanted. Does that kind of answer the question, Yash?
Yash Mehta (JKP Capital): I understand. I understand. Yes, yes, yes, perfect. And also like, can you share the extent of like room inventory that remained non-operational during the Q2 FY27 due to the refurbishment? And how did this affect occupancy and resort revenues? And lastly, when are these rooms expected to return to operations?
Manoj Bhat (Mahindra Holidays & Resorts India Ltd): So currently, there are about 442 keys which are in renovation. I think we expect that some of them will
92 more turns of this transcript: log in to Stocksigma to read the full call.