Mahindra Holidays & Resorts India Ltd (MHRIL), the leisure hospitality arm of the Mahindra Group, has reaffirmed its expansion roadmap, saying it remains on track to add around 1,000 room keys during FY27 and has clear visibility to achieve its target of 10,000 keys by FY30, despite facing temporary execution challenges during the first quarter.
The company said its inventory addition plans during the quarter were impacted by supply chain disruptions, material availability issues and labour shortages. However, it remains focused on expanding and upgrading its resort portfolio.
Resort expansion remains on course
Speaking on the company’s Q1 FY27 performance, Mahindra Holidays & Resorts India Ltd Managing Director and Chief Executive Officer Manoj Bhat said the company continues to enhance the quality of its resort network through the transformation of existing properties and the accelerated rationalisation of underperforming partner resorts based on guest feedback and ratings.
“We remain focused on enhancing the quality of our resort network through the ongoing transformation of existing resorts and the accelerated rationalisation of select properties during the quarter, based on guest feedback and ratings. While certain inventory addition projects were impacted by supply chain disruptions, material availability challenges and labour shortages, we remain on track to add approximately 1,000 keys during FY27 and have clear visibility towards achieving our target of 10,000 keys by FY30,” he said.
The company currently has an inventory portfolio of 5,865 keys across 111 resorts. During the quarter, it continued the transformation of seven existing resorts, while 15 partner resorts were exited based on guest feedback and quality ratings.
KEYSTONE drives sales growth
MHRIL said its recently launched premium offering KEYSTONE continued to gain traction during the quarter, helping drive a 22% year-on-year increase in sales value, supported by premiumisation and member upgrades.
The core resort business also maintained strong momentum, delivering double-digit revenue growth backed by healthy occupancy levels.
Profit declines on higher growth investments
For the quarter ended June 30, 2026, the company reported a standalone net profit of ₹54.3 crore, down from ₹76.2 crore in the corresponding quarter of the previous financial year.
Standalone total income increased to ₹423.5 crore from ₹410.6 crore a year earlier.
Bhat said profitability in the India business was affected by growth-related investments, while international operations continued to face headwinds arising from geopolitical uncertainties and the slowdown in Finland’s economy.
At the consolidated level, the company reported 5% year-on-year revenue growth during the quarter.
Focus on quality and long-term growth
MHRIL said it will continue to invest in expanding and upgrading its resort network while improving guest experience through quality enhancements and selective portfolio optimisation.
The company believes its ongoing expansion strategy, coupled with premium offerings such as KEYSTONE, will support long-term growth and help it meet its FY30 capacity target.