Mahindra Holidays Faces Profit Slump Amid Labour Code Impact

Mahindra Holidays & Resorts India Ltd reported a 96% decline in profit in Q3 2025 due to a one-time labour code impact. Revenue rose to Rs 752.7 crore. Expenses and exceptional outgo affected profits, while India resort growth and membership upgrades showed promising results. European operations faced economic challenges.

Mahindra Holidays & Resorts India Ltd (MHRIL) announced a substantial drop in its consolidated net profit after tax, with figures plummeting by 96% to Rs 1.4 crore in the third quarter ending December 2025. This sharp decline is primarily attributed to a one-time financial burden related to the implementation of new labour codes.

Despite this, consolidated revenue from operations showed an increase, reaching Rs 752.7 crore in this quarter, compared to Rs 678.42 crore in the same period last year. However, total expenses also saw a rise to Rs 760.18 crore from Rs 662.69 crore previously. The company reported an exceptional item expense of Rs 11.06 crore due to the labour codes issued by the government in November 2025.

MHRIL's Managing Director and CEO Manoj Bhat highlighted that domestic business profits increased by 8% and emphasized robust resort revenue and membership upgrades. However, their European segment faced challenges due to adverse economic and weather conditions in Finland. Bhat reiterated the company's strategy to expand inventory by adding new resorts and rooms.

(With inputs from agencies.)