After Negative Returns: Vijay Kedia as a Shareholder Raises Concern with Anand Mahindra Over Mahindra Holidays; Check Details

Vijay Kedia’s Message to Anand Mahindra

Ace Investor Vijay Kedia has put Mahindra Holidays & Resorts India Ltd in the spotlight after posting a detailed message on X addressed to Shri Anand Mahindra. His comments come at a time when domestic tourism is gaining momentum, supported by rising income levels, aspirational spending and growing preference for experiential family travel.

In his post, Kedia said:

“Dear @anandmahindraJi, At a time when even our Hon’ble PM is encouraging domestic tourism, I genuinely feel Mahindra Holidays is sitting on a massive long term opportunity. India today has a rapidly growing affluent and aspirational middle class with increasing preference for experiential family travel, yet Club Mahindra still has only around 3 lakh member families in India. The headroom for growth appears enormous. India’s hospitality cycle is strong, Club Mahindra enjoys immense brand trust and healthy occupancy, yet the true value of the India business seems overshadowed by the continuing drag from the overseas Holiday Club business. Perhaps the time has come for a strategic review - ring-fence, restructure, demerge or reduce exposure to the European subsidiary so that the India business can be valued independently on its own merit. Additionally, sharper focus on capital light expansion, younger branding, digital engagement and modern hospitality thinking could unlock substantial shareholder value in the years ahead. Written with utmost respect and admiration for the Mahindra Group and your visionary leadership. .... A concerned long term shareholder.”

Tourism Opportunity Remains Sizeable

In another post on X, Kedia also said, “Tourism can be India’s next trillion dollar story... if we just get the basics right”.

The opportunity highlighted by Kedia is also reflected in Mahindra Holidays’ FY26 investor presentation. The company has stated that India is expected to become the third-largest economy by 2030, while discretionary spending is projected to grow at 19 per cent during 2022-2030E, compared with 6 per cent growth in essential spending.

The presentation also highlights that hotel demand is expected to outpace room supply growth over FY25-FY28. India’s branded hotel penetration is shown at only 8 per cent, indicating a large addressable market for organised hospitality players.

Branded Leisure Could Be a Key Growth Driver

The leisure hospitality segment appears particularly relevant for Club Mahindra. According to the company’s presentation, the branded leisure opportunity is pegged at USD 4 billion by FY30. It also notes that leisure is growing at twice the CAGR of in-city hotels, while only 14 per cent of keys are branded.

Other trends mentioned in the presentation include rising demand for luxury and upscale offerings, nearly 80 per cent preference for experiential travel, and weddings and MICE emerging as fast-growing segments. These factors support the broader case for long-term growth in India’s leisure hospitality market.

Club Mahindra’s India Business Shows Operating Strength

Mahindra Holidays & Resorts India Ltd, part of the Mahindra Group, is known for its flagship vacation ownership brand, Club Mahindra. The company’s FY26 investor presentation states that MHRIL has over 3 lakh members, around 160 resorts globally, more than 2,000 curated experiences and around 100 partner hotels. The standalone business is described as debt-free, supported by strong free cash flows and predictable revenue streams.

In FY26, MHRIL added around 900 gross keys, taking its cumulative base to 6,228 keys. It launched seven new resorts, expanded five resorts and had three ongoing projects. Resort income, including all subsidiaries except HCR, stood at Rs 443 crore in FY26, up 12 per cent year-on-year, while occupancy remained healthy at 80.7 per cent.

Overseas Business Remains a Pressure Point

Kedia’s concern appears to be centred on the gap between the strength of the India business and the drag from Holiday Club Resorts. For FY26, Holiday Club Resorts reported income of EUR 137.1 million compared with EUR 138.2 million in FY25. Its EBITDA turned negative at EUR 1.2 million compared with positive EBITDA of EUR 4.4 million in FY25, while PAT loss widened to EUR 6.8 million from EUR 2.1 million.

This is where Kedia’s suggestion of a strategic review becomes important. His post refers to possible options such as ring-fencing, restructuring, demerging or reducing exposure to the European subsidiary, so that the India business can be valued independently on its own merit.

Financial Performance Reflects the Contrast

On a standalone basis, MHRIL’s FY26 total income rose 4.4 per cent to Rs 1,613.3 crore, while EBITDA increased 20.5 per cent to Rs 592.8 crore. PAT excluding one-offs rose 22.3 per cent to Rs 240.6 crore.

At the consolidated level, FY26 total income rose 7.1 per cent to Rs 3,116 crore, but reported PAT declined 46.8 per cent to Rs 67 crore. PAT excluding one-offs stood at Rs 136.3 crore, up 1.5 per cent year-on-year. The presentation states that FY26 PAT included one-off labour code and forex loss impact of Rs 69 crore, compared with a one-off forex loss of Rs 8 crore in FY25.

Stock Likely to Remain in Focus: Mahindra Holiday & Resorts India’s Share Price

The stock has remained under pressure. Mahindra Holidays & Resorts India’s share price performance was down by 26 per cent on a year-to-date basis and minus 36 per cent over one year.

Kedia’s message now places a sharper spotlight on one key question for investors: can Mahindra Holidays unlock the value of its India leisure hospitality business by addressing the continuing weakness in the overseas subsidiary?

Whether the Mahindra Group acts on these suggestions remains to be seen. However, after this public appeal from a well-known long-term investor, Mahindra Holidays & Resorts India shares are likely to remain in focus.

Disclaimer: This article is for informational purposes only and not investment advice.