Are Mahindra Holiday latest results good or bad?

Mahindra Holidays & Resorts India has reported its financial results for the quarter ending June 2025, highlighting a challenging operational environment. The company has experienced a notable adjustment in its evaluation over the past three months.
In terms of financial performance, the net sales for the quarter showed a decline of 9.94% compared to the previous quarter, which had seen a growth of 14.80%. The consolidated net profit also faced a significant reduction, with a decrease of 89.23% from the previous quarter's performance. This decline is further reflected in the operating profit, which dropped by 40.09%, indicating a contraction in operational efficiency.

The company's Profit Before Tax (PBT) reported a loss of Rs -12.46 crore, contrasting sharply with the average PBT of Rs 15.89 crore from the prior four quarters, marking a substantial decline. Similarly, Profit After Tax (PAT) fell to Rs 7.87 crore, down 75.3% from an average of Rs 31.90 crore in earlier quarters.

Additionally, the Debt-Equity Ratio reached a high of 4.01 times, suggesting a significant reliance on debt relative to equity capital, although this reflects a consistent reduction in borrowing over the last several periods. The operating cash flow has also decreased, reaching its lowest level at Rs 621.46 crore, continuing a downward trend observed over the past three years. The Debtors Turnover Ratio is low at 2.44 times, indicating a slowdown in the collection of receivables.

Non-operating income has notably increased, comprising 147.39% of PBT, raising questions about the sustainability of this income source moving forward. Overall, these results indicate a complex financial landscape for Mahindra Holidays & Resorts India, characterized by declining profitability and operational challenges.