How has been the historical performance of Mahindra Holiday?

Revenue and Profitability Trends

Over the last seven financial years, Mahindra Holiday’s net sales have shown a generally upward trend, rising from ₹2,238.99 crores in March 2019 to ₹2,780.85 crores in March 2025. Despite a dip in fiscal 2021 to ₹1,729.96 crores, likely impacted by broader economic challenges, the company rebounded strongly in subsequent years. The operating profit margin (excluding other income) improved significantly, reaching 20.81% in March 2025 compared to just 7.42% in March 2019, reflecting enhanced operational efficiency.

Operating profit (PBDIT) excluding other income rose from ₹166.22 crores in March 2019 to ₹578.82 crores in March 2025, underscoring the company’s ability to expand earnings from core operations. Including other income, operating profit increased to ₹707.78 crores in the latest fiscal year. However, interest expenses also escalated, reaching ₹148.17 crores in March 2025, which has weighed on net profitability.

Profit after tax (PAT) has seen a marked recovery from losses in fiscal years 2020 and 2021, where the company reported negative PAT of ₹-134.28 crores and ₹-14.03 crores respectively. By March 2025, PAT had climbed to ₹127.04 crores, with earnings per share (EPS) improving to ₹6.33. The PAT margin similarly turned positive, standing at 4.53% in the latest year, a significant improvement from the negative margins seen during the pandemic-affected years.

Balance Sheet and Asset Position

Mahindra Holiday’s total assets have expanded steadily from ₹8,013.96 crores in March 2021 to ₹10,399.79 crores in March 2025, reflecting ongoing investments and asset growth. The net block of fixed assets increased from ₹2,639.51 crores to ₹3,151.66 crores over the same period, supported by capital work in progress which rose notably to ₹364.80 crores in the latest year.

Shareholders’ funds have strengthened considerably, rising from ₹84.68 crores in March 2021 to ₹780.45 crores in March 2025, indicating improved equity base and retained earnings. However, the company’s long-term borrowings have fluctuated, with a significant increase to ₹781.66 crores in March 2025 after a dip in the previous year, suggesting renewed reliance on debt financing. Current liabilities have remained relatively stable, while current assets have grown to ₹3,025.54 crores, supporting liquidity.

Cash flow from operating activities has been robust, reaching ₹621 crores in March 2025, which has helped fund investing activities despite negative cash flow from investing and financing activities in recent years. The company’s net cash position has seen some volatility, ending with a cash and bank balance of ₹271.22 crores in March 2025.

Summary of Historical Performance

Mahindra Holiday’s financial history over the past several years reveals a company that has navigated through challenging periods, including pandemic-related downturns, to return to growth and profitability. The steady increase in net sales and operating margins highlights operational improvements, while the recovery in net profit and EPS signals a return to financial health. The balance sheet shows a growing asset base and stronger equity position, though the rise in borrowings warrants monitoring.

Cash flow metrics indicate solid operational cash generation, which has been essential in funding capital expenditure and managing debt. Investors should note the company’s improved profitability margins and resilience, balanced against its debt profile and the need for continued focus on cost control and efficient capital deployment.

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