Mahindra Holidays & Resorts India Limited (NSE: MHRIL) Q4 2025 Earnings Call dated Apr. 25, 2025
Corporate Participants:
Manoj Bhat — Managing Director & Chief Executive Officer
Vimal Agarwal — Chief Financial Officer
Analysts:
Pankaj Kumar — Analyst
Shreyans Gathani — Analyst
Himanshu Shah — Analyst
Senthil Manikandan — Analyst
Akshat Bairathi — Analyst
Varun Mishra — Analyst
Nidhi Agarwal — Analyst
Pranav Tendulkar — Analyst
Kitesh M — Analyst
Sahil Vora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Mahindra Holidays & Resorts India Limited Q4 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star zero on a touchstone phone. Please note that this conference is being recorded. I now hand over the conference to Mr Manoj Pat. Thank you, and over to you, sir
Manoj Bhat — Managing Director & Chief Executive Officer
Thank you. Good evening, everyone, and a very warm welcome to our Q4 and full-year FY ’25 earnings call. On the call with me today, I have Mr Vimal Agarwala, our CFO. You can find our results and investor presentation on the stock exchanges and on our company website. I hope you had a chance to go through them. I also apologize for the rescheduling. I think our meetings went over. So apologies for that. And thank you for joining the call.
Firstly, I think I’m very happy to report that our overall performance has been very, very robust, both at the quarter and at a full-year level. Our quarter-four PAT, excluding one-offs and Vimal will talk a bit about that. For standalone is up by 61% and at the consolidated level, it is up 12% Y-o-Y. If I look at the full-year, the PAT excluding one-offs is up 25% at the standalone level and up 37% on a Y-o-Y level. So to me, I think these numbers are very, very strong in terms of profit growth. The one-offs are related to some income tax-related refunds in the previous year and forex movements in both the years. And I think that’s something which Vimal will walk you through.
The key highlight for me for this year and for this quarter has been the inventory addition. I think we continue on our strong momentum. Through the year, we have added 520 keys and seven new managed resorts across India. So we have Bharatpur, we have Power Guard, we have, Agra,, and the newest addition, our first one in Andhra Pradesh, which is in Bindi. We just opened it recently. So I think on — from our perspective, as I had mentioned to you guys, that is going to be our number-one focus is about how do we increase our network so that we can service our customers very well.
In addition to whatever I mentioned of the seven resorts, we have four greenfield brownfield projects and we will commence construction of a few more this year. And that’s something which I do believe we are at least two of these greenfields or maybe more will be live by this year end and we will commence a few more during the course of this year. Our current inventory is about 5,850 keys and we have a very strong pipeline for the future. And our overall kind of target mission of trying to hit 10,000 keys by F-30, I think we are progressing very, very well on that.
If I move to the demand-side, I think there are two approaches we are following. And I think the first one is about a strategy of premiumization and targeting the right kind of customers and pursuing a more focused and sharper approach for member addition. I think what that has resulted in is member addition has gone down, but if I look at our average unit realizations, they are up. So if I look at the full-year AUR as we Call-IT, is 5.73 lakhs, which is up by 39%. If I just take Q4, I think it is about 7.7 lakhs, which is up 82%. My view, this is also including upgrades because upgrades is a real measure of how our current members are perceiving what we are offering. And I think I’m happy to report that in F ’25 upgrades is also up by 14% Y-o-Y. And also it is contributing meaningfully to overall — overall AUR growth.
In FY ’25, we’ve added about 12,400 members and our cumulated member base is at 3 lakh 4,000. The one other measure we do is how many member additions are coming through the referral and digital route. That’s up to about 59% in F ’25 and that’s something which is continuing to remain strong. The last one, which is a key metric for us to track is that we — our member to room ratio has improved to 52% from 56 last year. And as I had mentioned over the quarters that is a key goal that we ensure that availability for our members goes up. Coming to the resorts, I think as you well know, I think the first two quarters were slow for us, but I’m happy to report that resort revenue in Q4 is at INR107 crores, up by 14% Y-o-Y. And at a full-year level, it is about INR396 crores, up about 8%. And I think to me, this acceleration has come from many fronts. I think obviously there is a volume increase in terms of number of rooms.
And then there is the consistent occupancy, which has happened throughout the course of this year. All of this has contributed very, very well to this metric on resort revenue. So if I look at the entire quarter performance and the year performance, I think I think the objectives we’ve started out with about premiumization, about inventory growth, about focusing on resort revenue improvement, I think we are hitting many of these metrics.
Overall, a few comments on the market before I pass it on to Vimal. I think the market continues to be strong and I think from an industry perspective, it is the highest-ever ARRs or ADRs and highest-ever occupancy. That’s where the industry is. And I think we are seeing similar patterns. There are obviously some pockets of — for us like, et-cetera, which are not doing well because of weather and other patterns, but that I believe is temporary. So overall, I think we seem to be in a strong position and I think — I think we’ll build from here.
But first, let me ask Vimal to take you through the numbers in more detail and then we will open it up for questions.
Vimal Agarwal — Chief Financial Officer
Thank you thank you, Manoj. I will be covering quarter-four standalone and consol first, followed by full-year standalone and consol numbers. So starting from Q4 standalone, our total income was INR398 crores, which is up by 6% Y-o-Y. EBITDA stood at INR132 crores, which was 31% up with margin of 33% in Q4. PAT excluding one-off was INR57 crores. In fact, there was not — there has been a one-off in-quarter four.
Last year, quarter-four, we were at INR33 crores and therefore growth of INR61 crores in-quarter four. Our deferred revenue was INR5,736 crores by 31st March ’25. Cash position also exceeded INR1,500 crores. We are right now at about INR1,55 crores as on 31st March ’25. Our consolidated numbers, total income stands at INR800 crore was at INR807 crores. EBITDA was up 7% to INR233 crores and our EBITDA margin also touched 29% in-quarter four. Our PAT at reported level was INR85 crores.
After excluding a one-off ForEx loss of INR12 crores, it comes at INR73 crores and it was 12% Y-o-Y higher. Moving on to the full-year financial numbers for standalone, total income was INR1,545 crores, which is up 8%. EBITDA was at INR492 crores, up 18% Y-o-Y. EBITDA margin touched 31.8% and our PAT was at INR200 crores.
Moving on to the consol highlights for FY ’25, our total income was INR2900 crores. EBITDA at INR708 crores and EBITDA margin was 24.3%. Our PAT excluding one-off was at INR134 crores, which was up 37% Y-o-Y versus INR98 crores last year, which had two one-offs, one in context which Manish talked about and also the ForEx was there in last year.
With this, I’ll request if the floor can be open for questions, please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press char and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press char and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while until the question queue assembles. The first question comes from the line of Pankaj Kumar from Kotak Securities. Please go-ahead.
Pankaj Kumar
Sir. Sir, question pertains to your inventory addition plans for FY ’26. So how do you see that, say, next one year, so what kind of inventory additions that we are planning to have?
Manoj Bhat
Also, if you look at F26, I think you have to look at it from two perspectives. We will add a lot of rooms, but we will also exit some resorts where what we have done is we have done a lot of data around quality and customer feedback on some of our — largely maybe their associate resorts. So at a net level, I do believe that next year will be higher than this year. And I think as I had mentioned, I think publicly last quarter also, I think our five-quarter target starting from Jan was to add about 1,000 rooms. I think we are well on-track for that. But of course, you also know that, I mean there are multiple steps along the way, but that’s what we are targeting at a gross level. And the net level then will be lower because we will move-out of certain inventory arrangements and certain associate regards.
Pankaj Kumar
And sir, you also highlighted that you would be adding a few more greenfield resorts by year end or something. So she can touch upon that where exactly we are looking at and what would your size of those in terms of capex?
Manoj Bhat
So Pankat, so first of all, I think I said we will start because as you know, it’s a process to get it done. So over a period of time, the capex will come. But since you have brought up capex, I think if I look at CapEx for F ’26, I think it will be higher than F ’25 on account of two things. One is the completion of our two large projects which are going on or I should say, completion of one and partial completion of the other, which is in Pulle in Maharashtra, which is a fabulous location.
And the other one is we are building something in Theog in Himachal, which is again a fabulous site on the top of a hill. So that will consume a lot of capex. The second element is, I think so some of our older resorts will come up for a refurbishment and I think we will look at closing certain resorts for certain periods of time as we completely overhaul those results. So we have identified about three to four resorts, we will do that. So in a way, this is a year where I think we’ll have both the capex elements going, and that’s something which could be a meaningful increase from the current year’s capex.
Pankaj Kumar
And sir, on the member addition side, of course, we are rationalizing our products and focusing on premiumization. So can we say that we have achieved our goal in that and now onwards, we’ll see more of a member additions will be in-line with the inventory addition.
Manoj Bhat
So my own sense is that first of all, as a theme, inventory addition will lead member addition. I think that’s what we set-out to do. And because I think from my perspective, addressing the availability issue, which seems to be the top-of-mind issue for most customers is probably priority number-one. Secondly, if I look at the changes we are making, I would say that think there are two or three types of changes, right?
So first is, I think there is this drive towards product simplification. Then there is this drive towards targeting the right customers. And then there is the third one was more geographical thing, which are the areas we want to be present in from a customer acquisition perspective. So I think I would say number two and threes, which is the targeting as well as probably the kind of new approach to the customer acquisition organization. I think that is largely done. I think the product simplification is a little bit of a process, but my sense is, I’m hoping that members will perceive that or other prospects will perceive that very positively over a period of time.
But to me, I think to answer your question differently, I think inventory will lead member growth, I think even in FY ’26. Also, I think we will obviously move away from what I would think as the F ’25 at the bottom-line from a member addition perspective. So on a full-year, we will see growth from here. And of course, I can’t give you exact numbers, but that’s the sense I have today.
Pankaj Kumar
Just last question, that is on the retire side. So we’ve seen around 1,300 1,400 kind of retail every quarter. So that is that it’s going to be on the decreasing side or how you see retail going ahead?
Manoj Bhat
So that will be about flattish as we look at the near-term, let’s say, three to four quarters. And then I think depending on which which kind of product it is, it might move a bit here or there. In a way, I think our effort there is obviously to — we convert them back as members. But even otherwise, I think if I look at some of these retirements which are coming, and there is a significant, I would say per room price differential between exiting members and current members because of the tenure of some of the memberships. So I think that that’s what we will look at. But I think in the near-term, we would be in that zone only about INR1,400 1,500 a quarter, give or take.
Pankaj Kumar
Okay. Thank you
Operator
Thank you. The next question is from the line of Shreyan Skathani from Securities. Please go-ahead.
Shreyans Gathani
Hi, good evening, sir. I had a couple of questions. So for the member-to-room ratio, it’s been steadily declining. As you’ve mentioned, it’s like the top priority for availability. So what — at what kind of ratio do we see this stabilizing at currently, we are at 52. So you know, long-term, how do you see this stabilizing at?
Manoj Bhat
So thanks for the question. So the way we are looking at it is, I mean, we are not prefixing a target. I think what we measure is two or three things. We measure resort-wise patterns on refusals. We measure kind of break it up by region and so on and so forth because there is — there is almost a tendency of member behavior of trying to be some — a lot of members prefer to be in drivable distances to their home location and so on and so forth and that’s increasing with better highways, et-cetera.
There’s another set of members which will try and do an airplane fly indirectly and try to holiday and so the way we would look at it is when we see refusal rates come down, outside — outside the highest outside the highest demand resorts and as a general availability goes up, that’s when we will feel the journey is done. I mean if you want to take my kind of estimate or our estimate right now at this point, maybe it’s between 45 to 48 is probably the zone where we think that could happen. But it could happen earlier, I think — so it’s not really firmly based on just having a target and going for it. It’s a kind of a continuous of continuous reevaluation of the metrics based on the data we get.
Shreyans Gathani
Got it, got it. That’s helpful. So second question is on the AUR and the membership balance, as we’ve seen the AUR shooting up so significantly, but that’s coming at-cost of the membership. So is there you something like do we keep on expecting this AUR increase or at some point you’re going to reduce or you know like balance the member addition and the AUR increase that we have seen.
Manoj Bhat
So if you look at AUR, there are two components. One component is about the base product price and the product mix. The second component is the share of upgrades overall, right, because upgrades don’t add members, but they do add sales. So the way I would see it is the first part, which is the product-based thing. I think we have just taken a price hike. So we would see some of that flow-through as we go into this year.
And the second part of it, which is upgrades, I do believe that we had a strong year, but I think that would kind of start to flatten out. And then so last thing is the denominator. So my sense is we are peaking on AUR and I had probably said it last quarter, but I think upgrades did well again and so on and so forth. And obviously, so to me, I think we are at the peak in terms of AUR, but at least we’ll see some benefits coming from price hike over a period of time.
Shreyans Gathani
Got it. Got it. So last question is on the leased versus own resorts. So like we would still continue at a 50-50 ratio or would that — is that going to change going-forward?
Manoj Bhat
Yeah. So as we think of it, I think two-parts to this. I would say that the 50-50 ratio will swing towards lease and loosely maybe it’s a 70 30 owned and for the remaining leased and — but it will catch-up again when we start doing the greenfields again. So it will be a little bit dynamic, but right now, I think you should it at 30 70 or something.
Shreyans Gathani
Yeah. Okay. Okay. So do we assume that given the higher rates that we have and the upgradations that we’re doing, like the newer resorts and we are looking to actually premiumize like one-notch above what our offerings are like from an overall perspective for Club Mahindra, it’s just getting like a more premium brand than what it was before.
Manoj Bhat
See, I think that’s a great question, Shin. So from our overall perspective, I’ll come to the premium brand or not. I think there are two or three things we are trying to do, right? So one is the resort offering we have, I think we are upgrading it a notch across-the-board. Whatever it is for the existing — and so it’s a beginning of a cycle of upgrades.
The second one is for the newer resorts, anyway, whatever we are kind of getting into, I think will be, I would say, a little bit better than where some of our older resorts were. So I think overall, if you see resort quality, I think you should see that perception change in terms of the resort quality. The second from a pricing perspective, what we have come to the confusion is that we can service a certain kind of customer very well.
And then there is another set of customers where we are not able to give them the experience they want in our resorts in terms of is about the expectation on food price, etcetera. So I think we are we are actually thinking of it from that perspective that we will target those customers where some
Operator
Thank you for patiently waiting. We have the management line reconnected.
Manoj Bhat
Apologies for that. I don’t know if is still there
Operator
No sir. So moving on to the next question. The next question is from the line of Himanshu Shah from Dolat Capital.
Himanshu Shah
Hello. Am I audible?
Manoj Bhat
Yeah. Hi, Himanju. You’re audible.
Himanshu Shah
Hi, Maloj. Congratulations on great set of numbers.
Manoj Bhat
Thanks.
Himanshu Shah
Just a couple of questions. First is, can you just provide some color, what will be like upgrade number of members that we would have upgraded for the year and it should start flattening out from here on the upgrade in terms of upgrade value or it should even start tapering off also gradually?
Manoj Bhat
Just give me a second, Himanshu, I’ll give you that number. It’s not handy with me, but I’ll come back towards the end of this question. Yeah. What’s the other revenue.
Himanshu Shah
Okay. Second is on the sales and marketing cost. So is the — it looks like that we have been optimizing this particular cost line-item quite significantly. So is that process behind us or there is some more tools left on that particular line-item? And secondly, as the member addition pace starts picking-up, should the cost increase be directionally proposed — directly proportional to the number of member adds or it shouldn’t increase in the same proportion.
Manoj Bhat
I think,, if I look at that particular cost item, right, structurally, it’s split into three parts, right? So the first part is really about you know offers and so on and so forth, which we used to do and the second part is about clearly events and geography spread, right? So if you power more cities and so that’s the second piece of it, which is, I would call from a channel event perspective.
The third-part is about the market spend overall. And whether the fourth part is about, I think we do clubs some of that also in sales cost is about some of the behavior around incentivizing members to pay EMIs and ASFs, which were a cost to the company, which we have reduced.
So if I look at it in each of these four buckets, but I do believe that I think it might be a more of a longer-term chain that offers, etc., will be low. I think if I look at the second element around the lead-generation and events and so on and so forth. Now that could go up as we build-out more in terms of sales. The third element around the reduced incentives for members for payments, et-cetera, that’s probably permanent feature.
And the fourth element is marketing and marketing. Marketing, marketing could go up as we as we build-out, but that’s probably as we go into expansion mode when we get the right mix going. So overall that’s the way I see it from those four buckets.
Himanshu Shah
Okay. And just a follow-up on this, what would be the current cost mix of this core bucket, broad current cost mix or up for FY ’25.
Manoj Bhat
Himanshu, I think there are various cuts to it, but I would say that in fact, I think I don’t have it handy, but I’ll probably see if we can figure out a way to share it with everyone. Yeah. Great. So you wanted to know the number of count of upgrades in the course of the year, right?
Himanshu Shah
That’s correct.
Manoj Bhat
Yeah. So it’s about 11,500 members upgraded. And over the course of I think we are seeing an increased trend of upgrades because I think what’s happening is that people who join in certain seasons would like to move the next season. I think we are seeing that as a strong trend. So I think that’s something which we expect the membership count to go up. But I think we have had a strong year. So I was kind of saying that maybe we won’t see that kind of a growth again.
Himanshu Shah
Yeah. Okay. And just on two more line items, one is this the price increase that we have taken for a new member excluding upgrade, is it because there is a significant jump-in that particular number, both in Q4 as well ason a yoy basis. So what would be attributable to mix change and how much would be the pure price increases at portfolio level?
Manoj Bhat
So I think there are two things happening. So part of something you see in Q3 and Q4, especially Q3 is we cut down the three year product and replaced it with a five year. So you’re seeing product mix change. The second is we didn’t take our regular price increases usually come in the month of April, so that is not a big factor. So it’s more about mix, it’s about product changes. And I think the price increase will only come into effect now as we are speaking.
Himanshu Shah
Okay, what would be our next.
Operator
Sorry to interrupt. In order to ensure that the management is able to address questions from all participants in the conference, we would like you to limit your questions to two per participant, please. The next question is. The line is from the line of Sentil Manikadan from I thought pms. Please go ahead.
Senthil Manikandan
Thank you sir. The first question is with respect to the audit of the. So what been the perspective change since you have joined or is there any strategy change expected from that? That’s the question.
Manoj Bhat
So sentinel, thank you for that question. So I think my stand on this has been consistent. I think if you look at what’s happening in Finland, I think the economy is going through kind of a tough period which has not been seen before. Secondly, I think if I specifically look at what happens in quarter four, I think there were some weather patterns. For example, it was not snowing in large parts of Finland till late in the winter and it was early spring also.
So I think a lot of the patterns around travel and tourism got disrupted. So in the short term that has impacted results. But from our perspective this is a economy which will recover and potentially nobody can see what will happen politically. But if there’s any resolution on the Ukraine Russia front that could be hugely beneficial to HCRO because a large proportion of their spending, high spending customers who are from Russia were not coming here. So in my mind the team has done a reasonable job in managing metrics through this toughest period. And that’s what we’ll remain focused on before we take any kind of strategic call on this. So I think right now it’s the time to be a little bit focused on what happens this quarter, next quarter and then see how the events evolve.
Senthil Manikandan
Second question is to the product mix. So if you can share some insight in terms of how the movement from three year to five year has happened in metrics.
Manoj Bhat
So simple. I can’t go much into detail considering obviously it is a bit nuanced across multiple geographies, but at a broad level, whatever percentage share the three year product had was almost perfectly replaced by the five year product which seems to indicate that if you have the right product and kind of look at it the right way, I think there is a propensity of people to pay more. And so we didn’t suffer on account of the mix at all when we moved from three to five. Yeah.
Senthil Manikandan
Last question is considering weak expectation from the IT sector. So is there any data point like number of customers or share of customers from the information technology side or any input?
Manoj Bhat
So I don’t really have the data on exactly how many people or how many members are coming from it. But if you look at our tg, right, I think our TG is more about, I think an income of a certain level and above. So the broader kind of slow down because if you look at the average age in it is probably 28, 29 now. And that might not be our TG and an average right now, obviously the next level is our tg. And I think if I look at it, I think we are not seeing any such signs that our membership is impacted. But as I said, I don’t have offhand data how many of our prospects and new members are from it. But frankly it’s not come as any of the reasons in any of our discussions with our broader sales teams.
Senthil Manikandan
Yeah, that is from your side. Thanks. Thank you sir.
Operator
Thank you. Thank you. The next question is from the line of Akshat Bhairati from RSPN Ventures. Please go ahead.
Akshat Bairathi
Hi. Thank you for the opportunity. Sir, my question is on the tax rate for the FY26 full year. So can you please guide on that? What will be the expected tax rate for full year?
Vimal Agarwal
So for the standalone purposes, fundamentally the same tax rate will continue to apply whatever is the corporate one, which is 25% plus. And so for the CRO is concerned there, the tax rate is slightly better and we do create deferred tax in case there is any loss. But I don’t see any major variance versus F25 so far as our tax effectively is concerned.
Akshat Bairathi
So it will be around 35% only.
Vimal Agarwal
No, for India it’s 25 and HCRO business is about 20.
Akshat Bairathi
No sir, I was talking about the consolidated numbers. Yeah, okay sir, that was. Thank you.
Operator
Thank you. Participants, in order to ask a question, you may press chart and one on a touchstone telephone. The next question is from the line of Varun Mishra from AS Investments. Please go ahead.
Varun Mishra
Yeah, hi sir, I’m Audible.
Manoj Bhat
Yeah, I can hear you.
Varun Mishra
Congratulations on the bits and numbers. I actually had a couple of questions. So regarding the hotel club resorts, like we have been expecting, like seen a decline in the revenues. So what strategies are we planning to implement to boost revenues in the future?
Manoj Bhat
So I presume you’re talking about Holiday Club in Finland. So from that perspective, as I mentioned, I think clearly there has been, I would say till almost, I would say till November, December, I think things were looking very good. But the last winter has been a bit patchy in terms of weather patterns. I do expect that to normalize. Now nobody can predict the weather, but I do believe that that will normalize over the course of the year.
And so we should be back to growth next year is our expectation. But in terms of strategies, I think if you that business does two or three things. One is it has conventional hotels and the second thing which they do is they have an active timeshare business. So the timeshare has been impacted because of the economic conditions because obviously people need to have the buying power as well as the inclination. And I think as we go through economic difficulties, some of that is impacted. And as the economy is expected to improve going into the later of the year, I do believe that’s positive for the overall business. And then the hotel business recently has been impacted by these weather patterns. But I think that should at least we are seeing a recovery from that as we go along.
Varun Mishra
All right, sir and sir, we have started a new Corbett national park at Patkote. So like what is the demand and the footfall over there? If you could give me a rough idea.
Manoj Bhat
We don’t share individual resort data so but on an average what and for most of the results I think what we see is as soon as it becomes a little bit popular and starts coming in some member reviews, etc. The occupancy starts peaking. And in fact if I look at some of our resorts which were launched in Q3, I think we are consistently running between 80 and 85% kind of occupancy. So I fully expect partcore to also do the thing. But early days yet and we don’t share that specific and so anything specific.
Varun Mishra
Like which we are planning to add in other resources or any activities or anything of that kind.
Manoj Bhat
Also we continuously keep adding something or the other and then based on member response we either keep it or, or we substitute it with someone else something else. So to me if I look at results again the big theme is first is transformation in the form of just upgrades and upkeep and some of the other things which we have heard about. But otherwise I think most of our results we get very good reviews about overall experience. We have amongst the highest what we call as post holiday feedback. I think it’s very, very good across most resorts from a service perspective and from an experience perspective. I think we do cater to various categories and that’s something we keep adding but I think so Varun we do add quite a few every quarter and drop quite a few every quarter result to resort.
Varun Mishra
Okay and so my last question is. Like what is the status of the. Two brownfield expansions like we were planning and whether I are we in line with the expectation?
Manoj Bhat
So I think we are planning in two places which is Tree house in Jaipur and Kandagad. Both are on track. They will be completed this year.
Varun Mishra
Okay so like will it be operational in the next quarter so we can expect the revenues coming like in the next quarter?
Manoj Bhat
I think it will be probably, I would say this year whether it is Q2 or Q3, that kind of a time frame maybe even goes some might be. So I think it will be in that zone, not in the first quarter. Oh great. That’s also my take. All the best. Thank you.
Operator
Okay, thank you. The next question is from the line of Nidhi Agarwal from ADS Investments. Please go ahead.
Nidhi Agarwal
Hello. Am I audible?
Manoj Bhat
We can hear you.
Nidhi Agarwal
Yeah, hi. Thank you for the opportunity. So my first question is in the previous earning call the management mentioned plans to optimize food and beverages pricing at the resort to enhance the customer experience and reduce members from choosing outside dining options. So have you observed a positive shift in members difference towards in house meals compared to the earlier trends?
Manoj Bhat
So thank you Nidhi for going back and looking at that. So it was quite an interesting outcome. So when we reduced the prices I think we didn’t see any increase in what we call as capture rates or any meaningful increase is probably the right.
Speaker D
Way to look at it.
Speaker B
But in some results we did see some traction. So based on that experiment I think we are being kind of choosy in how we offer these discounts. So we pulled back the broader discounts and gone back to original prices. And so it’s not had a negative impact but it has had a positive impact in certain results.
Nidhi Agarwal
Okay. Okay, great. So my second question is like could you share the overall guidance on membership referral programs and the other key additions that you are planning for FY26?
Manoj Bhat
We don’t guide and as I mentioned in the previous answer I think that’s something which we will keep continuously evaluating and my own sense is that. I. Think we will probably as I said go on a full year basis by but that’s what I can give you at this point.
Nidhi Agarwal
Okay, so no problem. So my last question is how are you planning for the inventory base to reach 10,000 keys by FY30 like out of the additional keys, for how many keys, we have already signed an agreement in our different stages of construction. So if you could help me with the overall visibility.
Manoj Bhat
So I think instead of defining stages of sign, etc. I would. We have multiple stages. So we actually signed the lease just before launch. So in our case signing and launching is very close to each other. So it might not be a right metric, but where what I would call is a broad agreement, I think there we have a good number. So if I look at the overall current funnel visibility, I would say that out of the key addition, we feel fairly comfortable that we are probably 60 to 70% of the way there in terms of the funnel and we have to work on the remaining whatever, 30% over the next three, four years. That’s, that’s the way I would look at it broadly. And this includes. That includes own plus leads. Yeah. Oh, okay, Great sir, thank you.
Operator
Anyone who wishes to ask a question may Press chart and 1. The next question is from the line of shreyans. Kathani from SG securities, please go ahead.
Shreyans Gathani
Thanks for the follow up. So I think call got disconnected. So if you could just, you know, throw some light on, you know, the plumbing brand. Are we like trying to go up a notch or you know, just on that?
Manoj Bhat
Yeah, I think I was saying probably I don’t know where we got dropped off, but I maybe I continued speaking. So I said that from a resort perspective, clearly we are going a notch above in terms of renovations and so on and so forth from new resorts. Also we are planning to move up from a customer perspective, as I mentioned. I think we are looking at customers who we can service very well and that means we have put certain guardrails around, minimum down payment and income levels and so on and so forth. So overall I would say that the journey is broadly towards making the overall experience more premium and that hopefully will rub off on the brand as we go along.
Shreyans Gathani
Got it, got it. That’s really helpful. So just one question in terms of understanding. So does do all the members pay the same ASF or is different for, you know, from the time they’ve joined the membership? Just trying to understand them.
Manoj Bhat
So. So ASF is same for the same category of room. So for example, a studio will. All studios will pay the same ASF in that year. A one bedroom might pay higher. I think that’s the model.
Shreyans Gathani
Got it. So, so I meant like if someone’s joined in 2015 versus 2020, currently they’ll be paying the same amount, right?
Manoj Bhat
Yeah, it is, it Is so. Because it is, it is based on the principle that it is for certain kind of resort expenses which has been allocated based on the kind of room you have.
Shreyans Gathani
Got it, got it. That’s helpful. Just last question. So what kind of differential are we. Seeing in terms of like the people. Who are retiring currently and you know, the new additions that you’re doing? Like in terms of like if you maybe not numbers but just like a high level sense of, you know, the pricing differential.
Manoj Bhat
Actually it’s a complex question Shayan, because you, you will have some members who are 25 members and their pricing differential could be substantial and I don’t have a ready mix for you, but. And then there could be the. Those are three who joined probably three years back or four years back. They are, they are at a different point. But I think I don’t have an answer for you straight away.
Sorry.
Shreyans Gathani
Got it. No problem. Thank you. That’s all from my end.
Operator
Thank you. The next question is from the line of Pranaut and Dulkar from Rare Enterprise. Please go ahead.
Pranav Tendulkar
Hi sir, thanks a lot. Sir, reduction in sales and marketing expenses. Is it per unit reduction there or. It is just because the new member addition has reduced and will it continue? Like what is the sales and marketing strategy to improve new member addition? If you can throw some light on that, that will be useful. Thanks a lot sir.
Manoj Bhat
So as I mentioned sales and marketing, I think one is approach in terms of offers and discounts. So that’s something which is linked to per unit. The second is about lead generation overall and geographical presence. I think that is something which is probably not unit linked and that’s more a choice of the customer engagement or customer acquisition organization. And that’s the choice we have made. And so that is not linked to unit. I think the sales
Pranav Tendulkar
SA right sir, thanks a lot. Just last question from my side sir. Now the weeks available for members is like 52, 52 members per room. So will that number go even below this 52 or is it now stable and now the member editions and room additions will each other.
Manoj Bhat
So Pranav, I did kind of touch upon this earlier. So what, what I mentioned is that the way we are doing it is we monitor refusals by resort by clusters. And also we look at There are some 510 resorts where it is always I demand. So I think we continuously evaluate and then decide how do we think about inventory. And so to me, and I also said if you want me to put in an estimate, I would be comfortable with a 45 to 48 zone and then kind of build from there. But that’s really. It’s not even a target. I think we continuously monitor it, then decide what to do.
Pranav Tendulkar
Thanks a lot. Thanks a lot.
Operator
Thank you. The next question is from the line of Kitesh M from Minerva Global Capital. Please go ahead.
Kitesh M
Hi sir, am I audible?
Manoj Bhat
Yeah, I can hear you. Go ahead please.
Kitesh M
Hi sir, thank you for the opportunity. What I wanted to know is that at an aggregate level, how are the newer resorts performing as compared to the already established property portfolio? Are the properties managed with a different management style or is it the same? Could you perhaps give us an idea?
Manoj Bhat
So firstly, I think the management style and the philosophy remains the same. Right. So because it’s really what we are trying to keep keep together is the experience we give to our customers as and I think we are probably the only family oriented, leisure kind of, there are kind of resorts and destinations which we have and we want to keep that. So from that perspective, that approach remains the same whether it is new or exciting existing resorts.
Second is I think really as we build, as we are building these resorts, I think one of the things we are trying to factor in is what I mentioned was about approach and service, also about, you know, some of the standard features in our resorts. For example, all of our resorts will need to have what is called a happy hub and all of the resorts need a certain configuration. And I think we are now very early in the cycle starting to talk to our partners who are leasing or building for us because that’s another model which is very, very picking up very strongly. They are building resorts for us. I think that comes as part of the package.
Now in terms of what is our standard configuration. The third part is probably about what happens in terms of performance as I mentioned earlier. Also I think there will be a lag for a few months on new resorts in terms of occupancy. But what we have generally seen is that as word spreads and members come to know, that catches up. So if I look at the last four quarters, new results versus our existing results, there is a marginal difference if I come to the results, let’s say launched in Q1, but if I look at results launched in Q4, I think the difference might be deeper. So I think that’s the way to look at it because it takes some time for results to catch up to existing results in terms of occupancy and so on and so forth.
Kitesh M
Sure. Sir, I had one last question. Could you also share the company’s medium term financial expectations? Something specifically what Growth rates you’re targeting, let’s say for revenue, EBITDA and for. Any other margin
Manoj Bhat
We don’t guide. So I think, unfortunately I can’t help you with that.
Kitesh M
Sure. Thank you.
Operator
Thank you. The next question is from the line of Sahil Vora from MNS Associates. Please go ahead.
Sahil Vora
Hello, sir. Good afternoon. Am I audible?
Manoj Bhat
I can hear you.
Sahil Vora
I had a couple of questions. My first question is regarding the status of two brownfield expansions. I wanted to know if they are in line with our expectations.
Manoj Bhat
I did answer this question that they will come online this year and which is what we had budgeted for. If that is the question you are asking.
Sahil Vora
Oh, sorry. I joined the call late so I must have missed it. Sir, can you just tell me which quarter of FY26 can we expect the completion of the project? Khandagar, HP and Treehouse.
Manoj Bhat
So they will be online, I would say broadly, H2. Right.
Sahil Vora
Okay, H2. Got it. So my next question is regarding the benefits that we are getting from cross selling products in our existing resorts. If you could, if you can throw some light on that.
Manoj Bhat
So I think, Sahil, you’re referring to upgrades, I guess. Right. So because what we do is, I think when resort, when people visit our resorts or even otherwise, I think we are noticing that there’s a distinct trend that members who start with probably a plan which is of lower season in terms of dates quickly look to upgrade to higher seasons. So. So I think blue would go to white would go to red to purple. And that is a very strong journey. I think we have seen it across multiple years and that is a very active part of our entire sales process. It’s also important because it reflects the confidence customers have on our ability to provide them a differentiated experience. And I had mentioned that upgrades were up 14% in the course of the year. And that’s something which will continue to remain the focus.
Sahil Vora
Okay, sir, got it. That helps. So my last question is what are the new pricing strategies that we have employed or planned to increase the revenue and also to increase or add new members compared to our existing.
Manoj Bhat
So Sahil, I think obviously pricing strategy, and again, you might not have been there, I did mention that we took a price hike in April. But I think to me the strategy around increasing what I would say metrics around conversion metrics around finding the right customers is more about targeting properly in terms of whether it is from a lead generation perspective, whether it’s from a channel perspective. For example, we have a web channel.
I think the goals would be that how do we improve productivity which then leads to a better conversion? So that’s clearly number one. Number two, what we are thinking is that over a period of time, of course we have seen that the referral, which is members referring new members, is one of our strongest channels. So I think we look to do a lot more of that because that’s really something which is again building the whole thing. That current member loves the experience, only then he will refer. And that’s something which I think we are seeing that that could be a potential opportunity.
And for that we are actually in the process of using data and tech that how does that work? Who’s more? Where is the propensity to refer more and what kind of member, what kind of geography? What is the history of the member in terms of the resort experience? What is its history in terms of, you know, the last few years? Multiple data points can be captured. So I think all of that is probably part of the sales strategy as we go forward. And then of course I did mention that how do we make the product more intuitive and simple? I think that’s another part of the journey to just make it easier for customers to understand and that would then have a beneficial impact on sales.
Sahil Vora
Okay, understood. So that sounds very promising. Thank you and all the very.
Manoj Bhat
Thank you.
Operator
Thank you. In the interest of time, this will be our last question.
Manoj Bhat
How many. Sorry, sorry. How many? How many people are there?
Operator
Two.
Manoj Bhat
Okay. Two. Yeah, let’s close.
Operator
Okay. In the interest of time, then this will be our last question. And I now hand the conference over to Mr. Manoj Bhatt for closing comments.
Manoj Bhat
So thank you everyone for joining the call and I think if somebody has not had a chance to ask the questions, please do email it across to us and then we will try to answer the best we can. Thank you so much.
Operator
On behalf of Mahindra Holidays and Resorts India limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.