Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mahindra Holidays & Resorts India Limited (NSE: MHRIL) Q4 2026 Earnings Call dated Apr. 27, 2026
Corporate Participants:
Manoj Bhat — Managing Director and Chief Executive Officer
Vimal Agarwal — Chief Financial Officer
Analysts:
Jayant Parasaramka — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Mahindra Holidays and Resort India Limited Q4FY26 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 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Bhatt, MD and CEO.
Thank you. And over to you sir.
Manoj Bhat — Managing Director and Chief Executive Officer
Thank you. Good evening everyone and a very warm welcome to our Q4 and full year F26 earnings call. On the call with me Today we have Mr. Vimal Agarwala, our CFO. Our results and investor presentations are on the stock exchanges and on our company website and I hope you’ve had a chance to go through them as we start this call. I think for us F26 has been a year of transformation for the company and on multiple perspectives. We had a significant revamp of our offerings and launched a simplified privilege led product portfolio called Keystone.
That launch happened in December. It also this one aligns with our vision to scale our core business and establish ourselves as India’s largest leisure hospitality player. If I look at the other measure of growth in the business, I think our network expansion continues on a good pace. We are expanding inventory while focusing on quality. During the year we added about 900 keys. Our total inventory today is about 6,228 keys. We added seven managed resorts this year which is same as last year and completed expansions at five existing properties.
This 900 keys is the highest ever in our history that we have added. And I think as we go into F27 we are looking to build on this and we expect more than thousand keys to be added in F27 during the quarter we added three resorts, Dapoli and then a resort in North Goa and Chikmagalur in Karnataka. The other side of the equation is about the ongoing projects. We have three ongoing greenfield projects, greenfield brownfield projects and a land bank of almost 500 acres. So we have ample opportunity for future expansions.
Pre construction which is design and so on and so forth has been initiated for another five resorts on these land parcels which will collectively add more than 600 keys in the next few years. The other thing which I want to talk about is the multi year upgrade of our resorts and I think from a timing perspective we are timing these closures with the non peak seasons. We’ve already transformed about 100 keys this year I think the planned upgrades going into next year, this is on the own results is 300 plus keys in the next year.
The last bit is about we have been talking about letting go of keys which are suboptimal. During the year we surrendered about 500 keys. And as this will continue into the next two or three quarters as we sharpen the quality of our portfolio and hopefully by the end of F27 we should be largely done with the portfolio rationalization. And I think then the true picture in terms of the growth in terms of inventory will come through. The other thing which is happening is that these are improving availability meaningfully I think and that is driving a strong wave of member upgrades.
Upgrade value was up 33% year on year, which is members who are current members are upgrading to either better duration or better plan within the same duration and that is up 33% year on year. This quarter we are also seeing robust momentum in referral and digital and both these channels now are at about 69% of the total customer acquisition compared to 63% in quarter four this last year. If you look at the other metric which we track is sales value, sales value is about 160crores which is as you know this doesn’t come directly into the P and L.
This is amortized over the life of the membership and that is at 162 crores this quarter. This is new sales plus upgrades and to me this number is now starting to grow from this quarter onwards. If I look at the other metric around premiumization, our AUR is now at 14 lakhs if I include the upgrades. Otherwise it’s about Almost close to 5 lakhs give or take on just the new sale basis which is again a healthy increase of more than 30% in AUR. So both metrics around overall as well as new sales is increasing.
And we had always talked about a very selective approach to member acquisition and focusing on the right kind of. Right kind of target segment for our membership overall at a net level this is including cancellations. We added 1144 new Keystone members. Our overall membership base is roughly constant at about 3,4000. The other thing is about our technology journey. I think there are several initiatives across the guest journey where we are using AI and technology. Some of the key examples are that we have a digital platform for consistency from a sales perspective.
We have implemented a booking recommendation engine which has helped us focus on managing inbound demand for rooms. There are some elements of paperless check ins which have been implemented and an integrated system for capturing customer feedback and improving on how do we become more personalized and more focused based on the data we have on most of our customer behaviors. So I think this is helping us create more engaging and curated experiences for our guests. The other thing is all of these have led to a strong utilization of about 80% and double digit resort revenue growth this quarter.
The other thing I must mention is despite the ongoing LPG crisis which has impacted some of the industry on the ability to serve customers on the FNB front, we were able to provide that all of the menu options with minimal disruption and this was because of our long standing commitment to sustainability and we had invested in electrification and solar power in many of our results and I think we had accelerated these efforts also early into the crisis. And to me I’m very happy to say that we have the ability to swing across fuel types and sources of energy and continue to deliver our offerings without any disruptions and interruptions.
So that’s something which was an event which happened and we are able to respond very, very quickly on the numbers. I think while Vimal will talk more, the standalone profit excluding one offs grew 22% year on year and a margin expansion of 220 basis points. I will also touch upon our European subsidiary and I think there, I think we did see, we did see some impact because of weather conditions in Finland. There was no snow in month and a half or so and that impacted people coming in as well as we saw some early summer come through.
The other thing which happened during the quarter is overall from a credit perspective, I think there were some rejections which were very high on some of the new sales. Now we are onboarding other banks and other partners which should rectify that situation as we go along. To conclude for the quarter, I think we have made very good progress on our India business and I think we are in the right direction. But if I look at the European business, I think there is a set of initiatives which we have to work upon in the coming year to actually look at, actually look at improvements.
There are. The last point is more in the standalone books. Again recognizing the various geopolitical situations and the economic situation in Finland, we took an impairment in our standalone books of about 234 crores. This is obviously a one off with that the current holding value of the business in the India books is now zero and this only impacts standalone and does not impact consolidated. With that I’ll ask Vimal to expand a bit more on the numbers. Thank you.
Vimal Agarwal — Chief Financial Officer
Thank you Manoj and hi, good evening Everyone, I’ll get into details so far as financials are concerned. Let me first call out MHRL stand alone. Q4 highlights our total income was 407 crore. Within that operating income was up 4.3% and resort income grew by about 11%. EBITDA was 142 crore which again was up 8% on a YoY basis. And our EBITDA margin also expanded by more than 180 pips to 34.9% this quarter we have taken an impairment charge as Manoj mentioned of rupees 234 crores towards equity investment in Mauritius.
Entity driven by scro business outlook. Excluding this one off charge, our PAT was at 55.4 crores. Our cash position continues to be healthy at about 1446 crore as on 31st March 2026. So far as consolidated Q4 highlights are concerned, our income was at 844 crore up by about 5% yy basis and the EBITDA was 221 crores. With an EBITDA margin of 26.2%. PAT was at 41.5 crore including forex impact. Excluding one off impact, Q4 console PAT stands at 52.3 crores. Moving on to full year financial performance at standalone level, total income is 1613 crore up 4%.
Resort income grew by 12% on a YoY basis. EBITDA for full year was 36.7% versus 31.8% in F25, an improvement of 5 percentage points. Reported PAT for full year was 5 crores. However if we exclude the one off charges then our PAT was 240 crores plus which is up 22% on a YoY basis. At consolidated full year level. Despite our international operations impacted by geopolitical headwinds, a slowdown in Finnish economy and adverse weather conditions during the year, profit excluding 1 off remained stable.
Our total reported PAT for F26 was 67 crores. However if we exclude 1 of items primarily Labor Code and Forex movement, the pat will be 136 crores for F26 versus 126 crores in FY25. Pat excluding one off grew by about 2% versus last year. These were the few key numbers on the financials I’ll request. If we can open the floor for further discussion please. Thank you.
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to withdraw yourself from the question Queue you may press star N2 participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Deepak Saha from Asika Institutional Equities. Please go ahead. Hi, thanks for the opportunity and congrats on good set of execution on the standalone side.
So my first question is when I look at your numbers, especially on the resort occupancy side, challenging quarter like this when we had so many geopolitical implications, so what is happening to see 82% kind of occupancy. But what we understood during the quarter on the luxury side, leisure side, there have been quite meaningful cancellations. So that’s trying to because of this, you know, war environment. Just trying to understand is it like our dependency on foreign guest is less or we executed the quarter well despite having foreign dependency which led to 82% kind of an occupancy.
Just few thoughts on that.
Questions and Answers:
Manoj Bhat
So Deepak, first of all, I think our dependency is less on foreign guests. So if I look at our foreign gas impact, it is a very, very small number during the quarter and so compared to probably some of the others in the industry. That’s one thing in our model which is largely domestic because of the occupancy being led by members. And typically what we have seen is that we have been hovering at high occupancies for both, for both members and non members put together. And that’s something which is in a way, I would say, I think a feature of the model and that is, and this one is actually on the increased room count if you compare it to some of the previous quarters.
So in that sense it is absolute value terms. It is probably something which we are inherently in our model. And the last one is that obviously we are seeing a shift from member to non member. Non member occupancy also continues to show steady growth as we look at the occupancy stats.
Operator
Got it. And it’s very heartening to know. Another thing is last couple of, I mean last three, four quarters we have seen consistent expansion in EBITDA margin on the standalone side driven by reduction in marketing and rental other expenses. So we have already capitalized a lot on the marketing side and rental side and other. So how should we think of going ahead? Will this expansion continue or will we be entering into more of a stabilization phase as far as margins are concerned on the standalone side?
Manoj Bhat
Yeah. So firstly, clarifying on what drove this improvement, I think there were multiple measures around cost of acquisition for sure. We also looked at our practices on collection cost overall and that has helped. So I think there are multiple drivers there. I think as we look into the future, some of the easier ones in terms of getting the benefits are lower. But I think if you look at how we are looking at the next 12 months, I think the combination of continued focus and bringing down overall acquisition costs as well as increase in resort revenues will contribute positively to margins.
The only factor I would say as you look at F27 is our treasury income could potentially drop because as we do spend on capex and this I probably mentioned earlier also as we look into F27 so our operating side of the profit, we do expect the trajectory to continue. Now all this is given the current conditions, if anything changes in terms of potentially the long term impacts on India, which at least we are not seeing at this point, that could change. But that’s the way to think of how profits going forward
Operator
Got it on the new subscription that we launched. That was our Keystone package last quarter I understand we had limited period. This was the full first quarter in terms of the feedback and the response that you’re getting. So earlier my understanding is we saw kind of 15, 20% increase in AER given by Keystone now this quarter. What was the effect in terms of what are the effects in terms of incremental benefit coming from Keystone and changes in updates.
Manoj Bhat
So if you look at this new sales aura, I think new sales AUR has jumped up roughly 20% so it’s holding that number which we had mentioned in December. So that’s something which is happening and that is led by a couple of things. So one is potentially we are seeing more of the 10 year products selling than the mix is shifting the mix for us the largest product was the five year product. Now the largest product is the ten year product. And so that has helped overall AUR and there are other such changes.
But I’ll wait for some more time because this is just the first three months but clearly trending in the right direction and holding that improvement in aur.
Operator
Got it. Thank you. Sir, just one last question before I call that. Sorry to interrupt. Mr. Saha may please request you to rejoin the queue, sir. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please restrict yourself to two questions per participant. Should you have a follow up question, please rejoin the queue. Next question is from the line of Jayant Parasaramka from 3Pim. Please go ahead.
Jayant Parasaramka
Yes, hello Am I audible?
Manoj Bhat
Yeah, we can hear you.
Jayant Parasaramka
Yes, thank you for the opportunity, sir. Just couple of questions. Just going back to our vision based statement of tripling our revenue over the decade. Just trying to understand the growth implications from here going forward. If I just do a back of the envelope calculation, it implies around 17 18% revenue growth given the member addition has been quite, has been quite stable. It’s been around 1%. So from a revenue growth point of view, how should we think over the next three, four years? What, what will drive revenue growth for the company going forward?
Manoj Bhat
So first of all we had said 3x during the decade. So the baseline, I don’t know whether that corresponds to 17% so I think it will be my calculation, if I remember correctly it will be low teens kind of number in India and we had built something in Finland so that’s how we had reached that number. If I, if I remember correctly, I don’t have. But it won’t be in the 17, 18% range. However, profit side, I think we had said that that’s something which might be a slightly higher number as we go forward from point to point.
So what we had said was that in the initial period maybe treasury income falls, but as we shift the model I think we would see that point to point profit growth would be very healthy going forward. I think that’s the broad structure we had talked about.
Jayant Parasaramka
Just following up on that because the point on the standalone business being that VO income and ASF income is mostly linked to member addition and resort income I believe is the one where you have benefit of both fits and non members and members. So how should one think over the next couple of years since a member to inventory room ratio is now below 52? How do you think that will grow over the next couple of years and potentially by FY30, how should we think about that?
Manoj Bhat
So the way to think about it is a large proportion of incremental growth given. So let me kind of recap what we said, right? So we said that we are focused on getting higher quality members with higher aura and I think and we are coming off a base of much higher member addition. So we are seeing that kind of slowdown which is happening in terms of the revenue growth from membership and asl. The incremental growth which we were talking about was really looking at how do we get to more resort revenue as you correctly said.
And within that I think there will be a non member revenue push which will happen because considering that we are keeping aggregate membership flattish, I think our member to room ratio will continue to improve. So there will be aggregate availability for members as well as non members and that will then reach to the number where we feel that, that the growth will come in from that direction from a utilization perspective because that’s the other thing which I got asked many times this quarter we are able to showcase that utilization.
We are able to manage at 80.7 or 81%. So I think. So what’s happening is even as the member to the ratio is now 50, I think the utilization flak is being picked up by the non member revenue streams. And so that’s the way to think of this kind of growth build up.
Jayant Parasaramka
Sure. Just one last question on the HCRO business. I know we’ve taken an impairment hit. Any views around the same on FY27? What is our views around this?
Manoj Bhat
So Jayant, I think see obviously there was an element of somewhat below par quarter because of I think the vagaries mostly around the weather and some of the credit conditions changing. And what’s happening is if you look at Finland, I think given the slowdown we are actually seeing that people are tending to save more rather than spend. So I think. So the big surprise is actually the weather because and that’s specifically in Finland. In fact our canneries and Sweden operations continue to do better than last year.
The other thing is if I look at as we look at F27 I think there are multiple things which we are looking at. So one is of course the credit situation. We are onboarding new partners which should actually help in terms of conversion of sales because I think what’s happening is quite a few people are not getting loans to buy the product. And as you know some of these economies they do depend on credit and that’s something we are onboarding new partners. That should happen in Q1. Q2. The other thing is about really thinking about how do we optimize in terms of the cost.
And then clearly I think this is the year we might start looking at longer term strategic options for the business and that’s a more longer term kind of solution. But that’s what we are focused on right now. And I think needless to say any situation change in whether it’s the Ukraine war and currently what’s happening geopolitically will be positive for Finland. But I’m not kind of building that into anything I say right now.
Jayant Parasaramka
Sure. Thanks and all the best.
Manoj Bhat
Thank you Jen. Thank you.
Operator
Thank you. Next question is from the line of Shreyansh Patani from SG Securities. Please go ahead.
Jayant Parasaramka
Good Evening. I had a few questions. So the first one is on the AUR
Operator
That we saw, the rise that we saw in aur, is that. So a lot of it pretty much comes from the upgrades. So I’m trying to understand, you know, how much of juice do we have left in there or was this quarter like a one off because of the Keystone launch? And, you know, pretty much a lot of people, you know, like sort of a front loading kind of an effect and that will, you know, taper off as time passes. If you could just give some sense on that or, you know, how long do you see these upgrades continuing in terms of the population that you have eligible for upgrades?
Manoj Bhat
That’s a great question, Shreyan. So I think I would say that we have also been positively surprised by the adoption of Keystone by our current member base because that’s what these upgrades are. And I think what we have heard is that the simplified, because we have eliminated a lot of rule sets, we have offered breakfast as a standard offering because that used to be one of the requests. We have introduced a concierge service. So many of those things are finding a lot of resonance. And to me that something which is a very good sign.
So that, and as you rightly said, that is contributing to the. So that’s why I gave the other number if I remove upgrades. Also, our base new AUR is also up 20%
Operator
And
Manoj Bhat
That also is a very good sign. So we are actually seeing both the engines firing. I do feel that based on whatever we are hearing and seeing from the resorts, because a lot of these upgrades happen at the resorts, I think the momentum ideally should continue, unless of course, there are events which happen. But I think that’s what I would bet on. So if you look at the last four quarters, I think it’s been a consistent trend that upgrades were in Q1 about 56 crores and in Q4 they are about 93 crores.
And so it’s been a constant journey of upgrade going up. And I think given that we have more options now, so we are giving season, room size and tenure all as options for upgrades. It is giving the customers to choose what is the right product for them. And that is also contributing positively to upgrades.
Operator
Got it. That’s helpful. So my second question was on the resort revenue. We’ve seen a pickup, you know, even though we’ve seen like a stagnant occupancy as such. So like, I’m just trying to understand, we break it down into like fnd wine and liquor and then room rentals how much of this comes from the FND wine and liquor section versus the room rentals? Because room rentals would pretty much, you know, contribute like to the backfilling, the occupancy that is opened up due to, due to the non due to the members.
So the FNB and the wine breakup, if that is available, like in terms of growth, that would be helpful.
Manoj Bhat
So I mean this kind of growth is probably has to be driven by room revenues itself. So the way to think of it is we have expanded capacity and on that expanded capacity there are two things happening. One is member probably given that we are flattish on members. The absolute member occupancy in terms of room nights is the same. And so actually as a percentage it is declining and that is being picked up by non member and that is contributing to room revenue growth. And that then translates into FNB and other growth.
So the predominant component is room revenue. And I think we are optimizing across both member and non member segments using a combination of technology as well as resort wise kind of trends around what has been the historical member preference. And that’s working for now and that’s something which will continue to evolve.
Operator
Got it, got it. So just following up on that, you know we’re looking at just like lower member additions as we pass through this year. And then most of the marketing and customer acquisition expenses are, you know, put in the other expenses line item. But that if I compare with March last year it’s like pretty much, you know, just pretty much the same. 162 crores versus 160 crores on the standalone. So where are we, you know, like in terms of customer acquisition costs, like what is, you know, holding the other expenses constant.
I would have expected some benefit over there in terms of lower marketing costs, like lower number of customers that you’re adding now.
Manoj Bhat
So I think on marketing costs there are two, three things. So there was a keystone launch. So of course there were some expenses towards that which we did, which has come in very small amount probably in Q3 and then some amounts in Q4, I think. So that’s one factor. But more importantly the philosophy here as we go forward, and that’s what I said, is focusing on the metric of COA and not absolute cost. Which means that I think we do expect at a gross level given that we have the new product and what is going, what is the response of the market.
We do expect scaling up member additions not to the extent from the previous year, but definitely compared to what is happening in the last two quarters. And that should contribute to a percentage coa because the idea is that how do you continue optimizing from a percentage perspective and not so much from an absolute perspective.
Jayant Parasaramka
Got it, got it. That’s very helpful. And the last question. Sorry to interrupt.
Operator
Mr. Gatani, maybe. Please request you to rejoin the queue, sir.
Jayant Parasaramka
Thank
Operator
You. Next question is from the line of Nandan Madiwala from East 72 capital. Please proceed.
Manoj Bhat
Yeah, hi. Thanks for taking my question. So I just wanted to understand as non member, you
Operator
Know, revenue is expected to probably do better given that we are adding so much group inventory. What is the channel that we will look to sell that inventory through? Is it the same or are we looking to do more on that front? And if you can give some color on that.
Manoj Bhat
So the channels are very different. Right, so. So if you look at how do we think about non member channels, I think obviously there are the travel agents, whether online or offline, then there is, there is corporate as a channel and then there is the social and wedding and then there is the website which we are developing right now as another thing. So I think. So they are very different and mutually exclusive channels which we are developing. So there is no connection between the channel which sells memberships and the channel which sells fit.
Except maybe at the corporate level where there are some unified products for corporates which could incorporate. For example we have a product which allows corporates to buy points in bulk and then distribute as rewards and recognition to their employees. So those could be common, but otherwise it’s all separate.
Operator
So are we looking to go sort of the traditional direct route as well? Given that, you know, if adding thousand rooms we are sort of creating space for 52,000 members which obviously looks like a tall order. So the percentage will move towards non member. And we might have to have more aggressive marketing on that front as well. Right. That’s where I’m sort of coming from.
Manoj Bhat
So clearly that’s the direction we are going in in terms of. So that’s number one. Number two, as we look at F27, there is a spend which we will do on relaunching the Club M brand. And I think what we are doing now is actually putting together a campaign which allows that thing to happen in terms of. And the timing could be maybe about Q2 or Q3. And so that will then incorporate some of the brand related expenses for both channels because I think it’s more focused on the entire relaunch of the Club Mahindra brand.
And that’s something which I think you will see an increase A reasonable increase in both those quarters as we spend on the full plethora of marketing activities. Also currently, also we are incurring marketing costs on FIT as well as on member sales and some of that is already in the baseline number.
Jayant Parasaramka
Thanks a lot. Thanks. All the best.
Manoj Bhat
Thank you.
Operator
Thank you. Next question is from the line of Sucrit B. Patil from Eyesight Private Limited. Please proceed.
Manoj Bhat
Good evening
Operator
To the team. I have two questions. The first question is, Mr. Bhatt, is I just want to understand how do you plan to deal with international operations given Forex volatility and demand headwinds in Europe and what measurable outcomes do you expect from digital initiatives like Keyton in terms of member engagement and retention? That’s my first question. Thank you.
Manoj Bhat
Those are two questions, Sukheet, so I’ll try to answer them in two parts. So the first one is, as I said, on international operations there is a set of activities around credit availability which we are trying to address through more partnerships. There is obviously from overall perspective, I think we are looking to see how we can really focus more on some of the areas where these challenges are not so severe. For example, there is Sweden, there is Canary, but as I said, the sentiment there is not so positive and that’s something which we will have to look at in terms of de risking.
Of course on the cost side there are initiatives which we are taking which will minimize the impact of any adverse and that’s something which will come through the course of the year. And lastly, I think from a Forex perspective, I think we are currently carrying a net exposure, net liability exposure on the Euro. And at least from a perspective of some measures around, how do we think about it? I think those could be actions which will be planned in the course of this year. And to me the current call is that a large portion of the euro appreciation against the rupee is already in the numbers.
So I think the current view is that it might not be something which might be a sharp movement, but we are ready to react if any such movement comes in the coming year. On your second question around digital initiative and, and how does it really impact from a member engagement perspective? And then specifically on Keystone, I think I would again bunch it into two. If I look at Keystone, for example, today we are offering digital upgrades which are completely with zero intervention. So if you are a non keystone member, you can actually go to our website and potentially upgrade yourself.
And that’s today it’s a very small portion. I would think it is probably maybe 3 to 4% today. But that’s something which we are actually encouraging members because the plan is much, much simpler and we feel that that might be a way to engage. Second is, I think from a new sales perspective, given that it’s a new launch, I think the entire sales engine is still probably getting familiar with the way to think about the product because one of the things we are seeing is that we are engaging with a little bit of a different target segment.
And typically what we’re seeing is that the conversion times compared to the older product is a little bit longer, I think. So it’s a mixed thing between probably a lot of focus on training and familiarity from a sales perspective as well as a customer familiarity. Because for example, even if I look at our referral channel, a lot of members are saying that they want to first understand the product this before they refer someone. So these are all the launch stages. I think we had expected some of this to happen and I think those will start settling in.
I think on the other side for engagement, I think there is a lot we are doing. For example, I spoke about in my opening statement that today we have an integrated view of the customer using an AI sentiment meter and what it does is all interactions across multiple channels is now available in a single place and available to the front office in the resorts and also to all the agents who and potentially we are creating it for the sales people also. So all three will have probably a sentiment meter for the customer.
And so our ability to personalized offerings, this we launched in December, so it’s about three months, four months. And I think the rollout is happening as we speak. And to me that’s going to be the core of our tech enabled engagement for customers at various touch points.
Operator
Thank you Mitek. My final question to Mr. Agarwal is with cash reserves exceeding about I think 1400 crore, how is capital allocation being planned between new resource development, debt reduction and shareholder return? Just want to understand your plan of action on this.
Vimal Agarwal
Thank you. So fundamentally, 1500 crores which we have got, we do have a plan in place to ensure that we are deploying it for the right priorities. And when I say priorities there are three, four things which are, which are at front and center. One is the overall customer experience and therefore resorts where we can get into transformation or renovation which leads to better customer experience and feedback is something which we are prioritizing on a very small base of about 100 rooms. Transformation or renovation which we did, we do have plans to invest or move that number at least by say 3x in f.27, that’s one.
The second one is that we have two resorts right now where significant investments are going on. One is in Tiou which is Himachal. The second one is Ganpati Kule which is Maharashtra. Both these resorts are at a decent stage of construction. Ganpati Pule should be going live by quarter three of this year. Apart from this we do have about four or five land parcels where the room key will be about 600 plus. We are right now at either approval stage or pre design or design stage. So all these three will get into construction phase very soon.
Apart from it there are critical land acquisitions. You would have seen one announcement today of acquiring about 50 acres land parcel in Chikamangalur. And the whole idea is to get to the right locations by investing where we believe that it will lead to a long term operating margin. Accretive investments. That’s the key priority right now. So far as our international part is concerned we do have some leverage. But as of now we don’t have any plans to sort of infuse for the equity in the short run at least.
Manoj Bhat
Thank you and best mission.
Vimal Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Davneet Soula from Saula family office. Please proceed.
Jayant Parasaramka
Hi sir. Congratulations on a big set of numbers.
Operator
I had two questions. First is on the HDRO business. I see that very prolonged time since we have been facing challenging. So how confident are we that we can turn this around and secondly that the impact of this business on our books is huge. So I was just trying to understand that how should we look at it in terms of the both revenue as well as price. Secondly on the India business I wanted to know so much of cash balance we are trying to deploy but how do we go about actually looking at it at which of the properties or which of the land parcels are actually going to be operating margin accretive to us.
Thank you.
Manoj Bhat
So let me take the second question first. I think if you, if you look at all the land parcels we have, I think many of them have been acquired a long time back. So from a cost perspective it’s a minimal cost overall in terms of capital invested. And so I think the way we are going about it is we are looking at the overall IRR and the projections and making those calls. And to me the way to think of it is if you look at what’s happening today in the market I think people are looking for newer experiences, newer locations, looking for being enveloped in nature.
And many of, if not all, all of our land parcels pretty much fit the bill. And to me with increased connectivity, for example, we do have, as an example we have almost 100 acres in Karst plateau which is where the flowering happens in front of the lake. Now today it’s about four hours, four and a half hours from Mumbai, give or take. But if the missing link comes in that’s going to probably reduce by 30 to 40 minutes. So it becomes three and a half to four hours. And that’s, I think we are seeing more and more people inclined to take those holidays and actually reach those locations similarly.
So a lot of locational things which where is the nearest catchment in terms of potential guests? And then many of these places, I think if you see what the trend which is happening is that if the resort is good and if the location is good and if there is not really a benchmark around and which could also be potentially true and if it is in the right segment, I think people are actually willing to pay the value for such a vacation. And that’s something which is a consistent trend across in the industry.
And that’s something we are also kind of betting on that as we build this brand in the future that’s what we are going to focus on. I don’t know if you have a follow up, otherwise I’ll go to your first question. Yeah, on the first question I think as I said that I think it is obviously compared to if I look at overall international ops, right including the forex loss etc. I think this year I think there are, you can equally split it roughly between Forex loss as well as operational kind of degradation in Finland.
And to me the Forex loss is something which is anybody’s guess but I would guess that it’s probably more in the nature of a sudden move which I think might probably not repeat itself so strongly. And as I said that if we don’t feel that way then we’ll have to move in terms of limiting exposure at that point so that the loss doesn’t happen. I think on the operational side I think it’s, it’s not a very easy solve. I think it will require as I said, operational actions. We have to move towards more channels in terms of credit which will improve sales as well as potentially this is the year that we will evaluate what do we want to do from a long term partnering strategic perspective.
I think that’s where we are today.
Operator
Thank you for detailed answers. I will turn back to people.
Manoj Bhat
Thank you.
Operator
Thank you. Next question is from the line of Senthil Kumar from Jointre Capital Service Ltd. Please proceed. I’m audible. Yeah, we can hear you. Thank you sir. Thanks for the opportunity. In your earlier response you mentioned that management is taking long term partnership strategy. Could you kindly share some more clarity on what specific steps the management is considering in hur?
Manoj Bhat
No, I think there is nothing to report today. Senthil. I’m just saying that in F27 because I had mentioned in one of the previous calls that this is not the time to do a strategic review of the business. I think F27 is the time to do a strategic review of the business and assess what are the long term potential partnerships or others which we can think of which will be probably beyond the ambit of operational improvements only.
Vimal Agarwal
Thank you. Thank you.
Operator
Thank you. Next question is from the line of Naveen from I thought pms. Please go ahead.
Jayant Parasaramka
Hi, good evening. Am I audible? Can you hear me?
Manoj Bhat
Yeah, we can hear you Naveen. Go ahead.
Jayant Parasaramka
Yeah, first of all, congratulations
Operator
On a great set of numbers. I just wanted to get some more color on the signature results. So do you have any updates to share on that? Are we on track? Anything?
Manoj Bhat
So I think, I think we had said that somewhere by end of in this F27 we would be getting ready. I think as we have gone into the details around what we need to do. I think, I think that. I don’t think it will come in F27. It’s probably going to get pushed to F28 and that’s because it’s our first offering and we have actually put some more thought into what exactly needs to be done in terms of some of the design elements. And that’s. So it’s a little bit of a delay compared to where we said we would be.
Having said that, I think we have a lot more clarity in terms of the next set of locations also. So we are actually actively prospecting two or three more. So we are making progress on that front. But the first one I don’t think will come in F27. As I said, maybe it goes to F28.
Operator
Got it, got it. And then the next question is going to be on hcr, the Finland operation. So I just want to get the understanding of like. So I mean you have this great understanding of the business so far, right? Like about the seasonality, about the kind of customers that you’re taking on. So like you know, over the past two, three quarters, do you think anything that you’ve maybe understood needs some kind of revision? Not from a strategy perspective but from understanding the market itself. Like do you think if you fundamentally go back to the drawing board and rethink certain things from that perspective itself.
Or like are you still of the belief that this is a great business to be in? That’s what I’m trying to understand.
Manoj Bhat
So I think I would say that if I look at the last three to six months, I think incrementally, I think the consumer behavior has changed towards more savings because of the uncertainty and that is obviously causing some sort of a depression in terms of our ability to get our product across. The other thing is that from a perspective of I think the weather vagaries is an unpredictable one and I don’t think anybody would have been able to see it. So that is one difference. If I even look three months back to now, those are the two major changes I wouldn’t want to comment on.
I think as I said before Also I think F27 is when we will do a detailed review of the business and including whether what are the various options from a strategic perspective. But as of now, I think the state of the business needs action on certain fronts, which is the one, two things I spoke about. How do we address more partners for credits, etc. And how do we think about really thinking about optimization? I think those are the two immediate actions. Yeah,
Operator
I’m really sorry, that’s a small follow up to this thing. What I was hoping to understand is is there any particular reason we took the impairment in this quarter like so the underperformance or the uncertainty has been there for a while. Right. So just want to understand that as.
Manoj Bhat
Oh yeah. So if that was the question, I think the way we felt was that given because our expectation was about that the uncertainty around geopolitics will go down. But I think it’s prolonging and also we have another conflict which has started which could have some impact. So we said that this is the appropriate time to look at the business from a purely an accounting charge perspective and reflect it correctly. Now if some of these situations changes 12 months later we could be having a reversal.
But that for a future date. This is to reflect our current view of the business and the fair value of and the carrying value in the books is what I think you should look at it.
Jayant Parasaramka
Awesome. Yeah, yeah. Thanks a lot for the clarification.
Manoj Bhat
Thank you.
Operator
Thank you. Next question is from the line of TVK Vivek Kumar from Vespul’s Research and Advisory llp. Please go ahead.
Manoj Bhat
Thanks for the opportunity. My question is on how should we think about member edition.
Operator
I understand you improve the quality of the kind of number addition and non member. So occupancy that you will try to maintain occupancy rate at 8 above 80, 85% assuming whatever is the number addition. Right. So can we think like that that you’re aiming at occupancy and then number addition you are going to go more from the full side like so you are more very particular on the kind of numbers you add. So can we take that or do you have any targets on number addition?
Manoj Bhat
So I, as I’ve said in the past also I think the quality of the members is more important and we are targeting a utilization metric broadly. Right. So
Operator
And
Manoj Bhat
Which means that I mean we are moving from probably just thinking about in terms of members to as guests, whether it is member or non member and that transition. So the way I think of it is obviously we have internal targets for member edition but I think more importantly we have internal targets for guests and occupancy and that’s what we are more focused on. So one of the things as we thought about this journey is if we have to make it a pull brand, we can’t have targets on a minimum number of members to join.
We should be able to pull members and non members both and fulfill our occupancy targets. That’s the way to think of it.
Operator
So, so my, then my second question is when this occupancy target, can you share it? Like what is your. Can you maintain around the same levels of 88 above 80% 2 are you still on the target of FY30, 10,000, 12,000 rooms or one year aside which cannot be delayed by five, six years kind of thing. Are you on the on the target? Because now we don’t have the capital from the member edition, right? So that’s what. Because we now don’t have the cash flows from the number edition the way we used to have.
So that’s why I’m asking is a room edition still there? The target,
Manoj Bhat
The room edition target doesn’t change number one. Number two, even this year if you isolate we had a one time tax payment and I think the other thing is we started paying tax also this year. Even this year for example we have had a 300 crore plus normalized cash flow from operations and to me that. So that’s a balance. I don’t think we’ll ever go down to a level where that becomes an issue. The second thing is that if I look at the various responses we are getting from the market, I think the current level of member addition is definitely sustainable.
I think the question is how Far do we want to grow without member addition without compromising on any of the metrics we have set as guardrails
Operator
If you do not mind. That was my clarification. So because we now do not let’s say we around add around 1500 members per quarter. So is the cap and 300 crore from the business, is it enough to double our. Because all the capital from the. Because I don’t know the volume
Manoj Bhat
Capital is not a constraint. So
Operator
Doubling of the rent target. Yeah, that’s my question.
Manoj Bhat
Yeah that target remains and capital is not a constraint.
Operator
And number edition we are not going to compromise on the quality that we can so and then occupancy, you are not ready to share the numbers at above 80 or above 75
Manoj Bhat
Somebody will put it in an Excel model. And so I, I do believe, I do believe that we’ll target an occupancy of around 80% but that’s, that’s why I don’t want to be precise. We obviously have precise Excel spreadsheets saying how the occupancy will move. Right.
Operator
So yeah. Thank you sir. Last just one confirmation that we will not go for debt for capital like for this doubling of our loans. We will not really need debt. So can I agree, can we Almost small debt but a huge debt will not come out of the balance sheet.
Manoj Bhat
So nothing will come because I think I have clarified and nobody has asked in this call. Let me clarify then only probably 25 to 30% will be owned. The balance will come from capital light models whether lease or other structures. Yeah.
Operator
Thank you. Thank you very much. All the best.
Manoj Bhat
Thank you Vivek.
Operator
Thank you. Ladies and gentlemen, in the interest of time we will take this as the last question for the day. I now hand the conference over to the management for the closing comments.
Manoj Bhat
Thank you all for joining and I believe there are one or two or three people who might be still in the queue and if you have any question please email us. We will try to answer it. Apologies, I think we have run out of time but we are definitely approachable. So please email us and we’ll take care of it. Yeah. Thank you.
Operator
Thank you sir. On behalf of Mahindra Holidays and Resort India Ltd. That concludes this conference. Thank you all for joining us and you may now disconnect your lines.