Financial Performance Highlights

Stand-alone Performance (India Business):

  • Total income grew 3% year-on-year to ₹424 crores
  • Resort revenue grew 10% year-on-year to ₹126 crores
  • EBITDA remained stable at ₹142 crores sequentially (Q4 FY26: ₹142 crores)
  • PAT stood at ₹54 crores (Q4 FY26: ₹55 crores, excluding impairment charge)
  • Profit declined by approximately ₹22 crores compared to Q1 FY26

Consolidated Performance:

  • Total income grew 5% year-on-year to ₹774 crores
  • European subsidiary (Holiday Club Finland) reported increased losses of approximately ₹20 crores YoY

Key Business Metrics

Membership Sales (Keystone Product):

  • Sales value increased 22% YoY to ₹154 crores
  • Average unit realization increased 73% to ₹14.4 lakhs
  • Upgrade value increased 58% to ₹89 crores
  • More than 40% of sales coming from 10-year product (Ivory segment)
  • Approximately 2,000-2,500 upgrades per quarter

Resort Operations:

  • Occupancy improved to 86.7% during the quarter
  • 400 keys under renovation and unavailable for revenue generation
  • Non-member business grew 30% YoY (off a lower base)

Balance Sheet Position

  • Deferred revenue stands at ₹5,825 crores
  • Cash balance stands at ₹1,420 crores

Expansion and Transformation Plans

Inventory Management:

  • Exited 300+ keys in Q1 due to quality parameters
  • Plan to exit another 300-400 keys over next three quarters
  • Target to add 1,000 keys gross in FY27 across multiple destinations
  • New resorts planned in Jodhpur, Ganpatipule (Maharashtra), Darjeeling, Jawai, Dalhousie, and Goa
  • Current pipeline takes company to 8,200-8,300 keys, targeting 10,000 keys by 2030

Resort Transformation:

  • 4-5 resorts under complete shutdown for transformation
  • Transformation cost ranges from ₹5-10 lakhs per key to ₹40-50 lakhs per key for older resorts
  • Plan to transform 2 resorts per year going forward

Signature Resorts:

  • Theog resort delayed by 3-4 quarters, now targeting Q4 FY28
  • Cost overrun estimated at 5-10%
  • Civil work complete, focusing on interiors and design
  • Second resort in late stages of design, third in early stages

Technology Initiatives

  • Implemented booking recommendation engine
  • Paperless check-in in few resorts, planned pan-India rollout
  • AI-enabled sentiment analysis for real-time guest feedback
  • Multiple initiatives across sales, booking, check-in, and member engagement

Profitability Analysis (Q1 FY27 vs Q1 FY26)

The ₹22 crore profit decline is attributed to:

  • 30% from transformation resorts (400 keys generating no revenue but incurring costs)
  • 20% from new resorts taking time to stabilize
  • 25% from capability building and branding investments
  • 10-15% from regulatory changes (GST law changes, Maharashtra solar policy)

European Business (Holiday Club Finland)

  • Strategic review in progress
  • Evaluating options including partnerships, distribution improvements, and strategic actions
  • Expect conclusion during FY27
  • Key challenges: lower occupancy compared to historical levels

Dividend Position

  • Unable to pay dividends due to AS 115 transition difference of ₹1,509 crores
  • Earliest consideration for dividend expected in FY28

Outlook

  • Q2 expected to be weakest quarter seasonally
  • H2 expected to show improvement with:
  • 400 renovated keys coming back into system
  • New inventory additions
  • Seasonally stronger quarters (Q3 and Q4)
  • New resorts starting to generate profits