Leela Palaces Hotels & Resorts has announced its strongest financial performance to date for FY26, delivering record revenue, profitability, and margins. The company reported a 15% increase in operating revenue to ₹15,273 million and a surge in profit after tax (PAT) to ₹4,030 million. Driven by double-digit RevPAR growth and disciplined expansion, the firm continues to solidify its position as a leader in India’s luxury hospitality segment.
Annual Performance Highlights
FY26 proved to be a landmark year for the company, significantly outpacing industry growth metrics. Operating revenue climbed 15% year-on-year to ₹15,273 million, while operating EBITDA rose by 19% to reach ₹7,429 million. Profitability saw a massive boost, with PAT rising approximately 8.5x to ₹4,030 million compared to the previous year. This performance was supported by a 14% increase in same-store RevPAR for its five owned palaces, reaching ₹17,460.
Operational Success in Q4
During the final quarter of the financial year, the company sustained momentum despite global geopolitical headwinds. Q4 operating revenue grew 12% to ₹4,844 million, and operating EBITDA increased by 13% to ₹2,657 million. Notably, operating EBITDA margins expanded by 57 basis points to reach 55%. A significant 46% rise in quarterly PAT to ₹1,717 million underscores the brand’s resilience and strong pricing power.
Strategic Expansion and Financial Health
The brand is undergoing its fastest pace of expansion, adding four new properties in Mumbai BKC, Palm Jumeirah (Dubai), Jaisalmer, and Coorg, resulting in a 23% growth in keys. The recent acquisition of The Leela Coorg Forest Sanctuary further bolsters its luxury wellness offerings. Furthermore, the company has significantly deleveraged its balance sheet, with Net Debt dropping to ₹12,707 million in FY26 from ₹25,677 million in FY25, improving the Net Debt to EBITDA ratio to 1.6x.
Future Outlook
Looking ahead, the company is focused on long-term growth driven by structural demand for luxury hospitality. With a visible pipeline of over 1,000 keys projected by FY30, the company continues to refine its footprint through a mix of owned developments and capital-light management contracts. Commitment to service excellence is validated by an NPS score of 86, remaining well above the APAC luxury segment benchmark of 74.
Source: BSE
