Leela Palaces Hotels & Resorts reported strong Q2 FY’26 results, with revenue increasing by 11% to INR 333 crores and EBITDA growing by 17% to INR 161 crores. The company also announced expansion into Dubai with a 25% stake acquisition in a beachfront luxury resort on Palm Jumeirah. Leela will co-invest in The Leela Palace BKC Mumbai. Leela maintains a strong balance sheet and is on track to achieve mid-to-high-teen EBITDA growth for FY’26.
Financial Performance Highlights
Leela Palaces Hotels & Resorts showcased a robust performance in Q2 FY’26:
- Revenue increased by 11% to INR 333 crores.
- EBITDA grew by 17% to INR 161 crores, with a margin of 48.2%.
- Operating EBITDA (excluding treasury income) increased by 12% to INR 138 crores.
- Profit after tax of INR 75 crores for Q2 FY’26, marking the fourth consecutive quarter of positive PAT.
Half-Yearly Performance
The company also reported strong results for the first half of FY’26:
- Total revenue increased by 18% to INR 635 crores.
- EBITDA grew by 34% to INR 289 crores, with margin expansion to 45%.
- Achieved a turnaround, with a profit after tax of INR 83 crores compared to a loss of INR 126 crores in the previous year.
Strategic Expansion
Leela Palaces Hotels & Resorts is strategically expanding its presence:
- Acquiring a 25% stake in an operating beachfront luxury resort on Palm Jumeirah, Dubai, for approximately $49 million (INR 437 crores).
- Co-investing 50% in The Leela Palace BKC Mumbai with a capital expenditure of approximately INR 800 crores.
Operational Updates
- RevPAR increased by 16% in H1 FY’26, reaching INR 12,616, driven by ADR growth of 10% and occupancy improvement to 66%.
- Launched ARQ, an exclusive members-only club, at The Leela Palace, Bengaluru, with plans to expand to other cities.
- Relaunched 34,000 square feet of high-end retail space at The Leela Palace, Bengaluru, expected to add approximately INR 10 crores in annualized EBITDA.
Guidance and Outlook
The company is on track to achieve mid-to-high-teen EBITDA growth in FY’26. It aims to reach approximately Rs. 2,000 crores in EBITDA by FY’30.
Source: BSE