Leela Palaces Hotels & Resorts Limited reported a strong 33% year-on-year increase in operating revenue for Q2 FY27, reaching INR 4,119 million. Operating EBITDA grew by 36% to INR 1,877 million, with margins improving by 118 basis points. The company highlighted broad-based demand across corporate, leisure, and events, alongside a robust development pipeline for future growth.
Leela Palaces Hotels & Resorts Reports Robust Q2 FY27 Performance
Leela Palaces Hotels & Resorts Limited (formerly known as Schloss Bangalore Limited) has announced its financial results for the quarter and half-year ended September 30, 2026, showcasing significant growth across key metrics. The company reported a substantial 33% year-on-year increase in operating revenue for the second quarter of fiscal year 2027 (Q2 FY27), amounting to INR 4,119 million. This growth was observed across all revenue streams, with each growing by more than 20%.
Strong EBITDA Growth and Margin Expansion
Operating EBITDA for Q2 FY27 surged by 36% to INR 1,877 million. This impressive performance resulted in an operating EBITDA margin of 46%, an improvement of 118 basis points compared to the previous year. The company attributed this margin expansion to operating leverage, pricing discipline, and a consistent focus on cost efficiency. Profit after tax for the quarter also saw a healthy increase of 27% year-on-year, reaching INR 946 million.
First Half Performance Exceeds Guidance
For the first half of FY27 (H1 FY27), Leela Palaces Hotels & Resorts delivered strong results, with operating revenue growing by 30% and operating EBITDA by 38%. Profit after tax for the half-year increased by 72% to INR 1,433 million. The company noted that H1 performance significantly exceeded its initial guidance.
Key Growth Drivers and Market Position
Management highlighted that the exceptional performance was driven by a broadening and deepening luxury demand in India, constrained supply, and the strength of iconic brands with premium assets. The company experienced a broad-based growth across all customer segments, with premiumization evident in higher sales of suites and premium room categories, where suite occupancy rose by over 700 basis points. India’s growing role as a venue for global summits and marquee events also played a key role, with The Leela Palace New Delhi recording exceptional performance during the BRICS Summit. The company’s Net Promoter Score (NPS) remained industry-leading at 87.
Revenue Diversification and Brand Strength
The business model’s diversity was emphasized, with over 52% of revenue in H1 FY27 coming from non-room segments, including F&B, management fees, club revenues, and wellness. Food & Beverage revenue grew by 21%, supported by the launch of eight new F&B venues over the past year. Active asset management and the development pipeline are considered key value-creation levers. The company’s owned domestic hotels delivered strong RevPAR growth of 30%, primarily driven by ADR growth.
Development Pipeline and Future Outlook
Leela Palaces Hotels & Resorts is actively expanding its portfolio, with several projects underway. The company aims to have over 5,200 keys by FY30, with approximately a 50-50 split between owned and managed properties. New openings include Arq By The Leela in New Delhi, Arq Chennai, a wellness facility in Bengaluru, and The Leela Jaisalmer. The company is also scouting for opportunities across both owned and managed assets, including greenfield and brownfield acquisitions. The management expressed confidence in sustaining industry-leading growth driven by a strong balance sheet, diversified revenue base, and an expanding pipeline.
Source: BSE
