Leela Palaces Hotels & Resorts Limited reported a transformational FY26, achieving a record profit after tax of INR 403 crores compared to INR 48 crores in FY25. Operating revenue grew by 15% to INR 1,527 crores, supported by a 13% increase in ADR. The company also marked its fastest expansion pace with a 23% growth in keys, signaling strong operational resilience and sustained leadership in the luxury hospitality segment.
Financial Performance Overview
The company delivered a stellar financial performance for FY26. Operating revenue surged to INR 1,527 crores, a 15% year-on-year increase. The operating EBITDA climbed 19% to INR 743 crores, with margins expanding by 167 basis points to a best-in-class 49%. This profitability spike represents an 8.5x increase over the previous fiscal year, underscoring the success of the company’s asset-light and operational efficiency strategies.
Q4 Performance and Resilience
Despite geopolitical headwinds affecting international inbound travel during March 2026, the company remained resilient. Q4 FY26 operating revenue rose 12% year-on-year to INR 484 crores, with operating EBITDA reaching INR 266 crores. The company successfully mitigated occupancy dips by focusing on domestic demand, which now accounts for approximately 60% of the business, and by leveraging its robust pricing power through double-digit ADR growth.
Strategic Expansion and Portfolio Growth
The Leela continues to aggressively expand its footprint, recording a 23% increase in keys during the year. A major highlight was the Q4 acquisition of a 71-key ultra-luxury all-villa resort in Coorg, which will be rebranded as The Leela Coorg Forest Sanctuary. Furthermore, the company maintains a strong development pipeline including upcoming projects in Jaisalmer, Mumbai, Agra, Ayodhya, and Ranthambore, ensuring long-term growth visibility.
Driving Value Through ARQ and Asset Management
The company is successfully driving incremental revenue through its ARQ invite-only ultra-luxury membership club. With an initial target of 2,000 members across major metros, the initiative is a key driver for long-term customer engagement. Additionally, the company reduced its net debt by 50%, bringing the net debt-to-EBITDA ratio to a conservative 1.6x, providing the financial headroom necessary for its ongoing capital expenditure and future expansion plans.
Source: BSE
