Leela Palaces Hotels & Resorts has announced record financial results for FY26, delivering its highest-ever revenue and profitability. Operating revenue grew by 15% to ₹15,273 million, while profit after tax (PAT) surged approximately 8.5x to ₹4,030 million. The company’s growth is underpinned by strong double-digit RevPAR performance, aggressive portfolio expansion, and a significantly strengthened balance sheet, with Net Debt to EBITDA improving to 1.6x.
Record Financial Performance
The company achieved a defining year in FY26, with financial and operational metrics significantly outpacing industry growth. Operating revenue reached ₹15,273 million, a 15% increase year-on-year, while Operating EBITDA grew by 19% to ₹7,429 million. The bottom line saw substantial improvement, with profit after tax (PAT) climbing to ₹4,030 million, marking an 8.5x jump from the previous fiscal year.
Quarterly Highlights
In the final quarter (Q4 FY26), the company maintained strong momentum. Operating revenue rose by 12% to ₹4,844 million, and PAT surged by 46% to ₹1,717 million. Operating EBITDA margins for the quarter stood at 55%, expanding by 57 basis points. These results were driven by sustained ADR expansion to ₹32,059, a 15% increase, which helped offset moderate occupancy fluctuations caused by global geopolitical disruptions.
Strategic Expansion and Operational Growth
FY26 marked the fastest pace of expansion in the brand’s history, adding properties in Mumbai BKC, Palm Jumeirah (Dubai), Jaisalmer, and Coorg. Notably, the acquisition of The Leela Coorg Forest Sanctuary in Q4 FY26 added 71 keys to the portfolio. Currently, the company operates 5,200 luxury keys across 15 hotels, with an additional 9 hotels in the pipeline.
Brand Leadership and Balance Sheet
The company’s commitment to service excellence is reflected in an NPS score of 86, well above the luxury segment benchmark of 74. Furthermore, the financial position has been significantly bolstered; Net Debt reduced to ₹12,707 million in FY26 from ₹25,677 million in FY25. This deleveraging, combined with a Net Debt to EBITDA ratio of 1.6x, provides the firm with significant financial flexibility to pursue future growth opportunities through its 1,000+ key pipeline targeted by FY30.
Source: BSE
