Leela Palaces Hotels & Resorts reported an 11% increase in total revenue to ₹3,334 million, with EBITDA growing by 17% to ₹1,607 million and PAT rising to ₹747 million. The company announced its first international expansion with an investment in a luxury beachfront resort in Dubai’s iconic Palm Jumeirah. This move extends The Leela’s brand to a global stage. The Q2 FY26 results mark the fourth consecutive quarter of positive PAT.
Strong Financial Performance in Q2 FY26
Leela Palaces Hotels & Resorts reported a robust financial performance for the quarter ended September 30, 2025. Key highlights include:
- Total revenue increased by 11% to ₹3,334 million.
- EBITDA grew by 17% to ₹1,607 million.
- Profit after tax (PAT) rose to ₹747 million.
This marks the fourth consecutive quarter of positive PAT. RevPAR grew 13%, driven by improved occupancy and ADR.
International Expansion into Dubai
The company announced its expansion into Dubai with an investment in a luxury beachfront resort located in Palm Jumeirah. This marks The Leela’s first international foray and will extend the brand’s hospitality to a global audience.
Key Consolidated Financial Results (Q2 FY25-26)
Here’s a summary of the consolidated financial results:
- Total Revenue: ₹3,334 M (+11%)
- EBITDA: ₹1,607 M (+17%)
- EBITDA Margin: 48.2% (+246 bps)
- Net Debt/LTM EBITDA: 0.5x
- Occupancy: 69% (+4%)
- ADR: ₹19,290 (+7%)
- RevPAR: ₹13,262 (+13%)
- PAT: ₹747 M (+₹1,259 M)
H1 FY25-26 Performance
The company also reported strong results for the first half of fiscal year 2026:
- Total Revenue: ₹6,348 M (+18%)
- EBITDA: ₹2,887 M (+34%)
- EBITDA Margin: 45.5% (+555 bps)
- PAT: ₹834 M (+₹2,096M)
- Occupancy: 66% (+4%)
- ADR: ₹19,064 (+10%)
- RevPAR: ₹12,616 (+16%)
Strategic Global Expansion Details
Leela Palaces has received board approval to acquire a 25% stake in the luxury beachfront resort in Dubai’s Palm Jumeirah. The company will require upfront capital of approximately $49M/ ₹4,370 million for the equity stake.
Domestic Expansion and Asset Enhancement
Leela Palaces BKC will seek approval to demerge the office business in Mumbai. The Leela will retain and fund a 50% stake in the hotel, while Brookfield will fund the remaining 50% and fully own the office space.
Source: BSE