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What is the story about?
Leela Palaces Hotels & Resorts on Wednesday, October 14, reported a 26.7% year-on-year (YoY) rise in net profit for the September quarter, to ₹95 crore from ₹75 crore a year ago.
Revenue from operations for Q2FY27 rose 32.6% YoY to ₹412 crore from ₹311 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38.2% to ₹188 crore from ₹136 crore, while the EBITDA margin expanded to 45.6% from 43.7% a year ago.
Commenting on the performance, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “Our Q2 FY27 performance is a testament to the enduring strength of The Leela brand and the structural tailwinds in India’s luxury hospitality market.”
“Our 30% RevPAR growth in Q2 was led by a record 30% increase in ADR, demonstrating our sustained pricing power and the strength of demand for differentiated luxury experiences,” he added.
The company reported a 30% YoY increase in revenue per available room (RevPAR) to ₹17,225 in Q2 FY27, while average daily rate (ADR) rose 30% to ₹25,046. Occupancy remained stable at 68.8%, compared with 68.7% in the year-ago quarter, according to the investor presentation.
Demand was broad-based across retail, corporate and leisure segments, with domestic revenue growing more than 30%. Suite occupancy increased by over 700 basis points, reflecting continued premiumisation, while marquee events, including the BRICS Summit in Delhi, supported demand.
Room revenue rose 39% YoY to ₹204.1 crore, while food and beverage revenue increased 21% to ₹145.6 crore. Hotel management agreement (HMA) fees grew 76% to ₹28.9 crore, reflecting the ramp-up of managed properties and a wider brand footprint. Revenue from other operational services, including wellness, retail, club memberships and transport, rose 25% to ₹33.3 crore.
The company said non-room revenue accounted for more than half of total revenue in the first half of FY27, highlighting its efforts to diversify income beyond accommodation.
Leela Palaces Hotels & Resorts said its pipeline of 1,038 keys across 10 properties was progressing on schedule. The upcoming properties span wildlife, heritage, hill station, desert and spiritual destinations.
The Leela Jaisalmer and The Leela Luxury Residences in Mumbai are in the pre-opening stage, with operations planned for FY27. The Mumbai residences mark the company’s entry into a new business vertical.
As of September 30, 2026, net debt stood at ₹1,215 crore, while the net debt-to-last-twelve-months EBITDA ratio improved to 1.4 times, compared with 1.6 times in March 2026 and 3.7 times in March 2025.
The company also reported a Net Promoter Score of 87 for the first half of FY27, against an Asia-Pacific luxury hospitality benchmark of 74. The Leela Palace New Delhi and Jaipur received two Michelin Keys each, while The Leela Palace Chennai received one Michelin Key for the second consecutive year.
Shares of Leela Palaces Hotel were trading 2.6% lower at ₹586.15 following the results announcement on Wednesday. The stock has gained 35% since January this year.
Also read: BHEL Q2 Results: Outstanding order book at ₹2.57 lakh crore, margin at 13-quarter high
Revenue from operations for Q2FY27 rose 32.6% YoY to ₹412 crore from ₹311 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38.2% to ₹188 crore from ₹136 crore, while the EBITDA margin expanded to 45.6% from 43.7% a year ago.
Commenting on the performance, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “Our Q2 FY27 performance is a testament to the enduring strength of The Leela brand and the structural tailwinds in India’s luxury hospitality market.”
“Our 30% RevPAR growth in Q2 was led by a record 30% increase in ADR, demonstrating our sustained pricing power and the strength of demand for differentiated luxury experiences,” he added.
Room rates drive growth
The company reported a 30% YoY increase in revenue per available room (RevPAR) to ₹17,225 in Q2 FY27, while average daily rate (ADR) rose 30% to ₹25,046. Occupancy remained stable at 68.8%, compared with 68.7% in the year-ago quarter, according to the investor presentation.
Demand was broad-based across retail, corporate and leisure segments, with domestic revenue growing more than 30%. Suite occupancy increased by over 700 basis points, reflecting continued premiumisation, while marquee events, including the BRICS Summit in Delhi, supported demand.
Room revenue rose 39% YoY to ₹204.1 crore, while food and beverage revenue increased 21% to ₹145.6 crore. Hotel management agreement (HMA) fees grew 76% to ₹28.9 crore, reflecting the ramp-up of managed properties and a wider brand footprint. Revenue from other operational services, including wellness, retail, club memberships and transport, rose 25% to ₹33.3 crore.
The company said non-room revenue accounted for more than half of total revenue in the first half of FY27, highlighting its efforts to diversify income beyond accommodation.
Expansion pipeline and balance sheet
Leela Palaces Hotels & Resorts said its pipeline of 1,038 keys across 10 properties was progressing on schedule. The upcoming properties span wildlife, heritage, hill station, desert and spiritual destinations.
The Leela Jaisalmer and The Leela Luxury Residences in Mumbai are in the pre-opening stage, with operations planned for FY27. The Mumbai residences mark the company’s entry into a new business vertical.
As of September 30, 2026, net debt stood at ₹1,215 crore, while the net debt-to-last-twelve-months EBITDA ratio improved to 1.4 times, compared with 1.6 times in March 2026 and 3.7 times in March 2025.
The company also reported a Net Promoter Score of 87 for the first half of FY27, against an Asia-Pacific luxury hospitality benchmark of 74. The Leela Palace New Delhi and Jaipur received two Michelin Keys each, while The Leela Palace Chennai received one Michelin Key for the second consecutive year.
Shares of Leela Palaces Hotel were trading 2.6% lower at ₹586.15 following the results announcement on Wednesday. The stock has gained 35% since January this year.
Also read: BHEL Q2 Results: Outstanding order book at ₹2.57 lakh crore, margin at 13-quarter high
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