Leela Palaces Hotels & Resorts Reports Strong Q3FY26 Results with 21% Revenue Growth

Leela Palaces Hotels & Resorts Limited announced strong financial results for the quarter ended December 31, 2025 (Q3FY26), delivering its fifth consecutive quarter of double-digit revenue per available room (RevPAR) and EBITDA growth. The luxury hotel company, operating under "The Leela" brand, demonstrated robust operational performance across key financial metrics. Financial Performance Highlights The company's Q3FY26 performance showcased significant year-on-year improvements across all major financial parameters: Metric Q3 FY26 Growth (YoY) Operating Revenue ₹4,574 million +21% Operating EBITDA ₹2,378 million +23% Operating EBITDA Margin 52% +61 bps Profit After Tax ₹1,479 million +162% Occupancy 71% +2% Average Daily Rate (ADR) ₹30,337 +17% Revenue Per Available Room (RevPAR) ₹21,551 +20% For the nine months ended December 31, 2025, the company maintained strong momentum with operating revenue of ₹10,429 million (up 16% YoY) and operating EBITDA of ₹4,772 million (up 22% YoY). The operating EBITDA margin expanded by 231 basis points to 46% during this period. Operational Excellence and Market Outperformance The company demonstrated industry-leading performance, with RevPAR growth outpacing India's luxury segment by approximately 2.3 times during October-November 2025. Revenue growth was driven by strong performance across multiple streams, with room revenue increasing 20% and food & beverage revenue growing 29%. Direct bookings through Brand.com surged 153% year-on-year, enhancing the company's direct-to-consumer economics. The company achieved a Net Promoter Score (NPS) of 86 in 9M FY26, substantially exceeding luxury segment benchmarks of 76. This performance was supported by global recognition, including The Leela being named The Best Hotel Group in India by Travel+Leisure India & South Asia for the sixth consecutive year. Strategic Expansion Initiatives During Q3FY26, Leela Palaces executed two significant expansion moves as part of its disciplined, capital-efficient growth strategy: Initiative Details The Leela Jaisalmer 80-key luxury hotel management contract, 30 acres, operational by mid-FY27 Dubai Palm Jumeirah 25% equity stake acquisition in 23-acre luxury beachfront resort Investment Amount (Dubai) Approximately $70 million including capex Expected Annual Management Fees ₹670 million upon stabilization The Dubai investment marks the company's first international foray, with the equity investment expected to be recovered within 2-3 years through branded residence monetization. The company currently operates 14 properties with 4,090 keys across 12 cities in India and has 9 hotels in the pipeline, targeting expansion to 23 properties over the next three years. Financial Strengthening and Future Outlook The company enhanced its financing efficiency by renegotiating term loan rates from 9.1% to 8.25%, reducing borrowing costs and improving profitability metrics. Management reiterated its EBITDA target of ₹20,000 million by FY30, supported by four growth pillars: same-store growth, new verticals including Arq By The Leela, owned hotel developments, and capital-light management contracts with strategic investments. Leela Palaces Hotels & Resorts has announced robust financial results for the third quarter, showcasing significant improvement across all key financial metrics. The luxury hospitality company reported substantial growth in revenue, net profit, and EBITDA, reflecting strong operational execution and business recovery in the competitive hospitality sector. Comprehensive Financial Performance The company's consolidated financial results for the third quarter demonstrate exceptional growth across key performance metrics, with notable improvements in revenue generation, profitability, and operational earnings. Financial Metric: Q3 Current Year Q3 Previous Year Growth/Change Revenue: ₹4.60 billion ₹3.70 billion +24.3% Consolidated Net Profit: ₹1.48 billion ₹565.00 million +162% EBITDA: ₹2.38 billion ₹1.87 billion +27.3% EBITDA Margin: 52.00% 50.46% +1.54 percentage points Strong Revenue and Profit Growth The company achieved consolidated revenue of ₹4.60 billion in the third quarter, representing a solid 24.3% year-on-year increase from ₹3.70 billion reported in the corresponding quarter of the previous year. This revenue growth of ₹900 million demonstrates the company's ability to capture market demand and expand its business operations effectively. Consolidated net profit reached ₹1.48 billion, marking a remarkable 162% year-on-year increase from ₹565.00 million in the previous year. This substantial profit growth of over ₹915 million showcases exceptional operational efficiency and the company's ability to convert revenue growth into bottom-line performance. Enhanced EBITDA Performance and Margin Expansion EBITDA performance showed strong growth, reaching ₹2.38 billion compared to ₹1.87 billion in the previous year, marking a robust 27.3% year-on-year increase. The EBITDA margin improved to 52.00% from 50.46% in the corresponding quarter of the previous year, indicating enhanced operational efficiency and better cost management. The positive operational metrics present an encouraging picture of the company's performance. The absolute EBITDA growth of ₹510 million demonstrates increased operational earnings, while the margin expansion of 1.54 percentage points suggests improved operational efficiency and effective cost control measures during the quarter. Business Outlook The strong financial performance across revenue, profitability, and operational metrics positions Leela Palaces Hotels & Resorts favorably within the hospitality sector. The combination of robust revenue growth, substantial profit expansion, and improved EBITDA performance with margin enhancement showcases operational resilience and the company's ability to deliver consistent growth and value creation for stakeholders in the luxury hospitality segment. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. 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