Leela Palaces Hotels & Resorts Submits Q3FY26 Monitoring Agency Report with No Deviations

Leela Palaces Hotels & Resorts Limited has filed its quarterly monitoring agency report for Q3FY26 with BSE and NSE, demonstrating compliant utilization of Initial Public Offer proceeds. The report, prepared by ICRA Limited as the appointed monitoring agency, covers the quarter ended December 31, 2025. IPO Proceeds Utilization Status The monitoring report confirms no deviation from the original objects of the IPO issue. ICRA Limited verified that the utilization of issuance proceeds remains in line with the disclosed objectives in the offer document. Parameter Details Issue Size ₹3,500.00 crores Net Proceeds (Excluding OFS) ₹2,500.00 crores Net Proceeds (After Expenses) ₹2,364.402 crores Issue Period May 26-28, 2025 Monitoring Agency ICRA Limited Fund Deployment Progress The company has made substantial progress in deploying IPO proceeds according to the stated objectives. The primary use of funds involves debt repayment across the company and its subsidiaries. Object Allocated Amount (₹ Crores) Utilized Amount (₹ Crores) Status Company Debt Repayment 1,102.50 1,102.50 Completed Subsidiary Debt Repayment 1,197.50 1,197.50 Completed General Corporate Purposes 64.402 - Pending Issue Related Expenses 135.598 116.256 Ongoing Unutilized Funds Management The company maintains ₹83.744 crores in unutilized proceeds, which are deployed in fixed deposits with State Bank of India earning returns between 5.10% to 6.50%. The total value of investments including accrued interest stands at ₹95.559 crores as of December 31, 2025. Investment Type Amount (₹ Crores) Maturity Return Rate Fixed Deposit 45.000 June 24, 2026 6.25% Fixed Deposit 40.333 August 31, 2026 6.50% Fixed Deposit 7.100 March 29, 2026 5.10% Account Balance 0.123 - - Regulatory Compliance The monitoring agency report was submitted pursuant to Regulation 32(6) of SEBI LODR Regulations, 2015, and Regulation 41(4) of SEBI ICDR Regulations, 2018. The Audit Committee reviewed and considered the report in its meeting held on January 16, 2026. ICRA Limited confirmed that all arrangements for monitoring issue proceeds are functioning properly, with no major deviations observed from earlier monitoring reports. The company remains on schedule for completing its stated objectives within the planned timeframe of Fiscal 2026-2027. Leela Palaces Hotels & Resorts Limited delivered exceptional Q3 performance, reporting consolidated net profit of ₹147.88 crore compared to ₹56.40 crore in the corresponding quarter last year, representing a remarkable 162% growth. The luxury hospitality company achieved its fifth consecutive quarter of double-digit revenue per available room (RevPAR) and EBITDA growth, demonstrating robust operational performance across key financial metrics. Strong Financial Performance The company's Q3 results showcased significant improvements across all major financial parameters: Financial Metric Q3 FY26 Q3 FY25 Growth (%) Revenue from Operations ₹457.43 crore ₹370.46 crore +21% Consolidated Net Profit ₹147.88 crore ₹56.40 crore +162% Total Expenses ₹219.60 crore ₹183.51 crore +20% Operating EBITDA Margin 52% - +61 bps 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, the company maintained strong momentum with operating revenue of ₹1,042.90 crore (up 16% YoY) and operating EBITDA of ₹477.20 crore (up 22% YoY). The operating EBITDA margin expanded by 231 basis points to 46% during this period. Labour Code Impact and Regulatory Compliance The company reported an exceptional item of ₹6.40 crore related to the incremental impact of four Labour Codes notified by the central government in November. These codes consolidate 29 existing labour laws and include the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020. Regulatory Impact Details Exceptional Item Amount ₹6.40 crore Labour Codes Implemented 4 codes consolidating 29 laws Notification Date November 21, 2025 Leela Palaces continues to monitor the finalization of central and state rules and will provide appropriate accounting effects as needed based on further government developments and clarifications. Market Outperformance and Strategic Growth The company demonstrated industry-leading performance, with RevPAR growth outpacing India's luxury segment by approximately 2.7 times on a year-to-date basis. Revenue growth was driven by strong performance across multiple streams, with room revenue increasing 20% and food & beverage revenue growing 29%. During the quarter, Leela Palaces executed significant expansion initiatives including signing a management agreement for The Leela Jaisalmer and making its first international strategic investment in Dubai. The company achieved a Net Promoter Score (NPS) of 86, substantially exceeding luxury segment benchmarks of 76. "We delivered our best-ever quarterly performance in Q3 FY26 with total operating revenue growing 21% to ₹457.4 crore, reaffirming our unique luxury positioning and ability to command pricing power," said Anuraag Bhatnagar, whole-time director and Chief Executive Officer. "We also advanced our strategy of disciplined, capital-efficient growth by signing a management agreement for The Leela Jaisalmer and our first international strategic investment in Dubai." 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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