Leela Palaces Hotels & Resorts (THELEELA) investor relations material

Executive summary

• FY 2026 marked a transformational year with record profitability, including PAT exceeding ₹4,030.33 million, an 8.5x increase year-over-year, and industry-leading NPS of 86.

• Achieved record operational performance, outpacing the industry in growth and margins despite external volatility, including geopolitical disruptions and aviation issues.

• Expanded portfolio with four new hotels, including international entry into Dubai and acquisition of a 71-key ultra-luxury resort in Coorg.

• Maintained strong brand positioning, with RGI of 150 and multiple industry awards, including 'Best Hotel Group of the Year' for the sixth consecutive year.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified opinions from auditors.

Financial highlights

• Consolidated revenue from operations for FY26 was ₹15,273 million, up from ₹13,005.73 million in FY25; operating EBITDA reached ₹7,429 million, up 19% YoY, with margin at 49%.

• PAT surged to ₹4,030.33 million from ₹476.58 million in FY25, supported by RevPAR growth, asset enhancements, and lower finance costs.

• F&B revenue grew 15% YoY, now constituting 40% of hotel revenue, with non-resident covers up 12% YoY.

• Net debt reduced by 50%, with net debt to EBITDA at 1.6x, and equity base increased to ₹64,527 million.

• Exceptional items included a non-recurring impact due to regulatory-driven changes in employee compensation.

Outlook and guidance

• Management expects double-digit revenue and EBITDA growth for the upcoming quarter, with May and June projected as exceptionally strong months.

• FY 2027 occupancy expected in early 70% range, with city hotels in mid-70% and resorts in mid-to-late 60%.

• Pipeline of 9 hotels (1,065 keys) under development, targeting 2x keys and 10x EBITDA over FY20–FY30.

• Management fees projected to grow at double digits as managed hotels ramp up.

• The company notes the seasonality of the hospitality sector, indicating quarterly results are not indicative of full-year performance.