Leela Palaces Hotels & Resorts (THELEELA) Q2 25/26 earnings summary

Executive summary

• Delivered strong Q2 FY26 results with 11% revenue growth and 17% EBITDA growth year-over-year, maintaining industry-leading margins and operational efficiency.

• Achieved four consecutive quarters of positive PAT, with Q2 PAT at INR 747 million and H1 PAT at INR 834.83 million, reversing a loss from the prior year.

• Completed IPO in June 2025, raising ₹25,000 million and listing on BSE and NSE, with proceeds used primarily for debt repayment.

• Announced strategic expansion with a 25% stake in a luxury beachfront resort in Dubai and a revised structure for the BKC Mumbai project, focusing capital on hotel operations.

• Outperformed the luxury hospitality industry with RevPAR growth over three times the segment average, driven by strong brand equity and direct sales channels.

Financial highlights

• Q2 FY26 consolidated revenue was ₹3,334 million (up 11% YoY); EBITDA was ₹1,607 million (up 17% YoY), with a margin of 48.2%.

• H1 FY26 consolidated revenue was ₹6,348 million (up 18% YoY); EBITDA was ₹2,887 million (up 34% YoY), margin expanded to 45.5%.

• Q2 room revenue was INR 147 crores (vs. INR 130 crores YoY); F&B revenue was INR 120 crores (vs. INR 113 crores YoY).

• H1 PAT at INR 834.83 million, a turnaround from a loss of INR 126 crores last year, driven by EBITDA growth and lower finance costs.

• H1 RevPAR up 16% YoY to INR 12,616; Q2 RevPAR up 13% YoY to INR 13,262, with ADR growth of 10% and occupancy up 4 ppt to 69%.

Outlook and guidance

• On track for mid-to-high-teens EBITDA growth for FY26, supported by strong H2 seasonality and robust advance bookings.

• Targeting INR 2,000 crores in EBITDA by FY30, driven by same-store growth, new developments, and international expansion.

• H2 FY26 expected to see strong same-store growth, focus on direct business, optimal channel mix, and healthy RFP rates.