Leela Palaces Hotels & Resorts (THELEELA) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a transformational year with record financial and operational performance, including record profitability with PAT exceeding ₹4,000 Mn, an 8.5x increase year-over-year, and outpacing the industry in growth and margins despite external volatility.

• Achieved highest ever annual key expansions and significant market share gains, with a RevPAR index of 150 and a premium of INR 6,000 over the India luxury segment.

• Net promoter score of 86, 12 points above Asia-Pacific luxury average, reinforcing brand equity and pricing power.

• Expanded portfolio with four new hotels, including Mumbai BKC, Dubai, Jaisalmer, and acquisition of an ultra-luxury resort in Coorg.

• Recognized as India's best hotel group for the sixth consecutive year and received multiple global accolades.

Financial highlights

• FY 2026 consolidated revenue from operations rose 17% YoY to ₹15,273 Mn; operating EBITDA up 19% YoY to ₹7,429 Mn, with margin improvement to 49%.

• PAT for FY 2026 reached ₹4,030 Mn, an 8.5x increase from FY 2025, supported by EBITDA growth and a 56% reduction in finance costs.

• Net debt reduced by 50%, with net debt to EBITDA at 1.6x, and standalone net profit after tax for FY26 was ₹2,757.91 Mn.

• F&B revenues grew 15% YoY, with non-resident covers now 54% of city hotel mix.

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

Outlook and guidance

• Exceeded mid-to-high teens EBITDA growth guidance for FY26, with double-digit revenue and EBITDA growth expected for the upcoming quarter.

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

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

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

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