Leela Hotels FY26 Results: ₹15,273M Revenue, ₹4,030M PAT

April 29, 2026: The Leela Palaces Hotels & Resorts reported record financial performance for FY26, posting total operating revenue of ₹15,273 million and profit after tax (PAT) of ₹4,030 million, marking its highest-ever annual earnings. The company attributed the growth to strong RevPAR expansion, improved margins, and continued demand in India’s luxury hospitality segment.

The performance reflects a year of broad-based operational gains, with the company outpacing industry benchmarks and strengthening its market position across key business and leisure destinations.

Revenue, profitability and margin expansion

For the financial year ending March 31, 2026, operating revenue increased 15% year-on-year to ₹15,273 million, while operating EBITDA rose 19% to ₹7,429 million. EBITDA margins improved to 49%, indicating stronger operational efficiency.

PAT recorded a sharp rise to ₹4,030 million, compared to ₹477 million in FY25, reflecting a significant improvement in profitability. The company reported that performance was supported by pricing power, higher occupancy, and operational leverage.

In the fourth quarter, revenue grew 12% year-on-year to ₹4,844 million, while EBITDA increased 13% to ₹2,657 million. PAT for the quarter rose 46% to ₹1,717 million. EBITDA margins for the quarter stood at approximately 55%.

RevPAR growth and operational performance

Operational metrics showed consistent growth across the portfolio. Same-store RevPAR for the company’s five owned palaces increased 14% year-on-year to ₹17,460 in FY26. This was supported by a 13% increase in average daily rate (ADR) to ₹25,375 and a 1 percentage point rise in occupancy to 69%.

In the fourth quarter, RevPAR for these properties rose 6% to ₹23,028, driven by a 15% increase in ADR to ₹32,059, although occupancy moderated due to geopolitical disruptions.

The company reported RevPAR performance at approximately 2.3 times the luxury segment benchmark, with its RevPAR index improving to 150 from 139 in FY25, indicating continued market share gains.

Food and beverage (F&B) operations also contributed to growth, with revenue increasing 15% year-on-year to ₹5,499 million. This was supported by seven new F&B launches and upgrades across properties, alongside higher non-resident demand in city hotels.

Portfolio expansion and pipeline growth

FY26 marked the company’s fastest expansion phase, with four additions across Mumbai BKC, Palm Jumeirah, Jaisalmer, and Coorg, resulting in a 23% increase in keys.

During the fourth quarter, the company acquired The Leela Coorg Forest Sanctuary, an all-villa resort spanning 76 acres with 71 keys, with plans to add 19 additional keys in the first phase of expansion.

The portfolio currently includes over 5,200 keys across 15 operational hotels (4,162 keys) and nine pipeline properties (1,065 keys), spanning owned and managed formats.

The company stated that its expansion strategy focuses on a mix of owned developments, management contracts, and asset enhancements across key markets including Mumbai BKC, Dubai, Jaisalmer, and Coorg.

Balance sheet strength and financial position

The company reported a significant improvement in its balance sheet, with net debt reducing from ₹25,677 million in FY25 to ₹12,707 million in FY26.

Net debt to EBITDA improved to 1.6 times from 3.7 times, providing increased financial flexibility to support expansion plans while maintaining a conservative leverage profile.

The company indicated that it will continue to focus on optimizing capital structure and financing costs while maintaining liquidity to fund future growth initiatives.

Brand performance, ESG initiatives and outlook

The company maintained a Net Promoter Score (NPS) of 86 in FY26, above the APAC luxury segment benchmark of 74, reflecting continued focus on guest experience and service quality.

It also received multiple recognitions, including “Best Hotel Group of the Year” for the sixth consecutive year, along with property-level awards across its portfolio.

On sustainability, the company reported that 67% of its energy consumption is derived from renewable sources and outlined a net-zero target for 2050. It also highlighted initiatives such as waste upcycling, local sourcing, and community engagement programs reaching over 30,000 individuals.

The company’s long-term growth strategy includes expanding its pipeline to over 1,000 keys by FY30 across owned and managed formats, alongside strengthening revenue streams through F&B, wellness, and experiential offerings.

According to the company, continued demand in the luxury segment, supported by limited supply growth and increasing domestic and international travel, remains a key driver of its operational and financial performance.