Leela Palaces Hotels & Resorts Q2 result: Net profit grows 27%; RevPAR increased to ₹17,225 YoY

The company’s revenue from operations grew 32.5% year-on-year (YoY) to ₹412 crore in the July-September quarter as compared to ₹311 crore in the corresponding quarter of the previous fiscal year.

At an operational level, its adjusted operating EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹188 crore for the reporting quarter, reflecting a 36% YoY increase from ₹138 crore in the year-ago period.

Its EBITDA margin also expanded to 45.6% in Q2 FY27 in contrast to 44.4% YoY.

“The Company delivered another quarter of industry-leading financial performance, translating premium brand strength into superior revenue growth, margin expansion and profitability,” said Leela Palaces Hotels in a statement.

For half a year of the current fiscal year (H1 FY27), the luxury hospitality player’s net profit increased 72% to ₹143 crore from ₹83 crore reported in the same period of the previous year. Its revenue from operations for the period stood at ₹764 crore as against ₹585 crore in H1 FY26, marking a growth of 30.6%.

Leela’s RevPAR increased 30% YoY to ₹17,225, led by a 30% rise in ADR to ₹25,046, on an expanded portfolio including Coorg. The company said that its record ADR growth was supported by robust demand across key customer segments and sustained traction in the luxury hospitality market.

Its domestic segment witnessed over 30% revenue growth, and continued premiumisation was reflected in a more than 700 basis points improvement in suite occupancy.

In the reporting quarter, Leela Palaces said its demand was further bolstered by marquee events such as the BRICS Summit in Delhi. In Q2 FY27, performance remained broad-based across business segments—room revenue grew 39%, F&B revenue jumped 21%, and HMA fees were up 76%, reflecting a strong ramp-up of managed properties and a growing brand footprint.

The company’s non-room revenue exceeded 50% of total revenue in H1 FY27, reflecting continued diversification beyond rooms, Leela Palaces said. The brand website contribution to room revenue reached 15.1% in H1 FY27, a 2.8 times increase from H1 FY25, improving distribution economics and reducing reliance on third-party channels.

By the end of the September quarter, Leela Palaces’ net debt stood at ₹1,215 crore, while the net debt to LTM EBITDA improved to 1.4x, compared to 1.6x in March 2026 and 3.7x in March 2025, providing substantial headroom to fund future growth.

“The company remains focused on optimizing its capital structure and financing costs while preserving ample liquidity to support its expansion pipeline and strategic initiatives,” Leela Palaces said.

Following the earnings, shares of Leela Palaces were trading at ₹582.70 apiece on the National Stock Exchange, falling 3.09%.