Leela Palaces Hotels & Resorts shares drop 10% after Q2 earnings, check details here

Shares of Leela Palaces Hotels & Resorts dropped as much as 10% to hit an intraday low of ₹427 after it reported September quarter earnings.

Leela Palaces Hotels & Resorts on Tuesday, October 14, reported net profit of ₹75 crore in the second quarter of current financial year against loss of ₹51 crore in the same period last year. Leela Palaces Hotels & Resorts revenue from operation in July-September period rose 12% to ₹311 crore from ₹277 crore in the year-ago period.

The company reported stable operational performance as its operating profit also known as earnings before interest, taxes, depreciation and amortization (EBITDA) advanced 22% to ₹203 crore and its EBITDA margin improved 550 basis points.

“This marks our fourth consecutive quarter of positive PAT, underscoring the strength of our business. RevPAR grew 13% reflecting industry-leading performance, driven by improved occupancy and ADR, with owned hotels posting strong double-digit RevPAR growth across both city and resort segments. We remain on track to deliver mid-to-high teens EBITDA growth for FY26, supported by robust operating momentum, strategic initiatives, and continued portfolio enhancements. We are also very excited to announce our international foray with entry into Dubai’s Palm Jumeirah, a top luxury tourist destination, extending The Leela’s hospitality on a global stage,” said Anuraag Bhatnagar, chief executive officer of the company.

The Leela currently operates 13 properties with 3,544 keys across 11 cities in India, including 5 owned, 7 managed, and 1 franchised hotel. With 9 hotels in the pipeline, it is on track to expand to 22 properties over the next three years in high-growth markets including Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar and now Dubai.

Leela Palaces Hotels has said that it remains well-positioned to deliver mid-to-high teens EBITDA growth in FY26 on the back of strong same-store growth through increased direct business and optimal channel mix, healthy macro tailwinds on luxury demand in key Leela markets, disciplined cost management and operating leverage improvement and continued portfolio enhancements.

The company in its regulatory filing added that it received board approval to sign binding agreements to acquire a 25% stake in a luxury beachfront resort in Dubai's iconic Palm Jumeirah. Privat funds, managed by Brookfield, will acquire the balance 75% stake.

As of 3:10 pm, Leela Palaces Hotels shares traded 5% lower at ₹442, underperforming the NIFTY50 index which was down 0.4%.