Leela Palaces Hotels Q1 FY27 results: Net profit jumps fivefold to ₹49 crore, revenue grows 28% YoY

Its revenue from operations grew 28% year-on-year (YoY) to ₹352 crore during the quarter under review, as against ₹275 crore in the June quarter of the 2025-26 fiscal year (Q1 FY26).

At an operational level, its adjusted operating EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹143 crore for the reporting quarter, reflecting a 41.6% YoY increase from ₹101 crore in the year-ago period.

Its EBITDA margin also expanded at 40.6% in Q1 FY27—the highest-ever Q1 margin—in contrast to 36.7% YoY.

Commenting on the results, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “Our first quarter performance outperforming industry reflects the enduring strength of The Leela brand and the structural opportunity we see in India's underserved luxury hospitality market. We delivered a 28% operating revenue growth and a 41% rise in operating EBITDA, demonstrating the strong operating leverage of our business model.”

The company’s RevPAR increased 17% year-on-year to ₹13,982, led by a 10% rise in ADR to ₹20,722 and a 4% improvement in occupancy to 67.5% on an expanded portfolio including Coorg.

For the quarter under review, the Leela Palaces’ net debt stood at ₹1,332 crore with a net debt-to-EBITDA ratio of 1.6x, providing adequate headroom to support future growth. The company also highlighted its continued focus on optimising capital structure and financing costs, while maintaining sufficient liquidity to fund its expansion pipeline and strategic initiatives.

“Our robust RevPAR growth at 17% despite temporary international travel headwinds was the result of our continued ADR leadership and successfully capitalising on growing domestic leisure and MICE demand,” said Bhatnagar.

The company said it continues to execute its capital-efficient growth strategy by expanding into India's highest-value luxury destinations while maintaining a balanced portfolio of owned and managed assets.

Apart from the earnings, the board of directors have also approved acquisition of Schloss Tadoba (STPL) for ₹120 crore to be paid in in one or more tranches. STPL is a wholly owned subsidiary and a related party of Leela Palace.

During Q1FY27, the Leela signed a concession agreement for a new 30-key wildlife resort in the Tadoba Tiger Reserve, Maharashtra. The firm said Leela Tadoba will be a 30-key resort spread across 62 acres, with an estimated capex of ~₹120 crore and completion targeted for CY30.

On Friday, Leela Palaces Hotels & Resorts settled at ₹496.6 apiece on the National Stock Exchange, gaining 5.66%. As of July 31, 2026, the company has a market capitalisation of ₹16,464.12 crore, according to NSE data.