Leela Palaces Hotels & Resorts has disclosed, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received an order from the Office of Divisional Commissioner, Government of National Capital Territory of Delhi, Revenue Department. The order, received on May 12, 2026, pertains to the adjudication of stamp duty in relation to the issuance of certain shares by the company in dematerialised form during the year 2021. The company has stated that the order carries no material impact on its financial, operational, or other activities.

Order Details

The key details of the order, as disclosed in compliance with SEBI Listing Regulations and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, are summarised below:

Background and Context

The matter has arisen in connection with circulars issued during 2025 by the Additional District Magistrate, Collector of Stamps, Revenue Department, Delhi, wherein the rate of stamp duty applicable to the issuance of dematerialised shares under the Indian Stamp Act, 1899 — as amended pursuant to the Finance Act, 2019 and effective from July 1, 2020 — has been disputed. Leela Palaces Hotels & Resorts has clarified that stamp duty on the issuance of shares had been duly paid in accordance with Section 9A(1) read with Article 56A of Schedule I to the Indian Stamp Act, 1899.

Judicial Proceedings

Subsequent to the issuance of the disputed circulars, certain companies have filed writ petitions before the Hon'ble High Court of Delhi on the same issue, and the proceedings are presently under judicial consideration. Leela Palaces Hotels & Resorts has stated that it is also pursuing appropriate courses of action in relation to the order. The disclosure was signed by Jyoti Maheshwari, Company Secretary and Compliance Officer, on May 13, 2026.

Leela Palaces Hotels & Resorts delivered a landmark financial performance in FY26, reporting a record profit after tax of ₹403 crores—an 8.5x increase from ₹48 crores in FY25. The results were underpinned by sustained same-store RevPAR growth, disciplined cost management, targeted asset enhancements, and a meaningful reduction in finance costs. The company also achieved its fastest-ever pace of portfolio expansion during the year, reinforcing its position as India's only pure-play luxury hospitality company.

FY26 Full-Year Financial Highlights

The company reported robust all-round financial performance for the full year ended March 31, 2026. Operating revenue rose 15% year-on-year to ₹1,527 crores, while operating EBITDA grew 19% year-on-year to ₹743 crores. Over 60% of incremental revenue converted to operating EBITDA, reflecting strong operating leverage and disciplined cost management.

The company's net debt reduced by 50%, with net debt to EBITDA now at 1.6x, supported by a strong AA credit rating and healthy cash conversion. F&B revenues grew 15% year-on-year for the full year, driven by strong performance across restaurants and banqueting, with non-resident covers growing approximately 12% year-on-year. Non-resident covers now constitute 54% of the total cover mix at city hotels.

Q4 FY26 Quarterly Performance

For the quarter ended March 31, 2026, the company delivered double-digit growth in operating revenue and EBITDA despite geopolitical headwinds stemming from the West Asia conflict, which disrupted international travel in March.

Management noted that the occupancy decline was concentrated in city hotels, which carry a larger share of international business. The international business mix dropped from approximately 50% to around 40%, with domestic business rising to approximately 60%. ADR growth of 15% partially offset the occupancy impact, resulting in a 6% RevPAR growth for the quarter.

Operational Metrics and Market Position

The company recorded a Net Promoter Score of 86 for FY26, maintaining its position as the highest-rated luxury hospitality brand in India and extending its lead to 12 points above the Asia Pacific Luxury Industry average. The RevPAR index strengthened to 150, reflecting an 11-point increase in market share, with RevPAR growth exceeding the industry by more than two times. This translates into a RevPAR premium of approximately ₹6,000 over the India Luxury segment.

Key operational highlights for FY26 include:

• Portfolio: Over 5,200 luxury keys across 24 properties, spanning 15 operational hotels and nine in the pipeline
• Key Expansion: 23% growth in keys, totalling a visibility of 966 additional keys across Mumbai BKC, Dubai, Jaisalmer, and Coorg
• Managed Hotels: The Leela Hyderabad achieved 62% occupancy in its first fiscal year of operations, with an ADR 1.24x compared to its peer set
• ESG: Commissioned 2.25 megawatts of solar capacity at The Leela Palace Chennai, increasing green energy usage to 67% of total consumption; power and fuel cost reduced to 3% of operating revenues from 3.3% in FY25
• Talent: Onboarded 45 future leaders through the Leela Leadership Development Programs; achieved Great Place to Work recognition

Portfolio Expansion and Asset Management

FY26 marked the company's fastest-ever pace of expansion. During Q4 FY26, the company acquired a 71-key ultra-luxury all-villa operational resort in Coorg, to be unveiled as The Leela Coorg Forest Sanctuary. The property is built across 76 acres, with 25 rooms featuring heated pools. Management indicated that first-year revenue from the Coorg property is expected in the range of ₹65 crores to ₹70 crores, with occupancy in the early 40s. Stabilized revenue, including the planned Phase 1 addition of 19 villas, is projected at ₹165 crores to ₹175 crores, expected to be achieved in year four. The capex planned for the 19 additional villas is approximately ₹38 crores.

The company also progressed multiple value-accretive asset management initiatives during FY26:

• Launch of ARQ BY THE LEELA at The Leela Palace Bengaluru—an invite-only ultra-luxury membership club with an initiation fee of ₹45 lakh plus GST; ARQ is slated to open in New Delhi in Q1 FY27 and in Chennai in Q2 FY27, with Mumbai planned subsequently; the company targets a stabilized membership base of 2,000 members across all clubs
• Refurbishment and addition of seven F&B outlets across The Leela Palace New Delhi, Jaipur, and other locations
• Relaunch of approximately 34,000 square feet of high-end retail space at The Leela Palace Bengaluru, currently 100% occupied
• Reimagined spa and wellness offering at The Leela Palace Jaipur, with wellness initiatives being expanded to Bengaluru
• Introduction of exclusive kids clubs at The Leela Palace Jaipur and Udaipur
• Conversion of select villas into premium private villas at The Leela Palace Jaipur

These initiatives are targeted to deliver a projected yield on cost of approximately 25%. Greenfield development continues to advance across Bandhavgarh, Srinagar, Sikkim, Agra, Ayodhya, and Ranthambore. The Leela Jaisalmer and The Leela Luxury Residences Mumbai are set to open in FY27.

Outlook and Near-Term Trends

Management indicated that April occupancy recovered to levels similar to the prior year, with high single-digit to early double-digit RevPAR growth expected for the month. For Q1 FY27, the company expects double-digit growth in revenues and EBITDA, supported by strong resort performance in May and June. Management fees are expected to grow at a double-digit rate in the coming year, driven by the ramp-up of managed hotels including The Leela Hyderabad. Net debt to EBITDA is expected to remain at approximately 1.6x in FY27, with a trajectory toward 1x and below over the medium term as new assets begin generating EBITDA. Depreciation is expected to remain at approximately ₹100 crores over the next two to three years, increasing only as new hotels become operational.