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.

Leela Palaces Hotels & Resorts Limited has announced exceptional financial results for FY26, marking a defining year of record performance with the company delivering its highest-ever revenue, profitability, and margins while significantly outpacing industry growth. The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 at their meeting held on April 28, 2026, which were published in newspapers on April 29, 2026 pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Outstanding Financial Performance

The luxury hospitality company reported operating revenue growth of 15% to ₹15,273 million and operating EBITDA growth of 19% to ₹7,429 million for the financial year ended March 31, 2026. Profit after tax (PAT) rose significantly by approximately 8.5 times to ₹4,030 million from ₹477 million in FY25, while operating EBITDA margin improved substantially to 49%, representing an expansion of 167 basis points year-on-year.

Strong Q4 FY26 Performance

The fourth quarter results demonstrated sustained momentum with operating revenue growing 12% year-on-year to ₹4,844 million. Operating EBITDA increased 13% to ₹2,657 million, while PAT rose 46% to ₹1,717 million. The operating EBITDA margin for Q4 stood at approximately 55%, expanding by 57 basis points year-on-year.

Market Leadership and Operational Excellence

The company significantly outperformed the India luxury segment, delivering approximately 2.3 times RevPAR growth compared to the luxury segment benchmark. The RevPAR index strengthened to 150 in FY26 from 139 in FY25, reflecting continued market share gains. Food & Beverage revenue grew 15% year-on-year to ₹5,499 million, driven by seven curated F&B launches and upgrades across key properties.

The Leela sustained its Net Promoter Score (NPS) leadership with a score of 86 in FY26, significantly ahead of the luxury segment benchmark of 74 in the APAC region. The brand continued to receive global recognition, including "Best Hotel Group of the Year" for the sixth consecutive year.

Strategic Expansion and Balance Sheet Strength

FY26 marked The Leela's fastest pace of expansion with four additions across Mumbai BKC, Palm Jumeirah (Dubai), Jaisalmer, and Coorg, driving 23% growth in keys. The company acquired The Leela Coorg Forest Sanctuary in Q4 FY26, an all-villa ultra-luxury resort with 71 keys spread across 76 acres. The Leela now has a scaled footprint of over 5,200 luxury keys across business and leisure destinations, with 15 operational hotels (4,162 keys) and 9 hotels in the pipeline (1,065 keys).

The company significantly strengthened its balance sheet with net debt reducing from ₹25,677 million in FY25 to ₹12,707 million in FY26. Net Debt to EBITDA improved from 3.7x to 1.6x as of March 31, 2026, providing substantial headroom to fund future growth while maintaining a conservative leverage profile.

Leadership Commentary and Future Outlook

Commenting on the results, Mr. Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, highlighted the landmark performance: "FY26 has been a landmark year for The Leela. We delivered a strong, broad-based performance led by double-digit RevPAR growth, driving a 19% EBITDA growth and our highest ever PAT of ₹4,030 million. Our RevPAR outperformance at approximately 2.3 times of the luxury segment continues to deliver market share gains, underscoring our pricing power."

The company remains well-positioned for multi-year growth with a visible pipeline of 1,000+ keys by FY30 across owned developments and capital-light management contracts. The growth strategy continues to be anchored in a combination of owned developments in high barrier-to-entry markets, capital-light management contracts, and value-accretive asset upgrades.