Leela Palaces Hotels & Resorts Limited delivered exceptional Q3 performance, reporting consolidated net profit of ₹147.88 crore compared to ₹56.40 crore in the corresponding quarter last year, representing a remarkable 162% growth. The luxury hospitality company achieved its fifth consecutive quarter of double-digit revenue per available room (RevPAR) and EBITDA growth, demonstrating robust operational performance across key financial metrics.

Strong Financial Performance

The company's Q3 results showcased significant improvements across all major financial parameters:

For the nine months ended December 31, the company maintained strong momentum with operating revenue of ₹1,042.90 crore (up 16% YoY) and operating EBITDA of ₹477.20 crore (up 22% YoY). The operating EBITDA margin expanded by 231 basis points to 46% during this period.

Labour Code Impact and Regulatory Compliance

The company reported an exceptional item of ₹6.40 crore related to the incremental impact of four Labour Codes notified by the central government in November. These codes consolidate 29 existing labour laws and include the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020.

Leela Palaces continues to monitor the finalization of central and state rules and will provide appropriate accounting effects as needed based on further government developments and clarifications.

Market Outperformance and Strategic Growth

The company demonstrated industry-leading performance, with RevPAR growth outpacing India's luxury segment by approximately 2.7 times on a year-to-date basis. Revenue growth was driven by strong performance across multiple streams, with room revenue increasing 20% and food & beverage revenue growing 29%.

During the quarter, Leela Palaces executed significant expansion initiatives including signing a management agreement for The Leela Jaisalmer and making its first international strategic investment in Dubai. The company achieved a Net Promoter Score (NPS) of 86, substantially exceeding luxury segment benchmarks of 76.

"We delivered our best-ever quarterly performance in Q3 FY26 with total operating revenue growing 21% to ₹457.4 crore, reaffirming our unique luxury positioning and ability to command pricing power," said Anuraag Bhatnagar, whole-time director and Chief Executive Officer. "We also advanced our strategy of disciplined, capital-efficient growth by signing a management agreement for The Leela Jaisalmer and our first international strategic investment in Dubai."

Leela Palaces Hotels & Resorts has announced robust financial results for the third quarter, showcasing significant improvement across all key financial metrics. The luxury hospitality company reported substantial growth in revenue, net profit, and EBITDA, reflecting strong operational execution and business recovery in the competitive hospitality sector.

Comprehensive Financial Performance

The company's consolidated financial results for the third quarter demonstrate exceptional growth across key performance metrics, with notable improvements in revenue generation, profitability, and operational earnings.

Strong Revenue and Profit Growth

The company achieved consolidated revenue of ₹4.60 billion in the third quarter, representing a solid 24.3% year-on-year increase from ₹3.70 billion reported in the corresponding quarter of the previous year. This revenue growth of ₹900 million demonstrates the company's ability to capture market demand and expand its business operations effectively.

Consolidated net profit reached ₹1.48 billion, marking a remarkable 162% year-on-year increase from ₹565.00 million in the previous year. This substantial profit growth of over ₹915 million showcases exceptional operational efficiency and the company's ability to convert revenue growth into bottom-line performance.

Enhanced EBITDA Performance and Margin Expansion

EBITDA performance showed strong growth, reaching ₹2.38 billion compared to ₹1.87 billion in the previous year, marking a robust 27.3% year-on-year increase. The EBITDA margin improved to 52.00% from 50.46% in the corresponding quarter of the previous year, indicating enhanced operational efficiency and better cost management.

The positive operational metrics present an encouraging picture of the company's performance. The absolute EBITDA growth of ₹510 million demonstrates increased operational earnings, while the margin expansion of 1.54 percentage points suggests improved operational efficiency and effective cost control measures during the quarter.

Business Outlook

The strong financial performance across revenue, profitability, and operational metrics positions Leela Palaces Hotels & Resorts favorably within the hospitality sector. The combination of robust revenue growth, substantial profit expansion, and improved EBITDA performance with margin enhancement showcases operational resilience and the company's ability to deliver consistent growth and value creation for stakeholders in the luxury hospitality segment.