NewsEarningsLeela Palaces Hotels Targets Mid-to-High Teens EBITDA Growth for FY26, Reports Strong Q2 PerformanceLeela Palaces Hotels Targets Mid-to-High Teens EBITDA Growth for FY26, Reports Strong Q2 Performance
Schloss Bangalore reported robust Q2 FY26 results with total revenue up 11% to ₹3,334.00 million, EBITDA rising 17% to ₹1,607.00 million, and PAT growing to ₹747.00 million. The company aims for mid-to-high teens EBITDA growth in FY26. Plans include expanding from 13 to 22 properties in three years and acquiring a 25% stake in a Dubai luxury resort for ₹4,370.00 million. Q2 saw RevPAR growth of 13% to ₹13,262.00, occupancy increase to 69%, and ADR rise 7% to ₹19,290.00.
*this image is generated using AI for illustrative purposes only.
Schloss Bangalore , India's premier pure-play luxury hotel company, has announced its commitment to delivering mid-to-high teens EBITDA growth for the fiscal year 2026. This ambitious target comes on the heels of a robust financial performance in the second quarter of the fiscal year 2025-26.
Q2 FY26 Financial Highlights
The company reported impressive results for Q2 FY26, demonstrating strong growth across key financial metrics:
| Metric | Q2 FY26 | YoY Growth |
|---|---|---|
| Total Revenue | ₹3,334.00 million | +11% |
| EBITDA | ₹1,607.00 million | +17% |
| PAT | ₹747.00 million | Significant increase |
| RevPAR | ₹13,262.00 | +13% |
| EBITDA Margin | 48.20% | +246 bps |
Strategic Expansion and Brand Enhancement
Schloss Bangalore is actively pursuing growth opportunities, with plans to expand its portfolio from the current 13 properties to 22 over the next three years. The company is set to enter high-growth markets including Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, and Srinagar.
In a significant move towards international expansion, the company has received board approval to acquire a 25% stake in a luxury beachfront resort in Dubai's iconic Palm Jumeirah. This strategic investment, requiring an upfront capital of approximately ₹4,370.00 million, marks Schloss Bangalore's first foray into the global market.
Operational Excellence
The company's performance reflects its strong positioning in the luxury hospitality sector:
- RevPAR growth outperformed the luxury segment across all markets, showing 3x market benchmark growth in H1 FY26.
- Occupancy increased to 69%, up 4 percentage points year-over-year.
- Average Daily Rate (ADR) rose to ₹19,290.00, a 7% increase from the previous year.
Management Commentary
Anuraag Bhatnagar, Chief Executive Officer, commented on the results: "We delivered a robust performance in Q2 FY26 with total revenue growing 11% to ₹3,334.00 million, EBITDA rising 17% to ₹1,607.00 million, and PAT growing to ₹747.00 million. This marks our fourth consecutive quarter of positive PAT, underscoring the strength of our business."
He further added, "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."
Looking Ahead
With a strong balance sheet, innovative brand initiatives, and strategic expansion plans, Schloss Bangalore is well-positioned to capitalize on the growing demand for luxury hospitality experiences in India and beyond. The company's focus on operational excellence and strategic growth initiatives sets a solid foundation for achieving its ambitious EBITDA growth target for FY26.
As the hospitality sector continues to recover and evolve, Schloss Bangalore's commitment to luxury and expansion strategy may well position it as a leader in the premium segment of the Indian and international hospitality market.
Historical Stock Returns for Leela Palaces Hotels & Resorts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.69% | -1.47% | -6.38% | -6.22% | -6.29% | -6.29% |
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