Leela Palaces Hotels Targets Mid-to-High Teens EBITDA Growth for FY26, Reports Strong Q2 Performance

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.68%	+4.54%	+4.60%	+0.78%	+0.78%	+0.78%

Schloss Bangalore , a leading luxury hospitality chain, has announced robust financial results for the second quarter and half-year ended September 30, alongside a significant investment in its UAE subsidiary.

Financial Highlights

The company reported impressive growth in its consolidated financial performance:

Metric	Q2	Q2	YoY Change
Revenue from Operations	3,106.49	2,771.52	12.1%
Net Profit	747.22	(511.73)	-
EBITDA	1,607.29	1,370.90	17.2%

On a standalone basis, Schloss Bangalore achieved a revenue of Rs. 1,944.67 million for the quarter, with a net profit after tax of Rs. 728.52 million.

UAE Subsidiary Investment

In a strategic move to expand its international presence, the company's Board of Directors has approved an investment of USD 49.67 million in Aries Holdings (DIFC) Limited, its wholly-owned subsidiary incorporated in the UAE. This investment aims to explore new business opportunities in the United Arab Emirates, potentially strengthening Schloss Bangalore's foothold in the Middle Eastern luxury hospitality market.

IPO Utilization and Debt Repayment

The company completed its Initial Public Offering (IPO) during the quarter ended June 30, raising Rs. 25,000 million through a fresh equity issuance at Rs. 435 per share. The shares were subsequently listed on both the BSE and NSE on June 2. Schloss Bangalore has utilized Rs. 23,000 million from the IPO proceeds for debt repayment, significantly improving its financial position.

Operational Performance

Despite the seasonal nature of the hospitality sector, Schloss Bangalore demonstrated strong operational performance. The company's focus on luxury hospitality continues to drive growth, with increased revenue across its properties.

Future Outlook

With a strengthened balance sheet post-IPO and strategic investments in international markets, Schloss Bangalore is well-positioned for future growth. The company's expansion into the UAE market through its subsidiary investment signals its ambition to enhance its global luxury hospitality footprint.

As the hospitality sector continues to recover and grow, Schloss Bangalore appears to be capitalizing on market opportunities, both domestically and internationally.

Investors and industry observers will be keen to watch how the company leverages its recent IPO and strategic investments to drive long-term growth and profitability in the competitive luxury hospitality sector.