Leela Palaces Hotels & Resorts reported a 27% increase in net profit for the second quarter of fiscal year 2027, driven by strong revenue growth and improved operational performance. The company’s revenue from operations grew 32.5% year-on-year to ₹412 crore, while its RevPAR (revenue per available room) increased 30% to ₹17,225 compared to the same period last year.
- Net profit rose 27% in Q2 FY27.
- Revenue from operations increased 32.5% to ₹412 crore.
- RevPAR grew 30% to ₹17,225, supported by a 30% rise in ADR.
- EBITDA margin expanded to 45.6% from 44.4% year-on-year.
- Net debt improved to ₹1,215 crore with a net debt to LTM EBITDA ratio of 1.4x.
How did Leela Palaces achieve strong revenue growth in Q2 FY27?
The company’s revenue from operations increased to ₹412 crore in the July-September quarter, up from ₹311 crore in the same quarter last year. This growth was supported by marquee events such as the BRICS Summit held in Delhi, which boosted demand across the company’s properties.
Additionally, the company expanded its portfolio, including the addition of Coorg, which contributed to a 30% rise in average daily rate (ADR) to ₹25,046. This helped push RevPAR up by 30%, reflecting strong demand in the luxury hospitality market.
What improvements were seen in profitability and margins?
Leela Palaces’ adjusted operating EBITDA rose 36% year-on-year to ₹188 crore, compared to ₹138 crore in the previous year’s quarter. The EBITDA margin expanded to 45.6%, up from 44.4% a year earlier, indicating better cost management and operational efficiency.
For the first half of FY27, the company’s net profit increased 72% to ₹143 crore, while revenue from operations grew 30.6% to ₹764 crore. These results demonstrate sustained financial strength and profitability.
How did different business segments perform during the quarter?
Room revenue grew 39%, food and beverage (F&B) revenue increased 21%, and hotel management and advisory (HMA) fees jumped 76%, reflecting a strong ramp-up of managed properties and an expanding brand footprint. The domestic segment saw over 30% revenue growth, with suite occupancy improving by more than 700 basis points.
Non-room revenue accounted for over 50% of total revenue in the first half of FY27, showing the company’s successful diversification beyond room sales. The brand’s website contribution to room revenue reached 15.1%, a 2.8 times increase from two years ago, helping reduce reliance on third-party booking channels.
What is the status of Leela Palaces’ debt and financial health?
By the end of September quarter, Leela Palaces’ net debt stood at ₹1,215 crore. The net debt to last twelve months (LTM) EBITDA ratio improved to 1.4x, down from 1.6x in March 2026 and 3.7x in March 2025. This improvement provides the company with substantial headroom to fund future growth and expansion.
The company remains focused on optimizing its capital structure and financing costs while maintaining ample liquidity to support its expansion pipeline and strategic initiatives.
How did the stock market react to the earnings report?
Following the earnings announcement, shares of Leela Palaces traded at ₹582.70 on the National Stock Exchange, experiencing a decline of 3.09%.
