The Leela’s FY26 Performance Signals Robust Growth & Financial Strength
Record revenue. Strong margins. Market-leading growth. FY26 marks a milestone year for The Leela as it accelerates ahead of the luxury hospitality curve.
By SOH Edit Team
The Leela Palaces Hotels & Resorts’ financial and operational performance for the quarter and full year ended March 31, 2026, sets a new benchmark in luxury hospitality performance.
FY26 stands out as a defining year, marked by record-high revenue, profitability, and margins—significantly outperforming broader industry growth and reinforcing The Leela’s leadership in the luxury hospitality segment.
Commenting on the results, Anuraag Bhatnagar, Whole-time Director & CEO, stated: “FY26 has been a landmark year for The Leela. We delivered a strong, broad-based performance led by double-digit RevPAR growth, driving 19% EBITDA growth and our highest-ever PAT of ₹4,030 million. Our RevPAR outperformance—at approximately 2.3x the luxury segment—continues to translate into market share gains, underscoring our pricing power.
With demand significantly outpacing supply in the luxury segment, we have strategically expanded our portfolio and pipeline across key destinations including Mumbai BKC, Dubai, Jaisalmer, and Coorg. Backed by a strong balance sheet and a Net Debt-to-EBITDA ratio of 1.6x, we are well positioned to scale and capitalize on the next phase of luxury demand growth.”
Resilient Demand Drives Steady Growth
Despite geopolitical headwinds, The Leela delivered robust quarterly performance, supported by sustained ADR growth, strong domestic demand, and accelerating F&B contributions.
- Operating Revenue: ₹4,844 million (+12% YoY)
- Operating EBITDA: ₹2,657 million (+13% YoY)
- Profit After Tax (PAT): ₹1,717 million (+46% YoY)
- EBITDA Margin: ~55% (up 57 basis points YoY)
Operational Highlights:
- RevPAR for owned palaces rose 6% YoY to ₹23,028
- ADR increased 15% YoY to ₹32,059
- Occupancy moderated slightly due to geopolitical disruptions
Step-Change in Profitability and Scale
The full-year performance reflects strong operating fundamentals, enhanced efficiencies, and a significantly strengthened balance sheet.
- Operating Revenue: ₹15,273 million (+15% YoY)
- Operating EBITDA: ₹7,429 million (+19% YoY)
- EBITDA Margin: 49%
- Profit After Tax (PAT): ₹4,030 million (~8.5x growth YoY)
Operational Highlights:
- Same-store RevPAR increased 14% YoY to ₹17,460
- ADR grew 13% YoY to ₹25,375
- Occupancy improved by 1 percentage point to 69%
Market Leadership: Outpacing the Luxury Segment
The Leela continued to outperform the broader luxury hospitality market:
- Achieved ~2.3x RevPAR growth relative to the segment
- RevPAR Index strengthened to 150 (from 139 in FY25)
- Sustained market share gains driven by pricing power and brand strength
Driving Incremental Revenue Streams
Food & Beverage (F&B) emerged as a key growth lever:
- F&B Revenue: ₹5,499 million (+15% YoY)
- Driven by seven curated launches and upgrades across key properties
- Increased contribution from non-resident guests, particularly in city hotels
With a strong balance sheet, strategic expansion pipeline, and favorable demand-supply dynamics in the luxury segment, The Leela is well-positioned to sustain its growth trajectory. Continued investments in high-demand destinations and differentiated guest experiences are expected to further strengthen its competitive edge.
