The Leela Palaces Reports Strong Q2 FY27 Growth

Operating Revenue: Rs 411.9 Crore
Net Profit: Rs 94.6 Crore

Reader Takeaway: Strong operational momentum and aggressive debt reduction are fueling expansion, though upcoming property launches remain key execution milestones.

What just happened

The Leela Palaces Hotels & Resorts posted a strong second quarter for FY27. Operating revenue climbed 33% year-on-year to Rs 411.9 crore, while net profit rose 27% to reach Rs 94.6 crore. The company saw operating EBITDA expand by 36% to Rs 187.7 crore, with margins widening to 46%.

Why this matters

The growth was driven by a 30% surge in both Revenue Per Available Room (RevPAR) and Average Daily Rate (ADR), which reached Rs 17,225 and Rs 25,046 respectively. Management highlighted diversified demand across corporate, leisure, and retail segments. Notably, over 50% of revenue in the first half of the year came from non-room sources, demonstrating a healthy shift toward diversified income streams.

The backstory

The company has been on a clear path of deleveraging. As of September 30, 2026, net debt stood at Rs 1,215.0 crore. The Net Debt to LTM EBITDA ratio has improved to 1.4x, a significant refinement from the 3.7x level seen in March 2025. This improved financial health provides the company with greater flexibility to fund its active pipeline.

What changes now

The focus shifts to the company's expansion plans, which include a pipeline of 1,038 keys across 10 properties. The Leela Jaisalmer and The Leela Luxury Residences in Mumbai are currently in the pre-opening stage and are expected to begin operations within FY27.

What to track next

Investors should monitor the successful operational ramp-up of new properties and the performance of the Luxury Residences vertical. Additionally, the company's success in increasing direct bookings via its brand website—which rose 2.8x since H1 FY25 to reach 15.1%—remains a metric of long-term efficiency.