The Leela Palaces Hotels & Resorts reported a 33% revenue jump to ₹412 crore for Q2 FY27, as luxury travel demand and high-profile events boosted profits. Net profit climbed to ₹95 crore, though investors should monitor the company's high promoter share pledge.
The Leela Palaces Hotels & Resorts delivered strong growth in the second quarter of the 2027 fiscal year, supported by high demand for luxury hospitality. The company reported revenue of ₹412 crore, a 33% increase compared to the same period last year. Profitability also improved, with net profit rising 27% to ₹95 crore, performing better than analyst expectations of ₹79.2 crore.
Driving this growth was a sharp increase in the average daily room rate, or ADR, which rose by 30% to reach ₹25,046. This growth in pricing power, paired with a similar 30% rise in revenue per available room, helped the chain improve its operating efficiency. The company’s operating EBITDA grew 36% to ₹187.7 crore, maintaining a healthy margin of 46%.
One of the key strengths for the company has been its focus on non-room income, which contributed more than 50% of total revenue during the first half of the year. This strategy helps the chain reduce its reliance on room bookings alone, leveraging large-scale gatherings. The company benefited significantly from hosting high-profile guests during major events like the BRICS Summit in Delhi, and management is positioning itself to capture similar opportunities during the upcoming Aero India event.
While the financial performance shows operational improvement, there are factors investors typically track for a complete picture. The company has successfully improved its financial health, with the net debt to EBITDA ratio showing improvement to 1.4x as of September 2026. However, a significant portion of promoter holdings remains pledged, currently standing at approximately 73.6%. Investors often monitor promoter pledges, as they can sometimes reflect financial constraints or governance focus areas at the promoter group level.
Additionally, the luxury hospitality sector is sensitive to broader economic cycles. While the current demand remains strong, any slowdown in business travel or global economic activity can influence future occupancy rates and pricing power. Moving forward, the company’s ability to maintain high margins amidst fluctuating operating costs and its management of debt levels will be key areas for market participants to watch.