Leela Palaces Hotels & Resorts Q2 FY27 results: net profit up 26.6% to ₹94.59 crore, revenue up 32.6%

How did Leela Palaces Hotels & Resorts perform in Q2 FY27?

On a consolidated basis, Q2 FY27 revenue was ₹411.87 crore, up 32.6% from ₹310.65 crore in Q2 FY26 and 17.0% from ₹351.96 crore in Q1 FY27. EBITDA rose 36.1% year on year to ₹187.72 crore and was 30.9% higher than Q1 FY27’s ₹143.38 crore. The EBITDA margin increased 1.2 percentage points year on year to 45.6% and expanded 4.9 percentage points from the previous quarter.

Profit before tax was ₹121.87 crore, up 27.4% from ₹95.66 crore a year earlier and 52.4% from ₹79.96 crore in Q1 FY27. Net profit was ₹94.59 crore, compared with ₹74.72 crore in Q2 FY26 and ₹48.76 crore in Q1 FY27. Basic EPS was ₹2.83, against ₹2.35 in the year-ago quarter and ₹1.46 in the previous quarter. On the standalone basis, revenue was ₹121.15 crore and net profit ₹79.71 crore.

What changed in Leela Palaces Hotels & Resorts' costs and profit?

Total expenses were ₹296.17 crore, up ₹58.38 crore or 24.6% from ₹237.79 crore in Q2 FY26. Cost of materials increased by ₹5.80 crore to ₹29.79 crore, employee cost by ₹22.31 crore to ₹95.04 crore, depreciation by ₹6.61 crore to ₹33.60 crore and other expenses by ₹23.31 crore to ₹99.31 crore. Finance costs were ₹38.42 crore, higher by ₹0.34 crore from ₹38.08 crore.

Other income fell ₹16.63 crore to ₹6.17 crore from ₹22.80 crore a year earlier. There was no exceptional item in either Q2 FY27 or Q2 FY26. Profit before tax rose ₹26.21 crore to ₹121.87 crore, while tax expense declined ₹2.74 crore to ₹15.79 crore, resulting in net profit of ₹94.59 crore.

Against Q1 FY27, total expenses increased ₹15.62 crore to ₹296.17 crore. Employee cost was ₹8.50 crore higher and other expenses ₹4.65 crore higher, while finance costs fell ₹0.88 crore to ₹38.42 crore. Other income declined ₹2.37 crore to ₹6.17 crore and tax expense was ₹0.20 crore higher at ₹15.79 crore. Net profit rose ₹45.83 crore to ₹94.59 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹763.82 crore, up ₹178.38 crore or 30.5% from ₹585.44 crore in H1 FY26. Total income rose 22.6% to ₹778.53 crore from ₹634.78 crore. Profit before tax increased 81.4% to ₹201.82 crore from ₹111.25 crore.

Net profit for H1 FY27 was ₹143.35 crore, up ₹59.93 crore or 71.8% from ₹83.42 crore in H1 FY26. Basic EPS increased 61.9% to ₹4.29 from ₹2.65.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹9169.38 crore, up from ₹8923.68 crore at 31 March 2026, while total equity rose to ₹6605.41 crore from ₹6452.61 crore. Borrowings were ₹1560.47 crore, compared with ₹1556.82 crore, and cash increased to ₹114.17 crore from ₹99.67 crore. Inventories were ₹32.42 crore against ₹32.24 crore, and trade payables fell to ₹53.81 crore from ₹74.67 crore.

H1 FY27 operating cash flow was ₹386.52 crore, up from ₹255.8 crore in H1 FY26. Investing cash flow was negative ₹295.1 crore compared with negative ₹245.89 crore, while financing cash flow was negative ₹77.13 crore against negative ₹77.54 crore. Capital expenditure was ₹133.63 crore, lower than ₹198.35 crore in the year-ago period.

How has Leela Palaces Hotels & Resorts done over the last 6 quarters?

Revenue increased in each of the last two quarters on a year-on-year basis, as did profit. Q2 FY27 revenue of ₹411.87 crore was above Q1 FY27’s ₹351.96 crore, although it remained below the Q4 FY26 peak of ₹484.42 crore. Net profit followed the same pattern, rising from ₹48.76 crore in Q1 FY27 to ₹94.59 crore in Q2 FY27, below Q4 FY26’s ₹171.72 crore.

The EBITDA margin rose from 40.7% in Q1 FY27 to 45.6% in Q2 FY27, but remained below the 54.8% recorded in Q4 FY26. Across the six-quarter series, revenue and profit bottomed in Q1 FY26 at ₹274.79 crore and ₹8.7 crore, while both peaked in Q4 FY26.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with limited review reports dated 14 October 2026, at its meeting on 14 October 2026. The company also filed an investor presentation and a press release on 30% RevPAR growth and 36% operating EBITDA growth. The same-day filings did not announce a dividend, fund raise or appointment.

What did Leela Palaces Hotels & Resorts' management say?

Management maintained FY27 guidance for double-digit RevPAR growth and mid-teen EBITDA growth, saying the first half had overdelivered against those targets. It introduced guidance for high-teens EBITDA growth in H2 FY27 on a high prior-year base and said Q3 FY27 RevPAR was on track for double-digit growth. Management also guided to an effective tax rate in the 20s% for FY27.

CEO Anuraag Bhatnagar said, “H1 has been far stronger than the guidance and we expect the trends to continue but definitely mid-to-high teens (EBITDA) for the balance of the year is something that we are anchored towards.” Management said resort occupancy could move from the mid-50s toward 60%, with a late-60s runway over the next few years, while Leela Luxury Residences Mumbai was planned to launch in Q4 FY27.

Management identified the high H2 comparison base, lower ADR at the Dubai joint-venture asset, the Coorg ramp-up and international inbound demand below pre-COVID levels as risks. It also said the BKC capital expenditure plan remained ₹800 cr, comprising ₹400 cr equity and ₹400 cr debt, but that the equity contribution would be reworked when the office demerger proposal goes to shareholders. Bhatnagar said, “If you look at our city hotels, our city hotel suite occupancy is almost running into mid-40s today. It is not only dependent on any one spike event or any one major event.”

How did Leela Palaces Hotels & Resorts shares react?

The stock initially traded with the result. From the price when the filing appeared, it was down 0.3% after five minutes, 4.1% after 15 minutes and 5.2% after 30 minutes. On the reaction day, it closed 1.7% below the previous close of ₹600.3.

By the next day’s close, the stock was down 1.9% from its pre-results close, and by the fifth session it was down 0.7%. The Hotels & Resorts industry median was up 0.1% on the reaction day, up 0.6% by the next day and down 1.5% by five days. The stock therefore underperformed the industry median by 1.9 percentage points on the reaction day and 2.5 percentage points by the next day, but was ahead by 0.8 percentage points over five days.

Earlier reaction-day moves were mixed: the stock rose 5.6% on 31 July 2026, fell 2.2% on 28 April 2026, fell 6.9% on 14 October 2025 and fell 1.9% on 22 July 2025.

How did other Hotels & Resorts companies do?

Twenty other Hotels & Resorts companies had filed for the quarter by 4 November 2026. Their median revenue growth was 11.9%, while 17 peers grew more slowly than Leela Palaces Hotels & Resorts and three grew faster. Among 19 peers for which profit was compared, 12 reported higher profit.