Leela Palaces Hotels & Resorts Limited reported its highest-ever annual profit after tax of ₹403 crore for the financial year ended March 31, 2026, an 8.5-fold jump from ₹47.7 crore in FY25. Despite the record earnings, the stock fell 3.09 per cent to ₹413.70 on Tuesday, against a backdrop of heavier sell-side pressure, with 63.62 per cent of traded quantity on the sell side.
The company, India’s only listed pure-play luxury hospitality firm, reported full-year operating revenue of ₹1,527.3 crore, up 15 per cent year-on-year. Operating EBITDA rose 19 per cent to ₹742.9 crore, with margins expanding 167 basis points to 49 per cent. The sharp jump in net profit was driven by both operating leverage and a 56 per cent reduction in finance costs to ₹203.4 crore, following repayment of approximately ₹2,300 crore in borrowings using IPO proceeds raised in June 2025. Net debt-to-EBITDA improved from 3.7x to 1.6x.
For the fourth quarter of FY26, revenue grew 12 per cent to ₹484.4 crore while PAT rose 46 per cent to ₹171.7 crore. However, occupancy at the company’s five owned palace hotels dipped six percentage points to 72 per cent, which management attributed to geopolitical disruptions. Average Daily Rate for Q4 rose 15 per cent to ₹32,059, supporting a 6 per cent increase in RevPAR to ₹23,028.
For the full year, same-store RevPAR grew 14 per cent to ₹17,460, outpacing the India luxury segment’s 6 per cent growth by a factor of approximately 2.3 times. Food and beverage revenue grew 15 per cent to ₹549.9 crore, aided by seven new outlet launches and upgrades.
On the expansion front, the company added four hotels in FY26, including properties in Mumbai BKC, Dubai’s Palm Jumeirah, Jaisalmer, and Coorg, growing its key count by 23 per cent. Its pipeline stands at nine hotels totalling 1,065 keys, with openings planned through 2030.
The stock, listed in June 2025 at a face value of ₹10, trades at a trailing P/E of 60.38 with a market capitalisation of ₹13,814 crore.