THELEELA - Leela Palaces Hotels
📢 Recent Corporate Announcements
Leela Palaces Hotels & Resorts Limited has issued a postal ballot notice to seek shareholder approval for the ratification and amendment of its 2024 Employee Stock Option Scheme. The proposed ESOP pool consists of 66,79,158 options, representing 2% of the company's total paid-up share capital of 33,39,57,878 shares. This ratification is a regulatory requirement to align the pre-listing scheme with SEBI's post-listing compliance standards. Shareholders can cast their votes electronically between March 18, 2026, and April 16, 2026.
- Total ESOP pool size fixed at 66,79,158 stock options, equivalent to 2% of the current paid-up shares.
- Scheme covers eligible employees of the company, its subsidiaries, holding, and associate companies.
- Ratification is required under SEBI (SBEB & SE) Regulations 2021 as the scheme was formulated prior to listing.
- Remote e-voting period is scheduled from March 18, 2026, to April 16, 2026, with a cut-off date of March 13, 2026.
- Each option granted under the scheme is exercisable into one equity share of face value Rs. 10 each.
Leela Palaces Hotels & Resorts Limited has announced its participation in the 2026 Jefferies Asia Forum. The event is scheduled for March 18, 2026, at 10:30 A.M. and will be held physically in Hong Kong. Company representatives will engage in one-to-one and group meetings with institutional investors to discuss the business landscape. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during these interactions.
- Participation in the 2026 Jefferies Asia Forum scheduled for March 18, 2026.
- Meetings to be held in physical mode in Hong Kong starting at 10:30 A.M.
- Interaction format includes both one-to-one and group sessions with investors.
- Company confirms compliance with SEBI regulations regarding non-disclosure of UPSI.
Leela Palaces Hotels & Resorts Limited has scheduled an interaction with institutional investors at the 'Kotak Institutional Equities – Chasing Growth 2026' event. The meeting is set for February 24, 2026, at 11:00 A.M. IST in Mumbai and will involve both one-to-one and group discussions. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during these sessions. This engagement highlights the company's ongoing efforts to maintain transparency and dialogue with the institutional investment community.
- Participation in Kotak Institutional Equities – Chasing Growth 2026 conference in Mumbai.
- Scheduled for February 24, 2026, starting at 11:00 A.M. IST.
- Meeting format includes both one-to-one and group interactions with institutional investors.
- Company confirms that no unpublished price sensitive information (UPSI) will be disclosed.
- Information is disclosed in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Leela Palaces Hotels & Resorts Limited has scheduled an investor meeting for February 12, 2026, at 12:00 P.M. IST. The company will be participating in the 'Axis Capital – Advantage India' conference held in Mumbai. The engagement will involve one-to-one and group meetings with institutional investors to discuss business outlooks. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during these sessions.
- Participation in the Axis Capital – Advantage India conference on February 12, 2026.
- Meetings scheduled to commence at 12:00 P.M. IST in a physical format in Mumbai.
- Interaction format includes both one-to-one and group meetings with institutional investors.
- The company confirmed that no unpublished price sensitive information will be disclosed.
Leela Palaces Hotels & Resorts Limited's wholly-owned subsidiary, Schloss HMA Private Limited, has received an income tax assessment order for the Assessment Year 2023-24. The order follows adjustments proposed by the Transfer Pricing Officer, which have been treated as disallowances in the final assessment. The company maintains that this development will not have a material impact on its financial or operational activities. The subsidiary is preparing to contest the order by filing an appeal before the Commissioner of Income-tax (Appeals).
- Assessment order received by subsidiary Schloss HMA Private Limited for AY 2023-24.
- Order issued under Section 143(3) and Section 144C(3) of the Income-tax Act, 1961.
- Communication received on February 5, 2026, following a prior intimation on September 30, 2025.
- Management confirms zero material impact on the company's financial or operational activities.
Leela Palaces Hotels & Resorts Limited has scheduled multiple interactions with institutional investors in Mumbai. The company will participate in the Nuvama India Conference 2026 on February 9 at 9:00 AM, followed by an Ambit India organized meet at 2:00 PM. Additional meetings are slated for February 10 starting at 9:30 AM. These sessions will include both one-to-one and group formats to discuss the company's business outlook without sharing unpublished price sensitive information.
- Scheduled to attend Nuvama India Conference 2026 on February 9, 2026, at 9:00 AM.
- Participation in Ambit India Investor Meet on February 9, 2026, at 2:00 PM.
- Further investor meetings scheduled for February 10, 2026, starting at 9:30 AM.
- Meetings will be conducted in physical mode in Mumbai through one-to-one and group sessions.
Leela Palaces reported a stellar Q3 FY26 with operating EBITDA rising 23% YoY to Rs 238 crores, achieving an industry-leading margin of 52%. Revenue grew 21% to Rs 457 crores, fueled by a 20% RevPAR growth and a significant 29% increase in F&B revenue. The company successfully reduced its interest costs from 9.1% to 8.25% and reported a sharp jump in PAT to Rs 148 crores. Management has raised its FY26 guidance and reaffirmed a long-term EBITDA target of Rs 2,000 crores by FY30.
- RevPAR increased 20% YoY driven by a strong 17% uplift in Average Daily Rates (ADR).
- Operating EBITDA margins expanded to 52%, marking the fifth consecutive quarter of double-digit growth.
- Net Profit (PAT) surged to Rs 148 crores from Rs 56 crores in Q3 FY25 due to EBITDA expansion and lower finance costs.
- Portfolio expansion continues with the closure of the Dubai transaction and a new 80-key luxury hotel signing in Jaisalmer.
- Interest rates on term loans were renegotiated down to 8.25% from 9.1%, enhancing future profitability.
Leela Palaces Hotels & Resorts Limited has officially released the audio recording of its Q3 FY26 earnings conference call held on January 16, 2026. This disclosure follows SEBI's Regulation 30 requirements for transparency in institutional interactions. The recording allows investors to hear management's detailed commentary on the company's performance during the October-December 2025 period. Access is provided through a direct link on the company's website.
- Audio recording of Q3 FY26 earnings call held on January 16, 2026, is now public.
- Disclosure made pursuant to Regulation 30 of SEBI LODR Regulations.
- Recording link is hosted on the official website www.theleela.com.
Leela Palaces Hotels & Resorts Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate, issued by the company's Registrar and Share Transfer Agent, KFIN Technologies Limited, confirms that no dematerialization or rematerialization requests were processed during this period. This is a standard administrative filing required by SEBI to ensure the integrity of the depository system. The announcement reflects the company's adherence to routine regulatory reporting timelines.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar KFIN Technologies Limited confirmed zero Demat or Remat requests were processed.
- Filing adheres to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- The document confirms the company's ongoing compliance with stock exchange listing requirements.
The Leela reported its best-ever quarterly performance in Q3 FY26, with operating revenue rising 21% YoY to ₹4,574 million and PAT jumping 162% to ₹1,479 million. The company achieved a high EBITDA margin of 52%, driven by strong pricing power as Average Daily Rates (ADR) reached ₹30,337. Key strategic moves include an international expansion into Dubai and a new management contract in Jaisalmer, supporting a long-term EBITDA target of ₹20,000 million by FY30. Additionally, the company reduced its borrowing costs by renegotiating interest rates down to 8.25%.
- Operating revenue grew 21% YoY to ₹4,574 million, while Operating EBITDA rose 23% to ₹2,378 million.
- Profit After Tax (PAT) surged by 162% YoY to ₹1,479 million, marking the best quarterly performance.
- RevPAR increased by 20% to ₹21,551, outperforming the Indian luxury segment by 2.3x.
- Strategic $70 million investment for a 25% stake in a Dubai Palm Jumeirah resort, marking the first international foray.
- Reduced interest rates on term loans from 9.1% to 8.25%, enhancing financial flexibility.
Leela Palaces Hotels & Resorts reported a stellar Q3 FY26 with PAT surging 162% YoY to ₹1,479 Mn and operating revenue rising 21% to ₹4,574 Mn. The company achieved a best-in-class EBITDA margin of 52%, supported by a 20% RevPAR growth which significantly outperformed the broader luxury segment. Strategic expansion continues with the signing of The Leela Jaisalmer and the closure of the Dubai acquisition, contributing to a pipeline of over 1,000 keys. Management has reiterated a long-term goal of reaching ₹20,000 Mn EBITDA by FY30.
- Net Profit (PAT) grew 162% YoY to ₹1,479 Mn in Q3 FY26, marking five consecutive quarters of positive PAT.
- RevPAR increased 20% YoY to ₹21,551, driven by a 17% rise in Average Daily Rate (ADR) to ₹30,337.
- Operating EBITDA margin expanded by 61 bps YoY to 52%, reflecting strong operational efficiency.
- Expansion pipeline stands at 9 hotels (1,008 keys), including new signings in Dubai, Mumbai BKC, and Jaisalmer.
- The company is targeting a stabilized EBITDA of ₹20,000 Mn by FY30 through asset enhancement and new property launches.
Leela Palaces Hotels & Resorts reported a robust Q3 FY26 with standalone revenue rising 25% YoY to ₹1,239.93 million. Net profit witnessed a massive jump to ₹768.11 million from ₹101.17 million in the year-ago period, largely due to a significant reduction in interest burden. Finance costs fell to ₹102.11 million from ₹546.62 million after the company utilized ₹23,000 million of IPO proceeds to repay debt. The company also accounted for a one-time exceptional charge of ₹16.40 million for new Labour Code compliance.
- Standalone Net Profit surged to ₹768.11 million in Q3 FY26 vs ₹101.17 million in Q3 FY25.
- Revenue from operations increased 25% YoY to ₹1,239.93 million from ₹991.64 million.
- Finance costs plummeted 81% YoY to ₹102.11 million following ₹23,000 million debt repayment from IPO proceeds.
- 9M FY26 Net Profit stands at ₹1,845.37 million compared to a loss of ₹118.06 million in 9M FY25.
- EBITDA grew to ₹1,065.17 million in Q3 FY26 from ₹818.26 million in the same quarter last year.
Leela Palaces Hotels & Resorts Limited has received four appellate orders from the Joint Commissioner of Commercial Taxes (Appeals-5), Bengaluru, regarding Input Tax Credit (ITC) disputes. The appeals, which addressed allegations of ineligible or blocked ITC, were "partly allowed" by the authority on January 12, 2026. The company stated that these orders do not have any material impact on its financial position, operations, or business activities. Management is currently evaluating further legal options and appellate remedies for the remaining issues.
- Four appellate orders received from Bengaluru tax authorities on January 12, 2026.
- The tax dispute centered on the alleged availment of ineligible or blocked Input Tax Credit.
- The appeals were "partly allowed," indicating some relief for the company.
- Company confirms no material impact on financials or operations from these specific orders.
- Management is evaluating further appellate remedies to contest the remaining disputed portions.
Leela Palaces Hotels & Resorts Limited has scheduled its Q3 FY26 earnings conference call for January 16, 2026, at 5:00 PM IST. The call will be led by the CEO, Anuraag Bhatnagar, and the CFO, Ravi Shankar, to discuss the company's financial performance for the quarter ended December 2025. This interaction provides a platform for institutional investors and analysts to gain insights into the company's operational trends during the peak hospitality season. Dial-in details for domestic and international participants from the USA, UK, Singapore, and Hong Kong have been provided.
- Earnings conference call for Q3 FY26 scheduled for January 16, 2026, at 17:00 IST.
- Management representation includes Whole-time Director & CEO Anuraag Bhatnagar and CFO Ravi Shankar.
- Primary domestic dial-in numbers are +91 22 6280 1107 and +91 22 7115 8008.
- International toll-free access provided for USA (1866 746 2133), UK (0808 101 1573), Singapore, and Hong Kong.
- The call follows the disclosure requirements under Regulation 30 of SEBI LODR Regulations.
Schloss Chanakya Private Limited (SCPL), a material subsidiary of Leela Palaces Hotels & Resorts Limited, has received a favourable order from the Income Tax Department regarding transfer pricing. The order, pertaining to Assessment Year 2023-24 (FY 2022-23), confirms that international transactions were conducted at arm's length. As a result, no transfer pricing adjustments or penalties have been proposed. This clearance removes potential tax-related financial risks for the subsidiary for the specified period.
- Favourable order received under Section 92CA(3) of the Income-tax Act, 1961 for AY 2023-24.
- Transfer Pricing Officer concluded no adverse inference is required for international transactions of SCPL.
- Zero transfer pricing adjustments proposed, ensuring no adverse financial impact on the company.
- The order validates the arm's length pricing for transactions conducted during FY 2022-23.
Financial Performance
Revenue Growth by Segment
Total revenue grew 18% YoY to INR 634.8 Cr in H1 FY26. Room revenue increased 15% to INR 278.2 Cr, Food & Beverage (F&B) revenue grew 11% to INR 226.9 Cr, and Hotel Management Agreement (HMA) fees rose 14% to INR 30.5 Cr.
Geographic Revenue Split
Revenue is split between City Hotels and Resorts; City Hotels saw 14.5% RevPAR growth in H1 FY26, while Resorts experienced a 22.5% RevPAR increase. Bengaluru is identified as a key market.
Profitability Margins
The company achieved a significant turnaround with H1 FY26 Profit After Tax (PAT) of INR 83.4 Cr compared to a loss of INR 126.2 Cr in H1 FY25. Operating margins expanded due to a 77% incremental revenue flow-through to EBITDA.
EBITDA Margin
Reported EBITDA margin stood at 45.5% for H1 FY26, a 555 bps expansion from 39.9% in H1 FY25. Q2 FY26 EBITDA margin reached 48.2%, up 246 bps YoY.
Capital Expenditure
Planned CAPEX includes INR 800 Cr for the BKC Mumbai hotel project over the next 4 years. The company is also investing $49 million (approx. INR 410 Cr) for a 25% equity stake in a Dubai Palm Jumeirah asset.
Credit Rating & Borrowing
The company holds a 'AA Stable' credit rating. Average cost of debt was reduced from 9.1% to 8.4% following refinancing, with loan tenures extended from 8 to 15 years.
Operational Drivers
Raw Materials
Primary operational costs include Food and Beverages consumed, which are part of the INR 346.1 Cr operating expenses in H1 FY26 (7% increase YoY).
Capacity Expansion
Current portfolio is being expanded with the BKC Mumbai project (250+ keys) and the acquisition of a luxury asset in Dubai. HMA expansions include Sikkim and Mumbai.
Raw Material Costs
Operating expenses (including F&B and employee benefits) represented 54.5% of total revenue in H1 FY26, increasing 7% YoY to INR 346.1 Cr.
Manufacturing Efficiency
Occupancy improved to 69% in Q2 FY26 (up 4 percentage points). The company achieved a high Net Promoter Score (NPS) of 86, driving pricing premiums.
Logistics & Distribution
Distribution is optimized through direct channels; the retail segment grew 23% YoY in Q2 FY26 specifically through brand.com and direct sales.
Strategic Growth
Expected Growth Rate
15-19%
Growth Strategy
Growth will be driven by a mix of same-store RevPAR increases (targeting 3x market growth), asset-light HMA expansions in Sikkim and Mumbai, and strategic co-investments in high-yield markets like BKC Mumbai (16% expected yield) and Dubai (expected INR 55-65 Cr annual HMA fees).
Products & Services
Luxury hotel room stays, premium Food & Beverage (F&B) services, banqueting and event hosting, and third-party hotel management services (HMA).
Brand Portfolio
The Leela, Leela Palaces Hotels & Resorts.
New Products/Services
New managed properties in Sikkim and Mumbai, and the upcoming BKC Mumbai hotel are expected to contribute significantly to future EBITDA, with BKC alone targeting INR 150 Cr stabilized EBITDA.
Market Expansion
Expansion into Dubai's Palm Jumeirah to capture international feeder markets and entry into the Mumbai BKC financial hub.
Market Share & Ranking
The company achieved a 13 percentage point increase in market share over the India luxury hospitality segment in H1 FY26.
Strategic Alliances
Joint venture with Brookfield Properties for the BKC Mumbai development and partnership with Middle Eastern families for the Dubai asset.
External Factors
Industry Trends
The luxury hospitality industry is seeing robust demand; Leela is positioning itself to capture this through premiumization and increasing its direct-to-consumer (Retail) mix to 58%.
Competitive Landscape
Competes with other luxury hotel chains; currently outperforming the India Luxury Segment benchmark in RevPAR growth.
Competitive Moat
Moat is sustained by the 'The Leela' brand prestige, an NPS of 86, prime real estate locations with high entry barriers, and the financial backing of Brookfield (75.91% stake).
Macro Economic Sensitivity
Highly sensitive to luxury travel trends and domestic economic activity; RevPAR growth is currently 3x the industry benchmark due to strong macro-tailwinds.
Consumer Behavior
Shift toward direct bookings and high-yield retail segments, which grew 23% in Q2 FY26.
Geopolitical Risks
Expansion into Dubai introduces exposure to Middle Eastern geopolitical stability and international travel regulations.
Regulatory & Governance
Industry Regulations
Operations are subject to standard hospitality regulations, including land lease agreements with authorities like MMRDA for the BKC project.
Environmental Compliance
The company is committed to building an environmentally responsible organization, though specific compliance costs are not quantified.
Taxation Policy Impact
Effective tax expense for H1 FY26 was INR 25.5 Cr on a Profit Before Tax of INR 108.9 Cr.
Risk Analysis
Key Uncertainties
Execution risk of the INR 800 Cr BKC project and the $503M Dubai acquisition. Susceptibility to hospitality industry cyclicality.
Geographic Concentration Risk
Significant revenue concentration in major Indian metros, particularly Bengaluru and Mumbai.
Third Party Dependencies
Heavy reliance on sponsor Brookfield for capital infusion, strategic guidance, and co-investment in large-scale developments.
Technology Obsolescence Risk
The company is mitigating digital risks by enhancing its 'brand.com' platform to drive direct sales.
Credit & Counterparty Risk
Low credit risk indicated by a robust cash balance of INR 1,059.6 Cr and a Net Debt to EBITDA ratio of 0.5x.