Leela Palaces Reports 21% Revenue Growth in Q3 FY26

Leela Palaces Hotels & Resorts Limited announced its financial results for the quarter ending December 31, 2025. The company reported a 21% increase in total operating revenue, amounting to ₹4,574 million. Operating EBITDA grew by 23% to ₹2,378 million, marking the fifth consecutive quarter of double-digit growth in both RevPAR and EBITDA. Profit after tax increased by ₹915 million to ₹1,479 million, showcasing the company’s strong financial performance.

In Q3 FY26, Leela Palaces achieved a 20% growth in RevPAR, reaching ₹21,551. The company’s EBITDA margins expanded by 61 basis points to 52%, driven by strong operating leverage and disciplined cost management. For the nine months ending December 31, 2025, operating revenue was ₹10,429 million, with operating EBITDA at ₹4,772 million. The company also reported a 162% increase in profit after tax to ₹2,313 million for the same period.

Leela Palaces expanded its operations by securing a management contract for an 80-key luxury hotel in Jaisalmer, scheduled to open by mid-FY27. Additionally, the company completed a strategic investment in a 23-acre luxury beachfront resort on Palm Jumeirah, Dubai. This investment involved a 25% equity stake, with a total equity investment of approximately $70 million. The Dubai project is expected to generate approximately ₹670 million in annual management fees upon stabilization.

The company’s expansion plans include increasing its portfolio to 23 properties over the next three years. This includes new developments in high-growth markets such as Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, and Jaisalmer. The Leela currently operates 14 properties with 4,090 keys across 12 cities in India.

Leela Palaces has renegotiated its term loans, reducing interest rates from 9.1% to 8.25%, thereby lowering borrowing costs. The company maintains a strong balance sheet with ample headroom for future growth while keeping a conservative leverage profile. The company reiterates its EBITDA target of ₹20,000 million by FY30, focusing on same-store growth, new verticals, owned hotel developments, and capital-light management contracts.

Leela Palaces Hotels & Resorts Limited is India’s largest institutionally owned and managed pure-play luxury hospitality brand. Backed by the Brookfield Group, the company operates 14 award-winning properties across India’s premier leisure and business destinations. Recognized globally for architectural excellence and bespoke services, Leela Palaces remains committed to delivering world-class luxury experiences.