Leela Palaces Hotels & Resorts (THELEELA) investor relations material

Executive summary

• FY 2026 marked a transformational year with record profitability, including PAT exceeding ₹4,030.33 million, an 8.5x increase year-over-year, and industry-leading operational performance despite external volatility.

• Achieved highest ever annual key expansions, with a 23% increase in keys, four new hotels including Dubai entry, and acquisition of a 71-key ultra-luxury resort in Coorg.

• Maintained a net promoter score of 86, 12 points above the Asia-Pacific luxury industry average, and received multiple industry awards, including 'Best Hotel Group of the Year.'

• Audited standalone and consolidated financial results for FY26 were approved with unmodified opinions from auditors.

Financial highlights

• FY 2026 consolidated revenue from operations rose 17% YoY to ₹15,272.90 million; operating EBITDA up 19% YoY to ₹7,429 million, with margin improvement to 49%.

• PAT for FY 2026 reached ₹4,030.33 million, up from ₹476.58 million in FY25, supported by EBITDA growth and a 56% reduction in finance costs.

• Net debt reduced by 50%, with net debt to EBITDA at 1.6x, following IPO proceeds used for debt repayment.

• F&B revenues grew 15% YoY, now constituting 40% of hotel revenue, with non-resident covers up 12% YoY.

• Exceptional items included regulatory-driven changes in employee compensation impacting results.

Outlook and guidance

• Expect double-digit revenue and EBITDA growth for the upcoming quarter, with May and June projected as exceptional months.

• FY 2027 occupancy forecasted in early 70% range, with city hotels in mid-70% and resorts in mid-to-late 60%.

• Pipeline of 9 hotels (1,065 keys) under development, targeting 2x keys and 10x EBITDA over FY20–FY30.

• Management fees expected to grow at double digits as managed hotels ramp up.

• The company notes the seasonality of the hospitality sector, indicating quarterly results are not indicative of full-year performance.