Leela Palaces Hotels & Resorts (THELEELA) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever Q1 revenue and EBITDA, with total revenue of ₹3,013 Mn, up 25% year-over-year, and EBITDA of ₹1,280 Mn, up 63% year-over-year, following a successful IPO in June 2025.

• PAT turned positive at ₹87 Mn, an improvement of ₹837 Mn year-over-year, driven by strong operating momentum and significant debt reduction.

• Operates 13 luxury hotels, with a contracted pipeline to reach 21 hotels and over 4,500 keys, and expanded footprint with new developments in Mumbai and Udaipur.

• Maintained industry-leading RevPAR premiums and high Net Promoter Scores, with RevPAR nearly three times the industry average.

• 50% of business comes from international markets, with significant headroom for further growth.

Financial highlights

• Q1 total income increased 25% year-over-year to INR 301 crore (₹3,013 Mn), with consolidated revenue from operations at ₹2,747.90 million.

• EBITDA grew 63% to INR 128 crore (₹1,280 Mn), with margin expanding 980 bps to 42.5%.

• Net profit of INR 8.7 crore (₹87.02 million), a turnaround from a loss of INR 75 crore (₹749.92 million) in Q1 FY25.

• Occupancy rose from 59.7% to nearly 64%, and ADR increased by 13%, driving a 20% RevPAR increase.

• F&B revenue grew 16%, now comprising 39% of total revenue, and HMA fees grew 20% year-over-year.

Outlook and guidance

• Confident in delivering double-digit EBITDA growth in FY26, targeting mid to high teens overall growth.

• Guidance to reach INR 2,000 crore (over ₹20,000 Mn) EBITDA by FY30, driven by same-store growth, new verticals, and pipeline expansion.

• Results for the quarter are not indicative of the full year's expected performance due to sector seasonality.