Leela Palaces shares rise after Q2 FY27 profit and revenue increase

Leela Palaces Hotels & Resorts shares jumped nearly 6% after the luxury hotel operator reported strong September quarter earnings. Investors will watch whether robust demand from leisure travel, weddings, and corporate bookings sustains growth in the second half of fiscal 2027.

The hotel chain said the increase in room rates was supported by strong demand across segments and suite occupancy rose by 700 basis points

Mumbai: Leela Palaces Hotels & Resorts Limited reported an operating revenue of ₹411.9 crore for the quarter ended September 30, 2026, marking a 33 per cent year-on-year increase. The company's profit for the period grew by 27 per cent to ₹94.6 crore.Leela Palaces Hotels & Resorts Reports PAT Of ₹48.76 Crore For June Quarter Financial PerformanceOperating EBITDA for the second quarter of FY27 increased by 36 per cent to ₹187.7 crore. The operating EBITDA margin stood at 46 per cent, an improvement of 118 basis points year-on-year.Revenue Per Available RoomRevenue per available room (RevPAR) saw a 30 per cent year-on-year increase, reaching ₹17,225. This growth was driven by a 30 per cent rise in average daily rate (ADR) to ₹25,046.Operational HighlightsRoom revenue grew by 39 per cent, while food and beverage revenue increased by 21 per cent. Hotel management agreement (HMA) fees were up by 76 per cent, reflecting an increase in managed properties. Non-room revenue contributed over 50 per cent of the total revenue in the first half of FY27.Leela Palaces Hotels & Resorts Q3 Profit Jumps To ₹148 Crore, Strong Luxury Demand Lifts Revenue Expansion PlansThe company's pipeline includes 1,038 keys across 10 properties. The Leela Jaisalmer and The Leela Luxury Residences, Mumbai, are in the pre-opening stage and are expected to commence operations in FY27.Debt PositionNet debt as of September 30, 2026, was ₹1,215 crore. The net debt to last twelve months (LTM) EBITDA ratio improved to 1.4x from 1.6x in March 2026 and 3.7x in March 2025, according to the company.Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.