Leela Hotels confident of topping ₹100 crore quarterly profit target in FY26

Leela Palaces, Hotels & Resorts is confident of surpassing its ₹100 crore quarterly profit target in the financial year ending March 2026, backed by strong growth in both occupancy and room rates.The company has reported four consecutive quarters of profit and expects the momentum to continue into the second half of the year, which typically contributes 60-65% of annual earnings.

The luxury hotel chain aims to achieve an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹2,000 crore by the financial year 2029-30 (FY30) through four levers — same-store performance, new properties, brand extensions, and international expansion. For fiscal year 2025-26 (FY26), the EBITDA growth is likely to be in the mid to high teens.

Whole-time Director and CEO Anuraag Bhatnagar said the company will expand its portfolio from 13 to 22 properties, increasing its key count from around 3,500 to over 5,000, as part of its next growth phase.It is also introducing new verticals such as members-only clubs and luxury residences to strengthen its presence in the premium hospitality segment.

Bhatnagar believes the investment in a beachfront property at Jumeirah is a great opportunity. “With 25% of the capital we are deploying, we are getting 25% equity.” The Jumeirah project, which covers 23 acres with over 500 keys, is expected to generate long-term cash flows through branded residence sales and management fees.Leela Palaces has a gross debt of about ₹1,400 crore and net debt of around ₹400 crore. The net debt to EBITDA ratio is 0.5 times and the interest cost has eased from 9.1% to 8.4%, while the average loan tenure has increased to about 15 years.

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Leela reported a 13% growth in revenue per available room (RevPAR) in the second quarter, with an EBITDA margin of 48.2%. “The company has had four quarters of positive PAT,” Bhatnagar said. He added that in the first half of the fiscal year 2025-26, the company achieved an EBITDA margin of 45.5%, up 555 basis points from a year earlier, with average daily rates (ADR) growing 10%.

Leela Palaces, Hotels & Resorts currently has a market capitalisation of ₹14,720.86 crore, with its shares gaining over 1% in the past year.

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