By BullScreen Editorial Team 
Leela Palaces Hotels & Resorts Limited reported a record financial performance in its Q4 results 2026, with strong demand for luxury travel, improved pricing power, and significant debt reduction driving profitability.
The company’s full-year FY26 numbers highlight a sharp turnaround in earnings. Revenue from operations rose 17% year-on-year to ₹15,273 million, while adjusted operating EBITDA grew 19% to ₹7,429 million. Most notably, profit after tax jumped 746% to ₹4,030 million, compared to ₹477 million in FY25, reflecting strong operating leverage and lower financing costs.
A key driver behind the earnings surge was aggressive deleveraging. The company repaid around ₹23,000 million in borrowings using IPO proceeds, reducing finance costs by 56% to ₹2,034 million. This brought the net debt-to-EBITDA ratio down to 1.6x from 3.7x a year ago, strengthening its balance sheet.
Operational performance remained robust across core metrics. The company reported a Net Promoter Score (NPS) of 86, well above the industry benchmark of 74, and a Revenue Generation Index (RGI) of 150, indicating strong pricing power. Operating EBITDA margin stood at 49%, supported by a 60% EBITDA flow-through.
On the demand side, average daily rate (ADR) increased 13% to ₹25,375, while RevPAR rose 14% to ₹17,460. Occupancy remained stable at 69%. In Q4 results 2026, ADR peaked at ₹32,059, marking a 15% rise despite global geopolitical uncertainties.
The food and beverage segment also contributed to growth, with revenue increasing 15% year-on-year to ₹5,499 million. Non-resident consumption rose to 54% in city hotels, indicating stronger local engagement.
The company continued expanding its footprint, reaching 5,227 keys across 24 properties, including pipeline assets. It also acquired a 71-key luxury resort in Coorg for ₹5,600 million and plans to add over 1,000 keys through upcoming projects in Jaisalmer, Srinagar, and Mumbai.
With a strengthened balance sheet, rising luxury travel demand, and expansion pipeline, Leela Palaces appears well-positioned to sustain growth momentum beyond Q4 results 2026.
| Metric | FY26 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹15,273 Mn | ₹13,006 Mn | +17% |
| Adjusted Operating EBITDA | ₹7,429 Mn | ₹6,256 Mn | +19% |
| Profit After Tax (PAT) | ₹4,030 Mn | ₹477 Mn | +746% (8.5x) |
| Finance Costs | ₹2,034 Mn | ₹4,582 Mn | -56% |
| Metric | FY26 Performance | Insight |
|---|---|---|
| Net Promoter Score (NPS) | 86 | Industry-leading (vs 74 benchmark) |
| Revenue Generation Index (RGI) | 150 | Strong pricing power & market share |
| Operating EBITDA Margin | 49% | High profitability |
| EBITDA Flow-through | 60% | Strong operating leverage |
| Total Keys | 5,227 | Across 24 properties (incl. pipeline) |
| Owned vs Managed Mix | 50:50 | Balanced portfolio |
| Segment | Metric | FY26 | YoY Change |
|---|---|---|---|
| Rooms | RevPAR | ₹17,460 | +14% |
| Rooms | ADR | ₹25,375 | +13% |
| Rooms | Occupancy | 69% | +1 pp |
| Q4 Momentum | ADR (Q4 FY26) | ₹32,059 | +15% |
| F&B | Revenue | ₹5,499 Mn | +15% |
| F&B | Non-Resident Mix | 54% | Increased |
| Expansion | New Acquisition | Coorg (71 keys) | ₹5,600 Mn |
| Pipeline | Upcoming Hotels | 9 hotels | 1,000+ keys planned |
Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/893c9f3b-05cb-48da-aa84-b2e88885e14c.pdf