Leela Palaces Hotels & Resorts Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Leela Palaces Hotels & Resorts Ltd filed with BSE on 06 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Leela Palaces Hotels & Resorts reported Q4 FY26 operating revenue of Rs 484 crore, up 12% year-on-year, with operating EBITDA of Rs 266 crore, up 13%, and a 55% EBITDA margin. For the full year FY26, operating revenue rose 15% to Rs 1,527 crore and operating EBITDA grew 19% to Rs 743 crore, with profit after tax at Rs 403 crore compared to Rs 48 crore in FY25. Management attributed the quarter's occupancy decline to disruption in international travel linked to the Middle East conflict, while noting ADR grew 15% year-on-year and domestic demand remained resilient.
Numbers mentioned
Operating revenue: INR 484 crores (Q4 FY26)
p. 6
“operating revenue increased 12% Y-o-Y to INR 484 crores”
Ravi Shankar, page 6 of the filed PDF · View the filing
Operating EBITDA: INR 266 crores (Q4 FY26)
p. 6
“the operating EBITDA rose 13% Y-o-Y to INR 266 crores, delivering a best-in-class EBITDA margin of 55% and expansion of 57 basis points”
Ravi Shankar, page 6 of the filed PDF · View the filing
PAT: INR 172 crores (Q4 FY26)
p. 6
“PAT increased from INR 117 crores in quarter four FY25 to INR 172 crores”
Ravi Shankar, page 6 of the filed PDF · View the filing
Operating revenue: INR 1,527 crores (FY26)
p. 6
“This drove operating revenue up 15% Y-o-Y to INR 1,527 crores”
Ravi Shankar, page 6 of the filed PDF · View the filing
Operating EBITDA: INR 743 crores (FY26)
p. 7
“Operating EBITDA rose 19% Y-o-Y to INR 743 crores, with margin expanding by 167 bps to 49%, again best-in-class”
Ravi Shankar, page 7 of the filed PDF · View the filing
PAT: INR 403 crores (FY26)
p. 4
“This operating momentum culminated in a record profit after tax of INR 403 crores in FY26, representing a decisive turnaround from a PAT of INR 48 crores in FY25”
Anuraag Bhatnagar, page 4 of the filed PDF · View the filing
ADR growth: 15% (Q4 FY26)
p. 3
“a 15% year-on-year increase in ADR, reflecting The”
Anuraag Bhatnagar, page 3 of the filed PDF · View the filing
Same-store RevPAR growth: 14% (FY26)
p. 4
“in FY26, our same-store RevPAR increased 14%, supported by double-digit growth across all five owned palaces, and an overall 13% increase in ADR”
Anuraag Bhatnagar, page 4 of the filed PDF · View the filing
Net debt to EBITDA: 1.6x (FY26)
p. 5
“Our net debt reduced by 50%, with net debt to EBITDA now at a conservative 1.6x in FY26”
Anuraag Bhatnagar, page 5 of the filed PDF · View the filing
F&B revenue growth: 15% (FY26)
p. 5
“F&B revenues grew 15% year-on-year, driven by strong performance across both restaurants and banqueting”
Anuraag Bhatnagar, page 5 of the filed PDF · View the filing
Management fees: INR 95 crores (FY26)
p. 9
“the management fees for the full year we have done approx management fees of INR 95 crores we have done”
Ravi Shankar, page 9 of the filed PDF · View the filing
Q4 occupancy: 72% (Q4 FY26)
p. 12
“we did an occupancy growth at quarter four, FY26 we were 72%, last year we did 78%, that was 6%, that was mainly because of the war impact”
Ravi Shankar, page 12 of the filed PDF · View the filing
ADR: INR 32,000 (Q4 FY26)
p. 12
“if you look at the ADR, ADR grew by almost 15% from a INR 27,000 we went to INR 32,000”
Ravi Shankar, page 12 of the filed PDF · View the filing
Non-resident covers growth: 12% (FY26)
p. 10
“our non-resident covers have increased by almost 9% to 10% for the quarter, and for the full year they have almost grown by 12%”
Ravi Shankar, page 10 of the filed PDF · View the filing
Portfolio size: over 5,200 luxury keys across 24 properties
p. 7
“takes our portfolio to over 5,200 luxury keys across 24 properties, spanning 15 operational hotels and nine in the pipeline”
Ravi Shankar, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Q1 FY27 revenue and EBITDA growth — double-digit growth · Q1 FY27
stated firmly by Ravi Shankar
p. 8
“May and June will be very exceptional good performance months for us and for the quarter we will do a double-digit growth in revenues and EBITDA”
Ravi Shankar, page 8 of the filed PDF · View the filing
April RevPAR growth — high single digit or early double-digit growth · April FY27
stated conditionally by Anuraag Bhatnagar
p. 8
“we definitely expect maybe a high single digit or early double-digit growth in the month of April”
Anuraag Bhatnagar, page 8 of the filed PDF · View the filing
Management fees growth — double-digit growth · FY27
stated firmly by Ravi Shankar
p. 9
“So that will have a double-digit growth in our management fees as well moving forward”
Ravi Shankar, page 9 of the filed PDF · View the filing
FY27 occupancy — early 70s overall, mid-70s city, mid-60s to late 60s resorts · FY27
stated firmly by Ravi Shankar
p. 12
“occupancy for FY27 will be in early 70s for sure. The city hotel will do in mid-70s and resorts will be doing in mid-60s to late 60s”
Ravi Shankar, page 12 of the filed PDF · View the filing
Coorg first-year revenue — INR 65 crores to INR 70 crores · FY27
stated firmly by Ravi Shankar
p. 12
“We'll do somewhere around INR 65 crores to INR 70 crores will be the first year of revenue, and very healthy EBITDA margins we'll do”
Ravi Shankar, page 12 of the filed PDF · View the filing
Coorg stabilized revenue — INR 165 crores including 19 villas · Year four
stated firmly by Ravi Shankar
p. 11
“So, the INR 165 crores of revenue numbers includes the 19 villas that we had planned for Phase 1. This number will be achieved in the year four”
Ravi Shankar, page 11 of the filed PDF · View the filing
Coorg villa capex — INR 38 crores
stated firmly by Ravi Shankar
p. 11
“The capex that we have planned for those additional villas are around INR 38 crores that we would spend to make those 19 villas”
Ravi Shankar, page 11 of the filed PDF · View the filing
Net debt to EBITDA — similar levels of 1.6x, moving to 1.4x and closer to one · FY27 and beyond
stated conditionally by Ravi Shankar
p. 17
“our net debt to EBITDA will remain in the similar levels of 1.6x, and moving forward it will come down to lower to 1.4, and then come to closer to one”
Ravi Shankar, page 17 of the filed PDF · View the filing
Depreciation — approximately INR 100 crores · next two to three years
stated conditionally by Ravi Shankar
p. 16
“depreciation will almost INR100 crores will remain in the same line in the next two, three years”
Ravi Shankar, page 16 of the filed PDF · View the filing
Dubai property rebranding — launch under The Leela brand · 2028
stated firmly by Anuraag Bhatnagar
p. 11
“our plan is to start a refurbishment work; this was our original plan as well, by the end of this calendar year, which we would then accelerate and reopen and launch the property in 2028 under The Leela brand”
Anuraag Bhatnagar, page 11 of the filed PDF · View the filing
ARQ club membership — 2,000 members
stated as an aspiration by Anuraag Bhatnagar
p. 15
“We are looking at an overall stabilized number of 2,000 members, because at that number we feel is the right fit where we can serve them, take care of them”
Anuraag Bhatnagar, page 15 of the filed PDF · View the filing
Payroll cost as percentage of revenue
stated conditionally by Ravi Shankar
p. 17
“It should, it should.”
Ravi Shankar, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said domestic business was unaffected while international business from key markets was hit, and April occupancy recovered to prior year levels.
Answered by Anuraag Bhatnagar
Asked by Binay Singh: What are the trends in March occupancy and how are April/May trending given the war impact?
p. 8
“we have strengthened our domestic customer base, which has allowed our occupancy in April to recover, to answer your question, to similar levels as last year, and healthy RevPAR growth versus same time last year”
Anuraag Bhatnagar, page 8 of the filed PDF · View the filing
Management gave the full year management fee figure and said it expects double-digit growth next year.
Answered by Ravi Shankar
Asked by Binay Singh: Can you share the management fees number for the quarter and year?
p. 9
“the management fees for the full year we have done approx management fees of INR 95 crores we have done”
Ravi Shankar, page 9 of the filed PDF · View the filing
Management said cancelled events were given credit notes and deferred, with expectation of recovery in coming quarters.
Answered by Anuraag Bhatnagar
Asked by Karan: Have there been meaningful MICE cancellations due to geopolitical tension and are they deferred or lost?
p. 9
“We have given them credit notes and deferred them between the next six to nine months, so we expect many of them, a very high percentage of them coming back to us in the next few quarters”
Anuraag Bhatnagar, page 9 of the filed PDF · View the filing
Management described early positive guest feedback, ongoing rebranding, and plans to relaunch as The Leela Forest Sanctuary.
Answered by Anuraag Bhatnagar
Asked by Karan: What is the status of the Coorg acquisition and stabilized revenue assumptions?
p. 9
“The initial response and the guest feedback has been very, very encouraging, although it's not yet been rebranded”
Anuraag Bhatnagar, page 9 of the filed PDF · View the filing
Management said the shift was due to construction timing rather than delay, and there is no cost escalation.
Answered by Ravi Shankar
Asked by Karan: Is there a delay in Ayodhya, Agra, and Ranthambore projects moving to CY28, and what about cost inflation?
p. 10
“The capex numbers for these hotels remains the same, there is no escalation in the cost, Karan”
Ravi Shankar, page 10 of the filed PDF · View the filing
Management attributed the gap to F&B and management fee growth outpacing room revenue.
Answered by Ravi Shankar
Asked by Dipak Saha: What is driving faster revenue growth versus RevPAR growth this quarter?
p. 10
“F&B also contributes 40% of the hotel revenue. If you see our F&B, banquet grew by more than 10%, F&B is close to a double-digit growth”
Ravi Shankar, page 10 of the filed PDF · View the filing
Management confirmed no change in plans, said the physical asset was unaffected, and reiterated the 2028 rebranding timeline.
Answered by Anuraag Bhatnagar
Asked by Dipak Saha: What is the status of the Dubai property takeover and rebranding plans?
p. 11
“No change in our plans. Firstly, I'd like to just remind everyone that everyone is safe on the ground and our physical asset has not been impacted at all”
Anuraag Bhatnagar, page 11 of the filed PDF · View the filing
Management said the INR165-175 crore figure includes the 19 villas and would be reached in year four, with about INR 38 crore of capex for the villas.
Answered by Ravi Shankar
Asked by Girish Choudhary: When will Coorg's stabilized revenue target be achieved and what capex is planned for the 19 villas?
p. 11
“This number will be achieved in the year four when those 19 villas will also come into play”
Ravi Shankar, page 11 of the filed PDF · View the filing
Management declined to give exact splits on the call, offering directional growth rates instead.
Answered by Ravi Shankar
Asked by Akash: What was the exact room, F&B and HMA revenue split for Q4 FY26?
p. 12
“rooms grew by, you know, for the quarter four by almost 6%, F&B grew by almost double-digit numbers, and HMA other income also grew by double-digit numbers”
Ravi Shankar, page 12 of the filed PDF · View the filing
Management explained the occupancy drop was concentrated in city hotels with more international exposure while resorts were insulated.
Answered by Anuraag Bhatnagar
Asked by Abhay Khaitan: Can you break down the 6% RevPAR growth between city and resort hotels?
p. 13
“the occupancy has dropped in our city hotels, which had a larger share of international business”
Anuraag Bhatnagar, page 13 of the filed PDF · View the filing
Management said they do not currently see any such possibility and are monitoring the situation.
Answered by Anuraag Bhatnagar
Asked by Vaibhav Mule: Is there a possibility of write-offs on the Dubai investment given uncertain conditions?
p. 14
“We are evaluating the situation, but we don't see any such possibility”
Anuraag Bhatnagar, page 14 of the filed PDF · View the filing
Management confirmed some weddings shifted to their properties and expects further inbound queries for coming months.
Answered by Ravi Shankar
Asked by Vaibhav Mule: Did weddings shift from the Middle East to domestic markets in March, and is more traction expected?
p. 14
“there were some of the weddings that were booked in the Middle East, we were able to take three of such weddings in our hotels in the month of March”
Ravi Shankar, page 14 of the filed PDF · View the filing
Management said there would be no material cost impact and the plan remains unchanged.
Answered by Ravi Shankar
Asked by Karan Kamdar: Will Dubai disruption cause cost overruns?
p. 15
“It will not be a huge any cost impact for us”
Ravi Shankar, page 15 of the filed PDF · View the filing
Management described an initiation fee plus annual run-rate fee model, with a long-term target of 2,000 members across clubs.
Answered by Anuraag Bhatnagar
Asked by Karan Kamdar: What are the ARQ club revenue model and membership targets?
p. 15
“the current initiation fee is INR45 lakh plus GST”
Anuraag Bhatnagar, page 15 of the filed PDF · View the filing
Management attributed part of the rise to an accrual for the new labour code and hiring ahead of new value drivers, and said underlying payroll growth was modest.
Answered by Ravi Shankar
Asked by Achal Kumar: Why have costs like employee cost risen as a percentage of revenue in Q4?
p. 17
“there has been impact of accrual for the new labour code where we have taken a impact on the both the leave encashment and gratuity, that has been a exceptional item in the payroll cost”
Ravi Shankar, page 17 of the filed PDF · View the filing
Management expects leverage to remain around 1.6x before declining as new assets generate EBITDA.
Answered by Ravi Shankar
Asked by Achal Kumar: How does management see net debt to EBITDA trending in FY27 given capex plans?
p. 17
“our debt will increase for the capex that we'll do for the pipeline asset, but since our EBITDA will increase, our net debt to EBITDA will remain in the similar levels of 1.6x”
Ravi Shankar, page 17 of the filed PDF · View the filing
Risks flagged
Middle East conflict disrupted international inbound and outbound travel, affecting occupancy
p. 7
“The West Asia war has had an impact on travel as we all know, both inbound and outbound”
Anuraag Bhatnagar, page 7 of the filed PDF · View the filing
MICE event cancellations in March due to geopolitical tensions
p. 9
“We, obviously, had cancellations in MICE Events that were booked across the portfolio in the month of March, because of all the geopolitical tensions”
Anuraag Bhatnagar, page 9 of the filed PDF · View the filing
Uncertainty around Dubai real estate market and residential sales recovery timeline
p. 11
“It's very hard to predict how these events will pan out in the future and what the recovery will look like”
Anuraag Bhatnagar, page 11 of the filed PDF · View the filing
Rising sales commission costs due to OTA gross billing changes
p. 16
“Expedia and Agoda started charging on a gross basis rather than net basis”
Ravi Shankar, page 16 of the filed PDF · View the filing
Labour code accrual creating exceptional payroll cost impact
p. 17
“there has been impact of accrual for the new labour code where we have taken a impact on the both the leave encashment and gratuity”
Ravi Shankar, page 17 of the filed PDF · View the filing
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