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Leela Palaces Hotels & Resorts
SectorConsumer Services
The Quarter story
The two most recent quarterly results, compared side-by-side.
Leela Palaces delivers strong seasonal profitability and improved cost efficiency, though rising leverage and cyclical demand swings require monitoring.
Consolidated EBITDA margin expanded from 42.5% in Q1 FY26 to 55.5% in Q4 FY26 — strong pricing power and cost control remain intact.
Consolidated net debt to EBITDA ratio climbed from 0.3x in Q1 FY26 to 1.6x in Q1 FY27 — increased leverage pressure requires monitoring.
Consolidated finance costs dropped from ₹860 Cr in Q1 FY26 to ₹393 Cr in Q1 FY27 — successful debt restructuring lowers interest burden.
Consolidated occupancy rose from 63.6% in Q1 FY26 to 71.8% in Q4 FY26 before easing to 67.5% in Q1 FY27 — seasonal booking patterns are normal.
Consolidated depreciation expenses grew from ₹264 Cr in Q1 FY26 to ₹327 Cr in Q1 FY27 — ongoing asset base expansion supports future capacity.
Consolidated RevPAR climbed from ₹11,963 in Q1 FY26 to ₹23,028 in Q4 FY26 then normalized to ₹13,982 in Q1 FY27 — seasonal rate adjustments are expected.
Consolidated other income fell from ₹265 Cr in Q1 FY26 to ₹85 Cr in Q1 FY27 — reduced ancillary earnings impact overall income.
Consolidated share of JV profit swung from ₹0.9 Cr in Q1 FY26 to -₹156 Cr in Q1 FY27 — volatile partner performance needs attention.
Company insights, generated from the most recent coverage.
Leela's entire 30% RevPAR gain was rate-led with occupancy flat at 69% and helped by the new Coorg resort — a 30% ADR step is far harder to repeat than IHCL's steady 14%, so annualising this growth rate is the key modelling error to avoid.
At 43x PE with a 40.45% one-year return versus IHCL's 4.61%, Leela is the market's preferred luxury expression — the stock has already priced much of the ADR story, leaving execution as the main risk.
The strategy trade-off is now quantified: Leela earns 45.6% EBITDA margin on ₹17,225 RevPAR versus IHCL's 31.1% on a blended book where Ginger runs at ₹2,900 — Leela buys margin and rate power, IHCL buys diversification and volume stability.
