Leela Palaces Hotels shares hit a lifetime high of ₹518 on Monday's trade following exceptional Q1 FY27 results, with the stock rallying 11% in just two trading sessions after reporting its quarterly earnings. According to Business Standard, the stock has gained 16% year-to-date compared to a 1% dip in the broader Nifty 500 index, trading at a 19% premium to its IPO price of ₹435. At current levels, the stock is up 34% from its 52-week low of ₹384.50 hit on December 9, 2025, demonstrating strong investor confidence in the company's growth trajectory. The positive market response was further supported by JM Financial and Choice Broking raising their target prices following the impressive quarterly performance.
Leela Palaces Hotels delivered exceptional Q1 FY27 results with consolidated net profit rising more than six-fold to ₹49 crore from ₹8.8 crore in the corresponding quarter of the previous year, as reported by Essential Business Intelligence. The company's revenue from operations increased 28% year-on-year to ₹352 crore from ₹275 crore, demonstrating robust operational performance across its hospitality portfolio. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 41.6% to ₹143 crore from ₹101 crore, while EBITDA margin expanded significantly to 40.6% from 36.7% in the corresponding quarter last year, indicating improved operational efficiency and strong cost management. According to JM Financial, revenue growth was driven by industry-leading 17% RevPAR YoY growth, with the brokerage noting that the growth was driven by a robust 10% YoY increase in the Average Daily Rate (ADR), coupled with a 400 bps expansion in occupancy, supported by continued strong performance across its resort portfolio.
The board of directors has approved a significant strategic move by investing up to ₹120 crore in wholly owned subsidiary Schloss Tadoba Private Ltd. in one or more tranches. As reported by Business Standard, the approval was granted at the board meeting held on 31 July 2026. The funds will be used to finance hotel projects and meet capital expenditure requirements, marking a substantial expansion of the company's hospitality footprint and supporting future growth initiatives. This strategic investment positions the company for continued expansion in the hospitality sector.
JM Financial raised its FY27 and FY28 EBITDA estimates by 8% and expects Leela to deliver a 19% EBITDA CAGR between FY26 and FY29, as reported by Moneycontrol. The brokerage maintained its 'BUY' rating with a target Mar'27 price of ₹610 (previous TP ₹605), valuing the company at 20x Mar'28 EBITDA. Choice Broking has also maintained an 'ADD' rating with a revised target price of ₹540 from ₹490, revising its EBITDA estimate for FY27E and FY28E upwards by 89 bps and 103 bps respectively. The brokerage expects the company to continue to outperform the industry with a RevPAR CAGR of 8.5% over FY26–FY29E and values the company at 18.0x EV/Adj. EBITDA on FY28E. The positive analyst outlook reflects confidence in the company's ability to capitalize on the strong demand for luxury hospitality and its strategic expansion plans.
JM Financial reported that RevPAR (revenue per available room) increased 17% year-on-year, driven by a 10% rise in average daily rates (ADR) and a 4% improvement in occupancy. City hotel RevPAR grew 14%, while resort RevPAR rose 24% during the quarter, as reported by Moneycontrol. The company is making steady progress across the development pipeline, comprising six owned hotels (including Bandra-Kurla Complex - BKC). Overall, the expansion pipeline remains strong with 10 assets (including three under management contract) to the portfolio. The company's owned hotel pipeline of 812 keys over the next four years is expected to support growth, with the domestic owned keys portfolio expected to grow 63% by FY31F. This robust pipeline positions the company well for sustained growth in the luxury hospitality segment.
