Inventory in focus after firm studies 758% QoQ internet revenue development

Synopsis:
Hospitality inventory is below the highlight at the moment after the corporate introduced its Q2 outcomes, drawing investor consideration to its newest monetary efficiency and enterprise outlook.

A small-cap firm that could be a luxurious hospitality firm working in India, is within the highlight at the moment after posting Q2FY26 outcomes. Learn the article beneath for detailed insights into its monetary and operational efficiency.

With a market capitalization of Rs. 14,493.77 crore, the shares of Leela Palaces Accommodations & Resorts Restricted had been closed at Rs. 434 on Tuesday, down by 6.75 % from its earlier closing value of Rs. 465.40. The inventory has reached an intraday low of Rs. 427.45 in at the moment’s buying and selling session, implying a low of 8.15 % from its earlier day’s shut value. 

Q2FY26 Outcomes

Leela Palaces Accommodations & Resorts Ltd reported Rs. 310.65 crore in income for the second quarter of FY26, a 12.09 % enhance over the Rs. 277.15 crore for a similar interval in FY25. It elevated by 13.05 % as in comparison with Rs. 274.79 crore in Q1 FY26.

The consolidated internet revenue for the second quarter of FY26 was Rs. 74.72 crore, which was 758.85 % greater than the Rs. 8.7 crore reported within the earlier quarter and turnaround from lack of Rs. 51.17 crore in Q2 FY25. Revenue development was additionally mirrored in earnings per share (EPS), which elevated to roughly Rs. 2.35 in Q2 FY26 from Rs. 0.30 in Q1 FY26. 

Operational Efficiency

The Leela delivered robust operational efficiency in H1 FY26, with its same-store portfolio attaining 77 % working leverage flow-through to EBITDA. RevPAR rose 13 % YoY to Rs. 13,262, pushed by greater occupancy and ADR, reflecting buyer’s continued willingness to pay a premium for the model’s choices, supported by a internet promoter rating of 86. RevPAR development outpaced the luxurious phase throughout all markets, attaining 3x the market benchmark..

The Leela at the moment operates 13 properties with 3,544 keys throughout 11 Indian cities, together with 5 owned, 7 managed, and 1 franchised lodge. With 9 resorts within the pipeline, the model goals to broaden to 22 properties over the following three years, specializing in high-growth markets similar to Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, and Dubai, persevering with its strategic concentrate on enhancing the model and delivering premium visitor experiences.

International Growth – Entry into Dubai

The Leela has acquired board approval to amass a 25 % stake in a luxurious beachfront resort on Palm Jumeirah, Dubai, whereas Brookfield-managed funds will purchase the remaining 75 %. The resort, unfold over 23 acres, options 546 keys, together with a 361-room lodge, 182 residences, and three villas, and represents the model’s first worldwide foray.

Additionally Learn: Inventory jumps 8% after firm’s internet revenue will increase 77% YoY in Q2

Home Growth and Model Improvement

Domestically, The Leela is enhancing its belongings and model presence, together with de-merging the workplace enterprise at Leela Palace BKC, Mumbai, the place it’ll retain a 50 % lodge stake whereas Brookfield funds the remaining lodge and absolutely owns the workplace element.

The model additionally launched ARQ by The Leela, an ultra-exclusive member’s membership at The Leela Palace Bengaluru, with openings in New Delhi and Chennai deliberate for H2 FY26. Moreover, a revamped 34,000 sq. ft. luxurious retail wing at The Leela Palace Bengaluru, that includes manufacturers like Sabyasachi and Zoya, is predicted to generate over Rs. 100 million in annual income.

Strengthened Steadiness Sheet and Monetary Flexibility

Following its IPO, The Leela strengthened its stability sheet, decreasing internet debt-to-LTM EBITDA to 0.5x, offering important monetary flexibility for development initiatives. Strategic refinancing lowered the price of debt to eight.4 % from 9.1 % and prolonged mortgage tenures, whereas an upgraded credit standing of AA (Steady) displays enhanced liquidity, operational flexibility, and a strong capital construction to assist continued growth and strategic investments.

Outlook

The Leela is well-positioned to realize mid-to-high teenagers EBITDA development in FY26, pushed by robust same-store development by way of elevated direct enterprise and an optimum channel combine. Development is additional supported by wholesome macro tailwinds in luxurious demand throughout key markets, together with disciplined value administration and operational effectivity.

Concerning the firm

The Leela Palaces, Accommodations and Resorts, India’s largest institutionally owned luxurious hospitality model backed by Brookfield Group, operates 13 premier properties throughout India. Famend for architectural excellence and bespoke companies, it has been globally ranked #1 by Journey + Leisure in 2020 and 2021, and among the many high three in 2023 and 2024.

 Written By Akshay Sanghavi

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