Leela Palaces Hotels Q2 FY27 Results (NSE: THELEELA)
Signal: Margin pressure
The read
The trajectory remains growth-positive but margin-led upside has moderated: consolidated revenue accelerated 32.6% YoY to 4118.66 million and EBITDA grew 20.6% to 1938.92 million, yet EBITDA margin contracted 460bps YoY to 47.1% after recovering 390bps QoQ from Q1FY27; PAT growth remained 26.6% despite other income falling 73.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹411.87 Cr | +32.6% | +17.0% |
| EBIT | ₹160.29 Cr | +19.9% | |
| Net profit | ₹94.59 Cr | +26.6% | |
| EPS | ₹2.83 | +20.4% | |
| EBIT margin | 47.1% |
P&L walk
Consolidated revenue increased to 4118.66 million, +32.6% YoY and +17.0% QoQ, but EBITDA margin contracted to 47.1% from 51.7% YoY; PAT still rose 26.6% to 945.94 million as operating profit growth outweighed sharply lower other income.
Segments
The company reports no segment split because hoteliering is its only business segment; the material gap is between standalone PAT of 797.09 million, +9.4% YoY, and consolidated PAT of 945.94 million, +26.6% YoY, reflecting group subsidiaries and equity-accounted investments.
Key positives
- Consolidated revenue reached 4118.66 million, growing 32.6% YoY and 17.0% QoQ, an acceleration from Q1FY27 revenue of 3519.56 million.
- EBITDA increased 20.6% YoY to 1938.92 million and margin recovered 390bps QoQ to 47.1% after the Q1FY27 contraction.
- Employee benefits and other expenses grew 15.4% YoY, 17.2 percentage points slower than revenue growth, supporting sequential margin recovery.
- PAT rose 26.6% YoY to 945.94 million even as other income declined 73.0% YoY to 61.67 million, indicating that the profit increase was not dependent on higher other income.
Key concerns
- EBITDA margin declined 460bps YoY to 47.1% because EBITDA growth of 20.6% lagged revenue growth of 32.6%; this interrupts the prior margin-expansion trajectory.
- Standalone operating performance was weaker than the group: standalone PAT rose 9.4% YoY to 797.09 million versus consolidated PAT growth of 26.6% to 945.94 million.
- H1 operating cash flow fell 27.8% YoY to 703.47 million while borrowings increased to 2844.18 million from 1385.05 million at March 31, 2026.
- EPS grew 20.4% YoY to 2.83 INR, slower than attributable PAT growth of 26.6%; 2161729 employee stock options were granted during the quarter.
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