Leela Palaces Hotels & Resorts Ltd (THELEELA) Q2 FY27 Results Analysis: Revenue Surges 32.6%, EBITDA Margin Expands 118 bps
Leela Palaces Hotels & Resorts Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 411.87 Cr (+32.58% YoY) and PAT growth of +26.59% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 14, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 411.87 Cr (+32.58% YoY) |
| PAT (Q2) | Rs. 94.59 Cr (+26.59% YoY) |
| EBITDA margin | 47.08% (-466 bps YoY) |
| EPS (Q2) | Rs. 2.83 (+20.43% YoY) |
| Market cap | Rs. 19,526.49 Cr |
| CMP | Rs. 584.65 |
Quarter Snapshot
Consolidated revenue grew 32.6% YoY to Rs.411.87 Cr — the strongest Q2 in the group's history — with operating EBITDA up 36.1% YoY and margin up 118 bps to 45.58%, landing at or above management's mid-to-high-teens EBITDA growth guidance. Cash generation was a standout: H1 CFO of Rs.386.52 Cr (+51.1% YoY) produced free cash flow of Rs.252.89 Cr, 4.4x the prior year, while H1 finance costs fell 37.4% on IPO-funded debt reduction. Key watch items are the widening JV losses (Rs.11.48 Cr in Q2 vs Rs.2.41 Cr YoY, tied to the Dubai asset) and the reported EBITDA margin compression of 466 bps from the structural post-IPO decline in treasury income.
Key Investment Insights
Key Positives
- Consolidated revenue grew 32.6% YoY to Rs.411.87 Cr, the strongest Q2 print in the group's history, accelerating from 17% YoY in Q1 FY27 and up 17.0% QoQ
- Operating EBITDA grew 36.1% YoY to Rs.187.73 Cr with margin expanding 118 bps YoY to 45.58%
- Consolidated PAT grew 26.6% YoY to Rs.94.59 Cr (up 94.0% QoQ); EPS at Rs.2.83, up 20.4% YoY
- H1 FY27 CFO of Rs.386.52 Cr grew 51.1% YoY; free cash flow of Rs.252.89 Cr was 4.4x H1 FY26's Rs.57.45 Cr
- H1 finance costs fell 37.4% YoY to Rs.77.73 Cr on IPO-funded debt reduction; finance costs as % of revenue improved 293 bps
- Cost-to-income improved 118 bps YoY to 54.42%, with all major cost lines declining as a share of revenue
- Subsidiary PAT contribution rose from Rs.1.86 Cr (2.5% of consolidated) in Q2 FY26 to Rs.14.88 Cr (15.7%) in Q2 FY27
- D/E ratio stable at 0.24x with borrowings up only Rs.3.65 Cr QoQ to Rs.1,560.47 Cr
Risk Factors
- Share of JV net loss expanded to Rs.11.48 Cr in Q2 FY27, 4.8x Q2 FY26's Rs.2.41 Cr; H1 JV loss of Rs.27.09 Cr (Dubai asset risk materializing)
- Reported EBITDA margin compressed 466 bps YoY to 47.08%, driven by other income collapsing 72.95% YoY to Rs.6.17 Cr post-IPO treasury deployment
- Net debt-to-EBITDA at 2.26x on annualized H1 EBITDA vs ~1.6x FY26 exit ratio, though partly a H1 seasonality effect
- Employee costs grew 30.7% YoY, including the newly introduced ESOP charge (Rs.3.98 Cr in consolidated H1 FY27)
- Depreciation grew 24.5% YoY to Rs.33.60 Cr on the expanded fixed-asset base
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.