Leela Palaces Hotels & Resorts Ltd Q2FY26 Concall Decoded: From Palaces to Palm Jumeirah 👑✈️

1. Opening Hook

Who knew “Atithi Devo Bhava” could also mean “Investor Devo Bhava”? The Leela management clearly did—serving up luxury hospitality with a side of spreadsheets and a Dubai-sized ambition. As the rest of the industry fought with rising costs and mid-market mediocrity, Leela casually dropped a ₹437 crore check for a Palm Jumeirah resort and called it “brand expansion.” Brookfield, their sugar daddy with better suits than most CFOs, nodded approvingly.

India’s poshest hotel chain just went global—and they did it with the confidence of a maître d’ who knows your wine order before you do. The real drama? The BKC palace, the Dubai detour, and EBITDA margins so fat they need a spa day. Read on—things get royal, then financial.

2. At a Glance

Revenue up 11% YoY to ₹333 crore:The champagne still pops louder than inflation.
EBITDA ₹161 crore, margin 48.2%:Luxury may be expensive, but it’s profitable AF.
PAT ₹75 crore:Fourth straight profitable quarter—Leela finally learned to live within luxury.
RevPAR ₹13,262, up 13% YoY:When your rooms cost like a car, occupancy still rose.
Net debt-to-EBITDA 0.5x:Balance sheet lighter than their soufflés.
Cash ₹1,000+ crore:Enough to buy half of Goa or another Dubai balcony view.
New Dubai stake 25% for $49M:Desert meets decadence.
BKC Mumbai CAPEX ₹800 crore:Where “palace” meets “PowerPoint.”

3. Management’s Key Commentary

“We outperformed the industry with RevPAR growth 3x the luxury segment.”(Translation: Taj who? Oberoi what?)

“This quarter marks our fourth consecutive positive PAT.”(Translation: We finally stopped explaining losses with adjectives.)

“We’re acquiring a 25% stake in a beachfront resort at Palm Jumeirah, Dubai.”(Translation: Because Udaipur was getting crowded with influencers.)

“The Dubai project offers a 17% stabilized yield on cost.”(Translation: ROI so royal, even the Crown Prince might call.)

“Leela Palace BKC will deliver 16% yield on cost.”(Translation: Mumbai’s traffic finally meets 5-star EBITDA.)

“We launched ARQ, an invite-only members’ club.”(Translation: For people who ask for truffle oil, not ketchup.)

“Leela uses 65% renewable energy now.”(Translation: The only green thing in hospitality that isn’t guacamole.)

“Net Promoter Score of 86.”(Translation: Guests are happier than analysts reading our margins.)😏

4. Numbers Decoded

Metric	Q2 FY26	YoY / QoQ	One-Line Analysis
Revenue	₹333 Cr	+11% YoY	Growth that smells like oud and champagne.
EBITDA	₹161 Cr	+17% YoY	48.2% margin — now that’s fine dining finance.
PAT	₹75 Cr	4th straight profit	Luxury that finally pays rent.
RevPAR	₹13,262	+13% YoY	Occupancy + ADR = magic carpet ride.
H1 EBITDA	₹289 Cr	+34% YoY	The palace prints money now.
Net Debt / EBITDA	0.5x	–	Brookfield’s discipline shows.
Cash Balance	₹1,000 Cr+	–	Leela could buy another Leela.
ROCE (Adj.)	~14%	+	For luxury, that’s rock-solid.
Renewable Energy Share	65%	+	ESG: Elegant Sustainability Goals.

Summary:Profit’s up, debt’s down, and new palaces are sprouting faster than wedding inquiries in February.

5. Analyst Questions

Morgan Stanley:“Why focus on hotels, not offices at BKC?”Mgmt:“Because offices don’t serve caviar.”(Translation: Hotels yield better and we prefer champagne over Excel.)

JM Financial:“Dubai looks flashy—how will you get your money back?”Mgmt:“Via residence sales in 3 years.”(Translation: We’ll Airbnb our way to breakeven.)

Axis Capital:“So when do Dubai numbers start hitting your P&L?”Mgmt:“Immediately after closing, it’s already operational.”(Translation: This is the rare investment that works on day one.)

Motilal Oswal:“Why go abroad when India’s hot?”Mgmt:“Because we like hot money too.”(Translation: 12.8x EBITDA multiple in Dubai beats 20x in Delhi.)

Jefferies:“Will EBITDA growth moderate in H2?”Mgmt:“Mid to high teens—no surprises, just luxury execution.”(Translation: As long as there’s champagne, margins won’t fall.)

6. Guidance & Outlook

The management guided formid to high-teen EBITDA growthfor FY26, withdouble-digit RevPAR gains continuing in H2.TheDubai acquisition closes in Q3, and Leela expects revenue from day one—earning

To Read Full 16 Point ArticleBecome a member