Leela Q4 margin widens 2.85 points as costs fall sequentially
Consolidated revenue grew 5.90% QoQ while expenses declined 0.38%; management also outlined a 1,008-key expansion pipeline.
Filed 28 Apr 2026, 21:20 IST · after market close · Leela Palaces Hotels & Resorts Ltd (THELEELA)
Key takeaways
- Operating margin widened 2.85 percentage points QoQ as revenue rose 5.90% while expenses fell 0.38%.
- Net profit rose 16.12% QoQ even as the tax rate increased 1.77 percentage points to 16.55%; other income was only 4.79% of PBT.
- The stock's 1.63% first-day gain was larger than its 0.39% median absolute move after the last three results.
Price around the results
Q4 operating leverage lifts consolidated profit
Leela Palaces Hotels & Resorts' consolidated revenue increased 5.90% QoQ, while expenses declined 0.38%. That spread lifted operating profit 11.70% and widened operating margin by 2.85 percentage points to 54.84%. Profit before tax grew 18.58%, ahead of operating profit, despite interest rising 1.06%.
Margin reaches a third straight quarterly high
Operating margin has risen each quarter from 36.91% in Q1FY26 to 44.40% in Q2, 51.99% in Q3 and 54.84% in Q4, marking three consecutive sequential increases. The margin was 40.03 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported. Profit quality was not materially dependent on other income, which contributed 4.79% of PBT; the higher 16.55% tax rate also did not flatter net profit.
Management flags occupancy and a 1,008-key pipeline
Management said resort occupancy improved from 53% to 59% during the quarter. The company told analysts that its pipeline comprises 1,008 hotel keys scheduled across CY26 to CY30, including the 80-key managed Leela Jaisalmer project in CY26. Management also said it expects high-teens operating EBITDA growth and PAT above Rs 4,000 million, while the presentation outlines a 2.25MW solar plant in Chennai and new retail and MICE space.
Initial market reaction was above its usual range
The stock gained 1.63% on the first trading day after the results, with a 1.24% opening gap and volume at 2.7 times its reference level. That was larger than the 0.39% median absolute move across the last three result reactions, when the stock rose twice and fell once. The move moderated to 0.23% after five sessions, turned to -3.10% after 15 sessions and stood at 2.38% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹484 cr | ₹457 cr | +5.90% |
| Other income | ₹10 cr | ₹5 cr | +116.96% |
| Expenses | ₹219 cr | ₹220 cr | -0.38% |
| Operating profit | ₹266 cr | ₹238 cr | +11.70% |
| Operating margin (%) | 54.84% | 51.99% | — |
| Interest | ₹40 cr | ₹39 cr | +1.06% |
| Depreciation | ₹30 cr | ₹29 cr | +1.63% |
| Profit before tax | ₹206 cr | ₹174 cr | +18.58% |
| Tax | ₹34 cr | ₹26 cr | +32.80% |
| Net profit | ₹172 cr | ₹148 cr | +16.12% |
| EPS (₹) | ₹9.78 | ₹4.54 | +115.42% |
Operating margin of 54.84% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.63% | +0.87% |
| Next session | +2.01% | — |
| 5 sessions | +0.23% | -1.15% |
| 15 sessions | -3.10% | — |
| 30 sessions | +2.38% | — |
Volume on the results session was 2.70× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Resort hotel occupancy increased from 53% to 59%, an increase of approximately six percentage points.
Guidance & outlook
- The company guided for high-teens operating EBITDA growth and PAT above ₹4,000 million.
Expansion
- The pipeline comprises 1,008 hotel keys, with projects scheduled from CY26 through CY30.
- The Leela Jaisalmer is an 80-key managed property scheduled for CY26, with its property improvement plan in progress.
New initiatives
- The company plans a 2.25MW solar plant in Chennai.
- The company plans approximately 33,000 square feet of luxury retail space and approximately 6,500 square feet of new MICE space.
What to watch
- Whether operating margin holds above 54.84% after three straight QoQ increases.
- Progress against management's 1,008-key hotel pipeline scheduled from CY26 to CY30.
- Whether PAT reaches management's stated level above Rs 4,000 million.