Leela Palaces Hotels & Resorts Ltd Q3 FY26 Earnings Analysis

- The Leela targets mid-to-high-teen EBITDA growth for FY’26, driven by strong operating momentum and portfolio enhancements. - H1 FY’26 saw 16% RevPAR growth and 18% revenue increase, with revenue expected to continue growing supported by retail, corporate, and groups segments. - Double-digit RevPAR growth is expected in H2 FY’26, supported by large events and increasing international business. - Expansion through new projects, including Dubai Palm Jumeirah and BKC Mumbai, will add approximately INR 300 crores EBITDA and deliver attractive yields. - Owned pipeline developments in Udaipur, Mumbai, Srinagar, Agra, Ayodhya, Ranthambore, and Bandhavgarh are expected to add incremental EBITDA of INR 250 crores by FY’30. - Aiming for INR 2,000 crores EBITDA by FY’30, with additional EBITDA growth expected from acquisitions and capital-light hotel management agreements. - Continued focus on luxury ecosystem, direct sales, and improving operating leverage to support sustainable growth.

- The company expects mid-to-high-teens EBITDA growth for FY’26, driven by operating EBITDA excluding treasury income. - For H2 FY’26, confident of sustaining strong double-digit RevPAR growth, maintaining momentum from H1. - EBITDA expected to grow from INR 700 crores in FY’25 to close to INR 1,200 crores by FY’30 from same-store growth and existing ownership hotels. - New pipeline projects (Agra, Ayodhya, Bandhavgarh, Ranthambore, Srinagar), excluding BKC and Dubai, to add about INR 250 crores EBITDA by FY’30. - Additional INR 500 crores EBITDA anticipated by FY’30 from new acquisitions and portfolio growth. - Dubai and BKC projects expected to contribute around INR 300 crores EBITDA on approximately INR 800 crores capital deployed with high ROI. - The company targets INR 2,000 crores EBITDA by FY’30, leveraging asset enhancements, international expansion, and capital-light HMA models. - Overall, continuous improvement in profitability highlighted by four consecutive profitable quarters and positive PAT momentum.

- BKC Hotel Project: Leela's capital contribution is around INR 800 crores (50% stake), including land and construction. Brookfield fully owns and funds the office side. Expected stabilized EBITDA of INR 150 crores with 16%-17% yield on cost. CAPEX to be spent over approximately 4 years, with much of it back-ended. - Dubai Acquisition: Leela holds a 25% stake with an equity investment of about $49 million (part of a $503 million enterprise value). Plan to sell the 182 residences to recover capital within 3 years. The 350+ keys hotel will remain with Leela and generate ongoing management fees and EBITDA. - Pipeline Projects: Development underway in Udaipur, Mumbai (BKC), Srinagar, Agra, Ayodhya, Ranthambore, Bandhavgarh, and luxury residences (ARQ Club). These will add incremental EBITDA (~INR 250 crores expected). - Capital-light HMA expansions in Sikkim, Mumbai planned for high-margin growth with limited capital outlay. - Overall strategy targets high teens ROCE growth with prudent capital deployment and partner funding.

- For the Dubai acquisition, Leela Palaces will fund its $49 million equity contribution (~INR 400 crores) entirely from internal accrual and existing cash balances, with no incremental debt planned. - Non-recourse debt for the Dubai JV is being finalized with bankers; terms and finance costs will be disclosed later, but this debt will not be consolidated on Leela’s balance sheet. - The BKC project CAPEX of INR 800 crores will be funded over four years, primarily from Leela’s strong balance sheet and cash; no immediate plans for raising new debt or equity were mentioned. - Leela currently holds more than INR 1,000 crores in cash and has a low net debt to EBITDA (0.5x), with no need for external fundraising immediately. - Overall, no explicit mention of new debt or equity fundraising; Leela plans to fund expansions and acquisitions prudently using internal accruals and existing cash.

The transcript provided does not explicitly mention current or expected orderbook or pending orders for Leela Palaces Hotels & Resorts Limited. However, related information that can be inferred includes: - The company is actively evaluating several acquisition opportunities to grow EBITDA by INR 500 crores by FY’30. - Ongoing new project pipelines include Agra, Ayodhya, Bandhavgarh, Ranthambore, and Srinagar. - The company has made significant investments in Dubai and the BKC hotel projects, with committed CAPEX of INR 800 crores for BKC and $49 million equity for Dubai. - The BKC CAPEX will be deployed over four years, mostly back-ended. - The Dubai asset acquisition is expected to be EBITDA accretive promptly upon closing in 30-40 days. - Additional potential deals are under evaluation to generate incremental EBITDA. No explicit orderbook or pending order numbers are disclosed in this transcript.