Raise TP to INR580 and reiterate Buy: Robust 1QFY27 despite a volatile quarter strengthens visibility

Research evidence excerpt

Raise TP to INR580 and reiterate Buy: Robust 1QFY27 despite a volatile quarter strengthens visibility

Global Markets Research

Leela Palaces Hotels & Resorts LEEA.NS THELEELA IN 2 August 2026

EQUITY: PROPERTY

RatingRaise TP to INR580 and reiterate Buy Remains Buy

Target price

Increased fromRobust 1QFY27 despite a volatile quarter strenghens visiblity INR 580 INR 530

Action: Raise FY27F/ FY28F EBITDA by 8%; TP up to INR580, implying 17% upside Closing31 July 2026price INR 495

Leela’s share price has run 20% in the past six months (vs NIFTY -4%). We maintain Buy rating as:

1) we believe Leela can drive high-single to low-double-digit RevPAR growth over FY26-FY29F, led Implied upside +17.2%

by the strong demand for super luxury hospitality; and 2) strong owned hotel pipeline of 812 keys

coming over next 4 years, with domestic keys portfolio growing 63% by FY31F. Overall, we expect Market Cap (USD mn) 1,731.7

a 19% EBITDA CAGR from FY26F-FY29F. We raise our TP to INR580, based on unchanged 20x ADT (USD mn) 2.3

FY28F EV/EBITDA (between 18x/ 21x target multiples for Chalet Hotels (CHALET IN, Neutral)/ ITC

Hotel (ITCHOTEL IN, Buy, respectively). The stock currently trades at 20.7x FY27F EV/EBITDA. Relative performance chart

1QFY27 revenue/ EBITDA 11%/19% ahead of consensus estimates

Consolidated revenue/ EBITDA were up 28% y-y/ 41% y-y. REVPAR was up 17% y-y (same store

growth at 15% vs our estimate of low double-digits) driven by ADR growth at 10% y-y and

occupancy improvement of +4% (vs our estimate of flat occupancy due to the Middle-East war).

City Hotel REVPARs were up +14% y-y, while resort REVPARs were up 24% y-y. While the

revenue mix from international travellers was down to 42% (vs 46% in 1QFY26), revenue from

domestic customers was up 25% y-y.