JM Financial said Leela's Q2 FY27 earnings beat its estimates, with revenue and EBITDA coming in 9 per cent and 11 per cent ahead of its projections, respectively.
Revenue rose 33 per cent year-on-year (YoY) to Rs 410 crore, driven by a 30 per cent increase in average daily rate (ADR), while portfolio occupancy remained stable at 69 per cent. Suite occupancy increased by more than 700 basis points (bps), indicating premiumisation across the portfolio, the brokerage noted.
EBITDA rose 36 per cent YoY to Rs 190 crore, with margins expanding 118 bps to 46 per cent. This marked the second consecutive quarter of more than 35 per cent EBITDA growth.
JM Financial raised its FY27 and FY28 EBITDA estimates by 6 per cent and 5 per cent, respectively, following the strong first-half (H1) performance. It expects revenue and EBITDA to grow at a compound annual growth rate (CAGR) of 21 per cent over FY26–FY29.
The brokerage retained its 'Buy' rating and raised its September 2027 target price to Rs 750 from Rs 685.
Choice Institutional Equities also highlighted Leela's strong operational performance in Q2 FY27 and remained positive on the second half of the financial year.
The brokerage cited the upcoming festive and wedding season, along with continued strength in luxury demand, as factors supporting its outlook. It assigned a target price of Rs 720 to the stock.
Elara Securities retained its 'Buy' rating and raised its target price to Rs 798, citing the company's hotel pipeline, healthy same-store growth, rising high-net-worth individual (HNI) population and growing demand for experiential luxury travel.
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