Leela Palaces reports 2x net profit in Q3

New Delhi: Leela Palaces Hotels & Resorts Ltd on Friday reported a consolidated net profit of Rs 147.88 crore for the third quarter ended December, from Rs 56.40 crore a year ago, on strong revenue growth. The luxury hospitality player, which listed on the stock exchanges in June last year as Schloss Bangalore Pvt Ltd, reported a revenue from operations of Rs 457.43 crore for the third quarter, as against Rs 370.46 crore for the corresponding October-December period of last year, a regulatory filing showed. During the quarter under review, its total expenses also rose to Rs 219.60 crore, from Rs 183.51 crore a year ago. Notably, Leela Palaces Hotels & Resorts presented the "incremental impact" of the four Labour Codes notified by the central government in November under "Exceptional Items" amounting to Rs 6.4 crore in the consolidated financial results for the quarter and nine months ended December 31, 2025, according to its assessment. On November 21, 2025, the government notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable the assessment of the financial impact of changes in regulations. Leela Palaces Hotels & Resorts further stated that it continues to monitor the finalisation of central/state rules and clarifications from the government on other aspects of the Labour Code and would provide appropriate accounting effects as needed based on such developments. "We delivered our best-ever quarterly performance in Q3 FY26 with total operating revenue growing 21 per cent to Rs 457.4 crore, reaffirming our unique luxury positioning and ability to command pricing power, substantially outpacing India's luxury industry by nearly 2.7x on a year-to-date basis. "We also advanced our strategy of disciplined, capital-efficient growth by signing a management agreement for The Leela Jaisalmer and our first international strategic investment in Dubai," Anuraag Bhatnagar, whole-time director and Chief Executive Officer, said.The Leela Palaces, Hotels and Resorts is India's largest institutionally owned and managed pure-play luxury hospitality brand.