The Leela parent Schloss Bangalore turns profitable, Q1 revenue jumps 25% to ₹301.3 crore

Schloss Bangalore Limited, which operates The Leela brand of hotels, said on Tuesday that it has turned profitable for the quarter ended June 30. The newly listed company, which has reported quarterly numbers for the first time since its initial public offering, reported a net profit of ₹8.7 crore, compared to a loss of ₹7.5 crore in the same period last year.

The company reported a 25% increase in total revenue for the first quarter, reaching ₹301.3 crore. Its revenue was boosted by a 20% increase in its revenue per available room, which was ₹11,963 for the reporting quarter. Its higher RevPAR was attributed to an higher average daily rate (ADR)—a key metric which is used to measure the average revenue per occupied room per day—of ₹18,817 in the quarter, signalling a higher share of customers willing to pay a premium for staying in the 13 properties it currently operates across 11 cities in India.

In June this year, Schloss’ ₹3,500 crore IPO was oversubscribed nearly five times. The proceeds from the listing were used to reduce net debt by 91% to ₹2,275 crore, alongside funding strategic expansion and brand-building initiatives. The company had slashed its IPO size significantly by 30% from the ₹5,000 crore it had proposed in the draft red herring prospectus it had filed in September last year. Although it had not disclosed the reason behind truncating its IPO size, the key reason was said to be the secondary market volatility amid geopolitical tensions and tariff tensions, which weakened investor sentiment.

According to Anuraag Bhatnagar, CEO of Schloss Bangalore, the company’s record first-quarter performance is reflective of the strength of India’s luxury travel market and an uptick in demand for The Leela’s properties. “We are entering a defining phase of growth with eight hotels under development,” he said in a statement.

Schloss Bangalore Limited also said that it is well-positioned to deliver mid-to-high teens Ebitda growth in FY26. It is currently expanding its footprint with a premium mixed-use development property in Mumbai’s Bandra Kurla Complex, in partnership with Brookfield. It is also developing 63 high-end serviced apartments located in the vicinity of the Chhatrapati Shivaji International Airport in Mumbai. It said that it is on track to expand over the next three years in high-growth markets, including Agra, Srinagar, Ayodhya, Ranthambore, Bandhavgarh, and Sikkim, which was disclosed in its IPO papers.