Lemon Tree Hotels (LEMONTREE) investor relations material

Executive summary

• Q1 FY27 revenue rose 9% year-over-year to ₹346.8 Cr, with net EBITDA up 7% to ₹151.9 Cr and PAT up 19% to ₹57.3 Cr; adjusted net EBITDA (excluding GST and SAR) increased 14% to ₹162.5 Cr; cash profit grew 17% to ₹96.0 Cr; gross ARR was ₹6,361, up 2% year-over-year, and occupancy improved by 314 bps to 75.7%.

• Asset-light expansion continued with six new managed/franchised hotels opened (334 rooms) and 13 more signed (1,020 rooms), expanding the pipeline to 23,381 rooms across 279 hotels in 170+ cities.

• Board approved unaudited standalone and consolidated financial results for Q1 FY27 and a joint venture for Aurika Shillong, with a 51% stake held by a wholly owned subsidiary.

• Appointment of Mr. Patanjali Govind Keswani as Chairman and Non-Executive Director effective April 1, 2027.

Financial highlights

• Q1 FY27 consolidated revenue was ₹346.8 Cr, up 9% year-over-year, with network revenue up 16% to ₹576 Cr; owned hotels contributed 56%.

• Fee income from management/franchise contracts rose 42% to ₹22.8 Cr; total management fee up 21% to ₹45.4 Cr.

• Gross debt reduced 11% year-over-year to ₹1,475 Cr; cost of debt fell to 7.48%.

• PAT for Q1 FY27 was ₹57.3 Cr, up 19% year-over-year; cash profit reached ₹96.0 Cr, up 17% year-over-year.

• Pro forma Q1 FY27: Lemon Tree revenue up 22% to ₹65.7 Cr, EBITDA margin improved to 58.1%; Fleur revenue up 7% to ₹311.4 Cr, EBITDA margin at 40.2%.

Outlook and guidance

• Management expects Q2 and H2 FY27 to show stronger performance, with margin recovery as renovation expenses taper and ARR improves.

• Targeting 50%+ net EBITDA margin in FY28, with continued ARR growth and reduced GST impact as more rooms cross the ₹7,500 threshold.

• Asset-light managed portfolio expected to accelerate, with 2,000 keys targeted for opening in FY27 and a robust pipeline for future growth.

• Aurika Shimla (90 rooms) expected to open shortly; Aurika Shillong (165 rooms) in H2 FY28; Aurika Varanasi (47 rooms) in FY29; Aurika Nehru Place, Delhi, expected on or after 2030.