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Lemon Tree Hotels (LEMONTREE) investor relations material
Lemon Tree Hotels Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record Q3 FY26 revenue of INR 407.8 crore, up 15% year-over-year, and highest-ever EBITDA at INR 206.4 crore, up 12% year-over-year.
Net EBITDA margin for Q3 was 50.6%, down 133 bps year-over-year due to increased renovation, technology investments, and GST impact.
Profit after tax for Q3 stood at INR 81.8 crore, up 2% year-over-year, impacted by one-off exceptional items totaling INR 31.3 crore.
Cash profit increased 14% year-over-year to INR 131.1 crore.
Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, and a major demerger plan to create focused business platforms.
Financial highlights
Gross ARR for Q3 FY26 was INR 7,487, up 11% year-over-year; RevPAR was INR 5,494, up 9% year-over-year; Occupancy was 73.4%, down 82 bps year-over-year.
Management and franchise fees from third-party hotels grew 24% year-over-year to INR 22.9 crore.
9M FY26 total revenue was INR 1,033.2 crore, up 14% year-over-year; net EBITDA was INR 481.0 crore, up 11% year-over-year.
Standalone and consolidated revenue and net profit grew significantly year-over-year.
Basic and diluted EPS for Q3 FY26 were INR 0.29 (standalone) and INR 0.79 (consolidated).
Outlook and guidance
Renovation, technology, and GST expenses expected to reduce from 6.4% of revenue in Q3 FY26 to 3.5% by FY28, supporting margin expansion.
GST impact projected to decline to 1.7% of revenue by FY28 as more customers pay above the INR 7,500 threshold.
All future supply planned under the upper upscale Aurika brand, which is less affected by GST changes.
Targeting INR 1,000 crore EBITDA for Fleur by FY28.
Lemon Tree to become a debt-free, asset-light, brand-owning, tech-driven management company post-demerger.
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