Lemon Tree Hotels (LEMONTREE) investor relations material

Executive summary

• FY 2026 was the best year in company history across occupancy, ARR, revenue, EBITDA, PBT, PAT, and cash profit, with Q4 FY 2026 being the strongest fourth quarter ever on these parameters.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with the auditor issuing an unmodified opinion.

• The company is undergoing a demerger, creating two entities: an asset-light management company and a hotel ownership/leasing platform.

• Appointment of R. Khattar & Associates as new internal auditors and re-appointment of Felix Advisory Private Limited for FY 2026-27.

Financial highlights

• FY 2026 consolidated revenue: ₹1,44,450.33 lakhs, up from ₹1,28,607.77 lakhs year-over-year; Q4 revenue: INR 409.5 crore, up 11%.

• FY 2026 net EBITDA: ₹69,933.01 lakhs, up from ₹63,645.69 lakhs; margin: 48.1%.

• FY 2026 PAT: ₹28,831.82 lakhs, up from ₹24,314.54 lakhs; Q4 PAT: INR 116.5 crore, up 8%.

• Cash profit for FY 2026: INR 443.1 crore, up 16%.

• Gross ARR for FY 2026: ₹6,875; occupancy: 73.5%.

Outlook and guidance

• All future supply planned under the upper upscale Aurika brand, less impacted by GST changes.

• Expense heads (renovation, tech, GST) expected to reduce to 3.7% of revenue by FY 2028, expanding EBITDA margins.

• Management expects to open about 2,000 rooms in FY 2027, with a similar pace in subsequent years.

• Composite Scheme of Arrangement approved to segregate hotel ownership & development from hotel management & brand business.