Lemon Tree Hotels (LEMONTREE) investor relations material

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 was 50.6%, down 133 bps due to increased renovation, technology investments, and GST impact.

• Profit after tax rose 2% year-over-year to INR 81.8 crore, impacted by INR 31.3 crore in one-off exceptional items.

• 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, along with the limited review reports from statutory auditors.

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.

• Standalone revenue from operations for Q3 FY26 was ₹12,461.90 lakhs, up from ₹9,090.13 lakhs in Q3 FY25; consolidated revenue was ₹40,605.23 lakhs, up from ₹30,627.66 lakhs.

• Standalone net profit after tax for Q3 FY26 was ₹2,289.62 lakhs; consolidated net profit was ₹8,183.07 lakhs.

• Basic and diluted EPS for Q3 FY26 were ₹0.29 (standalone) and ₹0.79 (consolidated).

Outlook and guidance

• Renovation, technology, and GST expenses expected to reduce from 6.4% of revenue in Q3 FY26 to 3.5–3.6% by FY28, supporting margin expansion.

• GST impact projected to decline to 1.7% of revenue by FY28 as more customers pay above INR 7,500.

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

• The company highlighted the seasonal nature of the Indian hotel industry, noting that quarterly and nine-month results are not indicative of full-year performance.

• Targeting INR 1,000 crore EBITDA for Fleur by FY28.