Lemon Tree Hotels (LEMONTREE) investor relations material

Executive summary

• Q2 FY27 was the strongest second quarter on record, with record highs in revenue, EBITDA, PBT, PAT and cash profit.

• Total revenue rose 18% YoY to ₹363.8 Cr; net EBITDA increased 22% to ₹162.2 Cr and PAT rose 90% to ₹79.8 Cr.

• RevPAR grew 18% to ₹5,137 as occupancy reached 76.1%; performance benefited from asset-light expansion despite SAR and GST costs weighing on reported margins.

• Operational and pipeline inventory reached 24,061 rooms across 285 hotels, including 12,131 operational rooms across 138 hotels.

Financial highlights

• H1 FY27 revenue was ₹710.6 Cr, up 14% YoY; net EBITDA rose 14% to ₹314.0 Cr and PAT increased 52% to ₹137.1 Cr.

• Q2 PBT before exceptional items rose 59% to ₹88.8 Cr; including ₹22.1 Cr of exceptional items, PBT was ₹110.9 Cr, up 99%.

• Cash profit reached ₹97.2 Cr in Q2, up 28%, and ₹193.2 Cr in H1, up 22%.

• Q2 like-for-like net EBITDA, excluding GST impact and SAR provision, was ₹173.7 Cr, up 31%; margin was 47.7%, up 474 bps.

• Consolidated Q2 revenue from operations was ₹36,137.78 lakhs and net profit was ₹7,976.24 lakhs; H1 revenue was ₹70,598.39 lakhs and net profit ₹13,710.47 lakhs.

Outlook and guidance

• FY27 gross room openings remain on track at ~2,000; opening pace is expected to accelerate from FY28, with no material further deflagging anticipated.

• H2 is expected to contribute 55% of FY revenue and 60% of FY EBITDA; corporate demand remains tepid while retail momentum is holding.

• Aurika Shimla (90 rooms) is scheduled for FY27, Shillong (165 rooms) for FY28 and Varanasi (47 rooms) for FY29; Bandra East (172 rooms) is targeted for FY30.

• Fleur targets 2,500 operational rooms by FY30–FY31; visibility is expected by listing, with timing dependent on acquisitions, diligence and construction.

• Renovation spending is expected to return to 1.2% of revenue next year; management sees potential for 80% EBITDA flow-through over the medium term as asset-light fee income grows.