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Lemon Tree Hotels (LEMONTREE) investor relations material
Lemon Tree Hotels Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY2026 revenue reached an all-time high of INR 308 crore, up 8% year-on-year despite industry headwinds such as geopolitical tensions, floods, and GST revisions.
Net EBITDA grew 1% to INR 132.4 crore, with margins at 43%, down 306 bps due to increased renovation, technology investments, and a one-time ex gratia payment.
Profit after tax rose 20% year-on-year to INR 41.9 crore; cash profit increased 9.2% to INR 76.3 crore.
Debt reduced by INR 212 crore year-on-year to INR 1,610 crore as of September 30, 2025; credit rating improved to A+ and cost of borrowing fell to 7.72%.
Signed 15 new management/franchise contracts (1,138 rooms) and operationalized five hotels (272 rooms) in Q2.
Financial highlights
Gross ARR for Q2 FY2026 was INR 6,247, up 6% year-on-year; occupancy reached 69.8%, up 139 bps; RevPAR increased 8% year-on-year to INR 4,358.
Management and franchise fees from third-party hotels grew 7% to INR 14.3 crore; Flio/Fleur hotel fees rose 8% to INR 19.9 crore; total management fees at INR 34.3 crore.
H1 FY26 revenue was INR 625.4 crore, up 13% year-on-year; PAT was INR 90 crore, up 63% year-on-year.
Total network revenue for Q2 FY26 was INR 467 crore, up 10% year-on-year.
Outlook and guidance
H2 outlook is highly positive, with expected material increases in occupancy and ARR from completed renovations and tech upgrades.
Expense heads for renovation, technology, and ex-gratia expected to reduce to 5% of revenue in FY27 and stabilize at 2% by FY28.
EBITDA margin expected to remain flat year-on-year for FY2026, with significant margin expansion anticipated by FY2028 as renovation and tech spend normalizes.
Mid-teens revenue growth expected for Q3, with Aurika Mumbai projected to exceed 15% growth.
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