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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.
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Q2 2026 earnings summary13 Nov, 2025

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.

What is the financial scale of entities not reviewed by Deloitte?
Reconcile H1 operating cash flow to profit before tax
Analyze changes in consolidated borrowings H1 2025
Expected EBITDA margin post-renovation?
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Fleur demerger: What's the 'exciting stuff'?
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Frequently asked questions

Lemon Tree Hotels Limited is a hospitality company engaged in the ownership, management, and operation of hotels across various segments. The company offers accommodations ranging from upscale to economy hotels, catering to business and leisure travelers. Its services include lodging, dining, event spaces, and extended stay options. Lemon Tree Hotels Limited is headquartered in New Delhi, India, and its shares are listed on the NSE and BSE.

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