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 for Q3 was 50.6%, down 133 bps year-over-year due to increased renovation, technology investments, and GST impact.

• Profit after tax for Q3 stood at INR 81.8 crore, up 2% year-over-year, impacted by one-off exceptional items totaling INR 31.3 crore.

• 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, and a major demerger plan to create focused business platforms.

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.

• 9M FY26 total revenue was INR 1,033.2 crore, up 14% year-over-year; net EBITDA was INR 481.0 crore, up 11% year-over-year.

• Standalone and consolidated revenue and net profit grew significantly year-over-year.

• Basic and diluted EPS for Q3 FY26 were INR 0.29 (standalone) and INR 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% by FY28, supporting margin expansion.

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

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

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

• Lemon Tree to become a debt-free, asset-light, brand-owning, tech-driven management company post-demerger.