Lemon Tree Hotels (LEMONTREE) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 revenue of INR 317.4 crores, up 18% year-over-year, despite industry headwinds from geopolitical tensions and COVID concerns.

• Net EBITDA grew 23% year-over-year to INR 142 crores, with EBITDA margin rising 178 bps to 44.8%.

• Profit after tax surged 139% year-over-year to INR 48.1 crores; cash profit increased 51% to INR 82.3 crores.

• Gross ARR rose 10% year-over-year to INR 6,236; occupancy improved 591 bps to 72.5%, driving RevPAR up 19% to INR 4,523.

• Approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with major board-level changes and business reorganization initiatives.

Financial highlights

• Consolidated revenue for Q1 FY26: INR 317.4 crores, up 18% year-over-year; standalone revenue: INR 92.89 crores, up from INR 82.85 crores.

• Consolidated net profit after tax: INR 48.1 crores, up from INR 20.12 crores year-over-year; standalone net profit: INR 20.47 crores, up from INR 16.67 crores.

• Cost of borrowing reduced to 8.01% from 8.8% last year.

• Power and fuel costs as a percentage of revenue dropped from 8.7% to 6.9% year-over-year.

• Basic and diluted EPS (consolidated): INR 0.48 for Q1 FY26, up from INR 0.25 in Q1 FY25.

Outlook and guidance

• Renovation and tech costs expected to fall to 2%-2.5% of revenue from 6% after current investment cycle ends in 15 months.

• Targeting 50% renewable energy usage in own portfolio within 12-18 months, up from 40%.

• Confident of accelerated growth in management fees and significant revenue uplift post-renovation.

• Strategic focus on long-term growth, leadership succession, and business reorganization.

• Results note the seasonal nature of the hotel industry; Q1 results are not indicative of full-year performance.