Lemon Tree Hotels (LEMONTREE) Q3 25/26 earnings summary

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 profit after tax rose 2% year-over-year to INR 81.8 crore, impacted by one-off exceptional items totaling INR 31.3 crore.

• Cash profit increased 14% year-over-year to INR 131.1 crore.

• Signed 17 new management/franchise contracts, adding 1,855 rooms to the pipeline; operationalized 9 hotels with 816 rooms.

• Total inventory as of December 31, 2025: 21,942 rooms (11,772 operational, rest in pipeline).

Financial highlights

• Gross ARR for Q3 FY26 was INR 7,487, up 11% year-over-year; RevPAR at INR 5,494, up 9% year-over-year.

• Occupancy for the quarter was 73.4%, down 82 bps year-over-year.

• EBITDA margin at 50.6%, down 133 bps year-over-year due to higher renovation, tech, and GST expenses.

• Management and franchise fees from third-party hotels rose 24% year-over-year to INR 22.9 crore; total management fees at INR 48.2 crore.

• Fees from Fleur Hotels flat at INR 25.3 crore due to GST and renovation impact.

Outlook and guidance

• Renovation, tech, and GST expenses expected to reduce to 3.5–3.6% of revenue by FY28, supporting margin expansion.

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

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

• Anticipate 1,200–1,500 new rooms to be operationalized in the next financial year.

• Guidance for at least 15% revenue growth in FY27.