Lemon Tree Hotels (LEMONTREE) Q4 24/25 earnings summary

Executive summary

• Achieved record Q4 revenue of INR 379.4 crores, up 15% year-over-year, and highest-ever annual revenue of INR 1,288 crores, a 20% increase over FY24, with Q4 and FY25 EBITDA and PAT at record highs.

• Net EBITDA for Q4 grew 17% year-over-year to INR 205 crores, with a margin of 54%; full-year EBITDA rose 20% to INR 637 crores.

• Occupancy in Q4 reached 77.6%, up 557 basis points year-over-year, with RevPAR up 15% to INR 5,462; gross ARR for Q4 was INR 7,042, up 7% YoY.

• Profit after tax in Q4 was INR 108.1 crores, up 29% year-over-year; full-year PAT was INR 243.1 crores, up 34% YoY.

• Board approved audited standalone and consolidated financial results for FY25, with unmodified audit opinions.

Financial highlights

• Management and franchise fees in Q4 totaled INR 44.4 crores, up 16% year-over-year; full-year fees were INR 149 crores, up 22%.

• Debt reduced by INR 190 crores during the year, with debt-to-EBITDA ratio improving to 2.67x from 3.57x.

• Q4 EBITDA margin at 54%, FY25 EBITDA margin at 49.4%, up 28 bps YoY.

• Cost of debt as of March 31, 2025, at 8.57%, down 29 bps YoY.

• Consolidated revenue from operations for FY25 was ₹128,607.77 lakhs, up from ₹107,112.29 lakhs in FY24.

Outlook and guidance

• Confident in meeting five-year plan targets by 2028, with current inventory at 85% of the goal.

• Plan to add at least 3,000 rooms in FY26, aiming to surpass 20,000 rooms three years ahead of target.

• EBITDA margin expected to stabilize above 50% post-renovation, with internal targets of 54-55% by FY28.

• Renovation and tech investments to normalize, supporting margin expansion.

• Auditors issued unmodified opinions on both standalone and consolidated results.