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 full-year FY25 revenue of INR 1,288.4 crores, up 20% over FY24.

• Q4 net EBITDA grew 17% year-over-year to INR 205 crores, with a margin of 54%, and Q4 profit after tax was INR 108.1 crores, up 29% year-over-year.

• FY25 profit after tax was INR 243.1 crores, up 34% year-over-year; cash profit for FY25 was INR 382.4 crores, up 20%.

• Debt reduced by INR 190 crores during FY25, with debt-to-EBITDA ratio improving to 2.67x from 3.57x.

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

Financial highlights

• Q4 RevPAR rose 15% year-over-year to INR 5,462; occupancy increased 557 bps to 77.6%.

• Gross ARR for Q4 was INR 7,042, up 7% year-over-year; FY25 gross ARR at INR 6,381, up from INR 5,876 in FY24.

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

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

• Q4 FY25 consolidated net profit after tax was ₹10,814.53 lakhs, up from ₹8,399.78 lakhs in Q4 FY24.

Outlook and guidance

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

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

• EBITDA margin for FY25 at 49.4%, expected to stabilize above 50% post-renovation cycle.

• Retail demand share at 45% in FY25, with a target of 66% by 2028, supported by loyalty program relaunch.

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