Lemon Tree Hotels Limited (NSE: LEMONTREE) reported higher consolidated revenue and profit for the quarter ended Dec. 31, 2025, supported by growth across its owned, leased, managed and franchised hotel portfolio.
Latest quarterly results
Consolidated revenue for the third quarter rose to ₹407.8 crore, compared with ₹355.8 crore in the same period a year earlier, representing a year-on-year increase of 15%. Net EBITDA for the quarter stood at ₹206.4 crore, compared with ₹184.8 crore a year earlier. Net profit after tax rose to ₹81.8 crore from ₹79.8 crore in the corresponding quarter of the previous fiscal year, reflecting a 2% year-on-year increase.
Cash profit for the quarter was reported at ₹131.1 crore, up 14% year-on-year. The net EBITDA margin for the quarter stood at 50.6%, compared with 51.9% in Q3 FY25.
Nine-month results context
For the nine months ended Dec. 31, 2025, consolidated revenue rose to ₹1,033.2 crore from ₹909.0 crore in the corresponding period last year, marking a 14% year-on-year increase. Net EBITDA for the nine-month period stood at ₹481.0 crore, up 11% year-on-year. Profit after tax increased to ₹171.9 crore from ₹135.0 crore a year earlier, representing a 27% year-on-year rise.
Net EBITDA margin for the nine-month period stood at 46.6%, compared with 47.5% in the prior-year period.
Business and operations update
During the quarter, the company operationalized nine hotels, adding 816 rooms to its portfolio. Lemon Tree Hotels also signed 17 new management and franchise contracts during the quarter, adding 1,855 rooms to its pipeline.
As of Dec. 31, 2025, the group’s total portfolio comprised 259 hotels with 21,942 rooms, including 130 operational hotels with 11,772 rooms and a pipeline of 129 hotels with 10,170 rooms.
Management and franchise fees from third-party owned hotels stood at ₹22.9 crore in Q3 FY26, up 24% year-on-year. Fees from Fleur Hotels stood at ₹25.3 crore for the quarter. Total management fees for the group were reported at ₹48.2 crore.
The company continued renovation, technology upgrades and compliance-related investments during the quarter. Exceptional expenses of ₹31.3 crore were recorded, related to labour code provisions, ex-gratia payments to employees and property tax payments.
What to watch
Key areas to monitor include the pace of hotel openings from the existing pipeline, the contribution of management and franchise fees, and the impact of ongoing renovations and technology investments on operating metrics.
Performance summary
Lemon Tree Hotels reported higher quarterly and nine-month revenue. Net profit rose marginally in the quarter and increased on a nine-month basis. The hotel network expanded through new openings and contract signings. Management and franchise fees recorded year-on-year growth. The company closed the quarter with an expanded operational and pipeline portfolio.