Lemon Tree Q2 FY26 Earnings Results

Lemon Tree Hotels Ltd is largest mid-priced and the third largest overall hotel chain in India. It operate in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.

 

Q2 FY26 Earnings Results

• Consolidated Revenue: ₹306 crore, the highest-ever Q2 revenue, up 8% YoY from ₹284 crore in Q2 FY25 and down 3% QoQ from ₹317 crore in Q1 FY26.​

• EBITDA: ₹132.4 crore, up 1% YoY with an EBITDA margin of 43%, although operating margins contracted sequentially by 182 bps to 42.7%, reflecting rising operating costs.​

• Profit After Tax (PAT): ₹41.9 crore, a 20% increase YoY from ₹35 crore despite a 9.7% sequential decline, marking strong bottom-line growth in a challenging environment.​

• Average Room Revenue (ARR): ₹6,236, up 10% YoY; occupancy rate improved by almost 5.9 percentage points YoY to 72.5%, and RevPAR rose 19% YoY to ₹4,523 in Q1 FY26.​

• Total management fees: ₹34.3 crore in Q2 FY26 contributing to revenue stability.​

• Debt-to-equity ratio improved to 1.67, the lowest point reflecting good deleveraging efforts.​

• ROCE for H1 FY26 reached 15.93%, highest in recent periods indicating improved capital efficiency.​

 

Management Commentary & Strategic Insights

• Management noted the record Q2 revenue despite GST transition and seasonal softness affecting operating margins.​

• Focus on continued investment in renovation, technology, and improving customer experience to drive sustainable long-term growth.​

• Strong demand in metropolitan and leisure destinations supports occupancy and pricing vitality.

• Management expects mid-teens RevPAR growth in H2 FY26 driven by ongoing hotel renovations and demand recovery.​

• Efforts on cost control and operational excellence continue to offset pressure on margins.​

 

 

Q1 FY26 Earnings Results

• Revenue: ₹317.4 crore, up 18% YoY from ₹268 crore.

• PAT: ₹48.3 crore, up 139% YoY from ₹19.8 crore.

• EBITDA: ₹142.2 crore, margin at 44.8%, up 23% YoY.

• Positive cash profits of ₹82.3 crore reflect solid operational efficiency.

• Debt reduced by 11% YoY to ₹1,658 crores aiding financial strength.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.