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
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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.
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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.
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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.
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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.
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Total management fees: ₹34.3 crore in Q2 FY26 contributing to revenue stability.
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Debt-to-equity ratio improved to 1.67, the lowest point reflecting good deleveraging efforts.
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ROCE for H1 FY26 reached 15.93%, highest in recent periods indicating improved capital efficiency.
Management Commentary & Strategic Insights
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Management noted the record Q2 revenue despite GST transition and seasonal softness affecting operating margins.
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Focus on continued investment in renovation, technology, and improving customer experience to drive sustainable long-term growth.
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Strong demand in metropolitan and leisure destinations supports occupancy and pricing vitality.
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Management expects mid-teens RevPAR growth in H2 FY26 driven by ongoing hotel renovations and demand recovery.
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Efforts on cost control and operational excellence continue to offset pressure on margins.
Q1 FY26 Earnings Results
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Revenue: ₹317.4 crore, up 18% YoY from ₹268 crore.
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PAT: ₹48.3 crore, up 139% YoY from ₹19.8 crore.
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EBITDA: ₹142.2 crore, margin at 44.8%, up 23% YoY.
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Positive cash profits of ₹82.3 crore reflect solid operational efficiency.
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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.