Lemon Tree Hotels Q3 FY26 Earnings Call Transcript Released
Lemon Tree Hotels reported its highest ever revenue and EBITDA in Q3 FY26, with revenue at ₹407.8 crore and Net EBITDA at ₹206.4 crore. Profit after tax stood at ₹81.8 crore. The company signed 17 new management contracts adding 1,855 rooms to its pipeline. Renovations are ongoing, with completion targeted by next year. Future quarters are expected to show improved performance.
The announcement provides details on financial performance and future outlook, which are material to investors. However, it is a transcript of a past event (concall) and does not contain new, material announcements or significant forward-looking guidance beyond what was likely discussed.
The company reported record revenue and EBITDA, along with strong growth in managed contracts and a positive outlook for future quarters, indicating a favorable financial performance and growth trajectory.
Lemon Tree Hotels Limited has released the transcript of its conference call with analysts and institutional investors, held on February 10, 2026, to discuss the unaudited financial results for the quarter and nine months ended December 31, 2025.
During the call, the management reported that in Q3 FY26, Lemon Tree achieved its highest ever revenue and EBITDA. Revenue grew by 15% year-on-year to ₹407.8 crore, and Net EBITDA increased by 12% year-on-year to ₹206.4 crore, with a Net EBITDA margin of 50.6%. This margin saw a decrease of 133 basis points year-on-year, attributed to increased investments in renovation, technology, and the impact of GST. The company expects these expenses to reduce to about 3.6% of revenue by FY28.
Gross ARR for Q3 FY26 was ₹7,487, an 11% increase year-on-year, while occupancy stood at 73.4%, a slight decrease of 82 basis points year-on-year. RevPAR increased by 9% year-on-year to ₹5,494. Profit after tax for the quarter was ₹81.8 crore, a 2% increase year-on-year. Cash profit rose by 14% year-on-year to ₹131.1 crore.
In terms of asset-light growth, the company signed 17 new management and franchise contracts in Q3, adding 1,855 rooms to its pipeline, and operationalized 9 hotels with 816 rooms. As of December 31, 2025, the group's total inventory comprised 259 hotels and 21,942 rooms.
Management discussed ongoing renovations, particularly in the Keys portfolio and other owned properties, with a target to complete renovations on approximately 4,100 rooms by next year. They also elaborated on rebranding initiatives, such as converting Red Fox Hotel, New Delhi, to Lemon Tree, and plans for Aurika hotels in Shimla and Varanasi.
The company anticipates improved performance in the coming quarters, with February and March looking particularly strong. Future growth strategies include expanding the Aurika brand, potential acquisitions, and leveraging technology for revenue management and personalization.
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Lemon Tree Hotels Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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