Lemon Tree Hotels Q3 FY26 Revenue at ₹407.8 Cr, EBITDA ₹206.4 Cr
Lemon Tree Hotels reported its highest-ever Q3 revenue of ₹407.8 crore and EBITDA of ₹206.4 crore for Q3 FY26. Profit after tax was ₹81.8 crore, up 2% YoY. The company added 1,855 rooms to its pipeline by signing 17 new contracts and operationalized 9 hotels. An analyst call is scheduled for February 10, 2026.
The results show positive financial performance and strategic growth in terms of new hotel signings and operational expansions, which are material for the company's future. The analyst call to discuss these results also indicates a medium level of impact for investors and analysts.
The company reported record Q3 revenue and EBITDA, with growth in key financial metrics and significant expansion in its hotel pipeline. Despite some margin pressure due to investments and GST impact, the overall financial performance and future outlook are positive.
Lemon Tree Hotels Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The company reported its highest-ever Q3 revenue and EBITDA, with total revenue reaching ₹407.8 crore, a 15% year-on-year increase. Net EBITDA grew by 12% year-on-year to ₹206.4 crore, resulting in 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 changes.
The company incurred an exceptional item expense of ₹31.3 crore related to the Labour Code Impact, Ex-Gratia payments, and property tax for New Delhi properties. Consequently, profit after tax stood at ₹81.8 crore, a 2% increase year-on-year. Cash profit for the quarter was ₹131.1 crore, up 14% year-on-year.
On the operational front, Q3 FY26 saw the signing of 17 new management and franchise contracts, adding 1,855 rooms to the pipeline. Additionally, 9 hotels with 816 rooms became operational. As of December 31, 2025, the group's total inventory comprised 259 hotels and 21,942 rooms, with 130 operational hotels and 129 in the pipeline.
Mr. Patanjali Keswani, Executive Chairman, noted that while expenses related to renovation, technology, and GST impacted margins, these are expected to reduce as a percentage of revenue by FY28. The company plans to open two blocks of Aurika, Shimla by Q2 FY26 and has signed a license deed for a 47-room heritage hotel in Varanasi.
The company will host an Investors/Analyst call to discuss these results on Tuesday, February 10, 2026, at 4:00 PM IST.
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Lemon Tree Hotels Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. 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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