India · Delayed Price · Currency is INR Lemon Tree Hotels Earnings Call Transcripts
Fiscal Year 2026
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Record Q3 FY26 revenue and EBITDA were achieved, driven by ARR growth and new hotel additions, though margins were impacted by renovation, tech investments, and GST. Renovation and expansion continue, with a strong pipeline and asset-light strategy post-demerger.
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A major reorganization will create a debt-free, asset-light Lemon Tree focused on management and brand, and a capitalized, asset-heavy Fleur for hotel ownership and development. Warburg Pincus will invest INR 960 crore in Fleur, supporting aggressive expansion. Margins and EBITDA are expected to rise significantly post-restructuring.
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Q2 FY2026 saw record revenue and strong profit growth despite industry headwinds, with major renovations and tech investments temporarily impacting margins. The outlook is positive, with margin expansion expected as renovation spend normalizes and demand rises, especially in key markets and new projects like Aurika Nehru Place.
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Record Q1 revenue and profit growth driven by higher occupancy, ARR, and strong cost control. Renovation and tech investments are set to boost margins further, with asset-light and asset-heavy strategies supporting ambitious expansion plans.
Fiscal Year 2025
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Q4 and FY25 saw record revenue and profit growth, with strong EBITDA margins and reduced debt. Renovation and tech investments are peaking, with margins expected to rise post-cycle. Expansion is focused on tier 2/3 cities, and a Fleur Hotels listing is under consideration.
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Q3 saw record revenue and strong margin expansion, with profit after tax up 82% year-on-year. Renovation and asset-light expansion drive future growth, with a target of 20,000 rooms in 12-15 months and a focus on mid-market demand.
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Q2 saw record revenue and strong EBITDA growth, driven by higher rates and management fees, despite lower occupancy from renovations. Debt reduction continued, and robust demand is expected to sustain growth, with renovations and new contracts expanding the portfolio.
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Record Q1 revenue and ARR growth were achieved despite renovation-related margin pressure and inventory shutdowns. Renovation and digital investments are expected to drive higher rates and margins from FY26, with full portfolio readiness by FY27 and a return to 50% EBITDA margins as one-off costs subside.
Fiscal Year 2024
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Q4 FY24 saw record ARR, revenue, and EBITDA, with full-year revenue up 23% and network revenue up 32%. Renovation investments impacted margins but are expected to drive future growth, with at least 15% annual revenue growth targeted and a debt-free balance sheet within four years.