India · Delayed Price · Currency is INR Lemon Tree Hotels Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 delivered record revenue, EBITDA, and PAT, despite macro headwinds and GST changes. The demerger will create a debt-free, asset-light management company and a growth-focused hotel ownership platform, with strong expansion plans and improving margins expected as renovation and GST impacts subside.
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Record Q3 revenue and EBITDA were achieved, with strong ARR and RevPAR growth in key markets, though overall RevPAR lagged industry due to Gurugram weakness and renovation disruptions. Renovation, tech, and GST expenses are expected to decline, supporting margin expansion, while the demerger will make the company asset-light and debt-free.
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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 revenue hit a record INR 308 crore, up 8% year-on-year, with profit after tax rising 20%. Margin pressure from renovations and tech investments is expected to reverse as upgrades complete, supporting a positive H2 outlook and mid-teens revenue growth in Q3.
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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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Record revenue and EBITDA growth were achieved, with strong occupancy and margin improvements. Renovation and tech investments are peaking, with margins expected to rise above 50% as these normalize. Expansion into new cities and a revamped loyalty program are set to drive future growth.
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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 strong fee growth were achieved despite renovation-related margin pressure and inventory shutdowns. Management expects robust RevPAR and margin recovery post-renovation, with a bullish long-term outlook supported by structural demand drivers.
Fiscal Year 2024
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Record Q4 and FY 2024 results with strong ARR, revenue, and cash profit growth, despite margin pressure from renovations. Management expects at least 15% annual revenue growth, continued renovation investment, and a debt-free balance sheet within four years.