LEMONTREEBSELemon Tree Hotels LtdMediumNeutral
Announced Thu, 28 May · 22:35 IST

Investor Presentation for the quarter and financial year ended on March 31, 2026

Mgmt Guided Margin ImprovementCfo Debt Reduction RoadmapInvestor Communications View source PDF

LEMONTREE · price

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Price reaction · full curve 14 horizons · vs prior close
-5.7%1-day move
₹118.80
prior close
₹121.00
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AI summary

Lemon Tree Hotels reported its best-ever FY26 with total revenue of ₹1,452.7 crore, up 13% YoY, and PAT of ₹288.3 crore, up 19% YoY. Net EBITDA margin contracted to 48.1% from 49.4% due to 580 basis points of drag from renovation spending, technology investments, and GST changes. Management expects these combined headwinds to decline to ~3.7% of revenue by FY28, enabling margin expansion. Debt was reduced to ₹1,500 crore from ₹1,699 crore with cost of debt falling to 7.42%. The company signed 55 new managed/franchised hotels with 4,912 rooms in FY26, expanding its total pipeline to 22,581 rooms across 268 hotels. A composite scheme of arrangement is planned to demerge Fleur Hotels as an independent listed entity, with Warburg Pincus investing ₹960 crore in Fleur.

Likely market impact

Strong revenue and profit growth despite margin pressure; the restructuring into Lemon Tree (asset-light platform) and Fleur Hotels (owned asset platform) should create shareholder value, with management guiding margin recovery by FY28 as one-time expenses normalize.