Lemon Tree Hotels Limited has informed the Exchange about Transcript
LEMONTREE · price
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Lemon Tree Hotels reported its highest-ever Q4 revenue of Rs. 379.4 crore, up 15% year-on-year, with net EBITDA of Rs. 205 crore (up 17%) and EBITDA margin of 54%, expanding 109 basis points. Full-year FY25 revenue grew 20% to Rs. 1,288 crore, and Q4 profit after tax rose 29% to Rs. 108.1 crore. The company reduced debt by Rs. 190 crore in FY25, bringing the debt-to-EBITDA ratio down to 2.67x from 3.57x. Management signed 15 new management and franchise contracts in Q4, adding 833 rooms, and now sits at 85% of its 5-year (CY28) target, expecting to cross 20,000 rooms this fiscal — three years ahead of schedule. Management guided FY28 EBITDA margin to around 55% (versus 49.4% in FY25), driven by renovation expenses dropping from 2.7% to 1.2-1.3% of revenue and lower technology investments post-FY27. The company also confirmed plans to list subsidiary Fleur Hotels as a separate asset-owning vehicle, while Lemon Tree becomes more asset-light and a brand/management platform.
The strong Q4 print, debt reduction, and upgraded FY28 margin guidance (55% versus 50% plan target) are positive signals for shareholders. The planned Fleur Hotels listing could unlock value and sharpen the asset-light focus. However, May 2025 saw a sharp slowdown in revenue growth to 14% (from 20%+ in March/April) due to geopolitical tensions and renovation-related disruptions, so near-term Q1 FY26 results may show some pressure before momentum resumes.