Lemon Tree Hotels Limited has informed the Exchange about Investor Presentation
LEMONTREE · price
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Lemon Tree Hotels reported its best-ever full year performance in FY26 with revenue of ₹1,452.7 crore (up 13%), EBITDA of ₹699.3 crore (up 10%), and PAT of ₹288.3 crore (up 19%). However, EBITDA margins contracted to 48.1% from 49.4% due to 580 basis points impact from renovation costs, technology investments, and GST changes. Q4 FY26 also set records with revenue of ₹419.5 crore (up 11%) and PAT of ₹116.5 crore (up 8%), though Q4 margins fell to 52% from 54% in Q4 FY25. Management explained that renovation and GST headwinds will reduce to ~3.7% of revenue by FY28, enabling margin expansion. Debt was reduced by ₹199 crore to ₹1,500 crore with cost of debt falling 115 bps to 7.42%. The company also disclosed plans for a composite scheme of arrangement to de-merge Fleur Hotels as an independent listed entity, which management says will be value-accretive for Lemon Tree shareholders.
Strong earnings growth and debt reduction are positives, but margin contraction due to one-time investments raises near-term concerns. The upcoming analyst call on May 29, 2026 may provide clearer guidance on margin recovery timeline and multi-year growth targets. The Fleur de-merger could unlock value and improve valuation transparency for the asset-light business.