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Lemon Tree Hotels Q2 FY26 results: net profit up 19.7% to ₹41.93 crore, revenue up 7.7%
Lemon Tree Hotels Ltd reported Q2 FY26 consolidated revenue of ₹306.28 crore, up 7.7% from Q2 FY25, with a net profit of ₹41.93 crore against ₹35.04 crore a year earlier. EBITDA was ₹130.72 crore, marginally lower than ₹130.74 crore, and the EBITDA margin fell 3.3 percentage points to 42.7%. Against Q1 FY26, revenue fell 3.0% and profit after tax fell 12.8%.
Key points
- Q2 FY26 consolidated revenue of ₹306.28 crore was up 7.7% from ₹284.37 crore in Q2 FY25
- EBITDA of ₹130.72 crore was ₹0.02 crore lower than ₹130.74 crore in Q2 FY25, with margin down 3.3 percentage points to 42.7%
- Profit after tax rose to ₹41.93 crore from ₹35.04 crore, and basic EPS rose to ₹0.44 from ₹0.37
- Against Q1 FY26, revenue fell ₹9.49 crore and profit after tax fell ₹6.17 crore to ₹41.93 crore
- H1 FY26 revenue of ₹622.05 crore was up 12.6% and profit after tax of ₹90.03 crore was up 63.2%
How did Lemon Tree Hotels perform in Q2 FY26?
Lemon Tree Hotels reported consolidated revenue of ₹306.28 crore in Q2 FY26, up ₹21.91 crore or 7.7% from ₹284.37 crore in Q2 FY25. Total income, including other income, was ₹308.00 crore against ₹284.84 crore, up ₹23.16 crore or 8.1%. EBITDA was ₹130.72 crore, ₹0.02 crore lower than ₹130.74 crore a year earlier, and the EBITDA margin fell 3.3 percentage points to 42.7% from 46.0%.
Profit before tax rose to ₹55.82 crore from ₹45.11 crore, up ₹10.71 crore or 23.7%, and net profit rose to ₹41.93 crore from ₹35.04 crore, up ₹6.89 crore or 19.7%. Profit attributable to owners was ₹34.60 crore against ₹29.64 crore, and basic EPS was ₹0.44 against ₹0.37. On the standalone basis, revenue was ₹90.9 crore, up 4.6%, and net profit was ₹22.56 crore against ₹19.36 crore.
Against the previous quarter, Q1 FY26, revenue fell ₹9.49 crore or 3.0% from ₹315.77 crore, and EBITDA fell ₹9.79 crore or 7.0% from ₹140.51 crore, with margin down 1.8 percentage points to 42.7%. Profit before tax fell ₹7.44 crore to ₹55.82 crore, net profit fell ₹6.17 crore or 12.8% to ₹41.93 crore, and basic EPS fell ₹0.04 to ₹0.44.
| ₹ crore | Q2 FY26 | Q1 FY26 | Q2 FY25 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 306.28 | 315.77 | 284.37 | +7.7% | −3.0% |
| Other income | 1.72 | 1.64 | 0.47 | +266.0% | +4.9% |
| Total expenses | 252.17 | 254.15 | 239.73 | +5.2% | −0.8% |
| EBITDA | 130.72 | 140.51 | 130.74 | −0.0% | −7.0% |
| EBITDA margin | 42.7% | 44.5% | 46.0% | −3.3 pp | −1.8 pp |
| Profit before tax | 55.82 | 63.26 | 45.11 | +23.7% | −11.8% |
| Tax | 13.90 | 14.76 | 10.23 | +35.9% | −5.8% |
| Net profit | 41.93 | 48.10 | 35.04 | +19.7% | −12.8% |
| EPS (₹) | 0.44 | 0.48 | 0.37 | +18.9% | −8.3% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Lemon Tree Hotels' costs and profit?
Total expenses rose ₹12.44 crore or 5.2% to ₹252.17 crore from ₹239.73 crore in Q2 FY25. Within that, other expenses were up ₹14.83 crore or 18.1% at ₹96.99 crore, employee cost was up ₹4.23 crore or 7.8% at ₹58.53 crore, and cost of materials was up ₹2.88 crore or 16.8% at ₹20.04 crore.
Finance costs fell ₹9.03 crore or 17.6% to ₹42.30 crore from ₹51.33 crore, and depreciation fell ₹0.46 crore or 1.3% to ₹34.32 crore. Other income rose ₹1.25 crore to ₹1.72 crore from ₹0.47 crore. There was no exceptional item in either quarter, and tax expense rose ₹3.67 crore or 35.9% to ₹13.90 crore.
Management said the year-on-year fall in net EBITDA margin was primarily due to increased investment in renovation, technology and a one-time ex-gratia payment to employees arising from salary cuts during COVID. These three expense heads accounted for 8% of revenue in the quarter, and management expects them to reduce to 5% of revenue in the next year before stabilising at 2% of revenue by FY28 onwards.
| ₹ crore | Q2 FY26 | Q2 FY25 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 20.04 | 17.16 | +2.88 | +16.8% |
| Employee cost | 58.53 | 54.30 | +4.23 | +7.8% |
| Finance costs | 42.30 | 51.33 | −9.03 | −17.6% |
| Depreciation | 34.32 | 34.78 | −0.46 | −1.3% |
| Other expenses | 96.99 | 82.16 | +14.83 | +18.1% |
| Total expenses | 252.17 | 239.73 | +12.44 | +5.2% |
| Other income | 1.72 | 0.47 | +1.25 | +266.0% |
| Tax | 13.90 | 10.23 | +3.67 | +35.9% |
Source: Company's results filing (XBRL).
How did the first half of FY26 go?
In the first half of FY26, consolidated revenue was ₹622.05 crore, up ₹69.66 crore or 12.6% from ₹552.39 crore in H1 FY25. Total income rose ₹72.19 crore or 13.0% to ₹625.41 crore from ₹553.22 crore, and profit before tax rose ₹44.89 crore or 60.5% to ₹119.09 crore from ₹74.20 crore.
Net profit for the first half rose ₹34.87 crore or 63.2% to ₹90.03 crore from ₹55.16 crore, and basic EPS rose ₹0.30 to ₹0.92 from ₹0.62. On the standalone basis, first-half revenue was ₹90.9 crore, up 4.6%, and net profit was ₹22.56 crore against ₹19.36 crore.
| ₹ crore | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue from operations | 622.05 | 552.39 | +12.6% |
| Profit before tax | 119.09 | 74.20 | +60.5% |
| Net profit | 90.03 | 55.16 | +63.2% |
| EPS (₹) | 0.92 | 0.62 | +48.4% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
As at 30 September 2025, total assets were ₹4,120.26 crore against ₹4,081.79 crore as at 31 March 2025, and total equity was ₹1,879.80 crore against ₹1,789.60 crore. Borrowings fell to ₹1,610.19 crore from ₹2,147.65 crore, while cash fell to ₹38.68 crore from ₹55.42 crore. Inventories were ₹14.95 crore against ₹13.84 crore, trade receivables ₹86.64 crore against ₹78.62 crore, and trade payables ₹79.95 crore against ₹61.61 crore.
For H1 FY26, operating cash flow was ₹234.41 crore against ₹201.40 crore in H1 FY25. Investing cash flow was negative ₹72.96 crore against negative ₹38.95 crore, financing cash flow was negative ₹178.19 crore against negative ₹170.54 crore, and capital expenditure was ₹50.35 crore against ₹46.95 crore. Closing cash for H1 FY25 was ₹25.56 crore.
| ₹ crore | As of 30 September 2025 | As of 31 March 2025 |
|---|---|---|
| Total assets | 4,120 | 4,082 |
| Total equity | 1,880 | 1,790 |
| Borrowings | 1,610 | 2,148 |
| Cash and equivalents | 38.68 | 55.42 |
| Inventories | 14.95 | 13.84 |
| Trade receivables | 86.64 | 78.62 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY26 | H1 FY25 |
|---|---|---|
| Cash from operations | 234.41 | 201.40 |
| Cash from investing | −72.96 | −38.95 |
| Cash from financing | −178.19 | −170.54 |
| Capital expenditure | 50.35 | 46.95 |
Source: Company's results filing (XBRL).
How has Lemon Tree Hotels done over the last 8 quarters?
Revenue in the reported series bottomed at ₹268.02 crore in Q1 FY25 and reached its highest level at ₹378.52 crore in Q4 FY25. It then fell to ₹315.77 crore in Q1 FY26 and eased further to ₹306.28 crore in Q2 FY26, so the direction in the latest two quarters was lower.
Net profit bottomed at ₹20.12 crore in Q1 FY25 and peaked at ₹108.15 crore in Q4 FY25, before falling to ₹48.10 crore in Q1 FY26 and ₹41.93 crore in Q2 FY26. The EBITDA margin bottomed at 42.9% in Q1 FY25 and peaked at 53.9% in Q4 FY25, then fell to 44.5% and 42.7% in the two quarters since.
Revenue rose year on year in each of the last eight quarters, and profit rose year on year in each of the last five quarters, according to the reported trend.
What else did the company announce?
The board of Lemon Tree Hotels met on 12 November 2025 and approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2025, along with the limited review report of the statutory auditors on those results. The company had earlier intimated on 5 November 2025 that the trading window for dealing in shares by designated persons and their immediate relatives would remain closed until the expiry of 48 hours after the public announcement of the results.
A same-day investor presentation for Q2 and H1 FY26 was filed with the exchanges on 12 November 2025, and the company said the results would be discussed in an investors and analyst call on 13 November 2025 at 04:00 PM IST. The presentation noted that the Red Fox Hotel at Aerocity, Delhi had been rebranded as Lemon Tree Hotel, Aerocity, Delhi, allowing the hotel to be repriced from Q3 FY26.
What did Lemon Tree Hotels' management say?
Management said the group reached its highest-ever Q2 revenue of ₹308 crore, up 8% year on year, while net EBITDA rose 1% to ₹132.4 crore and the net EBITDA margin fell 306 basis points to 43% because of higher spending on renovation, technology and a one-time ex-gratia payment to employees. Management expects the three expense heads to fall from 8% of revenue in the quarter to 5% in the next year and stabilise at 2% by FY28 onwards.
On the call, Executive Chairman Patanjali Keswani said, "While these expenses/investments accounted for 8% of revenue in this quarter, we expect all these 3 expense heads to reduce to 5% of revenue in the next year, before stabilizing at 2% of revenue by FY28 onwards." He also said, "I would not worry about my headline number. That was to make it sound sexy. For us, it is a very, very good project."
Management said the FY26 EBITDA margin is held flat against FY25, with a net EBITDA margin excluding extraordinary items targeted above 59% by FY28. It guided to Q3 FY26 RevPAR growth in the mid-teens, said renovation spend of ₹130-140 crore in FY26 and a similar amount in FY27 before normalising to about 1.5% of revenue, and set a pipeline target of 35,000-40,000 rooms within 2.5 years.
Management said the Letter of Award for 2.25 acres of land in Nehru Place, New Delhi, would carry a 500 to 550-room Aurika hotel on the Fleur balance sheet, with lease rent of ₹27 crore escalating 5% annually over 55 years and an expected IRR north of 15%. It also said the credit rating was upgraded to A+ from A, with debt down ₹212 crore year on year to ₹1,610 crore and the cost of borrowing at 7.72% against 8.68% a year earlier.
How did Lemon Tree Hotels shares react?
The filing appeared after market hours, and the stock was down 2.7% five minutes after the filing, down 2.1% after 15 minutes and down 2.4% after 30 minutes. On the reaction day the stock fell 5.1% from its pre-results close, and by the next day's close it was down 4.3% from that same close. By the fifth session it was down 6.3% from the pre-results close, and over one month it was down 1.4%.
The Hotels & Resorts industry median moved up 0.3% on the reaction day and was down 0.2% by the next day's close and down 1.0% by five sessions, while the Nifty Smallcap 250 was down 0.4% on the reaction day and down 0.2% by the next day's close. The stock's move was 5.4 percentage points below the industry median on the reaction day, 4.2 percentage points below by the next day's close and 5.3 percentage points below by five sessions.
Earlier results-day moves were mixed: the stock fell 9.4% on 7 August 2024, fell 2.3% on 29 May 2025, fell 0.7% on 8 August 2025, was down 0.2% on 29 May 2024, and was up 0.2% on both 4 February 2025 and 14 November 2024.
| After the filing | Stock | Hotels & Resorts median |
|---|---|---|
| 5 minutes | −2.7% | |
| 15 minutes | −2.1% | |
| 30 minutes | −2.4% | |
| Reaction day | −5.1% | +0.3% |
| Next day | −4.3% | −0.2% |
| 5 days | −6.3% | −1.0% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 8 August 2025 | −0.7% |
| 29 May 2025 | −2.3% |
| 4 February 2025 | +0.2% |
| 14 November 2024 | +0.2% |
| 7 August 2024 | −9.4% |
| 29 May 2024 | −0.2% |
Source: MarketPing price-reaction measurement.
How did other Hotels & Resorts companies do?
Fifty other Hotels & Resorts companies were compared for revenue growth, with a median revenue growth of 1.9%. Of the peers compared, 32 grew slower than Lemon Tree Hotels and 18 grew faster than the company.
Of the 52 peers for which profit was compared, 23 reported higher profit than in the year-ago period.
| Lemon Tree Hotels revenue growth (YoY) | +7.7% |
|---|---|
| Median of 50 other Hotels & Resorts companies | +1.9% |
| Companies with slower revenue growth than Lemon Tree Hotels | 32 of 50 |
| Companies with faster revenue growth than Lemon Tree Hotels | 18 of 50 |
| Companies whose net profit rose | 23 of 52 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Lemon Tree Hotels' revenue in Q2 FY26?
Revenue from operations was ₹306.28 crore, up 7.7% from ₹284.37 crore in Q2 FY25 (consolidated).
Did Lemon Tree Hotels make a profit in Q2 FY26?
Yes. Net profit was ₹41.93 crore, against a net profit of ₹35.04 crore in Q2 FY25.
What was Lemon Tree Hotels' EPS in Q2 FY26?
Basic earnings per share were ₹0.44, against ₹0.37 in Q2 FY25.
How did Lemon Tree Hotels shares react to the Q2 FY26 results?
On the reaction day the stock moved −5.1% from the previous close; the median Hotels & Resorts stock moved +0.3%.
When did Lemon Tree Hotels announce its Q2 FY26 results?
On 12 November 2025, in a filing to the NSE.
Sources
- Board Meeting Intimation for Intimation Regarding Holding Of Meeting Of The Board Of Directors, Inter Alia, To Consider And Approve Unaudited Financial Results For The Quarter And Half Year Ended September 30, 2025 (BSE, 5 November 2025) · PDF
- Outcome of Board Meeting (NSE, 12 November 2025) · PDF
- The earnings call (19 November 2025)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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