Lemon Tree Hotels reported its highest-ever Q2 revenue at ₹308 Cr, up 8% year-over-year. Net EBITDA increased by 1% to ₹132.4 Cr. The company improved its credit rating to “A+,” reducing borrowing costs to 7.72%. During the quarter, 15 new management and franchise contracts were signed, adding 1,138 rooms to the pipeline.
Q2 FY26 Financial Performance
Lemon Tree Hotels announced its unaudited financial results for Q2 & H1 FY26. Key highlights from the second quarter include:
- Revenue grew by 8% year-over-year, reaching ₹308 Cr, marking the highest-ever Q2 revenue for the company.
- Net EBITDA increased by 1% year-over-year to ₹132.4 Cr, with a Net EBITDA Margin of 43%.
- The company’s profit after tax (PAT) stood at ₹41.9 Cr, an increase of 20% year-over-year.
- Gross Average Room Rate (ARR) increased by 6% to ₹6,247, and occupancy stood at 69.8%, an increase of 139 bps year-over-year.
H1 FY26 Performance Overview
The company also reported its financial performance for the first half of FY26:
- Total Revenue reached ₹625.4 Cr, up 13% year-over-year.
- Net EBITDA was reported at ₹274.6 Cr, an increase of 11% year-over-year.
- Profit after tax (PAT) increased by 63% year-over-year to ₹90.0 Cr.
Strategic Developments
During Q2 FY26, Lemon Tree Hotels signed 15 new management and franchise contracts, adding 1,138 new rooms to its pipeline. It also operationalized 5 hotels, adding 272 rooms to its operational portfolio. The company also won a Letter of Award for land in Nehru Place, New Delhi, for a proposed 500+ room Aurika hotel.
Operational Network
As of September 30, 2025, Lemon Tree Hotels’ total inventory stands at 242 hotels with 20,074 rooms. 121 hotels with 10,956 rooms are operational, and the remainder are in the pipeline.
Source: BSE
