Lemon Tree Hotels reported a 15% year-over-year increase in revenue for Q3 FY26, reaching ₹407.8 Cr, the highest ever for the company. Net EBITDA grew by 12% to ₹206.4 Cr. The company signed 17 new management and franchise contracts, adding 1,855 rooms to its pipeline and operationalized 9 hotels, adding 816 rooms to its operational portfolio.
Financial Highlights
Lemon Tree Hotels announced its Q3 FY26 results, with revenue reaching an all-time high of ₹407.8 Cr, a 15% increase compared to Q3 FY25. Net EBITDA grew by 12% Y-o-Y to ₹206.4 Cr, resulting in a Net EBITDA Margin of 50.6%. The company’s profit after tax stood at ₹81.8 Cr, reflecting a 2% increase Y-o-Y. Cash profit increased by 14% Y-o-Y to ₹131.1 Cr.
Operational Performance
The company recorded a Gross ARR of ₹7,487 in Q3 FY26, which is an 11% increase Y-o-Y. Occupancy for the quarter stood at 73.4%, translating into a RevPAR of ₹5,494, an increase of 9% Y-o-Y.
Expansion and Pipeline
Lemon Tree Hotels expanded its asset-light portfolio by signing 17 new management and franchise contracts, adding 1,855 new rooms to its pipeline. It also operationalized 9 hotels, adding 816 rooms to its operational portfolio. Total inventory for the group stands at 259 hotels and 21,942 rooms as of September 30, 2025, with 130 hotels operational and the rest in the pipeline. Fees from management and franchised contracts for third-party-owned hotels stood at ₹22.9 Cr in Q3 FY26, an increase of 24% Y-o-Y.
Strategic Initiatives
The company is initiating design and approvals for Aurika, Nehru Place. They plan to open 2 out of 3 blocks of Aurika, Shimla by Q2 of the year. They signed a license deed for a 47-room heritage hotel at Varanasi in January 2026.
Key Metrics
The total revenue was ₹407.8 Cr, up 15%. Net EBITDA was ₹206.4 Cr, up 12%. The Net EBITDA margin was 50.6%. The PAT was ₹81.8 Cr, up 2% and the cash profit was ₹131.1 Cr, up 14%.
Source: BSE
