Lemon Tree Hotels Ltd
Lemon Tree Hotels Q1 FY27 earnings call: Revenue & Margins
Q1 FY27 earnings call: what management said on revenue, margins and capex.
Guidance rank: #13 of 31 in Leisure Services
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Lemon Tree Hotels Ltd Q1 FY27 key numbers
- Revenue
- Targeting to increase average room rates over Rs. 7,500 progressively to reduce GST impact and improve margins (p.26-27).
As stated in Lemon Tree Hotels Ltd's Q1 FY27 earnings call transcript · published 25 Aug 2026. Reported figures, not investment advice.
The short version
Expecting more output from segmental opportunities in the second half of the year as execution intensifies (p.28). EBITDA margins expected to expand to 50% next year as renovation expenses drop and revenue grows. - Revenue growth driven by increased occupancy, with variable costs rising proportionally and fixed costs growing at inflation. - Management fee income from third-party and Fleur hotels expected to grow rapidly due to significant additions in managed rooms (5,000 new rooms expected to open by FY29). - Below-the-line expenses like corporate costs and talent/technology investments will reduce as a percentage of revenue, aiding margin expansion. - Renovation spends tapering off, improving margins in H2 this year and into next year. - GST impact expected to reduce progressively as average room rates above Rs.
From Lemon Tree Hotels Ltd's Q1 FY27 earnings-call transcript · updated 16 Oct 2026.
Revenue & Sales Performance
- Expecting more output from segmental opportunities in the second half of the year as execution intensifies (p.28).
- Targeting to increase average room rates over Rs. 7,500 progressively to reduce GST impact and improve margins (p.26-27).
- Planning to add approximately 2,000 rooms annually from FY27 to FY30, with over 5,000 rooms expected to open by FY29, representing 45% growth in the managed portfolio (p.25, p.15).
- Management fee income and network revenue from third-party hotels and Fleur expected to grow strongly due to accelerated signing and opening of rooms (p.15, p.25).
2 more points from Lemon Tree Hotels Ltd's call on revenue
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Profitability & Margins
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Capital Expenditure Plans
- Renovation spend: Close to Rs. 450 crore on renovations over approximately 2 years, targeting ~50% EBITDA improvement post-stabilization. Major spends include Rs. 35-50 crore each on Lemon Tree Premier Hyderabad and Delhi.
- Technology investment: Ongoing multi-year investment to upgrade ERP, revenue management, sales tools (like Salesforce), loyalty programs, and website; aiming for operational efficiency and enhanced booking contributions.
- Room additions: Targeting addition of 2,000 rooms from 2026 to 2030, with a focus on managing fixed cost impact.
- Fleur Investments: Planning Rs. 2,500 - Rs. 3,000 crore investments in Fleur (managed portfolio and greenfield projects), leveraging Rs. 960 crore capital infusion by Warburg plus existing balance sheet funds.
2 more points from Lemon Tree Hotels Ltd's call on capex
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Top-ranked in Leisure Services
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
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Order Book & Pipeline
- The company has a strong order book and pipeline with 5,000 rooms signed in FY26 and expected to open around 5,000 rooms in FY29 in the Lemon Tree managed portfolio.
- Currently operating approximately 12,000 rooms.
- In Q1 FY27, 334 keys were opened against a target of 2,000 keys to be added in FY27, with confidence expressed in achieving the 2,000 keys target despite some potential minor slippage.
- The company is actively evaluating opportunities in existing hotels and new developments.
- Renovation of 300 rooms completed in the quarter with similar numbers anticipated in the next quarter.
- Renovation in the Keys portfolio was 2/3rd complete as of 30th June 2026.
2 more points from Lemon Tree Hotels Ltd's call on order book
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What the Q1 FY27 call signalled
4 of 5 strong
Lemon Tree Hotels Ltd — Quarterly revenue & net profit
Q1 FY27 figures are not in this chart yet. Latest shown: Dec 2025 (Q3 FY26). The Q1 FY27 numbers from the filing are in the analysis on this page.
Reported quarterly figures (₹ Cr). Latest (Q3 FY26): revenue ₹406 Cr, net profit ₹82 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Lemon Tree Hotel's management said in earlier quarters
Others in Leisure Services this season
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- ITC Hotels (Q1 FY27)
Consolidated Revenue from Operations for Q1 FY27: ₹936 crore, up 15% YoY. Key concall takeaways from ITC Hotels Ltd's Q1 FY27 earnings call — and how it ranks…
- TajGVK Hotels (Q1 FY27)
Reported revenue for Q1 FY27: ₹10,942 lakhs . Key concall takeaways from TajGVK Hotels & Resorts Ltd's Q1 FY27 earnings call — and how it ranks against sector…
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on management's own guidance
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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.
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Frequently Asked Questions
What were Lemon Tree Hotels Ltd Q1 FY27 results?
Expecting more output from segmental opportunities in the second half of the year as execution intensifies (p.28). EBITDA margins expected to expand to 50% next year as renovation expenses drop and revenue grows. - Revenue growth driven by increased occupancy, with variable costs rising proportionally and fixed costs growing at inflation. - Management fee income from third-party and Fleur hotels expected to grow rapidly due to significant additions in managed rooms (5,000 new rooms expected to open by FY29). - Below-the-line expenses like corporate costs and talent/technology investments will reduce as a percentage of revenue, aiding margin expansion. - Renovation spends tapering off, improving margins in H2 this year and into next year. - GST impact expected to reduce progressively as average room rates above Rs.
What is Lemon Tree Hotels Ltd share price analysis?
Lemon Tree Hotels Ltd currently shows a below-average growth signal. The stock trades at a P/E of 35.3 with a market cap of ₹9,023 Cr. Investors should review the full earnings analysis for detailed insights.
Is Lemon Tree Hotels Ltd planning capital expenditure?
Renovation spend: Close to Rs.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.