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112-November-2025 Q2 and H1 FY26 Earnings Presentation Q2 and H1 FY26 Earnings Presentation 12th November 2025 Aurika, UdaipurAurika, Mumbai SkyCity
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2Q2 and H1 FY26 Earnings Presentation12-November-2025 Disclaimer Aurika, Udaipur Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regula tions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially fr om those suggested by the forward- looking statements. Important developments that could affect the Company’s operations include changes in the industry structu re, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labo ur relations. Lemon Tree Hotels Limited (LTH) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward -looking statements to reflect subsequent events or circumstances.
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Commenting on the performance for Q2 and H1 FY26, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, During the first half of the year, the industry faced multiple headwinds — including geopolitical tensions, floods, airplane accident, tariff wars, and GST revisions — which resulted in muted demand. Despite these headwinds, in Q2, Lemon Tree recorded its highest-ever Q2 revenue. At Rs. 308 Cr., our revenue grew by 8% compared to Q2 last year, Net EBITDA grew 1% Y-o-Y to Rs. 132.4 Cr. translating into a Net EBITDA Margin of 43% which decreased by 306bps Y-o-Y primarily due to increased investments in renovation, technology and a one- time ex-gratia payments to employees. These accounted for 8% of revenue for this quarter, we expect all these 3 expense heads to reduce to ~5% of revenue in FY27 before stabilizing at ~2% of revenue by FY28 and onwards. We have completed significant renovations in H1 this year with major upgrades being completed in the Delhi, Bangalore and Hyderabad markets and the Keys portfolio. Post the upgradations, the Red fox Hotel at Aerocity, Delhi has been rebranded as Lemon Tree Hotel, Aerocity, Delhi which will now allow us to reprice the hotel from Q3 TY and capture higher revenue from the asset. Similar upgrades have occurred in our two hotels at Hitech city, Hyderabad and in Whitefield and Electronic city in Bangalore. As an example, we have seen increased performance of the Keys Select Hotel in Pune after rebranding to a higher brand i.e. Keys Prima which led to a 47% increase in RevPAR Y-o-Y. Q2 FY26 recorded a Gross ARR of Rs. 6,247 which increased by 6% Y-o-Y. The occupancy for the quarter stood at 69.8%, an increase of 139 bps Y-o-Y. This translated into a RevPAR of Rs. 4,358 which increased by 8% Y-o-Y. The company's profit after tax stood at Rs. 41.9 Cr. in Q2 FY26, an increase of 20% Y-o-Y. Cash profit for the company stood at Rs. 76.3 Cr in Q2 FY26, an increase of 9.2% Y-o-Y. The debt for the company stood at Rs. 1,610Cr. as of 30th Septmber,2025, a fall of Rs. 212 Cr. vis-à-vis Rs 1,822 Cr. on 30th September,2024. Lemon Tree improved its credit rating to “A+” from “A” and this significantly reduced our cost of borrowings over the year to 7.72% in Q2 FY26 as compared to 8.68% in Q2 FY25. On the asset-light side, in Q2 we signed 15 new management and franchise contracts, adding 1,138 new rooms to our pipeline, and operationalized 5 hotels, adding 272 rooms to our operational portfolio. Lemon Tree also won the Letter of Award for 2.25 acres of land in Nehru Place, New Delhi. The proposed hotel on this site will be a 500+ room Aurika and initial approvals and design of the hotel are currently underway. This will give Lemon Tree a long-term strategic advantage with a very large hotel in a prime location with minimal anticipated supply growth in the foreseeable future and with extremely high revenue potential. As of September 30, 2025, the total inventory for the group stands at 242 hotels and 20,074 rooms with 10,956 rooms and 121 hotels being operational and the rest in pipeline. Fees from management and franchised contracts for third-party-owned hotels stood at Rs. 14.3 Cr in Q2 FY26, an increase of 7% Y-o-Y. Fees from Fleur Hotels stood at Rs. 19.9 Cr in Q2 FY26, an increase of 8% Y-o-Y. Total management fees for Lemon Tree stood at Rs. 34.3 Cr in Q2 FY26. Although there have been delays in the scheduled openings of managed and franchised hotels due to factors beyond our control, we are very confident of accelerated growth in our management fees going forward. While Q2 posed headwinds, our outlook for H2 remains positive with our continued investments in renovation & technology leading to a meaningful increase in Occupancy and ARR across the portfolio. Chairman & Managing Director’s Message 312-November-2025 Q2 and H1 FY26 Earnings Presentation