Lemon Tree Hotels delivered robust financial results for the June quarter, with consolidated net profit attributable to equity holders rising 20.09% year-on-year to ₹46.03 crore for the quarter ended June 30, 2026, compared with ₹38.33 crore in the corresponding period last year. According to reports from Business Standard, revenue from operations grew 9.13% year-on-year to ₹344.61 crore in the June quarter from ₹315.77 crore in the same period last year. The company's profit before tax (PBT) climbed 25.85% YoY to ₹79.11 crore in Q1 FY27, demonstrating strong operational performance across key financial metrics. Latest brokerage estimates suggest the company is expected to report a consolidated net profit of nearly ₹455 million for the June quarter, representing a 19% year-on-year increase but a 51% decline on quarter, with revenue expected at ₹3.4 billion, up 9% year-on-year but down 18% quarter-on-quarter. The latest board meeting for Lemon Tree Hotels took place on 07 August 2026 for the purpose of Quarterly Results.
The company demonstrated strong operational performance with net EBITDA increasing 7% to ₹151.9 crore in Q1 FY27, compared with ₹142.1 crore in Q1 FY26, though EBITDA margin moderated to 43.8% from 44.8% in the year-ago quarter. According to Business Standard, the company reported significant improvements in key operating parameters during the quarter. Average room rate (ARR) increased 2% YoY to ₹6,361 from ₹6,236, while occupancy improved to 75.7% from 72.5%, representing a 314-basis-point increase. Revenue per available room (RevPAR) rose 6% YoY to ₹4,814, indicating strong demand and pricing power. The company expanded its room inventory by 12% YoY to 11,946 rooms during the quarter, while network revenue grew 16% year-on-year to ₹576 crore, with owned hotels contributing ₹320 crore and managed and franchised properties contributing ₹256 crore.
Lemon Tree Hotels continued its aggressive expansion strategy during the quarter, opening seven hotels with 723 rooms across 9 properties in 8 cities, including new locations in Srinagar, Baddi, Lucknow and Amritsar. According to Business Standard, the company's operational and pipeline inventory now stands at 23,381 rooms across 279 hotels in more than 170 cities, with 135 hotels and 11,946 rooms already operational. Executive Chairman Patanjali Keswani highlighted the company's asset-light strategy, noting they opened 6 managed and franchised hotels with 334 rooms during the quarter, while also signing 13 managed and franchised hotels with 1,020 rooms - over 3x the inventory opened. The company also made significant progress on upcoming properties, with ₹108 crore deployed at Aurika, Shimla (90-room owned hotel) and ₹33 crore at Aurika, Shillong (165-room leased hotel), with both expected to open shortly.
The company's board approved the execution of a Joint Venture Agreement between its wholly owned subsidiary Carnation Hotels and RJ Corp for Arum Hotels, a special purpose vehicle established for the development and execution of the Aurika Shillong project. Under the agreement, Carnation Hotels will hold a 51% equity stake in Arum Hotels, while RJ Corp will hold the remaining 49%. According to Business Standard, fees from management and franchise contracts for third party-owned hotels stood at ₹22.8 crores in Q1 FY27, an increase of 42% year on year, while fees from Fleur Hotels stood at ₹22.6 crore, up 6% year on year. Total management fees for Lemon Tree stood at ₹45.4 crore, an increase of 21% year on year, indicating strong growth in the company's fee-based revenue streams.
Despite the strong quarterly results, Lemon Tree Hotels shares ended lower ahead of the earnings announcement, settling at ₹111.05 on Friday, 7 August 2026, declining 1.51% from the previous close. According to Business Standard, the stock decline occurred before the company's June quarter earnings announcement, reflecting market expectations or other factors affecting investor sentiment. However, the stock has been under pressure, down more than 2% since the company reported its March quarter earnings on May 29. Among 12 brokerage reports available, 11 have a 'buy' recommendation on the stock with an average target price of ₹162 per share, signifying an upside of almost 46% from the current market price, while one brokerage maintains a 'hold' recommendation with an average target price of ₹123. Recent technical analysis shows the stock has experienced a 4.26% gain on 4 Aug 2026, though it remains in a bearish to mildly bearish trend amid challenging market conditions.
