Q4 2026 Lemon Tree Hotels Ltd Earnings Call Transcript
Key Points
- Lemon Tree Hotels Ltd (BOM:541233) reported its best year in history across key financial metrics such as occupancy, ARR, revenue, EBITDA, PBT, PAT, and cash profit.
- Total revenue for FY26 increased by 13% year-on-year to INR1,452.7 crore, with PAT growing by 19% to INR288.3 crore.
- The company successfully reduced its total borrowings from INR1,699 crore to INR1,500 crore, with the cost of debt falling to 7.42%.
- Lemon Tree Hotels Ltd (BOM:541233) opened 20 managed and franchised hotels with 1,523 rooms and signed 55 managed and franchised hotels with 4,912 rooms in FY26.
- The Indian hospitality market remains favorable, with demand consistently outpacing supply in the mid-market segment, where Lemon Tree Hotels Ltd (BOM:541233) operates.
- Net EBITDA margins for FY26 contracted by 126 basis points to 48.1%, with Q4 margins down by 198 basis points from the previous year.
- Margins were impacted by a 580 basis point increase in renovation expenditure, investments in technology, and GST-related changes.
- The GST impact is expected to continue affecting margins, although it is anticipated to decrease over time with price hikes and ARR growth.
- The company faced challenges due to intermittent global headwinds, including geopolitical tensions, aviation disruptions, and GST changes.
- The demerger process is expected to take 12 to 18 months, with potential delays due to procedural factors, particularly with NCLT approvals.
Ladies and gentlemen, good day, and welcome to Lemon Tree Hotels Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Lemon Tree Hotels Q4 and FY26 earnings conference call.
We have with us Mr. Patanjali Keswani, Executive Chairman of the company; Mr. Neelendra Singh, Managing Director; Mr. Kapil Sharma, Executive Director and CFO; Mr. Saurabh Shatdal, Managing Director and CEO of Fleur Hotels; and Mr. Mayank Sharma, CFO of Fleur Hotels.
We'd like to begin the call with opening remarks from the management, following which we'll have the forum open for an interactive question-and-answer session.
Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been
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