Lemon Tree HotelsNSE:LEMONTREE +1.45%81 Gross Margin % is 79.52% as of Mar. 2026, which is 20% above its 10-year median of 66.28. GuruFocus rates NSE:LEMONTREE with a GF Score™ of 81/100 and a GF Value™ of ₹179.42 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 790 Travel & Leisure companies, Lemon Tree Hotels ranks better than 86.96% on this metric.
The historical rank and industry rank for Lemon Tree Hotels's Gross Margin % or its related term are showing as below:
NSE:LEMONTREE'
s Gross Margin % Range Over the Past 10 Years
Min: 61.56 Med: 66.28 Max: 77.57
Current: 77.57
During the past 13 years, the highestGross Margin % of Lemon Tree Hotels was 77.57%. The lowest was 61.56%. And the median was 66.28%.
NSE:LEMONTREE's Gross Margin % is ranked better than 86.96% of 790
companies
in the Travel & Leisure industry
Industry Median: 44.09
vs NSE:LEMONTREE: 77.57
Lemon Tree Hotels had a gross margin of 79.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lemon Tree Hotels was 4.80% per year.
Lemon Tree Hotels (NSE:LEMONTREE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lemon Tree Hotels had a gross margin of 79.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lemon Tree Hotels Gross Margin % Related Terms
Lemon Tree Hotels Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lemon Tree Hotels's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:LEMONTREE vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Lemon Tree Hotels's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lemon Tree Hotels Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Lemon Tree Hotels's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lemon Tree Hotels's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lemon Tree Hotels (NSE:LEMONTREE) has a Gross Margin % of 79.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lemon Tree Hotels and its competitors. This is 20% above median its historical median of 66.28. Over the past decade, Lemon Tree Hotels' Gross Margin % has ranged from 61.56 to 77.57. According to the industry distribution chart, Lemon Tree Hotels ranks #103 out of 790 companies in the Travel & Leisure industry, placing it in the top 13%.
Is Lemon Tree Hotels' Gross Margin % too high?
Lemon Tree Hotels' current Gross Margin % of 79.52% is 20% above median its 10-year median of 66.28. Over the past 10 years, this metric has ranged from a low of 61.56 to a high of 77.57. The Travel & Leisure industry median Gross Margin % is 44.09. Lemon Tree Hotels' value of 79.52% is 80.4% above this industry median. Based on the distribution chart, Lemon Tree Hotels ranks #103 out of 790 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Lemon Tree Hotels has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lemon Tree Hotels' Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Lemon Tree Hotels ranks #103 out of 790 companies for Gross Margin %. This places Lemon Tree Hotels in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 44.09. Lemon Tree Hotels' value of 79.52% is 80.4% above this benchmark. Historically, Lemon Tree Hotels' own Gross Margin % has ranged from 61.56 to 77.57 over the past decade. While the company's 10-year median is 66.28 vs. the industry median of 44.09, Lemon Tree Hotels has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.09, based on 790 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lemon Tree Hotels's current Gross Margin % of 79.52% is 80.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lemon Tree Hotels and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lemon Tree Hotels's current Gross Margin % is 79.52%, which is 20% above median its own 10-year median of 66.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lemon Tree Hotels stock overvalued right now?
Based on GuruFocus' analysis, Lemon Tree Hotels (NSE:LEMONTREE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹179.42, compared to a current price of ₹118.34 — trading 34% below its estimated fair value. The current Gross Margin % is 79.52%, which is 20% above median its 10-year median of 66.28 and 80.4% above the Travel & Leisure industry median of 44.09. Lemon Tree Hotels' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lemon Tree Hotels (NSE:LEMONTREE), the current Gross Margin % is 79.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lemon Tree Hotels (NSE:LEMONTREE) Overvalued in 2026?
Based on GuruFocus' analysis, Lemon Tree Hotels stock appears to be undervalued.
The current stock price of ₹118.34 is trading 34% below its estimated GF Value™ of ₹179.42.
GuruFocus considers Lemon Tree Hotels to be Significantly Undervalued.
Key valuation signals for NSE:LEMONTREE:
Gross Margin %: 79.52% (20% above median its 10-year median of 66.28)
GF Value™: ₹179.42 vs. price of ₹118.34 (34% below fair value)
Industry Position: 80.4% above the Travel & Leisure median (#103 of 790)
No single metric tells the full story. See the NSE:LEMONTREE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lemon Tree Hotels Ltd operates hotels across the upscale, upper-midscale, midscale, and economy segments under seven brands catering to varied guest needs. These include Aurika Hotels and Resorts (upscale), Lemon Tree Premier and Keys Prima (upper-midscale), Lemon Tree Hotels and Keys Select (midscale), and Red Fox and Keys Lite (economy). The company generates revenue by owning, leasing, and managing hotels, earning through room rentals and management commissions. Its operations span metro regions and tier cities across India, with international presence in countries like the United Arab Emirates, Bhutan, and Nepal, focusing on delivering differentiated service and value offerings to a broad customer base.
81GF Score
Get the complete analysis for NSE:LEMONTREE
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:LEMONTREE has been successfully added to your 
