Lemon Tree Hotels submits FY26 BRSR report to exchanges
- Lemon Tree Hotels submitted its FY26 BRSR report, disclosing consolidated ESG performance
- Achieved 100% certified green buildings and 50.66% renewable energy usage at exit rate
- Missed targets for energy reduction, GHG cuts, and workforce diversity goals
- Total energy consumption rose to 3,10,917.38 GJ while GHG emissions fell to 34,178.89 tonnes
- Employee turnover increased to 41.77% with 221 differently abled workers employed
*this image is generated using AI for illustrative purposes only.
Lemon Tree Hotels has submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the National Stock Exchange and BSE. The filing, dated August 26, 2026, details the company’s performance against sustainability goals, workforce diversity metrics, and environmental impact assessments for the period ending March 31, 2026.
The report covers consolidated operations, excluding paid-up share capital, with limited assurance provided by JDP & Associates. Lemon Tree operates 127 locations nationally and five internationally, with hotel services accounting for 98.16% of turnover.
ESG Performance Against Targets
Lemon Tree disclosed progress against seven key sustainability targets set for FY26 based on an FY19 baseline. The company achieved its goal of 100% certified green buildings and met the renewable energy usage target at an exit rate of 50.66%, surpassing the 50% goal. However, it fell short on energy consumption reduction, recording a 4.47% increase instead of the targeted 15% decrease.
| Target Metric | FY26 Goal | FY26 Performance | Status |
|---|---|---|---|
| Energy Consumption Reduction | 15% reduction | 4.47% increase | Behind target |
| Renewable Energy Usage | 50% of total | 50.66% (exit rate) | On target |
| GHG Emissions Reduction | 40% reduction | 35.74% reduction | Behind target |
| Water Consumption Reduction | 10% reduction | 9.77% reduction | On target |
Workforce Diversity and Inclusion
The company employs 3,777 permanent employees, comprising 87% male and 13% female staff. Lemon Tree reported employing 221 differently abled individuals, representing approximately 5.9% of the total permanent workforce. The company missed its diversity targets for FY26, achieving 16% Opportunity Deprived Individuals (ODIs) against a 20% goal and 13% women in the workforce against a 15% target.
Employee turnover for permanent staff stood at 41.77% in FY26, up from 39% in FY25. Female employee turnover was higher at 51.61% compared to 40.37% for males.
Environmental Metrics
Total energy consumption rose to 3,10,917.38 GJ from 2,93,765.21 GJ in FY25. Renewable energy sources contributed 85,336.89 GJ, while non-renewable sources accounted for 2,25,580.49 GJ. Greenhouse gas emissions (Scope 1 and 2) totaled 34,178.89 metric tonnes of CO2 equivalent, down from 44,229.86 metric tonnes in the prior year.
Water withdrawal increased to 9,18,092 kilolitres from 8,77,849 kilolitres in FY25, primarily sourced from groundwater (2,66,544 kilolitres) and third-party suppliers (6,51,549 kilolitres).
What the Numbers Show
While Lemon Tree successfully decoupled emissions intensity from revenue growth—reducing GHG emission intensity per rupee of turnover from 0.0000034391 TCO2/INR in FY25 to 0.0000023528 TCO2/INR in FY26—absolute energy consumption increased. This divergence suggests that operational efficiency gains were offset by volume growth or capacity expansion, as total energy use rose despite a slight improvement in energy intensity per rupee of turnover.
Historical Stock Returns for Lemon Tree Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.42% | -0.25% | -0.56% | -4.88% | -35.36% | +178.13% |
How will Lemon Tree Hotels adjust its operational strategy to reverse the 4.47% increase in energy consumption and meet the FY27 reduction targets?
What specific initiatives will the company implement to reduce the high female employee turnover rate of 51.61% and improve gender diversity in the workforce?
Given the reliance on groundwater for nearly 30% of water withdrawal, what contingency plans are in place to mitigate risks associated with local water scarcity regulations?
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