Lemon Tree Hotels Reports 8% Revenue Growth in Q2 FY26, Maintains Steady Performance
Lemon Tree Hotels Limited announced its Q2 FY26 results, showing resilience in a challenging market. Total revenue increased by 8% to Rs. 308.00 crore, while net profit after tax grew significantly by 20% to Rs. 41.90 crore. The company's operational metrics improved, with occupancy rate rising to 69.80% and RevPAR increasing by 8% to Rs. 4,358. Lemon Tree Hotels continued its expansion, signing 15 new management and franchise contracts and operationalizing five new hotels. The company's debt position improved, with gross debt reducing to Rs. 1,610.20 crore and the debt-to-equity ratio improving to 0.86x.

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Lemon Tree Hotels Limited , a leading player in the Indian hospitality sector, has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience in a challenging market environment.
Key Financial Highlights
For the quarter ended September 30, 2025, Lemon Tree Hotels reported:
- Total revenue of Rs. 308.00 crore, up 8% year-on-year from Rs. 284.80 crore in Q2 FY25
- Net EBITDA of Rs. 132.40 crore, a marginal increase of 1% from Rs. 131.20 crore in the same quarter last year
- Net profit after tax of Rs. 41.90 crore, showing a significant 20% growth compared to Rs. 35.00 crore in Q2 FY25
- Cash profit stood at Rs. 76.30 crore, up 9% from Rs. 69.80 crore in the corresponding quarter of the previous fiscal year
Operational Performance
The company's operational metrics for Q2 FY26 showed mixed results:
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Gross Average Room Rate (ARR) | Rs. 6,247 | Rs. 5,902 | +6% |
| Occupancy rate | 69.80% | 68.40% | +139 bps |
| Revenue Per Available Room (RevPAR) | Rs. 4,358 | Rs. 4,035 | +8% |
Segment Performance
The company's portfolio, spanning various brands and regions, showed diverse performance:
- Aurika Hotels & Resorts segment reported the highest RevPAR growth of 32% year-on-year
- Lemon Tree Premier saw a 6% increase in RevPAR
- The midscale Lemon Tree Hotels brand experienced a slight decline of 4% in RevPAR
Balance Sheet and Debt Position
As of September 30, 2025:
- The company's gross debt stood at Rs. 1,610.20 crore, down from Rs. 1,822.60 crore a year ago
- The debt-to-equity ratio improved to 0.86x from 1.14x in the previous year
- Average cost of borrowing decreased to 7.72% from 8.68% in Q2 FY25
Expansion Plans
Lemon Tree Hotels continues to focus on expansion:
- The company signed 15 new management and franchise contracts in Q2, adding 1,138 rooms to its pipeline
- Five new hotels were operationalized, contributing 272 rooms to the operational portfolio
Outlook
While the company did not provide specific forward-looking statements, the continued expansion and improvement in key financial metrics suggest a cautiously optimistic outlook for Lemon Tree Hotels. The hospitality sector's recovery and the company's strategic initiatives will likely play crucial roles in its future performance.
Investors and stakeholders should note that the hospitality industry remains subject to various external factors, including economic conditions, travel trends, and potential disruptions, which may impact future results.
Historical Stock Returns for Lemon Tree Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.55% | -6.17% | -5.97% | +12.22% | +31.86% | +410.85% |
















































