Lemon Tree Hotels , a prominent player in the Indian hospitality sector, has reported impressive financial results for the first quarter, showcasing robust growth across key metrics.

Profit Soars

The company's consolidated net profit witnessed a remarkable 93% year-over-year increase, reaching ₹383.00 million compared to ₹198.00 million in the same period last year. This substantial growth in profitability underscores Lemon Tree Hotels' effective cost management and operational efficiency.

Revenue Growth

Lemon Tree Hotels also reported a significant uptick in revenue, which grew to ₹3.16 billion from ₹2.70 billion in the corresponding quarter of the previous year. This 17% increase in revenue indicates strong demand for the company's hospitality services and successful expansion strategies.

Improved Operational Performance

The company's operational performance showed notable improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising to ₹1.40 billion from ₹1.15 billion year-over-year. This represents a healthy 21.7% increase in EBITDA.

Enhanced Profitability Margins

Lemon Tree Hotels demonstrated enhanced profitability with an improvement in its EBITDA margin. The EBITDA margin expanded to 44.50% from 42.83% in the same quarter last year, reflecting the company's ability to optimize costs while growing its revenue.

Financial Highlights

The strong performance across all key financial metrics indicates Lemon Tree Hotels' resilience and ability to capitalize on the recovering hospitality sector. The company's substantial profit growth, coupled with improved operational efficiency, positions it well for continued success in the coming quarters.

Lemon Tree Hotels Limited , one of India's leading hospitality chains, has announced robust financial results for the first quarter of the fiscal year, showcasing significant growth across key metrics.

Financial Highlights

The company reported a substantial increase in its revenue, which rose to ₹3.16 billion in Q1, up from ₹2.70 billion in the same period last year, marking a 17% year-over-year growth. This impressive top-line performance was accompanied by an even more striking bottom-line improvement, with the consolidated net profit surging 93% to ₹383.00 million, compared to ₹198.00 million in the corresponding quarter of the previous year.

Operational Efficiency

Lemon Tree Hotels demonstrated enhanced operational efficiency during the quarter. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to ₹1.40 billion from ₹1.15 billion year-over-year. Notably, the EBITDA margin improved to 44.50% from 42.83%, indicating the company's ability to manage costs effectively while driving revenue growth.

Strategic Developments

In addition to the strong financial performance, Lemon Tree Hotels has announced several strategic moves aimed at strengthening its management structure and streamlining operations:

1. Leadership Transition: The company has approved the appointment of Mr. Neelendra Singh as the new Managing Director for a term of 5 years, effective October 1, 2025. Concurrently, Mr. Patanjali Govind Keswani, the current Managing Director, will transition to the role of Executive Director and Chairman for an 18-month term.

2. Executive Appointments: Mr. Kapil Sharma has been elevated to the position of Executive Director and Chief Financial Officer for a 5-year term, also effective from October 1, 2025.

3. Board Reappointment: The company has re-appointed Mr. Niten Malhan as an Independent Director for a second term of 5 years, starting November 6, 2025.

4. Corporate Restructuring: Lemon Tree Hotels has approved the sale of its 100% investment in Nettle Hotels Private Limited and Madder Stays Private Limited to Fleur Hotels Limited, a material subsidiary of the company. This move is expected to streamline the group's corporate structure.

5. Reorganization Committee: The Board has constituted a Reorganization Committee to evaluate various options, including the potential demerger or transfer of the company's Owned Hotel Business to its subsidiary, Fleur Hotels Limited.

Expansion and Conversion

In a separate announcement, Lemon Tree Hotels revealed that its franchised property in Motihari, Bihar, has been converted to a managed hotel. This 50-room property will now be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited. The hotel boasts various amenities including a restaurant, fitness center, banquet hall, swimming pool, and spa.

These strategic moves, coupled with the strong financial performance, underscore Lemon Tree Hotels' commitment to growth and operational excellence in the competitive hospitality sector. The company appears well-positioned to capitalize on the recovering travel and tourism industry in India.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.