Lemon Tree Hotels Limited (LEMONTREE)
₹113.42 +0.82% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Lemon Tree's revenue was ₹416 Cr (+9.9% year on year, +2.5% on the previous quarter), and net profit ₹116 Cr (+7.3% year on year); the operating margin was 51.7%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹416 | +9.9% | +2.5% |
| Operating profit | ₹215 | +5.3% | +4.9% |
| Net profit | ₹116 | +7.3% | +41.5% |
| EPS (₹) | 1.15 | +7.5% | +45.6% |
| Operating margin | 51.7% | — | — |
LEMONTREE delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 36.78% of the LEMONTREE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 49.21%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 48.8% · 48.5% · 44.9% · 28.1% · 36.8%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Lemon Tree Hotels' material subsidiary, Fleur Hotels Limited, received an Order-in-Appeal from the CGST (Appeals) Commissioner in Dehradun on October 16, 2026. The appellate authority partially allowed the appeal regarding an FY 2018 tax demand, ruling that liability of interest on irregular Input Tax Credit (ITC) will not arise. The exact quantum of the demand was not disclosed in the filing, but management noted there is no material impact on the parent company's financials or operations. The subsidiary plans to evaluate further legal action.
- Order-in-Appeal dated October 8, 2026 received by Fleur Hotels on October 16, 2026.
- First Appellate Authority partially allowed the appeal and waived liability of interest on irregular ITC.
- Original demand pertained to Financial Year 2018 regarding Tax, Penalty, and Interest under the CGST Act.
- Company confirmed no material impact on Lemon Tree's financials or operations.
Lemon Tree Hotels, through its subsidiary Carnation Hotels, has signed a Memorandum of Understanding (MoU) with Omaxe Limited to operate approximately 4,000 keys across multiple destinations in India. This marks the company's largest single operating arrangement, boosting its total development pipeline to nearly 16,000 keys (compared to operational inventory of 10,956 rooms). The proposed sites cover transit hubs, pilgrimage centers, and commercial hubs including Lucknow, Vrindavan, Amritsar, and Greater Noida. The arrangement follows an asset-light management model, supporting Lemon Tree's high-margin management contract growth strategy.
- Signs MoU with Omaxe to operate ~4,000 keys across Tier-2 and Tier-3 destinations
- Company's largest single operating arrangement, taking total development pipeline to nearly 16,000 keys
- Expansion covers 8 key locations including Lucknow, Vrindavan, Amausi, Amritsar, Ghaziabad, Greater Noida, Kaushambi, and Faridabad
- Asset-light management model through wholly owned subsidiary Carnation Hotels Private Limited
Lemon Tree Hotels has signed a franchise agreement for a 52-room property, 'Keys Select by Lemon Tree Hotels', in Bareilly, Uttar Pradesh. This addition marks the group's 26th property in the state, bringing its UP footprint to 8 operational hotels and 18 in the pipeline. With a current operational capacity of 10,956 rooms and a pipeline of 9,118 rooms, this 52-room addition is relatively minor in size (<0.5% of total portfolio). The agreement aligns with the company's asset-light growth strategy, relying on franchise fees rather than capital expenditure.
- Signed franchise agreement for 52-room 'Keys Select by Lemon Tree Hotels, Bareilly'
- Strengthens Uttar Pradesh presence to 26 properties (8 operational, 18 upcoming)
- Property features a multi-cuisine restaurant, banquet/conference hall, and fitness centre
- Located 4.9 km from Bareilly Airport and ~12 km from Bareilly Junction Railway Station
Lemon Tree Hotels announced that the Commissioner (Appeals), Central Excise & CGST, Jaipur, has ruled in favor of its subsidiary, Sukhsagar Complexes Private Limited. The appellate authority held that the previous tax demand and equal penalty of Rs 82,554 each (totaling Rs 1.65 lakh) were unsustainable and set them aside in full. Consequently, no financial liability remains against the subsidiary. Given the company's TTM revenue of Rs 1,444 Cr, this outcome has an immaterial financial impact.
- Tax demand of Rs 82,554 and penalty of Rs 82,554 set aside in full
- Appellate order passed by Commissioner (Appeals), Central Excise & CGST, Jaipur
- Favorable order received by subsidiary Sukhsagar Complexes Private Limited on October 8, 2026
- Zero financial or operational impact on the listed entity
Lemon Tree Hotels Limited submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Transfer Agent KFin Technologies Limited confirms that dematerialization requests received between July 1, 2026, and September 30, 2026, were processed within 15 days. It further confirms that security certificates were duly verified, mutilated, cancelled, and depositories were substituted as registered owners. This is a standard quarterly regulatory filing with no operational or financial impact.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations for the quarter ended September 30, 2026
- Covers dematerialization processing for the period from July 1, 2026, to September 30, 2026
- Registrar KFin Technologies confirmed requests were processed within 15 days of receipt
Lemon Tree Hotels has announced the operational launch of Keys Prima by Lemon Tree Hotels in Darjeeling, West Bengal, featuring 65 rooms. Managed by its wholly owned subsidiary Carnation Hotels Private Limited, this marks the group's third operational property in West Bengal. The 65 rooms represent approximately 0.6% of the company's current operational portfolio of 10,956 rooms. The property targets the leisure hill segment and includes dining facilities, a bar, a fitness center, and a lawn hosting up to 100 guests.
- Addition of 65 operational rooms and suites under the Keys Prima brand in Darjeeling
- Managed via 100% subsidiary Carnation Hotels Private Limited under an asset-light model
- Marks the Group's 3rd operational property in West Bengal, with 3 more in the state pipeline
- Overall portfolio stands at 130+ operational hotels and a total operational and pipeline network of 270+ properties
Lemon Tree Hotels has announced the operational opening of Lemon Tree Resort, Nashik, featuring 71 rooms and suites. The property is managed by Carnation Hotels Private Limited, a wholly owned subsidiary of the company. This marks the group's second operational hotel in Nashik and its 16th operational hotel in Maharashtra, where it has another 16 properties in the pipeline. Relative to the company's operational portfolio of 10,956 rooms across 121 hotels, the 71-room addition represents an incremental capacity increase of approximately 0.65%.
- Opened Lemon Tree Resort, Nashik with 71 rooms and suites (up from 57 rooms initially planned)
- Marks the Group's 2nd hotel in Nashik and 16th operational hotel in Maharashtra
- Expansion pipeline includes 16 additional properties planned in Maharashtra
- Property is managed by wholly owned subsidiary Carnation Hotels Private Limited
Lemon Tree Hotels' material subsidiary, Fleur Hotels Limited, has completed the acquisition of a 989.30 sq meter land parcel in Bandra (East), Mumbai for ₹120 crore. The consideration represents approximately 8.3% of the company's TTM revenue (₹1,444 crore) and 8.8% of net worth (₹1,367 crore). The acquired parcel adjoins the Bandra Kurla Complex (BKC) and will be developed into an upscale full-service 'Lemon Tree Premier' hotel with around 172 keys. This development marks Lemon Tree Group's 7th property in Mumbai, expanding its presence in a high-yield commercial corridor.
- Acquired 989.30 square meters of land in Bandra (East), Mumbai for ₹120 Crores (excl. stamp duty)
- Proposed development of an upscale full-service hotel with approximately 172 keys under the Lemon Tree Premier brand
- Transaction represents the 7th property for the group in the high-yield Mumbai micro-market
- Registration of Deed of Conveyance completed on September 24, 2026 via subsidiary Fleur Hotels Limited
Lemon Tree Hotels' material subsidiary, Fleur Hotels Limited, has completed the acquisition of a 989.30 sq meter land parcel in Bandra (East), Mumbai for ₹120 crore. The consideration represents approximately 8.3% of the company's TTM revenue (₹1,444 crore) and 8.8% of net worth (₹1,367 crore). The acquired parcel adjoins the Bandra Kurla Complex (BKC) and will be developed into an upscale full-service 'Lemon Tree Premier' hotel with around 172 keys. This development marks Lemon Tree Group's 7th property in Mumbai, expanding its presence in a high-yield commercial corridor.
- Acquired 989.30 square meters of land in Bandra (East), Mumbai for ₹120 Crores (excl. stamp duty)
- Proposed development of an upscale full-service hotel with approximately 172 keys under the Lemon Tree Premier brand
- Transaction represents the 7th property for the group in the high-yield Mumbai micro-market
- Registration of Deed of Conveyance completed on September 24, 2026 via subsidiary Fleur Hotels Limited
Lemon Tree Hotels' material subsidiary, Fleur Hotels Limited, has completed the acquisition of a 989.30 sq meter land parcel in Bandra (East), Mumbai for ₹120 crore. The consideration represents approximately 8.3% of the company's TTM revenue (₹1,444 crore) and 8.8% of net worth (₹1,367 crore). The acquired parcel adjoins the Bandra Kurla Complex (BKC) and will be developed into an upscale full-service 'Lemon Tree Premier' hotel with around 172 keys. This development marks Lemon Tree Group's 7th property in Mumbai, expanding its presence in a high-yield commercial corridor.
- Acquired 989.30 square meters of land in Bandra (East), Mumbai for ₹120 Crores (excl. stamp duty)
- Proposed development of an upscale full-service hotel with approximately 172 keys under the Lemon Tree Premier brand
- Transaction represents the 7th property for the group in the high-yield Mumbai micro-market
- Registration of Deed of Conveyance completed on September 24, 2026 via subsidiary Fleur Hotels Limited
Lemon Tree Hotels Limited has received 'no objection' from the NSE and 'no adverse observations' from the BSE on September 22, 2026, for its proposed draft Composite Scheme of Arrangement. The scheme involves Lemon Tree Hotels, Fleur Hotels Limited, and six other group entities. This follows earlier approvals, including Competition Commission of India (CCI) clearance received on April 7, 2026. The stock exchange observation letters remain valid for six months, within which the company must submit the scheme petition before the National Company Law Tribunal (NCLT).
- Received NSE 'no objection' and BSE 'no adverse observations' letters dated September 22, 2026
- Scheme involves Fleur Hotels Limited and six transferor companies under Sections 230 to 232 of Companies Act, 2013
- Observation letters are valid for a period of 6 months to file the petition before the NCLT
- Follows earlier clearance from the Competition Commission of India (CCI) approved on April 7, 2026
- Fleur Hotels Limited is mandated to commence trading within 60 days of receipt of the final NCLT order
Lemon Tree Hotels has announced the operational opening of Keys Prima by Lemon Tree Hotels in Nashik, Maharashtra. The hotel features 48 rooms and suites, upgraded from the previously announced 45-room plan, and is managed by its wholly owned subsidiary, Carnation Hotels Private Limited. This marks the company's debut in Nashik and brings its operational footprint in Maharashtra to 15 hotels, with another 16 properties in the state pipeline. Relative to the company's operational portfolio of 10,956 rooms across 121 hotels, the 48-room addition represents an incremental capacity increase of ~0.44%.
- Opens Keys Prima in Nashik with 48 rooms and suites (vs. 45 rooms initially disclosed on August 2, 2024)
- Marks the company's 15th operational hotel in Maharashtra, with 16 additional properties in the state pipeline
- Managed via wholly owned subsidiary Carnation Hotels Private Limited under an asset-light model
- Expands group network which currently operates 130+ hotels across 80+ cities
Lemon Tree Hotels Limited shareholders have approved the appointment of founder Patanjali Govind Keswani as Chairman and Non-Executive Director effective April 1, 2027. Mr. Keswani is currently serving an 18-month tenure as Chairman and Executive Director from October 1, 2025, which concludes on March 31, 2027, after which he will step down from executive responsibilities. This planned transition is designed to provide continuity and strategic oversight as the company implements its leadership succession plans. The approval was granted at the 34th Annual General Meeting held on September 18, 2026.
- Patanjali Govind Keswani to transition to Non-Executive Chairman effective April 1, 2027
- Current 18-month tenure as Chairman and Executive Director ends March 31, 2027
- Shareholder approval secured at the 34th AGM held on September 18, 2026
- Founder has led the company since August 2002 and steered its public listing on April 9, 2018
Lemon Tree Hotels announced that its material subsidiary, Fleur Hotels Limited, has approved two strategic initiatives: the acquisition of a land parcel in Mumbai for hotel development and the incorporation of a wholly-owned subsidiary in the Republic of Maldives. The Maldives entity will be incorporated with an initial subscription capital of 2,000 Maldivian Rufiyaa (MVR). Specific financial details and land size for the Mumbai acquisition remain undisclosed pending definitive agreements. These moves align with Lemon Tree's ongoing group target to scale up its inventory toward 20,000+ rooms.
- Board of Fleur Hotels approved purchase of a land parcel in Mumbai for hotel development on September 18, 2026
- Fleur Hotels will incorporate a 100% wholly-owned subsidiary in the Republic of Maldives
- Initial capital subscription for Maldives subsidiary set at 2,000 MVR (Maldivian Rufiyaa)
- Definitive agreements for the Mumbai land acquisition are currently in process of execution
Lemon Tree Hotels concluded its 34th Annual General Meeting on September 18, 2026, where shareholders considered ordinary business alongside a key leadership succession item. The company proposed the appointment of founder Patanjali Govind Keswani as Chairman and Non-Executive Director effective April 1, 2027. Ordinary resolutions included the adoption of FY26 financial statements and director re-appointments. Voting results will be submitted within two working days of the AGM.
- 34th AGM held on September 18, 2026, concluding at 01:29 P.M. (IST)
- Proposed transition of Patanjali Govind Keswani to Non-Executive Chairman effective April 1, 2027
- Adoption of FY26 standalone and consolidated financial statements
- E-voting concluded and official scrutinizer results to be filed within 2 working days
Financial Performance
Revenue Growth by Segment
Owned hotels revenue grew 8% YoY to INR 293 Cr in Q2 FY26, representing 63% of total network revenue. Managed and franchised hotel network revenue grew 13% YoY to INR 174 Cr (37% of network). Management fees from third-party hotels rose 7% YoY to INR 14.3 Cr, while fees from Fleur Hotels increased 8% to INR 19.9 Cr.
Geographic Revenue Split
The company operates a pan-India portfolio across 73 cities. Significant revenue is concentrated in major metros including Delhi, Bangalore, and Hyderabad, where major renovations and rebranding (e.g., Red Fox Aerocity to Lemon Tree Hotel) are driving repricing and higher revenue capture.
Profitability Margins
Profit After Tax (PAT) margin improved to 18.9% in FY25 from 17.0% in FY24. For Q2 FY26, PAT stood at INR 41.9 Cr, up 20% YoY. Cash profit for Q2 FY26 was INR 76.3 Cr, a 9.2% YoY increase.
EBITDA Margin
Net EBITDA margin was 43.0% in Q2 FY26, down 306 bps YoY from 46.1% in Q2 FY25. This was primarily due to investments in renovation, technology, and one-time ex-gratia payments which together accounted for 8% of revenue. Margins are expected to expand as these costs reduce to 5% in FY27 and 2% by FY28.
Capital Expenditure
Planned maintenance and renovation capital expenditure is estimated at INR 60-70 Cr per annum over the next three fiscals (FY26-FY28).
Credit Rating & Borrowing
Credit rating improved from A to A+ (Positive outlook from ICRA/CRISIL). This upgrade reduced the average cost of borrowing by 96 bps YoY to 7.72% in Q2 FY26 compared to 8.68% in Q2 FY25.
Operational Drivers
Raw Materials
Not applicable as a service provider; however, key operational costs include employee ex-gratia payments, technology investments, and renovation materials for hotel upgrades.
Capacity Expansion
Current operational capacity is 10,956 rooms across 121 hotels. The total pipeline includes 9,118 rooms, aiming for a total group inventory of 20,074 rooms across 242 hotels. A new 500-550 room Aurika hotel is planned for Nehru Place, New Delhi.
Raw Material Costs
Renovation, technology, and one-time employee payments accounted for 8% of Q2 FY26 revenue (approx. INR 24.5 Cr). Total expenses for Q2 FY26 were INR 175.6 Cr, up 14% YoY.
Manufacturing Efficiency
Occupancy stood at 69.8% in Q2 FY26 (up 139 bps YoY). Gross Average Room Rate (ARR) increased 6% YoY to INR 6,247, resulting in a RevPAR of INR 4,358 (up 8% YoY).
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Aggressive expansion of the management and franchise pipeline (currently 9,118 rooms). Rebranding lower-tier hotels to higher-tier brands (e.g., Red Fox to Lemon Tree Hotel) to drive RevPAR growth, as evidenced by a 47% RevPAR increase in a renovated Pune property. Focus on high-demand markets like New Delhi with the new Aurika project.
Products & Services
Hotel room stays, Food & Beverage (F&B) services, and hotel management/franchise services for third-party owners.
Brand Portfolio
Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox by Lemon Tree Hotels, Keys Prima, Keys Select, and Keys Lite.
New Products/Services
Launch of Lemon Tree Suites, Gurugram (246 rooms) and the upcoming 500+ room Aurika in New Delhi.
Market Expansion
Expansion into northern India and major business hubs; signed 15 new contracts adding 1,138 rooms to the pipeline in Q2 FY26 alone.
Market Share & Ranking
Among the top three hotel chains in India by number of rooms.
Strategic Alliances
Management arm Carnation Hotels Private Limited manages properties for third-party asset owners; Fleur Hotels serves as a key internal management partner.
External Factors
Industry Trends
The industry is seeing a demand-supply mismatch in major metros favoring incumbents. Lemon Tree is positioning itself by upgrading existing assets to capture higher rates as supply growth remains minimal in prime locations.
Competitive Landscape
Competes with major domestic and international hotel chains in India; maintains competitive edge through a dominant mid-scale presence and rapid asset-light expansion.
Competitive Moat
Durable advantage through a diversified brand portfolio covering economy to upscale segments and a massive pan-India footprint (111+ hotels) which is difficult for new entrants to replicate quickly.
Macro Economic Sensitivity
Highly sensitive to domestic tourism trends and corporate travel demand; H1 FY26 demand was muted due to floods and geopolitical tensions.
Consumer Behavior
Shift toward branded mid-scale and upscale accommodation; company is responding by upgrading 'Keys' and 'Red Fox' properties to 'Lemon Tree' and 'Keys Prima' brands.
Geopolitical Risks
Geopolitical tensions cited as a headwind causing muted demand in the first half of FY26.
Regulatory & Governance
Industry Regulations
Compliance with hospitality standards and GST regulations; forward-looking risks include changes in tax laws and import duties.
Taxation Policy Impact
Tax expense for Q2 FY26 was INR 13.9 Cr, up 36% YoY. GST revisions in the hospitality sector were noted as a demand headwind in H1 FY26.
Legal Contingencies
Maintains 100% resolution rate for sexual harassment cases over the last four years; governance includes 67% independent directors.
Risk Analysis
Key Uncertainties
Susceptibility to cyclicality in the hospitality industry and potential slower-than-expected ramp-up of new or renovated assets impacting short-term profitability.
Geographic Concentration Risk
While pan-India, a significant portion of owned asset value is concentrated in Delhi, Bangalore, and Hyderabad.
Third Party Dependencies
Dependency on third-party hotel owners for the 'managed' portfolio expansion; delays in their construction timelines impact management fee growth.
Technology Obsolescence Risk
Investing heavily in technology to mitigate obsolescence; tech spend is expected to stabilize at 2% of revenue by FY28.
Credit & Counterparty Risk
Net debt to EBITDA ratio (including lease liabilities) is a key monitorable, currently targeted to stay below 2.6x for further rating upgrades.
