Lemon Tree Hotels Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Lemon Tree Hotels Ltd filed with BSE on 14 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Lemon Tree Hotels reported Q1 FY27 total revenue of Rs. 346.8 crore, up 9% year-on-year, with net EBITDA of Rs. 151.9 crore, up 7%, while occupancy rose to 75.7% and gross ARR grew 2%. Management attributed margin compression to GST-related input credit loss and renovation spend, and said corporate travel demand softened during the quarter due to the West Asia conflict, particularly in Mumbai and Gurgaon. The company also presented pro forma financials for Lemon Tree and Fleur Hotels ahead of a planned demerger, and discussed progress on Keys portfolio renovation and Fleur's pipeline of new Aurika developments.
Numbers mentioned
Total revenue: Rs. 346.8 crore (Q1 FY27)
p. 3
“For the quarter, total revenue stood at Rs. 346.8 crore, up 9% year-on-year.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Net EBITDA: Rs. 151.9 crore (Q1 FY27)
p. 3
“Net EBITDA stood at Rs. 151.9 crore, up 7%.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Adjusted net EBITDA: Rs. 162.5 crore (Q1 FY27)
p. 3
“Net EBITDA adjusted for GST impact and provision for stock appreciation rights stood at Rs. 162.5 crore in Q1 FY27, up 14% as compared to Rs. 142.1 crore in Q1 FY26.”
Neelendra Singh, page 3 of the filed PDF · View the filing
PAT: Rs. 57.3 crore (Q1 FY27)
p. 3
“PAT grew 19% to Rs. 57.3 crore and cash profit grew 17% to Rs. 96 crore.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Gross ARR: Rs. 6,361 (Q1 FY27)
p. 3
“Our gross ARR stood at Rs. 6,361, up 2% year-on-year and occupancy was 75.7%, up 314 basis points versus last year.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Net EBITDA margin: 43.8% (Q1 FY27)
p. 3
“Our net EBITDA margin for Q1 FY27 stood at 43.8%, which was 99 basis points less than 44.8%, which we achieved last year in Q1 FY26.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Gross debt: Rs. 1,475 crore (as on 30th June 2026)
p. 3
“Our gross debt on 30th June 2026 stood at Rs. 1,475 crore, down 11% from Rs. 1,657.9 crore a year ago, and our cost of debt reduced to 7.48%, down 53 basis points versus a year ago.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Network revenue: Rs. 576 crore (Q1 FY27)
p. 3
“Network revenue for the quarter grew at 16% year-on-year to Rs. 576 crore with owned hotels contributing Rs. 320 crore and managed and franchised hotels contributing Rs. 256 crore.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Total management fee: Rs. 45.4 crore (Q1 FY27)
p. 3
“Total management fee from Lemon Tree stood at Rs. 45.4 crore, an increase of 21% year-on-year.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Keys portfolio RevPAR: Rs. 2,885, up 19% year-on-year (Q1 FY27)
p. 4
“Keys portfolio RevPAR in Q1 FY27 was up 19% year-on-year to Rs. 2,885 on the back of a 350-basis point improvement in occupancy to 67% and 13% growth in average room rate to Rs. 4,311.”
Saurabh Shatdal, page 4 of the filed PDF · View the filing
Lemon Tree pro forma revenue: Rs. 65.7 crore (Q1 FY27)
p. 4
“For Lemon Tree on a pro forma basis in Q1 FY27, revenue stood at Rs. 65.7 crore versus Rs. 54 crore in Q1 last year, which is up 22%.”
Patanjali Keswani, page 4 of the filed PDF · View the filing
Fleur pro forma revenue: Rs. 311.4 crore (FY27 (Q1))
p. 4
“For Fleur on a pro forma basis, FY27 revenue stood at Rs. 311.4 crore versus Rs. 292 crore, up 7%.”
Patanjali Keswani, page 4 of the filed PDF · View the filing
Renovation spend: Rs. 9.8 crore (Q1 FY27)
p. 21
“We spent about Rs. 9.8 crore in renovation in Q1 which is about 2.25%-2.3% of revenue.”
Patanjali Keswani, page 21 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Keys EBITDA — Rs. 60 crore EBITDA
stated as an aspiration by Patanjali Keswani
p. 5
“Basically, I said we are targeting a Rs. 60 crore EBITDA from Keys, and I think that is something that we will achieve.”
Patanjali Keswani, page 5 of the filed PDF · View the filing
New room openings FY27 — 2,000 Keys · FY27
stated conditionally by Neelendra Singh
p. 11
“Broadly, I am pretty confident to be around the 2,000 Keys mark and, things happen.”
Neelendra Singh, page 11 of the filed PDF · View the filing
Lemon Tree EBITDA margin (long-term) — 75%-80% · next 3-4 years
stated as an aspiration by Patanjali Keswani
p. 10
“we have actually given 1 point of guidance, which is our long-term plan in the next 3 years or 4 years is to have an EBITDA margin around 75%-80% and of a much larger base of hotels, which we are managing and charging fees for”
Patanjali Keswani, page 10 of the filed PDF · View the filing
Fleur debt-to-EBITDA — around 2x
stated firmly by Patanjali Keswani
p. 10
“our long-term plan is that in Fleur debt-to-EBITDA should hover around 2x, and that is a good sign because it means we are able to productively deploy capital”
Patanjali Keswani, page 10 of the filed PDF · View the filing
Fleur ROCE — 15% ROCE
stated as an aspiration by Patanjali Keswani
p. 9
“once we finish the Keys renovation, once we finish the entire renovation, our expectation on Fleur is it should move towards a 15% ROCE.”
Patanjali Keswani, page 9 of the filed PDF · View the filing
Net EBITDA margin FY28 — 50% · FY28
stated conditionally by Patanjali Keswani
p. 15
“2027 will not be 47%, it will be better. But fiscal 2028, if we do not do 50%, then we have underperformed.”
Patanjali Keswani, page 15 of the filed PDF · View the filing
Renovation of main hotels completion — FY27
stated firmly by Patanjali Keswani
p. 20
“As far as Lemon Tree goes, we will have finished the full renovation of the main hotels and refurbishment of a lot of Keys and other hotels that needed intervention in FY27.”
Patanjali Keswani, page 20 of the filed PDF · View the filing
OPEX and CAPEX in renovation — 1% of revenue · next year onwards
stated firmly by Patanjali Keswani
p. 19
“next year onwards, OPEX and CAPEX in renovation will meander towards 1% of revenue from what it was in the past 3 years.”
Patanjali Keswani, page 19 of the filed PDF · View the filing
Fleur room count growth — over 50% in rooms · by FY30
stated conditionally by Patanjali Keswani
p. 30
“So we are saying Fleur will increase by over 50% in rooms by FY30 approximate, but much more in revenue because the incremental rooms that are being bought are all Aurika’s other than some operating assets.”
Patanjali Keswani, page 30 of the filed PDF · View the filing
Demerger completion and Fleur listing — first half of calendar year 2027
stated conditionally by Kapil Sharma
p. 31
“as we pointed out earlier that calendar year 2027 would be the year when this will be completed, but it is not later part of the year, but the first half of that, we should be able to complete this whole demerger exercise and list Fleur within that timeline.”
Kapil Sharma, page 31 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Keys is close to reaching Red Fox-level ARR targeted 1.5-2 years ago and will operate at full performance next year.
Answered by Patanjali Keswani
Asked by Archana Gude: Is the 19% RevPAR growth at Keys matching expectations set before the renovation began?
p. 5
“Keys, what we said about 1.5-2 years ago when we started the renovation was that we are targeting Keys to achieve Red Fox ARRs, which was, if I remember right, Rs. 4,500, and we are close to that now.”
Patanjali Keswani, page 5 of the filed PDF · View the filing
Management said corporate demand fell across cities due to the West Asia conflict, but retail strategy compensated in some cities and not in Mumbai and Gurgaon.
Answered by Neelendra Singh
Asked by Archana Gude: Why did Delhi, Pune and Hyderabad occupancy outperform while Mumbai and Gurgaon lagged?
p. 6
“In Mumbai, we could not. And in Gurgaon, we could not. And hence, essentially, you would see the softness in Mumbai and Gurgaon market, whereas Delhi, Bengaluru and Hyderabad continue to do well.”
Neelendra Singh, page 6 of the filed PDF · View the filing
Management said they pivoted to a retail-based strategy at lower net ARR to fill rooms amid weak corporate demand, and expect a more balanced approach going forward.
Answered by Neelendra Singh
Asked by Achal Kumar: Why was ARR growth only 2% despite 19% growth at Keys?
p. 7
“We had to pivot, filling the rooms through our retail channels, they come at a lesser net ARR in that sense due to commissions.”
Neelendra Singh, page 7 of the filed PDF · View the filing
Management said margin compression this quarter was driven by GST and renovation costs, both of which should ease, targeting 50% net EBITDA margin next year.
Answered by Patanjali Keswani
Asked by Sameet Sinha: How should investors think about margin progression for the full year given Q1 compression was smaller than expected?
p. 15
“there is no reason why our EBITDA margins net should be less than 50%. And this is my statement.”
Patanjali Keswani, page 15 of the filed PDF · View the filing
Management explained two contracts were terminated/moved to NCLT, removing 200 rooms, though only Tarudhan Valley's 70 rooms affected fee income.
Answered by Patanjali Keswani
Asked by Dikshi Jain: Why did net room additions for management fees appear lower than the 334 rooms opened?
p. 16
“we removed 70 rooms from Tarudhan Valley and 130 rooms from Nestor, which is 200 rooms, but the income loss was only from Tarudhan.”
Patanjali Keswani, page 16 of the filed PDF · View the filing
Management quantified renovation spend at Rs. 9.8 crore versus a normal Rs. 3 crore, with the incremental spend expected to disappear next year.
Answered by Patanjali Keswani
Asked by Vaibhav Muley: How much of the smaller-than-expected margin decline was due to renovation versus operating leverage?
p. 21
“So basically, the incremental spend was about Rs. 6 crore this year. Next year, that will disappear.”
Patanjali Keswani, page 21 of the filed PDF · View the filing
Management said they remain broadly confident in reaching around 2,000 keys despite typical slippage.
Answered by Neelendra Singh
Asked by Karan Khanna: Is there a risk of slippage in the FY27 target of opening 2,000 keys given only 334 keys opened in Q1?
p. 11
“Broadly, I am pretty confident to be around the 2,000 Keys mark and, things happen.”
Neelendra Singh, page 11 of the filed PDF · View the filing
Management said OTA contribution is in the mid-to-late 30s percent range depending on tactics deployed.
Answered by Neelendra Singh
Asked by Shivam Singh: What portion of business comes through OTAs?
p. 28
“Yes, late 30s, mid-30s to late 30s. Sometimes it depends on the tactic that we might deploy in that month or quarter.”
Neelendra Singh, page 28 of the filed PDF · View the filing
Risks flagged
West Asia conflict reduced inbound travel and corporate demand, softening performance in key markets
p. 6
“That led to the biggest impact of that was lesser inbound traffic and the uncertainty.”
Neelendra Singh, page 6 of the filed PDF · View the filing
New hotel supply in Mumbai near the airport still being absorbed, causing temporary demand-supply mismatch
p. 6
“there is still the lag effect of the 2,000 new rooms that have opened in the micro market of Mumbai near the airport in the last 2 years, and that supply is still being absorbed.”
Patanjali Keswani, page 6 of the filed PDF · View the filing
Loss of GST input credit on rooms priced below Rs. 7,500 increasing expenses
p. 3
“This drop was due to Provision for Stock Appreciation Rights and the loss of input credit in the GST levied, which increased our expenses by 3.1% of total revenue in Q1 this year versus zero in the previous year same quarter.”
Neelendra Singh, page 3 of the filed PDF · View the filing
Large corporates cutting travel and T&E spending amid uncertainty
p. 17
“Now large corporates took a decision, and we spoke to a number of those CEOs actually that they would tighten their belts because of uncertainty in Q1.”
Patanjali Keswani, page 17 of the filed PDF · View the filing
Potential friction and termination of managed hotel contracts as the company scales
p. 16
“There will be cases where we will terminate our agreements because of a lack of adherence to our brand standards.”
Patanjali Keswani, page 16 of the filed PDF · View the filing
Debt could briefly exceed 2x EBITDA during periods of heavy hotel construction in Fleur
p. 10
“occasionally, we are building 6 big hotels, which is what our plan is, debt may briefly cross 2x existing EBITDA.”
Patanjali Keswani, page 10 of the filed PDF · View the filing
Demerger completion subject to multiple regulatory and shareholder approvals with limited company control over timing
p. 31
“You have to keep in mind all this are subject to SEBI, to then shareholder vote, creditors' approval and then GST approval, there is a whole process.”
Patanjali Keswani, page 31 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.