Lemon Tree Hotel Q1 FY27 Results (NSE: LEMONTREE)
Signal: Steady quarter
The read
The key inflection is decelerating growth rather than a new operating upcycle: consolidated revenue growth slowed to 9.1% YoY from 17.9% in Q1FY26, EBITDA margin was 44.1% versus 44.0% in Q1FY26 but 52.0% in Q4FY26, and PAT rose 20.1% YoY despite the sequential margin and profit decline; lower finance cost, not operating acceleration, supported earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹344.61 Cr | +9.1% | -17.2% |
| EBIT | ₹115.79 Cr | +7.3% | |
| Net profit | ₹46.03 Cr | +20.1% | |
| EPS | ₹0.58 | +20.8% | |
| EBIT margin | 44.1% |
P&L walk
Consolidated revenue increased 9.1% YoY to ₹34460.61 lakh but fell 17.2% QoQ; EBITDA grew 6.8% YoY while EBITDA margin contracted 90bps to 44.1%, and PAT attributable to shareholders rose 20.1% to ₹4603.15 lakh helped by lower finance cost and a lower tax burden.
Key positives
- Consolidated PAT attributable to shareholders increased 20.1% YoY to ₹4603.15 lakh and EPS increased 20.8% YoY to ₹0.58.
- Finance cost declined 15.6% YoY to ₹4048.88 lakh, supporting profit growth despite EBITDA margin contracting 90bps YoY.
- The Aurika Shillong project SPV structure provides Carnation Hotels, a wholly owned subsidiary, with a 51% equity stake in Arum Hotels.
Key concerns
- Consolidated revenue growth slowed to 9.1% YoY from 17.9% in Q1FY26, while revenue declined 17.2% QoQ to ₹34460.61 lakh.
- EBITDA margin fell 90bps YoY and 800bps QoQ to 44.1%; EBITDA growth of 6.8% lagged revenue growth of 9.1%.
- Employee benefit expenses rose 11.7% YoY versus 9.1% revenue growth, increasing employee cost intensity to 18.8% from 18.4%.
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