Lemon Tree Hotel Q2 FY27 Results (NSE: LEMONTREE)
Signal: Margin expansion
The read
The operating trend inflected positively after three consecutive quarters of YoY margin contraction: Q2FY27 revenue grew 18.0% and EBITDA margin expanded 160bps to 44.9%, but the 90.2% PAT increase to ₹7,976.24 lakh is not fully recurring because it includes a ₹4,163.66 lakh lease-termination gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹361.38 Cr | +18.0% | +4.9% |
| Net profit | ₹79.76 Cr | +90.2% | |
| EPS | ₹0.58 | +93.3% | |
| EBIT margin | 44.9% |
P&L walk
Consolidated revenue increased to ₹36,137.78 lakh, EBITDA rose 22.4% to ₹16,216.22 lakh and margin expanded to 44.9%, while PAT growth to ₹7,976.24 lakh was amplified by a ₹4,163.66 lakh exceptional lease-termination gain.
Segments
The group reports a single hoteliering operating segment, so no segment-level driver or drag is disclosed; the material consolidated-versus-standalone gap remains visible, with consolidated revenue of ₹36,137.78 lakh versus standalone revenue of ₹11,325.20 lakh.
Key positives
- Revenue rose 18.0% YoY to ₹36,137.78 lakh, accelerating from the prior quarter's ₹34,460.61 lakh.
- EBITDA increased 22.4% YoY to ₹16,216.22 lakh, outpacing revenue growth and expanding margin by 160bps to 44.9%.
- Finance cost declined 32.3% YoY to ₹3,047.90 lakh, improving conversion from operating profit to pre-tax earnings.
- H1FY27 operating cash flow was ₹30,676.20 lakh, up 30.9% YoY and above H1FY27 PAT of ₹9,003.46 lakh.
- PPE plus CWIP increased to ₹328,087.26 lakh from ₹314,180.44 lakh at March 31, 2026, consistent with the reported H1FY27 capex outflow of ₹21,080.81 lakh.
Key concerns
- PAT growth of 90.2% to ₹7,976.24 lakh was materially inflated by a ₹4,163.66 lakh exceptional gain on termination of a lease, so recurring earnings growth is substantially lower.
- H1FY27 capex outflow increased to ₹21,080.81 lakh from ₹5,034.73 lakh, raising execution and balance-sheet demands while the filing gives no updated leverage target.
- Standalone expenses increased 34.8% YoY to ₹6,390.72 lakh against standalone revenue growth of 24.6% to ₹11,325.20 lakh.
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