Lemon Tree Hotels posts ₹288 cr profit, earnings per share rises to ₹2.87
Full-year revenue hit ₹1,444.5 crore, up 12%. Q4 profits were dented by ₹33.3 crore in one-time charges for ex-gratia and tax settlements.
— 2 earlier stories on Lemon Tree Hotels Ltd. →What's new
- FY26 revenue grew 12% to ₹1,444.5 crore; net profit rose to ₹288.3 crore from ₹243.1 crore.
- Q4 revenue rose 10% to ₹416.4 crore, but ₹33.3 crore in exceptional charges dented profit.
- Board appointed R. Khattar & Associates as internal auditor for FY27.
Why this matters
Lemon Tree's top-line and profit growth are solid, with EPS improving from ₹2.48 to ₹2.87. The ₹33.3 crore one-time hit in Q4, covering ex-gratia and tax settlements, is noise from the underlying operational trend. For an asset-heavy business, steady profitability signals the expansion strategy is bearing fruit.
What we're watching
- Whether Q4's one-time charges affect FY27 operating margins.
- Occupancy rate and average room rate trends in the next quarter.
- Impact of the new internal auditor on financial reporting.
The full read
Lemon Tree Hotels delivered 12% revenue growth for FY26, with the top line hitting ₹1,444.5 crore. Profit grew faster at 18.6%, reaching ₹288.3 crore, and EPS rose from ₹2.48 to ₹2.87. The quarterly view is muddier. Q4 revenue grew 10% to ₹416.4 crore, but ₹33.3 crore in one-time charges for ex-gratia, restructuring, and tax settlements weighed on the bottom line. Strip out those items, and the operational trajectory remains intact. The board also brought in R. Khattar & Associates as the new internal auditor for FY27. The results themselves were largely anticipated. The key takeaway is that Lemon Tree is translating steady revenue growth into higher profits, even with the odd quarter containing non-recurring drags.
Questions answered
- What was the full-year profit growth rate for Lemon Tree Hotels?
- Consolidated net profit for FY26 was ₹288.3 crore, up 18.6% from ₹243.1 crore in the previous year.
- Why was Q4 profit lower despite revenue growth?
- Q4 profit was offset by one-time exceptional charges of ₹33.3 crore. These included provisions for employee ex-gratia payments, legal restructuring costs, and property tax settlements.
- How did the company's earnings per share change?
- Basic EPS for FY26 improved to ₹2.87, up from ₹2.48 in the prior year, reflecting the higher net profit on a stable share base.
- What was the nature of the exceptional charges in Q4?
- The ₹33.3 crore in charges covered employee ex-gratia payments, costs related to legal restructuring, and settlements for property taxes. These are non-recurring items.
Story so far
All notes on LEMONTREE →- 29 May 2026 · 2:42 PM IST Lemon Tree Hotels posts ₹288 cr profit, earnings per share rises to ₹2.87
- 1d ago Lemon Tree splits itself in two: a debt-free operator and a hotel owner.
- 1d ago Lemon Tree Hotels profit climbs 19% despite ₹33 cr in one-time hits