What was the primary driver of the exceptional items?

The company recorded ₹33.3 crore in exceptional items. Of this, ₹25.5 crore was attributed to new national Labour Codes and discretionary ex-gratia payments for employees.

How did the annual profit compare to the previous year?

Net profit rose to ₹288.3 crore for the fiscal year ended March 31, 2026, up from ₹243.1 crore in the prior year.

Did revenue growth keep pace with profit growth?

Revenue grew by 12% to reach ₹1,444.5 crore, while net profit grew at a faster rate of 18.6%.

Who will handle internal audits for the next fiscal year?

The board appointed R. Khattar & Associates as the internal auditor for the 2026-27 financial year.

Earnings · Hotels & Restaurants · Mid cap

Lemon Tree Hotels profit climbs 19% despite ₹33 cr in one-time hits

The hospitality group posted a net profit of ₹288.3 crore for FY26. It absorbed costs from new labour codes and employee ex-gratia payments.

— 2 earlier stories on Lemon Tree Hotels Ltd. →

LEMONTREE By Tipsheet Editorial 29 May 2026 · 3:03 PM IST Verify on BSE · NSE

Mkt cap₹9,028 cr

P/E39.75×

ROE16.90%

Debt / eq.1.46

₹288.3 cr Consolidated net profit for the fiscal year ended March 31, 2026.

What's new

Annual revenue rose 12% to ₹1,444.5 crore.
Exceptional items of ₹33.3 crore included a ₹25.5 crore provision for new Labour Codes and staff ex-gratia.
R. Khattar & Associates appointed as internal auditors for FY27.

Why this matters

The company grew profits by 18.6% even after accounting for non-recurring charges. These costs, particularly the ₹25.5 crore provision for labour compliance and staff payouts, clear the books for the new fiscal year.

What we're watching

Whether the new Labour Code provisions impact operating costs in the coming quarters.
The operational impact of the corporate restructuring mentioned in the report.
Performance trends in the upcoming quarterly updates.

The full read

Lemon Tree Hotels closed the fiscal year with ₹1,444.5 crore in consolidated revenue, a 12% increase over the previous year. Net profit reached ₹288.3 crore, marking an 18.6% gain from the ₹243.1 crore reported in FY25. This performance occurred despite ₹33.3 crore in exceptional charges. The bulk of these costs, ₹25.5 crore, stemmed from provisions for new national Labour Codes and ex-gratia payments to staff intended to address salary rationalization from the COVID era. The board also finalized its governance oversight for the coming year by appointing R. Khattar & Associates as internal auditors. The results show a company successfully absorbing regulatory and employee-related costs while maintaining a double-digit growth trajectory. The next test is whether these one-time charges allow for improved operating efficiency in the new fiscal year.

Questions answered

What was the primary driver of the exceptional items?: The company recorded ₹33.3 crore in exceptional items. Of this, ₹25.5 crore was attributed to new national Labour Codes and discretionary ex-gratia payments for employees.
How did the annual profit compare to the previous year?: Net profit rose to ₹288.3 crore for the fiscal year ended March 31, 2026, up from ₹243.1 crore in the prior year.
Did revenue growth keep pace with profit growth?: Revenue grew by 12% to reach ₹1,444.5 crore, while net profit grew at a faster rate of 18.6%.
Who will handle internal audits for the next fiscal year?: The board appointed R. Khattar & Associates as the internal auditor for the 2026-27 financial year.

Mentioned: Lemon Tree Hotels · R. Khattar & Associates · FY26

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on LEMONTREE →

29 May 2026 · 3:03 PM IST Lemon Tree Hotels profit climbs 19% despite ₹33 cr in one-time hits
1d ago Lemon Tree splits itself in two: a debt-free operator and a hotel owner.
1d ago Lemon Tree Hotels posts ₹288 cr profit, earnings per share rises to ₹2.87