Hotels company Lemon Tree Hotels announced Q3FY26 results Total Revenue stood at Rs 407.8 crore in Q3FY26, which was up 32% from Rs 308.0 crore in Q2 FY26 and was up 15% as compared to Rs 355.8 crore in Q3FY25. Gross ARR stood at Rs 7,487 in Q3FY26, which was up 20% from 6,247 in Q2 FY26 and was up 11% as compared to Rs 6,763 in Q3FY25. Occupancy% stood at 73.4% in Q3FY26, which was up 362 bps from 69.8% in Q2 FY26 and was down 82 bps as compared to 74.2% in Q3FY25. Total expenses stood at Rs 201.4 crore in Q3FY26, which was up 15% from Rs 175.6 crore in Q2 FY26 and was up 18% as compared to Rs 171.0 crore in Q3FY25 Net EBITDA stood at Rs 206.4 crore in Q3FY26, which was up 56% from Rs 132.4 crore in Q2 FY26 and was up 12% as compared to Rs 184.8 crore in Q3FY25. Net EBITDA margin % stood at 50.6% in Q3FY26, which was up 761 bps from 43.0% in Q2 FY26 and was down 133 bps as compared to 51.9% in Q3FY25. PAT stood at Rs 81.8 crore in Q3FY26, which was up 95% from Rs 41.9 crore in Q2 FY26 and was up 2% as compared to Rs 79.8 crore in Q3FY25 Cash Profit stood at Rs 131.1 crore in Q3FY26, which was up 72% from Rs 76.3 crore in Q2 FY26 and was up 14% as compared to Rs 114.9 crore in Q3FY25. Patanjali Keswani, Executive Chairman, Lemon Tree Hotels, said: In Q3, Lemon Tree recorded its highest-ever revenue & EBITDA - at Rs 407.8 crore., our revenue grew by 15% compared to Q3 last year, Net EBITDA grew 12% YoY to Rs 206.4 crore. translating into a Net EBITDA Margin of 50.6% which decreased by 133 bps YoY. The decline was primarily due to increased investments in renovation, technology and the GST impact. While these expenses/investments accounted for 6.4% of revenue for this quarter, we expect all these 3 expense heads to reduce to ~3.6% of revenue by FY28 and onwards, leading to corresponding expansion in EBITDA margins. The change in GST in this quarter accounted for 1.8% of Revenue in seasonally strong quarter of the year and we expect this to be 2% for the full year in FY27 and then further reduce to 1.7% in FY28. This decrease will be a YoY trend as the impact in the long term is offset by an increase in volume of demand arising out of lowering of rates due to GST going down to 5% and the ARR for most of our hotels goes above 7,500. Additionally, all our current future supply is being planned under the upper upscale Aurika brand which remains largely unaffected by this change. Q3FY26 recorded a Gross ARR of Rs 7,487 which increased by 11% YoY. The occupancy for the quarter stood at 73.4%, a decrease of 82 bps YoY. This translated into a RevPAR of Rs 5,494 which increased by 9% YoY. We incurred an expense of Rs 31.3 crore as one-off exceptional item related to Labour Code Impact, Ex-Gratia payments to employees and a property tax payment in relation to the properties at New Delhi. Consequently, the company's profit after tax stood at Rs 81.8 crore. in Q3FY26, an increase of 2% YoY. Cash profit for the company stood at Rs 131.1 crore in Q3FY26, an increase of 14% YoY. On the asset-light side, in Q3 we signed 17 new management and franchise contracts, adding 1,855 new rooms to our pipeline, and operationalized 9 hotels, adding 816 rooms to our operational portfolio. As of September 30, 2025, the total inventory for the group stands at 259 hotels and 21,942 rooms, with 11,772 rooms and 130 hotels being operational and the rest in pipeline. Fees from management and franchised contracts for third-party-owned hotels stood at Rs 22.9 crore in Q3FY26, an increase of 24% YoY. Fees from Fleur Hotels stood at Rs 25.3 crore in Q3FY26, which stayed flat YoY due to the impact of GST change and accelerated renovation in the Fleur portfolio. Total management fees for Lemon Tree stood at Rs 48.2 crore in Q3FY26. Now briefly touching upon our other initiatives. We have initiated the design and approvals for Aurika, Nehru Place, a glimpse of which you can see in the Annexures section of the investor presentation. Secondly, we plan to open 2 out of 3 blocks of Aurika, Shimla by Q2 this year to capture the increased demand during the summer season. Thirdly, in January this year we have signed a license deed for a 47-room heritage hotel at Varanasi located right on the ghat adjoining river Ganges. The hotel has the potential to do extremely high rates owing to the strategic location and the deep demand of the Varanasi market throughout the year. Result PDF