Lemon Tree Q1FY27: consolidated PAT ₹57 Cr +19% YoY, OPM narrows, revenue misses Street

Lemon Tree Hotels' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue came in at ₹344.6 Cr, up 9.1% YoY but down 17.2% QoQ, while consolidated PAT (including non-controlling interests) was ₹57.3 Cr, up 19.2% YoY but down 50.8% QoQ from Q4FY26's ₹116.5 Cr. Of that, ₹46.0 Cr was attributable to equity holders of the parent. Neither this quarter nor the year-ago quarter carried any exceptional items, so the YoY growth is clean and reported = adjusted — unlike Q4FY26, which absorbed a ₹1.93 Cr consolidated restructuring exceptional charge. Against Street, a Q1FY27 preview from Univest/Uniresearch had pegged revenue near ₹373 Cr (range ₹354-399 Cr) and PAT near ₹72 Cr; the actual print missed both — roughly 7.6% light on revenue and about 20% light on PAT.

The margin story is mixed: OPM (EBITDA less other income, over total income) eased to ~43.2% from ~44.5% a year ago and fell sharply from ~51.2% in Q4FY26, while NPM actually improved YoY to 16.5% from 15.2%, helped by a lower net finance cost (finance cost of ₹40.5 Cr partly offset by ₹4.1 Cr finance income, versus ₹48.0 Cr and ₹1.6 Cr respectively a year ago). Employee benefit expense remained the largest single cost line at ₹64.7 Cr (18.8% of revenue). The steep QoQ drop in both revenue and OPM is consistent with what the company itself flags in its filing notes: due to the seasonal nature of the Indian hotel industry, results for the quarter ended June 30 are 'not indicative of a full year's operation' — Q1 (Apr-Jun) is structurally softer than Q4 (Jan-Mar), so the sequential decline should be read as seasonality, not deterioration.

The stock went into the print at ₹111.01, down 5.5% over the past month of trading.

EPS: consolidated basic ₹0.58 (vs ₹1.16 in Q4FY26, ₹0.48 in Q1FY26) — standalone basic ₹0.32 (vs ₹0.26 a year ago)

Management gives no formal quarterly numeric guidance; qualitatively, the Q4FY26 concall had flagged geopolitical tensions and domestic-carrier capacity cuts as near-term headwinds and stated a strategy of prioritizing occupancy over aggressive price hikes for FY27 — a stance broadly consistent with a topline that still grew YoY but trailed Street and saw OPM ease. Standalone PAT of ₹25.7 Cr (+25.4% YoY) on revenue of ₹104.9 Cr (+12.9% YoY) grew faster than the consolidated numbers (+19.2%/+9.1%), a divergence of several points that reflects the subsidiary/Fleur platform's outsized weight in consolidated growth. During the quarter the company kept expanding its asset-light pipeline — a new Manali franchise, an Ujjain signing, two Nepal/India properties, and a second Keys Prima in Mussoorie — while a subsidiary's Lemon Tree Premier Gurugram lease was terminated on August 6.