Lemon Tree Hotels Ltd
Lemon Tree Hotels Ltd is largest mid-priced and the third largest overall hotel chain in India. It operate in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.[1]
Strengths
- +Company has reduced debt.
- +Company has delivered good profit growth of 26.4% CAGR over last 5 years
- +Debtor days have improved from 43.2 to 33.2 days.
Weaknesses
- −Stock is trading at 6.56 times its book value
- −Though the company is reporting repeated profits, it is not paying out dividend
- −Promoter holding is low: 22.3%
- −Company has a low return on equity of 8.27% over last 3 years.
Shareholding Pattern
| Category | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Promoters | 22.8% | 22.77%▼0.0 | 22.77% | 22.34%▼0.4 | 22.28%▼0.1 | 22.28% | 22.28% | 22.32%▲0.0 |
| FIIs | 27.61% | 21.75%▼5.9 | 20.01%▼1.7 | 20.89%▲0.9 | 21.33%▲0.4 | 21.45%▲0.1 | 21.5%▲0.1 | 21.59%▲0.1 |
| DIIs | 15.2% | 18.91%▲3.7 | 20.8%▲1.9 | 19.68%▼1.1 | 19.98%▲0.3 | 19.71%▼0.3 | 19.45%▼0.3 | 15.67%▼3.8 |
| Public | 34.34% | 36.51%▲2.2 | 36.37%▼0.1 | 37.02%▲0.7 | 36.36%▼0.7 | 36.51%▲0.1 | 36.71%▲0.2 | 40.36%▲3.6 |
Financial Statements
| Metric | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 78 | 102 | 102 | 83 | 87 | 104 | 111 | 93 | 91 | 125 |
| Expenses | 41 | 44 | 43 | 44 | 45 | 50 | 47 | 52 | 47 | 62 |
| Operating Profit | 37 | 58 | 60 | 38 | 41 | 54 | 64 | 41 | 43 | 63 |
| OPM % | 47% | 57% | 58% | 46% | 48% | 52% | 58% | 44% | 48% | 50% |
| Net Profit | 14 | 34 | 35 | 17 | 19 | 28 | 36 | 20 | 23 | 23 |
| EPS ₹ | 0.18 | 0.43 | 0.45 | 0.21 | 0.24 | 0.36 | 0.45 | 0.26 | 0.28 | 0.29 |
AI Insights
TTM revenue at ₹419Cr, up 8.8% YoY. OPM at 50%.
Borrowings at ₹363Cr. Debt-to-equity ratio: 0.71x. Moderate leverage.
CWIP at ₹52Cr (10% of fixed assets). Moderate ongoing capital expenditure.
DIIs: 15.67% (+5.29pp change). FIIs: 21.59% (-3.89pp change). Promoters hold 22.32%.
ROCE improving from 0% (Mar 2015) to 11% (Mar 2025). Working capital days: -57.
PE 74.4x with 11.2% ROCE. Price is 559% above book value of ₹16.4. Dividend yield: 0%.
Recent Announcements
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 2d - Lemon Tree signed a license agreement for a 50-room hotel in Satya Nagar, Bhubaneswar.
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 2d - Lemon Tree opened Keys Select Chirang, Assam, its first hotel in the state with 40 rooms.
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 14 May - Lemon Tree opened its 65-room Bhubaneswar hotel in two phases; 50 rooms started today.
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 8 May - Keys Select by Lemon Tree Hotels, Amritsar opened with 50 rooms on May 8, 2026.
- Announcement Under Regulation 30 Of SEBI (LODR) Regulations, 2015 6 May - BHPL terminated 2010 MSA for Keys Select Hotel Nestor over unpaid fees; no significant financial impact.
- Financial Year 2025 from bse
- Financial Year 2024 from bse
- Financial Year 2023 from bse