1. Introduction and Macroeconomic View of Indian Tourism
FY 2025-26 marked a watershed year for Indias hospitality sector - one that transitioned decisively from recovery to structural growth. Despite intermittent global headwinds including renewed geopolitical tensions in the Middle East, aviation disruptions, an unseasonal monsoon and currency volatility, Indias macroeconomic fundamentals remained resilient, with GDP growth sustained at ~6.5%, underpinned by robust domestic consumption, accelerating infrastructure investment and strong services sector expansion.
Indias travel and tourism economy continued its upward trajectory, ranking as the worlds 8 largest travel and tourism economy as per World Travel & Tourism Council (WTTC), with domestic tourism acting as the primary engine. Domestic Tourist Visits (DTVs) are estimated at ~4,548 million in CY2025 - a figure that underscores the sheer scale of Indias homegrown travel base. Total air passenger traffic in India reached ~420 million in CY2025, growing ~5% year-on-year, with domestic traffic accounting for 338.9 million passengers.
India Domestic Tourist Visits (DTVs, in million)
CAGR 13.1% (2011-19)
Note: E: Estimate; F: Forecast Source: Ministry of Tourism, India Tourism Compendium Report 2025 & HVS ANAROCK Research
Foreign Tourist Arrivals (FTAs) were estimated at ~9.02 million in CY2025, reflecting a ~9% decline largely attributable to geopolitical unrest and the IndiGo aviation shocker. Adjusted for this external factor, underlying inbound demand grew ~5% year-on-year, demonstrating the structural resilience of Indias tourism appeal.
Foreign Tourist Arrivals (in million)
CAGR 7.11% (2011-19)
Note: FTAs for 2025 and 2026 represent anomaly years driven by geopolitical disruptions in key source markets, including Bangladesh and the Middle East. Underlying inbound demand trends remain positive when adjusted for these external factors. Projections from 2027 onwards are based on the historical CAGR observed between 2011 and 2019; F: Forecast Source: Ministry of Tourism, India Tourism Compendium Report 2025 & HVS ANAROCK Research
The governments continued investment in infrastructure - including airport expansions, Bharatmala highway corridors, Vande Bharat rail connectivity and the operationalisation of 663 UDAN routes across 95 airports - is steadily expanding Indias accessible tourism geography and diversifying demand well beyond the traditional metros.
Indias hotel sector delivered another year of healthy performance in CY2025, led by pricing discipline and sustained demand depth across both business and leisure segments.
| Key Performance Indicator | CY2024 | CY2025 | YoY Change |
| Nationwide Occupancy | 61-63% | 63-65% | +1-2 pp |
| Average Room Rate (ARR or ADR) | 7,800-8,000 | 8,500-8,700 | +8-10% |
| RevPAR | 4,900-5,100 | 5,400-5,600 | +10-12% |
| Total Air Passengers | ~400 Mn | ~420 Mn | +5% |
| Brand Signings (Keys) | 47,249 | 64,118 | +36% |
| New Hotel Openings (Keys) | 13,482 | 14,199 | +5% |
Source: HVS ANAROCK India Hospitality Industry Overview 2025; Hotellive Hotel Check-In Reports Q1-Q4 FY 2025-26
Pricing power remained the defining characteristic of the year. ARR growth of 8-10% was achieved despite weather disruptions, geopolitical headwinds and the IndiGo aviation crisis towards year-end. Hotel asset values at the national level stood at 2.15x their FY 2013-14 base, representing an ~8% CAGR in value appreciation over eleven years.
Keys Prima by Lemon Tree Hotels, Whitefield, Bengaluru
Q1 FY 2025-26 (April-June 2025): The year opened strongly, with ARR growing 12.4% year-on-year and occupancy broadly stable. Mumbai led performance with occupancy around 75% and average rates around ?12,000. The top five markets by RevPAR for the quarter were Mumbai, New Delhi, Bengaluru, Chennai and Hyderabad. The NIFTY Tourism Index improved 8% during the quarter.
Q2 FY 2025-26 (July-September 2025): The sector moderated, as expected in the monsoon quarter, compounded by Indo-Pakistan geopolitical tensions and the Air India crash, which weighed on travel sentiment. Nationwide RevPAR still grew 6% year-on-year, evidencing pricing resilience. The top five markets by RevPAR for this quarter were Mumbai, New Delhi, Bengaluru, Chennai and Hyderabad. The NIFTY Tourism Index declined 5.1% during the quarter.
Q3 FY 2025-26 (October-December 2025): The strongest quarter of the year. Nationwide RevPAR grew 44.7% quarter-on-quarter and 12.1%
India Hotel Sector Quarterly Performance
| Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | |
| ARR (\u20b9) | ||||||||||||
| RevPAR (\u20b9) | ||||||||||||
| Occupancy (%) |
Source: HVS ANAROCK Research
Hotel development activity reached record levels in CY2025. Brand signings totaled 64,118 keys across 586 properties - a 36% increase over CY2024 - and more than three times the 2019 level. New openings totalled 14,199 rooms across 176 properties. The sustained pace of signings reflects deepening investor conviction in Indias long-term hospitality fundamentals.
Management agreements remained the dominant growth model, accounting for over 85% of all keys signed in CY2025. Greenfield projects represented 59.5% of signings by keys, while conversions contributed 10.1% evidencing the growing role of soft-brand strategies in capturing Indias vast independent hotel inventory.
| City | Branded Supply (CY2025) | Signing Activity | Market Position |
| Bengaluru | ~19,700+ keys | 4,510 keys signed (#1) | Strong corporate/GCC demand |
| Mumbai | ~18,000+ keys | 4,499 keys signed (#2) | Premium pricing, limited supply |
| Jaipur | Growing rapidly | 3,377 keys signed (#3) | Leisure/MICE/weddings |
| Goa | ~12,000+ keys | 2,328 keys signed (#4) | Leisure; ARR correction underway |
| Hyderabad | ~8,700+ keys | 2,129 keys signed (#5) | Corporate/IT/events |
| Tier II - IV Cities | Expanding | 55%+ of properties | Structural growth frontier |
Source: HVS ANAROCK India Hospitality Industry Overview 2025
The midscale segment continued to dominate development activity, representing 55% of properties signed in CY2025 - directly aligned with the core positioning of Lemon Tree Hotels and its sub-brands. International operators accounted for 48% of keys signed, reflecting continued global confidence in Indias mid-to-upper segments.
Corporate travel remains anchored in Delhi NCR, Mumbai, Bengaluru, Pune and Hyderabad. Record Grade-A office absorption - with weighted rentals reaching 101 per sq. ft. per month in Q3 FY 2025-26 and vacancy rates declining to 14.6% - signals continued expansion of the corporate workforce and, by extension, sustained business travel demand.
Leisure demand is the fastest-growing segment, with nearly 80% of Indian travellers now considering the accommodation experience central to their holiday - far above global averages. Short-break travel is rising, with 7-day-or-less itineraries becoming dominant. Drive-to-destinations, heritage circuits, wildlife and wellness escapes are benefiting from improving road and rail connectivity.
The November-mid-December 2025 wedding window alone generated over 6.5 Lakh Crores (~$79 billion) across ~46 Lakh weddings - a ~10% growth over 2024. Lemon Tree properties in leisure markets such as Jaipur, Goa and Udaipur are well-positioned to capitalise on this demand segment.
Indias infrastructure build-out for large-format events - Bharat Mandapam, Yashobhoomi, Jio World Convention Centre - is enabling events at a scale previously constrained by capacity. MICE demand is increasingly extending beyond the traditional top three metros, with Hyderabad, Jaipur and Kochi gaining significant convention credibility.
The normalisation of aviation - despite IndiGo disruption in Q3 FY 2025-26 - continues to generate consistent demand for airport-adjacent properties. Indias total air passenger traffic of 420 million in CY2025 and the rapid expansion of regional routes under UDAN support occupancy at airport properties and secondary cities.
5. Barriers to Entry
Land Cost & Scarcity: Land cost and scarcity in Tier I cities, which continue to constrain new supply in gateway markets
Regulatory Complexity: Complex regulatory approvals, including environmental clearances, that extend project timelines
Capital Intensity: High capital requirements with extended gestation periods and low ROI at sub-scale operations
Brand Entrenchment: Brand loyalty and market saturation by established multi-brand operators in mature urban markets
Financing Constraints: Infrastructure lending thresholds (current ?200 Crores qualifying limit) that restrict access to cheaper long-term capital for midscale projects
Risk: Fluctuating occupancy and RevPAR across seasons, particularly in leisure-heavy markets Mitigation: Diversified portfolio presence across 80+ cities balances business and leisure demand cycles. Dynamic pricing engines and corporate contracts with semi-annual rate locks anchor base occupancy
Risk: Ongoing Middle East instability and aviation disruptions (as seen with IndiGo in Q3 FY 2025-26) create intermittent demand volatility Mitigation: Indias deep domestic demand base over 4.5 billion domestic tourist visits - acts as a structural insulator against global shocks. Geopolitical disruptions in competing destinations such as the Middle East are expected to redirect international demand toward stable alternatives including India
Risk: Rising crude oil prices (Brent crude above $111/barrel in parts of FY 2025-26) increase Aviation Turbine Fuel costs, driving airfare inflation that disproportionately impacts mid-market leisure travellers
Mitigation: Multi-brand architecture spanning economy to upscale, combined with strong drive-to destination positioning, provides a natural hedge against airfare sensitivity. Centralized procurement and supplier optimisation reduce exposure to input cost inflation
Risk: Interest rate volatility, elevated working capital requirements and long project gestation periods Mitigation: Asset-light expansion through management contracts and franchise agreements limits balance sheet exposure while enabling rapid portfolio growth. Stable EBITDA margins and disciplined capital allocation support debt serviceability and investor confidence
Risk: Algorithm-led travel discovery means hotels with weak digital presence risk losing bookings to better-optimised competitors Mitigation: Investments in AI-driven revenue management, dynamic pricing infrastructure and OTA visibility are critical countermeasures
Lemon Tree Premier, Budhanilkantha, Kathmandu, Nepal
The following macro-trends are expected to shape the operating environment for the industry:
Domestic tourist visits are projected to cross 9,542 million by 2030, based on a historical CAGR of 13.1% (2011-2019). Rising disposable incomes, improving multimodal connectivity and a broadening travel aspirations base - extending beyond the top metros into Tier II-IV markets - are the primary structural drivers.
The Maha Kumbh in Prayagraj drew over 663 million visitors in 45 days, with an estimated economic impact exceeding ?2 trillion. Live events are emerging as measurable demand generators: India hosted over 34,000 live events in CY2025, with attendance growing 17% year-on-year. The IPL drove occupancies above 85% in host cities with F&B footfall up 40-50%
Indias destination wedding segment - estimated at over $18 billion in CY2025 - is expanding at a steady double-digit pace. More than 60% of weddings with budgets exceeding ?1 Crore are now destination-based, with average spend climbing to ~?58 Lakhs per wedding. This represents a high-yield, repeatable demand cycle that benefits midscale and upscale properties across leisure markets.
MICE demand is decentralising rapidly. Cities like Hyderabad, Jaipur, Kochi and Indore are increasingly hosting large-format conferences and conventions, supported by purpose-built venues such as Bharat Mandapam and Yashobhoomi. Delegate expectations increasingly integrate leisure experiences into conference stays, benefiting Lemon Trees presence in emerging MICE cities.
Over 83% of Indian travellers believe AI makes travel easier, with more than 80% using it to avoid overcrowding and discover experiences. Indias AI-in-tourism market, valued at ~$109 million in CY2024, is projected to grow at a 32.6% CAGR to ~$595 million by 2030. For hospitality operators, this necessitates investment in digital visibility, structured content and dynamic pricing infrastructure to remain competitive in an algorithm-led discovery environment.
Tier III and IV cities accounted for 44% of total hotel brand signings by keys in CY2025 and over 55% of properties signed.
Indias hotel sector enters FY 2026-27/CY2026 from a position of structural strength, with industry-level RevPAR forecast for CY2026 to reach ~?5,988 with occupancy at ~67% and ARR at ~?8,931 representing continued healthy growth over CY2025 levels.
Performance Forecast
| 2026F | 2027F | 2028F | |
| ARR (\u20b9) | 8,931 | 9,669 | 10,654 |
| RevPAR (\u20b9) | 5,988 | 6,676 | 7,506 |
| Occupancy (%) | 67% | 69% | 70% |
Source: HVS ANAROCK Research
Brand signings in CY2026 are estimated at ~690 hotels with 76,000 keys — a further acceleration from CY2025 record levels. Scheduled openings are projected at ~200 hotels with ~15,620 keys. The pipeline is increasingly tilted toward Tier II- IV markets and leisure destinations.
The Union Budget FY 2026-27 has reinforced tourism as a core national priority, with a ^ 2,438 Crores Ministry of Tourism allocation for FY 2026-27 and plans to develop 50 new tourism destinations. Seven new high-speed rail corridors spanning ~4,000 km with an estimated investment of ^ 16 Lakh Crores will further
enhance multimodal connectivity, unlocking demand in previously under-served circuits.
For Lemon Tree Hotels, the convergence of a maturing rate-led cycle, deepening Tier II-IV penetration, growing MICE and wedding demand in secondary cities and the rising importance of the accommodation experience as a travel anchor all represent compelling structural tailwinds. The CompanyRss diversified brand architecture, disciplined asset-light expansion strategy and entrenched domestic demand focus position it well to deliver sustained RevPAR improvement and margin expansion through FY 2026-27/CY2026 and beyond.
Note:
Industry data and benchmarks referenced herein are sourced from HVS ANAROCK India Hospitality Industry Overview 2025 and Hotelivate Hotel Check-In Reports (Q1-Q4 FY 2025-26).
8. Operating Results
| Particulars (in Rs Crores) | Year Ended | ||
| 31 March 2026 | 31 March 2025 | YoY Change | |
| Income | |||
| Revenue from operations | 1,444.5 | 1,286.1 | 12% |
| Other income | 8.2 | 2.3 | 250% |
| Total income | 1,452.7 | 1,288.4 | 13% |
| Expenses | |||
| Cost of food and beverages consumed | 84.8 | 76.2 | 11% |
| Employee benefit expenses | 239.3 | 218.5 | 10% |
| Other expenses: | |||
| - Power and fuel | 85.1 | 87.8 | (3%) |
| - Others | 344.2 | 269.5 | 28% |
| Total expenses | 753.3 | 652.0 | 16% |
| Net EBITDA | 699.3 | 636.5 | 10% |
| Net EBITDA % | 48.1% | 49.4% | (126)bps |
| Finance cost | 179.5 | 211.2 | (15%) |
| Finance income | (12.3) | (10.6) | 17% |
| Depreciation and amortization expense | 138.8 | 139.3 | 0% |
| Net profit before tax and share of associates | 393.3 | 296.5 | 33% |
| Add: Share of (loss)/profit of associates | (0.9) | (0.3) | 254% |
| Profit before tax and exceptional items | 392.4 | 296.2 | 32% |
| Exceptional items | 33.3 | - | 100% |
| Profit before tax | 359.1 | 296.2 | 21% |
| Tax expense | 70.8 | 53.1 | 33% |
| Net profit after tax | 288.3 | 243.1 | 19% |
| Cash profit* | 443.1 | 382.4 | 16% |
* Cash Profit for FY 2025-26 equals PAT + Depreciation + Provision for New Labour Code and Stock Appreciation Rights
Income
The CompanyRss total income has increased by 13% from Rs 1,288.4 Crores during FY 2024-25 to Rs 1,452.7 Crores during FY 2025-26 and revenue from operations alone increased by 12% from Rs 1,286.1 Crores for FY 2024-25 to Rs 1,444.5 Crores for FY 2025-26.
• Gross ARR of the Company saw an increase of 8% from Rs 6,381 in FY 2024-25 to Rs 6,875 in FY 2025-26; Occupancy increased by 186 bps from 71.7% in
FY 2024-25 to 73.5% in FY 2025-26; hence, the RevPAR increased by 11% from Rs 4,573 in FY 2024-25 to Rs 5,055 in FY 2025-26
• The revenue from food and beverages increased by 10% from Rs 247.5 Crores for FY 2024-25 to
Rs 271.6 Crores for FY 2025-26
• The management fees from third-party owned hotels also increased by 23% from Rs 60.3 Crores for FY 2024-25 to Rs 73.9 Crores for FY 2025-26
Expenses
Total expenses increased by 16% from Rs 652.0 Crores for FY 2024-25 to Rs 753.3 Crores for FY 2025-26.
• The cost of food and beverages consumed increased in line with the increase in food and beverages revenue from Rs 76.2 Crores for
FY 2024-25 to Rs 84.8 Crores for FY 2025-26. Moreover, the cost of food and beverages consumed as a percentage of food and beverages revenue has increased from 30.8% for FY 2024-25 to 31.2% for FY 2025-26
• Employee Benefit expenses increased by 10% from Rs 218.5 Crores for FY 2024-25 to Rs 239.3 Crores for FY 2025-26 primarily due to a one-time ex-gratia payment made to hotel employees as
a goodwill gesture linked to salary rationalization measures implemented during the COVID-19 period
• Power and Fuel expenses decreased by 3% from Rs 87.8 Crores for FY 2024-25 to Rs 85.1 Crores for FY 2025-26 driven by increased adoption of renewable energy sources
• Other expenses increased by 28% from Rs 269.5 Crores for FY 2024-25 to Rs 344.2 Crores for
FY 2025- 26 driven by higher business activity, the impact of changes in GST regulations resulting in lower input tax credit benefits and increased renovation expenditure across the portfolio
Net EBITDA
The CompanyRss net EBITDA increased by 10% from Rs 636.5 Crores for FY 2024-25 to Rs 699.3 Crores for FY 2025- 26. Net EBITDA margins decreased by 126 bps from 49.4% for FY 2024-25 to 48.1% for FY 2025-26, largely on account of reduced GST input tax credit benefits following regulatory changes and increased renovation- related expenditure across the portfolio.
Depreciation and Amortization
Depreciation and amortization expenses remained almost flat, at Rs 139.3 Crores for FY 2024-25 and slightly came down to Rs 138.8 Crores for FY 2025-26.
Finance Costs
Total debt decreased by 12% from Rs 1,698.6 Crores for FY 2024-25 to Rs 1,500.3 Crores for FY 2025-26. The finance cost decreased by 15% from Rs 211.2 Crores for FY 2024-25 to Rs 179.5 Crores for FY 2025-26. The CompanyRss weighted average cost of debt decreased by 115 bps from 8.57% as at end of FY 2024-25 to 7.42% as at end of FY 2025-26.
Exceptional Items
Exceptional items for FY 2025-26 include the following:
• Considering uniform definition of RswagesRs as per Code on Wages, 2019, with effect from
21 November 2025, the company has created a provision for New Labour Code amounting to Rs 14.5 Crores
• One-time ex-gratia amounting to Rs 11.0 Crores paid to certain employees as a goodwill gesture
in connection with salary rationalization measures undertaken during the COVID-19 period
• The Company availed a one-time settlement scheme notified by the Municipal Corporation of Delhi for settlement of property tax dues relating to three hotel properties resulting to an impact of Rs 4.8 Crores
• The Company spent Rs 3.0 Crores towards legal, professional, advisory and other directly attributable costs in connection with the proposed Composite Scheme of Arrangement involving demerger and restructuring of the Company
and its group entities, which was subsequently approved by the Board of Directors on 9 January 2026, subject to requisite statutory and regulatory approvals
9. Performance of Owned/Leased Hotels by Brand - FY 2025-26 vs. FY 2024-25
| Parameters | RevPAR (\u20b9) FY 2025-26 | RevPAR (\u20b9) FY 2024-25 | RevPAR Change | Occupancy Rate (%) FY 2025-26 | Occupancy Rate (%) FY 2024-25 | Occupancy Change | ARR (\u20b9) FY 2025-26 | ARR (\u20b9) FY 2024-25 | ARR Change | Hotel Level EBITDA/Room Margins %* FY 2025-26 | Hotel Level EBITDA/Room Margins %* FY 2024-25 | EBITDA Change |
| By Brand (Rooms) | ||||||||||||
| Aurika Hotels & Resorts (808) | 7,470 | 6,266 | 19% | 74% | 62% | 1,200 | 10,040 | 10,042 | 0% | 25.0 | 20.0 | 25% |
| Lemon Tree Premier (1,603) | 6,390 | 5,924 | 8% | 82% | 81% | 99 | 7,837 | 7,354 | 7% | 16.9 | 16.0 | 6% |
| Lemon Tree Hotels (1,769) | 4,757 | 4,459 | 7% | 74% | 76% | (164) | 6,412 | 5,879 | 9% | 10.6 | 10.5 | 1% |
| Red Fox by Lemon Tree Hotels (643) | 3,052 | 2,872 | 6% | 67% | 70% | (255) | 4,557 | 4,132 | 10% | 6.4 | 6.1 | 5% |
| Keys by Lemon Tree Hotels (936) | 2,621 | 2,183 | 20% | 62% | 58% | 423 | 4,210 | 3,761 | 12% | 4.8 | 3.6 | 34% |
| EBITDA/Room Margins % | 25.0 | 20.0 | 63% | 61% | 226 |
| EBITDA/Room Margins % | 16.9 | 16.0 | 58% | 59% | (29) |
| EBITDA/Room Margins % | 10.6 | 10.5 | 50% | 52% | (204) |
| EBITDA/Room Margins % | 6.4 | 6.1 | 51% | 52% | (59) |
| EBITDA/Room Margins % | 4.8 | 3.6 | 43% | 38% | 464 |
Lemon Tree Resort, Somnath
*Cash Profit for FY 2025-26 equals PAT + Depreciation + Provision for New Labour Code and Stock Appreciation Rights **Hotel level EBITDA and EBITDA Margin is before renovation expense for both FY 2025-26 and FY 2024-25
Aurikas numbers include the numbers for Aurika, Mumbai Skycity which operationalized on 3rd October 2023. Gross ARR remained flat, at 10,042 for FY 2024-25 and 10,040 for FY 2025-26. Occupancy increased by 1,200 bps from 62% for FY 2024-25 to 74% for FY 2025-26. RevPAR increased by 19% from 6,266 for FY 2024-25 to 7,470 for FY 2025-26. Hotel level EBITDA/room increased by 25% from 20.0 Lakhs for FY 2024-25 to 25.0 Lakhs for FY 2025-26. EBITDA margin increased by 63% for FY 2024-25 to 63% for FY 2025-26.
Gross ARR increased by 7% from 7,354 for FY 2024-25 to 7,837 for FY 2025-26. Occupancy increased by 99 bps from 81% for FY 2024-25 to 82% for FY 2025-26. RevPAR increased by 8% from 5,924 for FY 2024-25 to 6,390 for FY 2025-26. EBITDA/room increased by 6% from 16.0 Lakhs for FY 2024-25 to 16.9 Lakhs for FY 2025-26. EBITDA margin decreased by 29 bps from 59% for FY 2024-25 to 58% for FY 2025-26.
Gross ARR increased by 9% from 5,879 for FY 2024-25 to 6,412 for FY 2025-26. Occupancy decreased by 164 bps from 76% for FY 2024-25 to 74% for FY 2025-26. RevPAR increased by 7% from 4,459 for FY 2024-25 to 4,757 for FY 2025-26. EBITDA/room increased by 1% from 10.5 Lakhs for FY 2024-25 to 10.6 Lakhs for FY 2025-26. EBITDA margin decreased by 204 bps from 52% for FY 2024-25 to 50% for FY 2025-26.
Gross ARR increased by 10% from 4,132 for FY 2024-25 to 4,557 for FY 2025-26. Occupancy decreased by 255 bps from 70% for FY 2024-25 to 67% for FY 2025-26. RevPAR increased by 6% from 2,872 for FY 2024-25 to 3,052 for FY 2025-26. EBITDA/room increased by 5% from 6.1 Lakhs for FY 2024-25 to 6.4 Lakhs for FY 2025-26. EBITDA margin decreased by 59 bps from 52% for FY 2024-25 to 51% for FY 2025-26.
Gross ARR increased by 12% from 3,761 for FY 2024-25 to 4,210 for FY 2025-26. Occupancy increased by 423 bps from 58% for FY 2024-25 to 62% for FY 2025-26. RevPAR increased by 20% from 2,183 for FY 2024-25 to 2,621 for FY 2025-26. EBITDA/room increased by 34% from 3.6 Lakhs for FY 2024-25 to 4.8 Lakhs for FY 2025-26. EBITDA margin increased by 464 bps from 38% for FY 2024-25 to 43% for FY 2025-26.
Lemon Tree Resort, Thimphu, Bhutan
10. Key Financial Ratios Key financial ratios for consolidated financial statements and their definitions are given below:
| Sr. No. | Ratio | Year Ended 31 March 2026 | Year Ended 31 March 2025 |
| 1 | Current Ratio (in times) | 1.21 | 0.85 |
| 2 | Debt-to-Equity Ratio (in times) | 0.72 | 0.95 |
| 3 | Debt Service Coverage Ratio (in times) | 1.61 | 1.12 |
| 4 | Return on Equity (in %) | 14.90% | 14.58% |
| 5 | Inventory Turnover Ratio (in times) | 18.41 | 15.47 |
| 6 | Trade Receivable Turnover Ratio (in times) | 14.55 | 16.83 |
| 7 | Net Capital Turnover Ratio (in times) | 18.73 | (24.93) |
| 8 | Net Profit Margin (in %) | 20.33% | 19.26% |
| 9 | Return on Capital Employed (in %) | 15.71% | 14.35% |
| 10 | Interest Coverage Ratio (in times) | 5.25 | 4.01 |
| 11 | Operating Profit Margin (in %) | 48.74% | 50.22% |
Interest Service Coverage Ratio equals Profit before Tax + Interest on Borrowings + Depreciation and Amortisation divided by Interest on Borrowings
Operating Profit Margin equals Profit before Depreciation and Amortisation Expenses, Interest and Tax less Other Income divided by Net Sales Net Sales equals Revenue from Operations less Government Grant
The definitions of other ratios are given in Note 39 of the Notes to Standalone Financial Statements
The Current Ratio of the Group has improved from 0.85 in FY 2024-25 to 1.21 in FY 2025-26. Net Capital Turnover Ratio improved from (24.93) in FY 2024-25 to 18.73 in FY 2025-26 on account of higher revenue during the year
Lemon Tree Suites, Gurugram
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