Lemon Tree Hotels Q4 Profit Jumps 26% YoY to ₹84.64 Crore

30 May 2025 , 02:23 PM

Lemon Tree Hotels has posted a consolidated net profit of ₹84.64 crore, an increase of 26.37% on net profit of ₹66.95 crore in Q4 FY24. Revenue from operations during the Q4 FY25 increased 15.64% yoy to ₹378.51 crore on strong growth momentum. Its profit before tax expanded 37.31% YoY and 22.85% QoQ to ₹122.25 crore, revealing steady growth each quarter.

The company recorded an EBITDA of ₹205 crore for the March 2025 quarter, reflecting a 17% YoY growth from Q4 FY24 and a 11% QoQ increase. EBITDA margin was at 54% in Q4 FY25, reflecting the impact of strong operating leverage and targeted cost optimization initiatives.

The average rate per occupied room (AROR) in Q4 FY25 was ₹7,042, which represented a 7% upswing over the year-ago quarter. Better revenue growth was also supported by higher occupancy levels at 77.6% in Q4 FY25. Revenue per available room (RevPAR) rose 15% year-on-year to ₹5,462 from ₹4,754 in Q4 FY24.

CMD Patanjali Keswani said Q4FY25 was the company’s best-ever performance for a fourth quarter on revenue and the full-year EBITDA margin increased by 109 basis points year-on-year.

Third-party management and francise contracts revenue for the fourth quarter of the fiscal year 2025 was ₹16 crore, a growth of 11% yoy. The revenue earned by Fleur Hotels in the quarter was ₹28.3 crore, 19% higher than it earned during the corresponding quarter last year.

Total management fees for Q4 FY25 were ₹44.4 crore, 16% higher year-on-year, and for the full year they were ₹149 crore, reflecting a 22% improvement over FY24.

The company’s Q4 FY25 profit after tax was at ₹108.1 crore, indicating a robust 29% year-on-year growth. Cash profit in the March quarter came in at ₹143 crore, 22% higher than Q4 FY24.

Lemon Tree posted a full-year cash profit of ₹382.4 crore in FY25, representing a 30% increase over the fiscal year FY24. The total debt had decreased from ₹1,889 crore in FY24 to ₹1,699 crore in FY25. Debt to EBITDA ratio declined sharply to 2.67x in FY25, down 25% from 3.57x in FY24.

In Q4 FY25 the company signed 15 new management and franchise contracts for the addition of 833 rooms to its development pipeline. 2 hotels opened during the quarter, with 121 rooms added to the supply.

Lemon Tree Hotels’ total inventory as on March 31, 2025 stands at 212 hotels and 17,116 rooms, of which 111 are operational hotels with 10,269 rooms and the remaining are under development.