Lemon Tree Hotels shares surge 5% after Q3 profit jumps 77% YoY

Lemon Tree Hotels shares rose 5% to Rs 154.8 in Wednesday's trade on BSE after the company reported strong Q3 FY25 earnings, with net profit surging 76.6% YoY to Rs 62.5 crore from Rs 35.4 crore.

The company's revenue from operations rose 22% year-on-year to Rs 355.18 crore in Q3. It had reported revenue from operations at Rs 290.18 crore in the year-ago period. Lemon Tree's total income meanwhile rose to Rs 355.8 crore, its highest-ever third quarterly income this year.

EBITDA rose 30% YoY to Rs 184.8 crore, while EBITDA margin expanded 316 basis points to 51.9%.


As of December 31, 2024, the inventory for the group stands at 112 operational hotels with 10,317 rooms and a pipeline of 88 hotels with 6,068 rooms.

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Management outlook

Chairman & MD Patanjali Keswani expressed confidence in sustained growth, highlighting key focus areas:

- Expanding management and franchised portfolios to increase fee-based income.

- Renovating owned hotels to improve Gross ARR and occupancy, with renovation expenses continuing into FY26.

- Leveraging rising discretionary spending on branded hotels in India.

Along with the Q3 results, the company also announced that it has appointed Rashi Goel as the Company Secretary and Compliance Officer, following the resignation of Jyoti Verma.

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Lemon Tree Hotels shares target price

As per Trendlyne data, the average target price of the stock is Rs 157, which indicates an upside of 6% from the current market prices. The consensus recommendation from 16 analysts for the stock is a 'Buy'.

Lemon Tree Hotels shares performance

The stock has rallied 27% over the past three months and gained 97% in the last two years. The company’s market capitalization stands at Rs 11,931 crore.

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