LTLemon Tree Hotels541233Quarterly results

Board approves September-quarter and half-year results; auditor's review conclusion unmodified

Lemon Tree Hotels' board met on November 5, 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026.

By ScoutQuest · Thu 5 Nov 2026, 8:37 PM IST · 3 min read

Total income (latest)

36,381.92 lakhs; Year ago 30,799.91 (+18.1%); Prev qtr 34,675.31 (+4.9%)

Profit after tax (latest)

7,976.24 lakhs; Year ago 4,193.45 (+90.2%); Prev qtr 5,734.23 (+39.1%)

Period

September 30, 2026 (Unaudited)

The numbers

All figures in this section are consolidated, from the Statement of Unaudited Consolidated Financial Results, stated in lakhs.

• Revenue from operations: Rs. 36,137.78 lakhs for the quarter ended September 30, 2026, against Rs. 30,627.66 lakhs for the quarter ended September 30, 2025.
• Total income: Rs. 36,381.92 lakhs for the quarter.
• Profit after tax: Rs. 7,976.24 lakhs for the quarter and Rs. 13,710.47 lakhs for the half year ended September 30, 2026.
• Revenue from operations for the half year: Rs. 70,598.39 lakhs.
• Basic and diluted earnings per share: Rs. 0.72 for the quarter and Rs. 1.30 for the half year; the update states these are not annualised.

Exceptional items in the quarter

• Gain on termination of lease: Rs. 4,163.66 lakhs, relating to Lemon Tree Premier 2, Gurugram, earlier accounted under Ind AS 116-Leases.
• Provision for a property-tax matter: Rs. 1,583.29 lakhs, recognised on the Group's assessment including recent judicial determinations, presented as exceptional given its historical and one-time nature.
• Provision on diminution in the carrying value of investment in an associate: Rs. 334.66 lakhs.
• Expenses related to acquisition or potential acquisition: Rs. 36.61 lakhs.
• The exceptional items line is printed as Rs. (2,209.10) lakhs, and profit before tax is Rs. 11,087.09 lakhs against profit before exceptional items and tax of Rs. 8,877.99 lakhs.

The auditor's review

• Deloitte Haskins & Sells LLP reviewed both the consolidated and the standalone statements under SRE 2410, the standard for review of interim financial information.
• A review is narrower than an audit: it relies mainly on enquiries and analytical procedures, so the auditor does not express an audit opinion.
• Conclusion: nothing came to the auditor's attention that causes them to believe the statements have not disclosed what Regulation 33 requires, or that they contain any material misstatement. The conclusion is not modified in respect of the matters covered.
• The interim results of 17 subsidiaries and 1 limited liability partnership firm, and the Group's share in 3 associates, were reviewed by other auditors; the auditor's conclusion on those parts is based solely on those other reports.
• The results of Krizm Hotels Private Limited Employee Welfare Trust were also reviewed by another auditor, and the conclusion is not modified in respect of that matter.

Composite Scheme of Arrangement

• A proposed Composite Scheme of Arrangement involves the merger and demerger of certain group entities, to separate the hotel ownership and development business from the hotel management and brand business.
• The appointed date is April 1, 2026, and approval of the Competition Commission of India was received on April 7, 2026.
• Observation letters were received from the National Stock Exchange of India Limited (no objection) and BSE Limited (no adverse observations) on September 22, 2026, and an application seeking sanction of the Scheme was shared before the NCLT, Chandigarh Bench on October 9, 2026.
• The Scheme becomes effective on receipt of the requisite statutory, regulatory and shareholder approvals, NCLT sanction and update of the certified copy of the order with the Registrar of Companies.

Other points from the outcome

• The trading window for directors, promoters, connected persons, designated persons and their immediate relatives opens after 48 hours of the declaration of these results.
• The Group operates in a single operating segment, hoteliering, and the update notes that the results are not indicative of a full year because of the seasonal nature of the Indian hotel industry.
• The paid-up share capital excludes 398,841 equity shares held by the ESOP Trust, consolidated as required under Ind AS 110.

What a reader can take away

• The board approved the quarterly and half-yearly results within the meeting, and the auditor's review conclusion carries no modification, qualification or exception.
• The quarter's profit includes a large one-time lease-termination gain and a one-time property-tax provision, so the reported profit after tax should be read together with the exceptional items line.

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