Event Type and Purpose:

  • This document is a transcript of the earnings conference call held on Monday, August 10, 2026, at 4:00 PM IST to discuss the company's Unaudited Financial Results for the quarter ended June 30, 2026 (Q1 FY27).
  • The stated purpose was to provide a business update, discuss financial performance, and offer a strategic outlook, including an update on the demerger scheme for Fleur Hotels.

Date, Time, and Participants:

  • The event was held on August 10, 2026, at 4:00 PM IST.
  • Management Participants:
  • Mr. Patanjali Keswani, Executive Chairman
  • Mr. Neelendra Singh, Managing Director
  • Mr. Kapil Sharma, Executive Director and CFO
  • Mr. Saurabh Shatdal, Managing Director and CEO of Fleur Hotels
  • Mr. Mayank Sharma, CFO of Fleur Hotels

Financial Period Discussed:

  • The discussion focused on the financial and operational results for Q1 FY27 (quarter ended June 30, 2026).

Key Financial & Operational Highlights (as disclosed):

  • Revenue: Total revenue stood at Rs. 346.8 crore, up 9% year-on-year (YoY).
  • Profitability: Net EBITDA was Rs. 151.9 crore (up 7% YoY). Net EBITDA, adjusted for GST impact and provision for stock appreciation rights (SAR), was Rs. 162.5 crore (up 14% YoY). PAT grew 19% YoY to Rs. 57.3 crore. Cash profit grew 17% YoY to Rs. 96 crore.
  • Margins: Net EBITDA margin was 43.8%, a decrease of 99 basis points YoY, primarily due to a provision for SAR and the loss of input credit on GST.
  • Operational Metrics: Gross Average Room Rate (ARR) was Rs. 6,361 (up 2% YoY). Occupancy was 75.7% (up 314 basis points YoY).
  • Debt: Gross debt as of June 30, 2026, was Rs. 1,475 crore (down 11% YoY). The cost of debt reduced to 7.48% (down 53 basis points YoY).
  • Network Revenue: Total network revenue grew 16% YoY to Rs. 576 crore. Owned hotels contributed Rs. 320 crore (56%), and managed/franchised hotels contributed Rs. 256 crore.
  • Fee Income: Fees from third-party managed hotels were Rs. 22.8 crore (up 42% YoY). Fees from Fleur Hotels were Rs. 22.6 crore (up 6% YoY). Total management fee income was Rs. 45.4 crore (up 21% YoY).
  • Portfolio Expansion: Opened 6 managed/franchised hotels with 334 rooms in Q1. Signed 13 new managed/franchised hotels with 1,020 rooms. The total pipeline stands at 23,381 rooms across 279 hotels.

Demerger and Pro Forma Financials:

  • Management provided pro forma financials for Lemon Tree Hotels Limited and Fleur Hotels Limited as they would appear post-demerger.
  • Lemon Tree (Pro Forma Q1 FY27): Revenue Rs. 65.7 crore (up 22% YoY); Net EBITDA (pre-SAR) Rs. 38.1 crore; Net EBITDA margin 58.1% (up 383 bps YoY); PAT Rs. 33.6 crore (up 22% YoY).
  • Fleur (Pro Forma Q1 FY27): Revenue Rs. 311.4 crore (up 7% YoY); Net EBITDA (ex-GST) Rs. 125.1 crore (up 10% YoY); Net EBITDA margin 40.2% (up 112 bps YoY); PAT Rs. 34.7 crore (up 23% YoY).
  • The demerger process is ongoing, with approvals from SEBI and exchanges pending. The timeline for completion is estimated for the first half of calendar year 2027.

Strategic and Forward-Looking Commentary (as stated):

  • Renovation & Brand Performance: The Keys portfolio renovation is 2/3rd complete. Keys RevPAR grew 19% YoY to Rs. 2,885. The company targets Rs. 60 crore EBITDA from the Keys portfolio upon full renovation.
  • Growth Strategy: The asset-light strategy aims to sign more hotels than are opened. The company is targeting the opening of ~2,000 rooms in FY27. Fleur is evaluating opportunities to add ~2,500 rooms through acquisition/development.
  • Margin Outlook: Management expressed confidence in achieving a consolidated net EBITDA margin of 50% in FY28, aided by the completion of renovation projects and a strategic focus on increasing ARR to mitigate GST impact.
  • Market Outlook: Q1 performance was impacted by softer corporate demand due to the West Asia conflict, but July and August showed a significant recovery. The company is refocusing on a balanced strategy of driving occupancy and ARR.

Compliance Statement:

  • The document is a disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015. The transcript was submitted to the exchanges for record purposes.
  • The call included forward-looking statements, and a disclaimer to this effect was referenced as being included in the earnings presentation deck.

Additional Notes Section

  • This disclosure includes the enclosed transcript of the conference call as an attachment.
  • The announcement itself does not contain new financial data beyond what was presented in the results; it provides the verbatim discussion from the call.
  • Logistical details like dial-in numbers were part of the original call invite but are not the focus of this summary.