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Informist, Friday, Aug 7, 2026

 

By Ritwika Dutta 

 

MUMBAI - Lemon Tree Hotels Ltd. is expected to report single-digit on-year revenue growth for the June quarter led by a resilient increase in domestic occupancy as the company continues to prioritise occupancy maximisation over aggressive pricing, according to brokerages tracking the company. The company is also expected to report an on-year double-digit net profit growth for the June quarter.

 

Lemon Tree Hotels is expected to report a consolidated net profit of nearly INR 455 million for the June quarter, up almost 19% on year but down 51% on quarter, according to the average of estimates from six brokerages. The company had reported a net profit of INR 383 million in the year-ago quarter. The highest estimate for the consolidated net profit is INR 624 million from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 346 million from Motilal Oswal Financial Services Ltd.

 

The company's consolidated net sales are expected to be INR 3.4 billion for the June quarter, up almost 9% on year but down 18% on quarter. The company had reported net sales of INR 3.15 billion a year ago and INR 4.16 billion a quarter ago. The highest estimate for the consolidated net sales in the June quarter is INR 3.50 billion from JM Financial and the lowest is INR 3.31 billion from Prabhudas Lilladher Pvt. Ltd.

 

The company's revenue growth is expected to be led by resilient domestic demand. The average room rate is expected to increase slightly during the quarter, contributing to the revenue growth of the company, brokerages said. Revenue per available room and management fees earned are expected to grow by almost 7% and 20%, respectively, PhillipCapital (India) Pvt. Ltd. said.

 

Foreign tourist arrivals have been affected by the war in West Asia but domestic demand remained strong during the quarter. Higher international airfares, cancellations of flights on some routes and the war in West Asia helped domestic demand, brokerages said. "Currency depreciation and pent-up demand from events have resulted in strong domestic demand, and the trend is expected to continue in the near term," JM Financial said.

 

The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to be INR 1.5 billion, up 12% on year but down more than 27% on quarter, according to the average of eight estimates. The company had reported an EBITDA of INR 1.4 billion in the year-ago quarter. The highest estimate for the June quarter EBITDA is INR 2.15 billion from JM Financial and the lowest is INR 1.45 billion from Prabhudas Lilladher.

 

The EBITDA margin of the company is expected to fall due to loss of input tax credit, ongoing portfolio renovation, higher operating costs, and rising spends towards technology upgrade, brokerages said. The company will detail its June quarter earnings on Friday. Investors will monitor the demand in key markets and occupancy trends.

 

Shares of the company ended Friday at INR 111.01 on the National Stock Exchange, down 1.6%. The stock is down more than 2% since the company reported its March quarter earnings on May 29.

 

Of the 12 brokerage reports on the company available with Informist, 11 have a 'buy' recommendation on the stock, with an average target price of INR 162 per share. This signifies an upside of almost 46% from the current market price. One brokerage has a "hold" recommendation on the stock with an average target price of INR 123.

 

The following are the June quarter earnings estimates for Rainbow Children's Medicare Ltd. from six brokerages in descending order of the estimates of net profit in INR million:

 

Brokerage	Net Sales	Net Profit	EBITDA
JM Financial Institutional Securities Pvt Ltd	3,504	624	2,152
IDBI Capital Market Services Ltd.	3,442	604	1,542
PhillipCapital (India) Pvt. Ltd.	3,448	512	1,544
Kotak Securities Ltd.	3,447	488	1,490
360 ONE Capital Market Pvt. Ltd.	3,410	470	--
Nirmal Bang Equities Pvt. Ltd.	3,399	400	1,496
Prabhudas Lilladher Pvt. Ltd.	3,318	377	1,457
Nuvama Wealth Management Ltd.	3,457	371	1,538
Anand Rathi Share and Stock Brokers Ltd.	3,473	361	--
Motilal Oswal Financial Services Ltd.	3,397	346	1,513
Average	3,429.50	455.30	1,591.50

 

End

 

Edited by Pankaj Aher

 

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