Lemon Tree Hotels Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Lemon Tree Hotels Limited (NSE:LEMONTREE) just released its latest second-quarter report and things are not looking great. Results showed a clear earnings miss, with ₹3.1b revenue coming in 4.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹0.44 missed the mark badly, arriving some 22% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Lemon Tree Hotels' 17 analysts is for revenues of ₹14.7b in 2026. This reflects a credible 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 23% to ₹3.41. Before this earnings report, the analysts had been forecasting revenues of ₹15.0b and earnings per share (EPS) of ₹3.48 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Lemon Tree Hotels

The consensus price target held steady at ₹180, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lemon Tree Hotels, with the most bullish analyst valuing it at ₹210 and the most bearish at ₹135 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lemon Tree Hotels' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Lemon Tree Hotels' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 22% annually. Factoring in the forecast slowdown in growth, it seems obvious that Lemon Tree Hotels is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lemon Tree Hotels' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹180, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Lemon Tree Hotels going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Lemon Tree Hotels has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.