Lemon Tree Hotels Limited (NSE:LEMONTREE) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

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Last week saw the newest quarterly earnings release from Lemon Tree Hotels Limited (NSE:LEMONTREE), an important milestone in the company's journey to build a stronger business. Lemon Tree Hotels beat revenue expectations by 2.3%, at ₹3.2b. Statutory earnings per share (EPS) came in at ₹0.48, some 4.0% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lemon Tree Hotels after the latest results.

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After the latest results, the 16 analysts covering Lemon Tree Hotels are now predicting revenues of ₹14.8b in 2026. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 24% to ₹3.36. In the lead-up to this report, the analysts had been modelling revenues of ₹14.9b and earnings per share (EPS) of ₹3.41 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Lemon Tree Hotels

The analysts reconfirmed their price target of ₹175, showing that the business is executing well and in line with expectations. 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 ₹200 and the most bearish at ₹130 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 15% growth on an annualised basis. This is compared to a historical growth rate of 29% 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 19% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Lemon Tree Hotels.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 ₹175, 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. We have estimates - from multiple Lemon Tree Hotels analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Lemon Tree Hotels that you need to be mindful 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.