Royal Orchid Hotels has received an order from the Hon'ble High Court of Rajasthan, Jaipur Bench, appointing a Sole Arbitrator to resolve a long-standing dispute. The order, dated May 26, 2026, designates Hon'ble Mr. Justice Ajay Rastogi, a former Judge of the Supreme Court of India, to adjudicate the matter between Tambi & Others and Royal Orchid Hotels Limited & Others. The company received the official communication on May 31, 2026.

The legal proceedings stem from Arbitration Application No. 16/2023, which relates to disputes arising under a Memorandum of Understanding (MoU) executed on April 18, 2007. The MoU involves the company's associate entity, Ksheer Sagar Developers Private Limited. The High Court allowed the application under Section 11 of the Arbitration and Conciliation Act, 1996, leaving all issues raised by the parties open for adjudication before the arbitrator.

Key Details of the Order

The disclosure filed under Regulation 30 of the SEBI (LODR) Regulations, 2015, outlines the specifics of the court's directive. The following table summarizes the critical information regarding the arbitration proceedings:

Impact Assessment

Management stated that the order is procedural in nature as it pertains solely to the appointment of the arbitrator. Consequently, the company is currently unable to quantify any financial impact that may arise from the proceedings. Royal Orchid Hotels intends to defend its position appropriately during the arbitral process. The filing further notes that there are no negative operational implications, as the status quo remains unchanged for both parties involved.

Royal Orchid Hotels has released the transcript of its post earnings conference call for the fourth quarter and financial year ended March 31, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting was held on May 26, 2026, to discuss the audited financial results for the period.

For FY26, the company reported a consolidated revenue from operations of INR384 crores, an increase from INR319 crores in the previous year. EBITDA stood at INR110 crores, while profit after tax reached INR33 crores after exceptional items. Earnings per share were recorded at 11.74 rupees. The board has recommended a final dividend of INR2.5 per equity share.

Financial Performance FY26

The company’s consolidated asset base crossed INR1,041 crores during the year. Management highlighted that growth was driven by sustained demand across business and leisure travel, increasing contribution from managed and revenue share properties, and stronger ancillary revenues. The group holds nearly INR100 crores in cash equivalents, including INR88 crores in the consolidated balance sheet and INR14 crores in an associate.

Operational Highlights

Royal Orchid Hotels currently operates in 80 cities with nearly 11,000 keys, including signed hotels. The company’s Vision 2030 aims to reach 345 hotels and 22,000 keys by 2030, strengthening its asset-light business model. The pipeline includes 52 signed hotels comprising 3,600 rooms. The management noted that the launch of ICONIQA Mumbai represents a competitive advantage in execution and investment optimization.

Regarding the new ICONIQA Mumbai property, the company reported an occupancy of 62% in Q4FY26, with January and February occupancies at 80% and 73% respectively. However, the property faced challenges due to geopolitical issues and the Ind AS provision, which resulted in a notional cost of INR16 crores. Excluding this impact, PAT growth was reported at 16.8%. The management stated that while the current geopolitical environment makes providing specific guidance difficult, the company remains on a growth path.

The filing was submitted by Amit Jaiswal, Chief Financial Officer of Royal Orchid Hotels Limited.