Royal Orchid Hotels Limited has fixed August 28, 2026, as the record date for determining shareholder entitlement to a final dividend of ₹2.5 per share for the financial year 2025-26. The payout is subject to approval by members at the company’s 40th Annual General Meeting (AGM), scheduled for September 26, 2026. This disclosure clarifies the timeline for investors, ensuring that only those holding shares on the record date will receive the distribution.

The Board of Directors approved the dividend recommendation during its meeting on August 11, 2026. In the same session, the Board reviewed and approved the un-audited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1FY27). The statutory auditors issued a limited review report on these results, complying with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The dividend payment is expected to be made on or after the AGM date, aligning with regulatory timelines for fund disbursement.

In governance developments, the Board approved the re-appointment of Venkata Ramana Murthy Pinisetty (DIN: 03483544) as an Independent Director for a second term. His tenure will run from October 9, 2026, to October 8, 2028, pending shareholder approval. Pinisetty brings extensive corporate experience, including CXO-level roles at Fortune 500 companies such as The Coca-Cola Company and Indian Hotels (TATA Group). His expertise in human resources and organization development is intended to strengthen the Board’s oversight capabilities.

Additionally, the Board appointed Padmini V. Krupanidhi, Company Secretary & Compliance Officer, as the Nodal Officer for coordinating with the Investor Education and Protection Fund (IEPF) Authority. Pursuant to Rule 7(2A) of the IEPF Authority Rules, 2016, she is authorized to verify cases related to refunds to claimants from the IEPF Fund. This appointment ensures dedicated oversight for investor grievance redressal and compliance with regulatory requirements regarding unclaimed dividends and matured securities.

Governance and Compliance

The disclosures were made pursuant to Regulation 30 of the SEBI Listing Regulations, read with Schedule III and SEBI Circular No. SEBI/HO/CFD/CFD-POD-1/P/CIR/2023/123 dated July 13, 2023. The Board confirmed that Venkata Ramana Murthy Pinisetty has no relationship with any other directors of the company, ensuring independence in his role. The meeting commenced at 12:46 PM and concluded at 12:56 PM on August 11, 2026, reflecting a focused agenda on financial reporting and key governance appointments.

Royal Orchid Hotels Limited reported a contraction in profitability for the quarter ended June 30, 2026, as rising operational expenses offset revenue growth. Standalone net profit declined 21.8% year-on-year to ₹282.49 lakhs from ₹361.53 lakhs in the corresponding period of the previous year. Consolidated net profit fell more sharply by 39.3% to ₹679.44 lakhs, compared to ₹1,119.43 lakhs in Q1FY25. The decline underscores margin pressure despite a 9.8% increase in standalone revenue from operations to ₹5,222.11 lakhs.

The Board of Directors approved the unaudited financial results and proposed a final dividend of 25%, or ₹2.5 per equity share, for FY25-26. If approved by shareholders at the Annual General Meeting (AGM) scheduled for September 26, 2026, the dividend will result in a cash outflow of ₹685.63 lakhs. The record date for the dividend has been fixed as August 28, 2026, with payments expected on or after September 26, 2026. The AGM will be conducted via Video-Conferencing or Other Audio-Visual Means (OAVM).

Financial Performance Highlights

The following table summarizes key financial metrics across standalone and consolidated segments for the latest quarter:

Standalone revenue from operations rose to ₹5,222.11 lakhs from ₹4,755.85 lakhs in Q1FY25. However, total expenses increased disproportionately to ₹4,976.82 lakhs from ₹4,366.10 lakhs. Employee benefits expense grew 10.0% to ₹1,200.95 lakhs, while power and fuel expense surged 15.1% to ₹486.90 lakhs. Other expenses also climbed 29.0% to ₹1,680.05 lakhs. Consequently, profit before tax dropped 21.9% to ₹374.58 lakhs.

On a consolidated basis, revenue from operations expanded 36.1% to ₹10,721.38 lakhs from ₹7,876.53 lakhs. Consolidated net profit after tax before share of associate was ₹583.20 lakhs, down from ₹1,077.95 lakhs. The group's share of profit from associate Ksheer Sagar Developers Private Limited (KSDPL) stood at ₹96.24 lakhs, compared to ₹41.48 lakhs in the prior year quarter.

EBITDA Performance

Despite the decline in net profit, Royal Orchid Hotels posted an improvement in absolute EBITDA for the quarter. The latest EBITDA and margin figures are presented below:

Q1 EBITDA rose to 254M Rupees from 196M Rupees in the year-ago period, reflecting stronger operating scale driven by consolidated revenue growth. However, the EBITDA margin contracted to 23.7% from 24.9% year-on-year, consistent with the broader cost inflation trend observed across employee benefits, power and fuel, and other operating expenses during the quarter.

What the Numbers Show

The divergence between revenue growth and profit decline highlights significant cost inflation pressures. While top-line growth was robust, particularly in the consolidated segment, the bottom line suffered due to higher input costs. Employee benefits and power expenses were key drivers of the margin compression. Additionally, the absence of exceptional items in the current quarter, compared to the prior year's reversal of impairment provisions, further widened the gap in reported profits when viewed against annualized trends. The statutory auditors, Walker Chandiok & Co LLP, issued a qualified review report citing ongoing litigation regarding KSDPL's classification.

Corporate Developments and Litigation

The Board re-appointed Mr. Venkata Ramana Murthy Piniseti as an Independent Director for a second term of two years, effective October 9, 2026, to October 8, 2028, subject to shareholder approval. Ms. Padmini V. Krupanidhi, Company Secretary & Compliance Officer, was nominated as the Nodal Officer for the Investor Education and Protection Fund (IEPF) Authority.

The company continues to face regulatory scrutiny from SEBI regarding the classification of KSDPL. SEBI had issued a final order in October 2024 alleging incorrect accounting of 'loss of control' over KSDPL in FY22. The Securities Appellate Tribunal (SAT) has stayed the order, including monetary penalties of ₹5 lakhs and ₹1 lakh each under Sections 15HA and 15HB of the SEBI Act, pending appeal. A parallel petition by shareholders holding 50% of KSDPL is pending before the National Company Law Tribunal (NCLT), with the next hearing scheduled for August 20, 2026.