Royal Orchid Hotels FY26 profit rises, declares 25% dividend
Royal Orchid Hotels reported a standalone net profit of ₹34.08 crore for FY26, up from ₹22.46 crore in FY25, with a record EBITDA of ₹110.63 crore. The board declared a 25% dividend, while consolidated income rose to ₹406.43 crore. However, auditors issued a qualified opinion due to ongoing litigation regarding associate KSDPL.

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Royal Orchid Hotels reported a standalone net profit of ₹34.08 crore for the financial year ended March 31, 2026, an increase from ₹22.46 crore in the previous year. The board recommended a final dividend of 25%, or ₹2.5 per equity share, subject to shareholder approval. The company achieved a record EBITDA of ₹110.63 crore for the year, while consolidated total income rose to ₹406.43 crore from ₹343.18 crore in FY25. The results were approved by the board on May 25, 2026.
Financial Performance
The standalone total income for FY26 stood at ₹212.90 crore, compared to ₹214.14 crore in FY25. For the quarter ended March 31, 2026, standalone net profit was ₹19.84 crore, a significant rise from ₹3.85 crore in the same quarter of the previous year, bolstered by exceptional items primarily from the reversal of impairment of investments. Earnings Per Share (EPS) for the year stood at ₹12.43.
On a consolidated basis, the net profit for FY26 was ₹33.33 crore, down from ₹47.50 crore in the previous year. Consolidated total income for the year rose to ₹406.43 crore from ₹343.18 crore in FY25. The latest quarterly data shows consolidated Q4 net profit at ₹7.9 crore, compared to ₹13.2 crore in the same period of the previous year, while Q4 revenue rose to ₹118.93 crore from ₹92.34 crore year-on-year.
The following table summarises the key standalone annual financial metrics:
| Financial Metric (Standalone) | FY26 (₹ in crore) | FY25 (₹ in crore) |
|---|---|---|
| Total Income | 212.90 | 214.14 |
| Net Profit for the Year | 34.08 | 22.46 |
| Earnings Per Share (Basic) | 12.43 | 8.19 |
The table below captures the key Q4 consolidated performance indicators:
| Metric | Q4 Current Year | Q4 Previous Year |
|---|---|---|
| EBITDA | ₹31.32 crore | ₹19.9 crore |
| EBITDA Margin | 26.33% | 21.55% |
| Net Profit | ₹7.9 crore | ₹13.2 crore |
| Revenue | ₹118.93 crore | ₹92.34 crore |
Operational and Strategic Highlights
The company currently operates 120 hotels nationwide. During the quarter, the company added six new properties, strengthening its presence across key growth corridors including NCR and Mumbai. Royal Orchid Hotels continues to accelerate its asset-light growth strategy with a robust pipeline of 57+ upcoming properties. The company remains on track to add over 1,800 keys over the next 6 to 9 months, taking the total portfolio to over 11,000+ rooms.
Audit Qualifications and Regulatory Matters
M/s. Walker Chandiok & Co LLP, the Statutory Auditors, issued a qualified opinion on the standalone and consolidated financial statements due to ongoing litigation concerning associate Ksheer Sagar Developers Private Limited (KSDPL). The qualification arises because certain shareholders of KSDPL, holding 50% of voting power, filed a petition before the National Company Law Tribunal (NCLT) under Sections 241 and 242 of the Companies Act, 2013, regarding allegations of oppression and mismanagement. The auditors noted an inconsistent legal assessment regarding KSDPL's status as a 'private company' versus a 'deemed public company', making the consequential impact unascertainable pending adjudication.
Historical Stock Returns for Royal Orchid Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.28% | -5.50% | -9.44% | -19.12% | -17.86% | +246.46% |
How will the ongoing NCLT litigation regarding Ksheer Sagar Developers impact the company's ability to secure financing for its asset-light expansion?
Can the record EBITDA margins achieved in Q4 be sustained as the company integrates the 57+ upcoming properties into its portfolio?
What is the expected timeline for resolving the audit qualification, and could the reclassification of KSDPL as a deemed public company trigger additional compliance costs?
























