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.

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:

The table below captures the key Q4 consolidated performance indicators:

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.