Royale Manor Hotels & Industries reported a 23% decline in net profit for FY26, dropping to ₹239.19 million from ₹310.23 million in the previous year. The company scheduled its 35th Annual General Meeting for September 28, 2026, to adopt these audited financial statements.

Total income for the fiscal year ended March 31, 2026, stood at ₹2,438.31 million, down 3.4% from ₹2,524.89 million in FY25. Despite the revenue contraction, the hotel unit, The Ummed Ahmedabad, achieved an average occupancy of 85%, up from 79%, and raised average room rates to ₹6,064 from ₹5,682.

Financial Performance

The company’s revenue from operations decreased to ₹2,240.57 million from ₹2,318.97 million. Other income also declined slightly to ₹197.74 million from ₹205.92 million. Total expenses rose marginally to ₹2,106.34 million from ₹2,098.33 million, driven by higher depreciation charges of ₹145.55 million compared to ₹116.78 million last year.

Profit before tax fell to ₹331.67 million from ₹426.56 million. An exceptional item of ₹0.30 million related to the statutory impact of the new labour code was recorded for the first time.

What the Numbers Show

The divergence between operational metrics and financial results highlights margin pressure. While occupancy rates improved by 6 percentage points and average room rates increased by nearly 7%, total revenue still contracted. This suggests that non-room revenues, particularly Food & Beverages, which dropped significantly from ₹666.03 million to ₹509.38 million, offset gains in core accommodation business.

Governance Actions

Mr. Vishwajeetsingh U. Champawat, Chairman and Managing Director, retires by rotation at the AGM and offers himself for reappointment. He holds 2,300 equity shares and received an annual remuneration of ₹43.15 million. The Board recommends his reappointment as an Ordinary Resolution.

Ms. Sonu Shah was appointed Chief Financial Officer effective June 4, 2025, succeeding Mr. Devraj Singh Chauhan who resigned on June 3, 2025.

Voting Procedures

Remote e-voting will be facilitated by National Securities Depository Limited (NSDL). The voting period runs from September 25, 2026, at 9:00 am to September 27, 2026, at 5:00 pm. Shareholders on record as of September 21, 2026, are eligible to vote. The Register of Members will remain closed from September 22 to September 28, 2026.

Royale Manor Hotels & Industries reported a significant contraction in net profit for the first quarter of FY26, driven by lower operational income and persistent cost pressures. The Ahmedabad-based hotelier posted a net profit of ₹2.97 lakh for the quarter ended June 30, 2026, down from ₹1.44 lakh in the same period last year but a steep fall from the ₹155.95 lakh recorded in the preceding quarter (Q4FY25).

The company’s board of directors approved the unaudited standalone financial results on August 13, 2026. The results were reviewed by statutory auditors Naimish N. Shah & Co., who issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Operational Performance

Revenue from operations stood at ₹494.73 lakh, representing a 14% increase over the ₹433.44 lakh recorded in Q1FY25. However, this figure marks a 30% decline from the ₹708.22 lakh logged in Q4FY25. The company attributed the volatility to the seasonality of its business, noting that Q1 results are not indicative of full-year performance.

Other income declined sharply to ₹36.99 lakh from ₹83.50 lakh in the previous quarter, contributing to the overall revenue compression. Total expenses remained relatively stable at ₹528.75 lakh, slightly lower than the ₹557.19 lakh in Q4FY25 but higher than the ₹473.54 lakh in Q1FY25.

What the Numbers Show

A notable divergence exists between the company’s operating performance and its bottom-line profitability. While profit before tax was marginally positive at ₹2.97 lakh, the effective tax rate was zero for the quarter, as no current or deferred tax expenses were recorded. This contrasts with Q4FY25, where tax expenses totaled ₹78.28 lakh (current ₹64.54 lakh + deferred ₹13.74 lakh). The absence of tax liability in Q1FY26 underscores the minimal taxable income generated during the period, highlighting the thin margins characteristic of the low-season period for the hospitality sector.

Employee benefit expenses rose to ₹150.16 lakh from ₹140.67 lakh in Q1FY25, indicating fixed cost rigidity despite the dip in operational revenue. Finance costs decreased to ₹11.44 lakh from ₹13.37 lakh in the prior year’s corresponding quarter, suggesting some reduction in interest outflows.