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.

Royale Manor Hotels and Industries Ltd. reported a net profit of ₹239.19 crore for the financial year ended March 31, 2026, a decline from ₹310.23 crore in the previous year. Revenue from operations for the year stood at ₹2,240.57 crore, compared to ₹2,318.97 crore in FY25. The board approved the standalone audited financial results for the fourth quarter and financial year ended March 31, 2026, at its meeting held on May 29, 2026.

For the quarter ended March 31, 2026, the company posted a net profit of ₹155.95 crore, down from ₹180.84 crore in the corresponding period of the previous year. Revenue from operations for the quarter was ₹708.22 crore, lower than ₹747.83 crore in Q4FY25. The results were reviewed by the audit committee and audited by M/s Naimish N. Shah & Co, Chartered Accountants Firm, statutory auditors of the company.

The board also considered the Auditor's Report, which carried an unmodified opinion. The approval was pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 3.30 P.M. and concluded at 4.30 P.M.

The company reported total financial indebtedness of ₹0 crore, with no outstanding defaults on loans or debt securities. The statement of assets and liabilities showed total assets of ₹7,477.54 crore as of March 31, 2026, up from ₹7,119.28 crore in the previous year. Cash and cash equivalents increased to ₹472.56 crore from ₹403.13 crore a year earlier.

The intimation was submitted to the stock exchange pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was signed by Seema Kalwani, Company Secretary and Compliance Officer.