Royal Orchid Hotels FY26 revenue ₹384 cr, EBITDA ₹110 cr

Key takeaway for investors

Royal Orchid Hotels Ltd (BSE: 532699, NSE: ROHLTD) reported higher consolidated revenue from operations for FY26, supported by portfolio additions and demand across business and leisure travel. The company also declared a 25% dividend and highlighted a healthy expansion pipeline. At the same time, management commentary pointed to disruptions from the West Asia crisis, cost inflation in labour and food and beverage (F&B), and limited visibility for medium-term guidance.

FY26 headline numbers

For FY26, the company reported revenue from operations of ₹384.15 crore, up from ₹319 crore in FY25. In its communication, Royal Orchid also reported EBITDA of ₹110.63 crore, crossing the ₹100-crore milestone. Profit after tax (PAT) was cited as ₹33 crore after exceptional items, while a separate market report put consolidated FY26 net profit at ₹32.18 crore, indicating a year-on-year decline.

The company also reported consolidated total income of ₹406.43 crore for FY26 compared with ₹343.18 crore a year earlier. Earnings per share (EPS) was reported at ₹11.74.

Q4 FY26: revenue up, profit down

In the March 2026 quarter, Royal Orchid’s consolidated net profit fell to ₹7.94 crore from ₹13.14 crore in Q4 FY25, a decline of about 40% as cited in the market report. Revenue from operations for the quarter rose 30.47% year-on-year to ₹113.17 crore.

Consolidated total income for Q4 FY26 was reported at ₹118.93 crore, up from ₹92.34 crore in the year-ago quarter. Quarterly EBITDA was reported at ₹31.32 crore.

Dividend announcement and shareholder payout

The board declared a 25% dividend for the financial year, and separately recommended a final dividend of ₹2.5 per equity share (face value ₹10), subject to shareholder approval at the upcoming Annual General Meeting. The announcement came alongside the release of standalone and consolidated results for the quarter and year ended 31 March 2026.

Expansion: additions in Q4 and the longer pipeline

The company said it added six new properties in Q4, strengthening presence in key corridors including NCR and Mumbai. On the forward pipeline, Royal Orchid disclosed 52 signed hotels comprising 3,600 rooms, pointing to continued portfolio growth.

Management also referred to a pipeline of over 1,800 keys and “new brand categories in development”. In another update, the company mentioned crossing 10,700 keys across 168-plus hotels, including upcoming properties with 47-plus hotels in the pipeline. Separately, the results release described the group as operating 120 hotels nationwide.

Balance sheet and liquidity position

Royal Orchid highlighted a strong cash buffer, reporting ₹100 crore in cash equivalents. Management commentary also stated that the company’s consolidated asset base had crossed ₹141 crore, reflecting scale-up in the operating platform.

What hurt: geopolitics, Iconica Mumbai costs, and accounting impact

Management commentary pointed to the West Asia crisis as a factor impacting business, with specific mention of pressure on the Iconica Mumbai property. The company also reported a ₹5.5 crore write-off for pre-operating expenses at Iconica, which affected reported results.

PAT was also said to be negatively impacted by a ₹16 crore notional cost linked to India’s accounting standards (Ind AS), reducing comparability with underlying operating trends. The company also said it faced challenges in ADRs and occupancies amid the crisis-led disruptions.

Cost pressure: labour and F&B squeeze

Royal Orchid flagged rising costs across the system, including labour and F&B. F&B costs were cited as increasing from 27% to 30%, indicating margin pressure even as revenue expanded. The company also stated there is uncertainty in providing medium-term guidance due to geopolitical issues and rising costs.

Market reaction and what management said

After the Q4 numbers, the stock was reported down 2.50% to ₹331.50 in the cited market update. In the results communication, Chairman and Managing Director Chander K. Baljee said the company saw balanced portfolio growth across regions, supported by steady revenue expansion and disciplined cost management, and highlighted the pipeline of keys and brand categories under development.

Quick data table

Why the FY26 print matters

FY26 shows a clear split between strong top-line growth and a more complex profitability picture. Revenue from operations rose sharply, and the company reported EBITDA above ₹110 crore, signalling operating scale and execution. But one-off items, Ind AS-related notional costs, and Iconica-linked write-offs reduced reported profitability, while cost inflation remains a live issue.

For investors tracking hospitality, the combination of an expanding signed pipeline, a cash buffer of ₹100 crore, and continued additions in key markets provides measurable support for growth plans. The near-term watchpoints remain geopolitical spillovers, demand sensitivity in premium city properties, and whether margins stabilise as cost pressures work through the P&L.

What to track next

Near-term focus areas include shareholder approval of the proposed final dividend at the AGM, updates on signed hotel conversions to operational hotels, and commentary on occupancy and rate trends as geopolitical conditions and input costs evolve.