Royal Orchid Hotels Q2 revenue rises 57% to Rs 110.12 crore

Royal Orchid Hotels Limited reported consolidated revenue from operations of Rs 110.12 crore for the quarter ended 30 September 2026, a 57% increase from Rs 70.19 crore a year earlier, while consolidated profit rose to Rs 14.73 crore from Rs 4.29 crore, including a Rs 9.79 crore exceptional gain on a subsidiary disposal.

What drove Royal Orchid Hotels’ Q2 revenue growth?

Royal Orchid Hotels’ Q2 revenue growth was led by a Rs 39.93 crore year-on-year increase in revenue from operations, to Rs 110.12 crore in the quarter ended 30 September 2026 from Rs 70.19 crore in the quarter ended 30 September 2025. The company identifies hospitality as its single operating segment under Indian Accounting Standard 108, so the filing does not separately report revenue by hotel, brand, geography, rooms or food and beverages.

Total income increased 34% to Rs 116.01 crore from Rs 86.77 crore despite other income falling to Rs 5.88 crore from Rs 7.59 crore. The difference between the 57% operating-revenue increase and the 34% total-income increase reflects that lower other income partly offset the gain in hotel operations.

Revenue from operations also increased sequentially, rising 3% from Rs 107.21 crore in the quarter ended 30 June 2026. Total income rose from Rs 114.70 crore in the preceding quarter, while other income declined from Rs 7.48 crore to Rs 5.88 crore.

For the half year ended 30 September 2026, revenue from operations reached Rs 217.34 crore, compared with Rs 157.05 crore in the corresponding six months of 2025. Total income for the half year was Rs 230.71 crore, up from Rs 169.57 crore, including Rs 13.37 crore of other income.

How much did the Multi Hotels disposal affect Royal Orchid Hotels’ profit?

Royal Orchid Hotels’ reported Q2 profit included a Rs 9.79 crore exceptional gain from the disposal of Multi Hotels Limited, its former Tanzania subsidiary. Profit before exceptional items and tax was Rs 5.57 crore, compared with Rs 4.43 crore a year earlier, while profit before tax was Rs 15.37 crore after recognising the exceptional item.

The sale was completed on 6 July 2026, when the shares in Multi Hotels Limited were transferred and registered in the purchasers’ names, ending Royal Orchid Hotels’ control of the subsidiary. Royal Orchid Hotels had entered a share purchase agreement on 29 January 2026 to sell its entire holding for USD 3.41 million.

On losing control, Royal Orchid Hotels derecognised the subsidiary’s assets and liabilities and reclassified Rs 1.86 crore of related foreign-currency translation reserve from other comprehensive income to profit and loss. The filing says the long-term capital gain was set off against brought-forward long-term capital losses, while foreign-tax credit relating to Tanzanian tax was used against the short-term capital-gain liability.

Total tax expense in Q2 was Rs 1.42 crore, versus Rs 0.84 crore a year earlier. It included a Rs 1.44 crore foreign-tax credit and an Rs 0.80 crore deferred-tax credit, alongside Rs 3.90 crore of current tax and a Rs 0.45 crore prior-year tax credit.

For the half year, Royal Orchid Hotels reported profit of Rs 21.53 crore against Rs 15.49 crore in the prior corresponding period. The full Rs 9.79 crore disposal gain was recognised in that six-month result, so the reported half-year profit comparison includes a non-recurring item.

Which expenses changed in Royal Orchid Hotels’ Q2 results?

Royal Orchid Hotels’ Q2 cost base rose across major categories as revenue expanded, with employee-benefit expense increasing to Rs 29.38 crore from Rs 24.82 crore and other expenses to Rs 33.10 crore from Rs 24.54 crore. Food and beverages consumed rose to Rs 10.86 crore from Rs 7.32 crore, and power and fuel expense rose to Rs 7.21 crore from Rs 5.67 crore.

Finance costs increased to Rs 13.79 crore from Rs 8.55 crore, while depreciation and amortisation rose to Rs 12.30 crore from Rs 7.81 crore. Rent expense was Rs 4.79 crore, compared with Rs 3.52 crore in the prior-year quarter.

Sequentially, profit before exceptional items and tax declined to Rs 5.57 crore from Rs 8.18 crore in the June 2026 quarter, although revenue from operations increased by 3%. Finance costs rose from Rs 13.22 crore and depreciation and amortisation from Rs 11.53 crore during the same comparison.

Reported profit nevertheless increased from Rs 6.79 crore in the June 2026 quarter to Rs 14.73 crore in Q2 because the September quarter included the Rs 9.79 crore exceptional gain. Royal Orchid Hotels’ Q2 share of profit from its associate was Rs 0.79 crore, compared with Rs 0.96 crore in the preceding quarter and Rs 0.70 crore a year earlier.

What do Royal Orchid Hotels’ cash flow and balance sheet show?

Royal Orchid Hotels generated net cash from operating activities of Rs 46.66 crore in the half year ended 30 September 2026, compared with Rs 7.26 crore in the prior corresponding half year. Cash generated from operations was Rs 54.14 crore, and income taxes paid, net of refunds, were Rs 7.48 crore.

The six-month cash-flow statement records a Rs 12.61 crore increase in other current and non-current assets and a Rs 4.80 crore increase in trade receivables. These working-capital movements were partly offset by Rs 6.95 crore of increases in trade payables and other financial liabilities and Rs 5.38 crore of increases in other liabilities.

Investing activities used Rs 0.83 crore, after Rs 16.85 crore of purchases of property, plant and equipment including capital work in progress. Net redemption of or investment in bank deposits contributed Rs 11.39 crore, while the Multi Hotels Limited sale generated Rs 3.10 crore of net cash inflow, which differs from the Rs 9.79 crore accounting gain.

Cash and cash equivalents stood at Rs 22.27 crore on 30 September 2026, up from Rs 14.10 crore on 31 March 2026. Total assets were Rs 1,066.75 crore, compared with Rs 1,041.65 crore at year-end; non-current borrowings increased to Rs 74.91 crore from Rs 62.50 crore and non-current lease liabilities to Rs 561.96 crore from Rs 529.49 crore.

What unresolved regulatory and legal matters does Royal Orchid Hotels disclose?

Royal Orchid Hotels’ statutory auditor issued a qualified review conclusion because of shareholder litigation involving Ksheer Sagar Developers Private Limited. The auditor said the outcome of the National Company Law Tribunal case and the potential financial impact were presently unascertainable, citing inconsistent legal assessment of that company’s status under the Companies Act.

The filing also describes a Securities and Exchange Board of India matter concerning the classification of Ksheer Sagar Developers Private Limited as an associate rather than a subsidiary for the year ended 31 March 2022. Royal Orchid Hotels says management continues to consider the associate classification appropriate under Indian Accounting Standard 110, while the Securities Appellate Tribunal had reserved its order after the matter was heard on 15 October 2026.

An National Company Law Tribunal petition concerning allegations of oppression and mismanagement at Ksheer Sagar Developers Private Limited remained pending, with the next hearing scheduled for 26 November 2026. The auditor’s review report also notes that the review conclusion was not modified in relation to the Securities and Exchange Board of India matter.

Royal Orchid Hotels separately disclosed that shareholders approved a final dividend of Rs 2.50 per equity share on 26 September 2026. The dividend would result in a cash outflow of Rs 6.86 crore, according to the filing.

Conclusion

Royal Orchid Hotels recorded a substantial year-on-year rise in Q2 operating revenue, with revenue from operations reaching Rs 110.12 crore and profit before exceptional items and tax increasing to Rs 5.57 crore. Reported profit of Rs 14.73 crore, however, also reflects the Rs 9.79 crore gain booked on the completed disposal of Multi Hotels Limited.

The next disclosed event is the 26 November 2026 National Company Law Tribunal hearing involving Ksheer Sagar Developers Private Limited, while the Securities Appellate Tribunal’s order remains awaited after its 15 October 2026 hearing. Royal Orchid Hotels’ subsequent disclosures may also show the cash effect of the Rs 6.86 crore approved final dividend and changes in borrowings and lease liabilities.