Royale Manor Hotels Q2 profit rises 72% as revenue gains 13%

Royale Manor Hotels and Industries Limited reported Rs 7.39 lakh profit for the quarter ended September 30, 2026, up 72% year on year, as revenue from operations rose 13% to Rs 4.99 crore. Total income increased Rs 58.53 lakh to Rs 5.37 crore, exceeding the Rs 55.43 lakh increase in total expenses.

How did Royale Manor Hotels perform in the September quarter?

Royale Manor Hotels earned Rs 7.39 lakh in the quarter ended September 30, 2026, compared with Rs 4.29 lakh in the corresponding 2025 quarter and Rs 2.97 lakh in the quarter ended June 30, 2026. The year-on-year increase was about 72%, while profit rose by Rs 4.42 lakh from the preceding quarter. Profit before tax was also Rs 7.39 lakh because the statement recorded no exceptional items or tax expense for the quarter.

Revenue from operations was Rs 4.99 crore, compared with Rs 4.41 crore in the September 2025 quarter and Rs 4.95 crore in the June 2026 quarter. The year-on-year gain was Rs 58.04 lakh and the sequential increase was Rs 4.72 lakh. Other income rose to Rs 37.19 lakh from Rs 36.70 lakh a year earlier, taking total income to Rs 5.37 crore from Rs 4.78 crore.

The gap between income and expenses widened in the latest quarter. Total income rose Rs 58.53 lakh year on year, while total expenses increased Rs 55.43 lakh to Rs 5.29 crore from Rs 4.74 crore. In the June 2026 quarter, total income was Rs 5.32 crore and total expenses were Rs 5.29 crore, resulting in profit of Rs 2.97 lakh. Basic and diluted earnings per share for September 2026 were each Rs 0.04 and were not annualised.

The unaudited results were reviewed by the audit committee and approved by the board on November 3, 2026. Royale Manor Hotels said its statutory auditors had carried out a limited review of the quarterly and half-yearly financial results. The board meeting commenced at 3:00 pm and concluded at 3:30 pm on that date.

Which costs changed for Royale Manor Hotels in the quarter?

Royale Manor Hotels’ total expenses increased 12% to Rs 5.29 crore in the September 2026 quarter from Rs 4.74 crore a year earlier. The largest listed expense was other expenses at Rs 2.56 crore, up from Rs 2.42 crore in the prior-year quarter. Employee benefit expense increased to Rs 1.49 crore from Rs 1.24 crore.

Material cost rose to Rs 65.73 lakh from Rs 57.22 lakh, while depreciation and amortisation increased to Rs 38.65 lakh from Rs 33.32 lakh. Finance cost was Rs 19.77 lakh, compared with Rs 18.18 lakh in the September 2025 quarter. These five lines together accounted for the reported total expense of Rs 5.29 crore in the latest quarter.

Sequentially, total expenses rose by Rs 0.50 lakh from Rs 5.29 crore in the June 2026 quarter. Other expenses declined by Rs 10.67 lakh from Rs 2.67 crore, and employee benefit expense fell by Rs 0.93 lakh from Rs 1.50 crore. Finance cost increased from Rs 1.44 lakh and depreciation rose from Rs 36.19 lakh, while material cost increased from Rs 64.42 lakh.

The expense pattern meant that total income grew faster in rupee terms than costs during the quarter. Income increased by Rs 4.92 lakh sequentially to Rs 5.37 crore, compared with the Rs 0.50 lakh rise in expenses. That movement produced the increase in quarterly profit from Rs 2.97 lakh in June 2026 to Rs 7.39 lakh in September 2026.

What were Royale Manor Hotels’ half-year results?

Royale Manor Hotels reported profit for the half year ended September 30, 2026 of Rs 10.36 lakh, compared with Rs 5.73 lakh in the half year ended September 30, 2025. The increase was about 81%. Profit before tax was Rs 10.36 lakh, versus Rs 6.03 lakh a year earlier, when the filing recorded a Rs 0.30 lakh current-tax charge.

Half-year revenue from operations rose to Rs 9.94 crore from Rs 8.75 crore, an increase of Rs 1.19 crore. Other income was Rs 74.18 lakh, lower than Rs 78.54 lakh in the previous corresponding half year. Total income nevertheless increased to Rs 10.68 crore from Rs 9.53 crore, because growth in revenue from operations exceeded the decline in other income.

Total expenses for the half year were Rs 10.58 crore, compared with Rs 9.47 crore a year earlier. Employee benefit expense rose to Rs 2.99 crore from Rs 2.64 crore, other expenses increased to Rs 5.22 crore from Rs 4.70 crore, and depreciation and amortisation increased to Rs 74.84 lakh from Rs 64.27 lakh. Finance cost declined to Rs 31.21 lakh from Rs 31.55 lakh.

The half-year statement lists material cost of Rs 1.30 crore for the latest period, compared with Rs 17.72 lakh in the prior-year half-year column. The latest half-year revenue combines Rs 4.99 crore in the September quarter and Rs 4.95 crore in the June quarter. Royale Manor Hotels operates in one business segment, identified in the filing as hotel business.

What do Royale Manor Hotels’ balance sheet and cash flow show?

Royale Manor Hotels reported total assets of Rs 74.85 crore at September 30, 2026, compared with Rs 74.72 crore at March 31, 2026. Property, plant and equipment increased to Rs 27.25 crore from Rs 26.15 crore, while capital work in progress rose to Rs 3.43 crore from Rs 1.76 crore. Non-current assets totalled Rs 56.61 crore, up from Rs 43.56 crore at the financial year-end.

Current assets declined to Rs 18.25 crore from Rs 31.21 crore over the same period. Bank balances other than cash and cash equivalents fell to Rs 4.70 crore from Rs 14.06 crore, while trade receivables increased to Rs 99.68 lakh from Rs 11.72 lakh. Cash and cash equivalents were Rs 56.37 lakh at September 30, compared with Rs 4.73 crore at March 31.

Equity stood at Rs 63.80 crore at September 30, including share capital of Rs 19.83 crore and other equity of Rs 43.96 crore. Non-current borrowings declined to Rs 80.22 lakh from Rs 2.53 crore at March 31, while current borrowings increased to Rs 6.36 crore from Rs 4.31 crore. Total liabilities were Rs 11.06 crore, compared with Rs 11.08 crore at the end of March.

The half-year cash-flow statement reported net cash from operating activities of Rs 11.47 crore, compared with Rs 8.27 crore in the prior-year half. Investing activities used Rs 2.96 crore, including Rs 3.54 crore spent on capital assets and work in progress. Financing activities used Rs 12.67 crore, leaving a net decrease in cash and cash equivalents of Rs 4.16 crore from the opening balance of Rs 4.73 crore.

Conclusion

Royale Manor Hotels converted a Rs 58.04 lakh year-on-year increase in September-quarter revenue from operations into a Rs 3.10 lakh increase in profit for the period. Half-year revenue rose by Rs 1.19 crore to Rs 9.94 crore, while half-year profit increased by Rs 4.63 lakh to Rs 10.36 lakh. The results also show higher employee, material and depreciation expenses alongside revenue growth.

Royale Manor Hotels states that its business is seasonal and that the quarter and half-year results ended September 30, 2026 are not indicative of full-year performance. The next reported period will show whether revenue above Rs 4.94 crore in each of the first two quarters continues, while the filing identifies hotel business as the company’s sole segment.