Royal Orchid Hotels Ltd

Financial performance

• Consolidated revenue ~INR 107 cr; YoY +36%; total revenue ~INR 115 cr.
• EBITDA ~INR 33 cr; YoY +39%; margin ~30.7% (from ~30%).
• PAT ~INR 6.4 cr; vs ~INR 10.9 cr prior year.
• Higher financing costs, depreciation (IndAS) and ramp-up of new properties weighed on PAT.

Operations & portfolio

• Added 5 hotels with 237 keys in the quarter; pipeline ~50 hotels signed.
• Occupancy: JLO hotels ~70%; managed/franchisee portfolio ~60.8%.
• ADR: JLO ~INR 6,233; managed ~INR 4,300.
• Current rooms under management ~7,000; signed rooms ~11,000; 50 hotels opening in 18–24 months.
• ICONIQA premium-upscale; Baroda palace branded under ICONIQA collection for premium yield.

Growth plan & ROCE

• Vision 2030: scale via management contracts, franchising and selective revenue-share models.
• ROCE currently ~17–18%; target ROCE 20%+ within ~1 year after ICONIQA stabilization.
• Premiumization and larger hotels aimed to lift top line and margins.

Q&A highlights

• ICONIQA: break-even around 85 crores top-line (non-IndAS); aim to reach 100 crores top-line.
• Incremental above 85 crores: ~50% to bottom line; fixed costs largely covered.
• Incremental above break-even: 60–65% goes to bottom line; target 100 cr top-line.
• GST input loss ~₹2.5 cr due to 5% GST; ITC not allowed; mitigation being explored.
• Employee costs rising due to wage code and new leases; stabilization expected in 1 year; 20–23% of revenue.

Business Overview

• Operates hotels across owned, leased, managed, and franchise models in India.
• Asset-light strategy emphasizes management contracts to accelerate growth with lower capex.
• Key brands include Regenta, Z by Regenta, Crestoria, and Iconiqa.
• Vision 2030 targets 350+ hotels and 22,000+ keys by FY30.
• Iconiqa Mumbai is a premium property operational since June 2026.
• 173+ hotels in 85+ locations; 11,369 keys; 7,745 operational rooms.

Operational Highlights

• Q1 FY27 consolidated room revenue grew 53.6% year over year.
• Q1 FY27 EBITDA ₹32.9 cr, margin 28.7%.
• 36-key Z by Regenta Kondapur added.
• 74-key Regenta Place Hyderabad added.
• 48-key Regenta Tirupati added.
• 43-key Z by Regenta Ahmedabad added.
• Upcoming hotels include multiple Regenta, Crestoria, and Iconiqa properties.
• Managed portfolio occupancy 60.8%; average room rate ₹4,300.
• Domestic guests accounted for 93.1% of guests; foreign 6.9%.

Financial Performance

• Consolidated total income ₹114.7 cr; YoY growth 38.5%.
• EBITDA ₹32.9 cr; EBITDA margin 28.7%.
• PAT ₹5.8 cr; PAT after associate ₹6.8 cr.
• Standalone Q1 FY27 revenue ₹53.5 cr; PAT ₹2.8 cr.
• IND-AS adoption raised depreciation and finance costs; quarterly PAT down ₹3.4 cr.
• Consolidated cash profit ₹18.3 cr; standalone cash profit ₹7.0 cr.
• Total equity ₹275.5 cr; long-term borrowings ₹82.5 cr; lease liabilities ₹529.5 cr.
• Total assets ₹1,041.6 cr; cash and cash equivalents ₹14.1 cr.

Capital Structure & Liquidity

• Equity share capital ₹27.4 cr; total equity ₹275.5 cr.
• Non-current borrowings ₹82.5 cr; current borrowings ₹15.5 cr.
• Non-current lease liabilities ₹529.5 cr; current lease liabilities ₹13.2 cr.
• Cash and cash equivalents ₹14.1 cr; total current assets ₹179.0 cr.

Strategic Priorities & Outlook

• Vision 2030 targets 345+ hotels and 22,000+ keys; asset-light growth.
• Brand architecture and ROCE target above 20% for growth.
• Iconiqa drives premium growth; expansion across Regenta, Crestoria, and Z brands.
• Expansion relies on management contracts to scale with lower capex.
• Upcoming pipeline includes 50+ hotels across multiple cities.
• Regenta Rewards loyalty program to increase guest engagement and spend.

Risks & Mitigation

• Execution risk in scaling asset-light expansion across 85+ locations.
• Mitigation: emphasis on management contracts and strong brand architecture.

Governance & Leadership

• Chairman & MD: Chander K Baljee; CFO: Amit Jaiswal.
• Independent Directors: PV Ramana Murthy, Rakesh Mehta.
• Management team listed; no governance changes announced.

Consolidated financials

• Consolidated total income for Q1 FY27 rose to INR 114.70 crore from INR 82.80 crore.
• EBITDA rose 39.1% YoY to INR 32.93 crore.
• PAT rose to INR 11.19 crore; EPS was INR 2.34.
• IND-AS adoption increased depreciation and finance costs by INR 20.21 crore, reducing PAT by INR 3.40 crore.

Standalone performance

• Standalone Q1 FY27 total income was INR 53.51 crore; PAT INR 2.82 crore; EPS INR 1.03.

Governance & dividends

• Final dividend of 25% (₹2.50 per share) for FY2025-26, subject to AGM.
• Record date fixed at 28 August 2026; payout on/after 26 September 2026.
• 40th AGM scheduled for 26 September 2026 via video conferencing.
• Independent Director Pinisetti re-appointed for second term Oct 9, 2026–Oct 8, 2028 (subject to shareholder approval).
• Nodal Officer appointed for IEPF matters: Padmini V. Krupanidhi.

Operational & strategic developments

• Portfolio expands to 123+ hotels, 11,350+ keys, including signed properties.
• Asset-light growth with 50+ upcoming properties totaling over 3,600 keys.
• Q1 FY27 opened 5 new hotels with 237 keys across Hyderabad, Tirupati, Ahmedabad, Rishikesh.
• Vision 2030 target: 345 hotels and 22,000 keys; on track.
• Focus on high-demand corridors, pilgrimage destinations, leisure markets, metro gateway locations.

Record date and dividend details

• Record Date fixed as Friday, 28 August 2026 for entitlement to final dividend.
• Final dividend of Rs 2.50 per share for FY 2025-2026, subject to shareholder approval.
• Security type: Equity shares.
• Dividend payment subject to approval at the 40th AGM.

Governance changes

• Re-appointment of Mr. Venkata Ramana Murthy Pinisetti as Independent Director for 2-year term (Oct 9, 2026–Oct 8, 2028).
• Appointment of Ms. Padmini V. Krupanidhi as Nodal Officer (Company Secretary & Compliance Officer) for IEPF refunds coordination.

Financial results

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited review report from statutory auditors attached.

Dividend and record date

• Record date fixed as 28 August 2026 for final dividend.
• Dividend payout, if approved, on/after 26 September 2026.

Governance — director & AGM

• Re-appointed Independent Director Pinisetti for 2 years from Oct 9, 2026 to Oct 8, 2028, subject to shareholders.
• 40th AGM proposed for 26 September 2026 via VC/OAVM.

Nodal officer appointment

• Nodal Officer appointed: Ms. Padmini V. Krupanidhi, Company Secretary.
• Authorized to coordinate with IEPF on refunds.

Regulatory & auditor remarks

• Auditors issued qualified reviews on standalone and consolidated results.
• SEBI matter regarding KSDPL remains pending; SAT stay in effect.

Meeting Details

• Date and time: Friday, August 14, 2026 at 5:00 PM IST
• Type and mode: Group conference call conducted virtually via Zoom
• Event/organiser: Q1FY27 Post Earnings Conference Call
• Purpose: Discuss Q1 FY27 results with investors and analysts

Participants

• Chairman & Managing Director to represent management
• President to participate
• Executive Director to participate
• Chief Financial Officer to participate

Additional Notes

• Call will be recorded
• Joining details emailed after registration