Royal Orchid Hotels Ltd
Royal Orchid Hotels Q1 FY26 earnings call: Revenue & Margins
Q1 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Royal Orchid Hotels aims to nearly triple hotels from 115 to 345 and increase keys from 9,605 to 22,000 by 2030. For FY27, the company expects EBITDA to be significantly better; however, the mentioned INR 75 crore figure relates to profit (non-IndAS) and not EBITDA.
From Royal Orchid Hotels Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.
Revenue & Sales Performance
- Royal Orchid Hotels aims to nearly triple hotels from 115 to 345 and increase keys from 9,605 to 22,000 by 2030.
- The company targets a combined revenue of around INR 100 crores from the new Iconiqa Mumbai hotel with about a 15% margin after lease rent.
- They anticipate rapid growth starting October FY26 with multiple inquiries indicating strong brand recognition.
- Expansion is focused on an asset-light model with most new hotels under management contracts; revenue share hotels constitute a smaller portion.
- Management expects strong margin improvements and cash profit growth in FY27 despite some IndAS accounting effects.
2 more points management made on revenue & sales performance
Profitability & Margins
See what Royal Orchid Hotels Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Iconiqa Mumbai hotel involved significant cash investment from Royal Orchid, expected to break even within 3 months and achieve INR 100 crore topline with 15% margin after lease rent in FY26.
- INR 25-30 crores investment planned for revenue share hotels under growth initiatives, including Gurgaon and others.
- Around 40% of current free cash flow (~INR 55 crores) allocated to growth, focusing on new hotels and revenue share models.
- Another 40% of cash flow directed towards renovation and internal improvements, including expansions like Goa hotel.
- The company is cautious with Iconiqa brand expansions, emphasizing maintaining five-star, lifestyle standards.
2 more points management made on capital expenditure plans
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Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
See what Royal Orchid Hotels Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- Upcoming hotels pipeline includes 2,577 keys as per the latest presentation.
- Out of these, approximately 650 keys are under lease or revenue share basis (including three hotels with 190+, 124, and 220 keys).
- The balance keys (~1,927 keys) are under management contracts.
- Revenue share hotels require cash investments between INR 25 crores and INR 30 crores over the next year.
- The brand is receiving inquiries almost daily, indicating a strong pipeline, although only about 5-10% of inquiries typically convert.
- The company is actively expanding with a focus on asset-light models and management contracts.
2 more points management made on order book & pipeline
Royal Orchid Hotels Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹113 Cr, net profit ₹8 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Royal Orch.Hotel's management said in earlier quarters
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Frequently Asked Questions
What were Royal Orchid Hotels Ltd Q1 FY26 results?
Royal Orchid Hotels aims to nearly triple hotels from 115 to 345 and increase keys from 9,605 to 22,000 by 2030. For FY27, the company expects EBITDA to be significantly better; however, the mentioned INR 75 crore figure relates to profit (non-IndAS) and not EBITDA.
What is Royal Orchid Hotels Ltd share price analysis?
Royal Orchid Hotels Ltd currently shows a neutral. The stock trades at a P/E of 27.7 with a market cap of ₹858 Cr. Investors should review the full earnings analysis for detailed insights.
Is Royal Orchid Hotels Ltd planning capital expenditure?
Iconiqa Mumbai hotel involved significant cash investment from Royal Orchid, expected to break even within 3 months and achieve INR 100 crore topline with 15% margin after lease rent in FY26.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.