Royal Orchid Hotels Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Royal Orchid Hotels Ltd filed with BSE on 20 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Royal Orchid Hotels reported Q1 FY27 consolidated revenue growth of 36% year-on-year to about INR 107 crores, driven primarily by the new ICONIQA hotel, while EBITDA grew 39% to approximately INR 33 crore with margin expanding to about 30.7%. Net profit declined to around INR 6.4 crore from INR 10.9 crore a year earlier, which management attributed to higher financial costs, depreciation including IndAS impacts, and the ramp-up of newer leased properties. The company added five hotels with 237 keys during the quarter and said it has over 50 hotels signed for opening over the next 18 to 24 months.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR 107 crores (Q1 FY27)
p. 3
“Consolidated revenue rose 36% year-on-year to about INR 107 crores from INR 79 crores in the corresponding quarter last year.”
Chander K. Baljee, page 3 of the filed PDF · View the filing
Total revenue: INR 115 crores (Q1 FY27)
p. 3
“Total revenue stood higher at INR 115 crores.”
Chander K. Baljee, page 3 of the filed PDF · View the filing
EBITDA: approximately 33 cr (Q1 FY27)
p. 3
“EBITDA grew faster than revenue, rising 39% year-on-year to approximately INR modestly to approximately 33 cr which is Ebitda margin expanding modestly to approximately 30.7% from 30%.”
Chander K. Baljee, page 3 of the filed PDF · View the filing
Net profit: around INR 6.4 crore (Q1 FY27)
p. 3
“However, the net profit declined to around INR 6.4 crore versus INR 10.9 crores last year.”
Chander K. Baljee, page 3 of the filed PDF · View the filing
Hotels and keys added: 5 hotels, 237 keys (Q1 FY27)
p. 4
“We added five hotels with 237 keys during this quarter.”
Chander K. Baljee, page 4 of the filed PDF · View the filing
Hotels signed pipeline: 50-plus hotels
p. 4
“We have 50-plus hotels signed which we will be opening in the next 18 to 24 months.”
Chander K. Baljee, page 4 of the filed PDF · View the filing
JLO hotel occupancy: 70% (Q1)
p. 5
“See, as far as the occupancies are concerned, we are at 70% in our JLO hotels and at 60% odd, 60.8% at our -- all the managed and franchisee portfolio.”
Amit Jaiswal, page 5 of the filed PDF · View the filing
JLO hotel ADR: 6,233 (Q1)
p. 5
“And as far as the ADR is concerned, last year we were at an ADR of 5,488. This year, we are at an ADR of 6,233 in our JLO hotels.”
Amit Jaiswal, page 5 of the filed PDF · View the filing
GST input tax credit loss: two and a half crore (Q1 FY27)
p. 8
“Let me substantiate this, that in this one quarter, there was a GST input loss for the entire company by two and a half crore, which is a substantial number.”
Amit Jaiswal, page 8 of the filed PDF · View the filing
Non-IndAS PAT FY26: 12 crores (Q1 FY26)
p. 11
“So our, as far as our PAT for the Q1 in FY26 without IndAS is concerned, it is 12 crores.”
Amit Jaiswal, page 11 of the filed PDF · View the filing
Non-IndAS PAT FY27: 9.8 crores (Q1 FY27)
p. 11
“It is 9.8 crores.”
Amit Jaiswal, page 11 of the filed PDF · View the filing
ROCE: around 17%, 18%
p. 7
“See, Rahul, please understand one thing, we are at an ROCE of around 17%, 18%.”
Amit Jaiswal, page 7 of the filed PDF · View the filing
ICONIQA April occupancy: 79% (April 2026)
p. 13
“And as far as the occupancy is concerned, let me tell you, in April, we did an occupancy of 79%.”
Amit Jaiswal, page 13 of the filed PDF · View the filing
Rooms signed: 11,000 odd rooms
p. 6
“So as far as the growth from these numbers are concerned, okay, see we are at 7,000 odd rooms and we have signed 11,000 odd rooms with 50 hotels coming up in next 12 to 24 months.”
Amit Jaiswal, page 6 of the filed PDF · View the filing
Keys: 7,700 keys
p. 16
“we have grown fees about 14% last year, we are at 7,700 keys.”
Keshav Baljee, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
ICONIQA annualized top line — 100 crores
stated as an aspiration by Amit Jaiswal
p. 14
“We are targeting 100 crores, to be very frank, Rahul, let me tell you, we are targeting 100 crores.”
Amit Jaiswal, page 14 of the filed PDF · View the filing
Keys under management — 11,000 plus · next 24 months or so
stated conditionally by Keshav Baljee
p. 16
“We expect to be at 11,000 plus in the next 24 months or so.”
Keshav Baljee, page 16 of the filed PDF · View the filing
Management fee business — double
stated as an aspiration by Keshav Baljee
p. 16
“But yes, we are looking to absolutely double this in as short a time as possible.”
Keshav Baljee, page 16 of the filed PDF · View the filing
ICONIQA occupancy trend — post-October
stated as an aspiration by Amit Jaiswal
p. 13
“So definitely it has hit the occupancy a little bit, but post-October it will grow.”
Amit Jaiswal, page 13 of the filed PDF · View the filing
ICONIQA ADR — year two, year three
stated firmly by Arjun Baljee
p. 15
“Year two will see increase in ADRs. Absolutely. Right. And year three, obviously, the ADRs will keep going up.”
Arjun Baljee, page 15 of the filed PDF · View the filing
Employee cost as percent of revenue — 20 to 23% · another year or so
stated as an aspiration by Keshav Baljee
p. 16
“Look, I think we have some new properties opening this year. And we also, but we anticipate this to be sort of range bound within what it was a couple years back and what we are in terms of the percentage.”
Keshav Baljee, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said ICONIQA will be used as the growth driver for signing upper upscale hotels while existing five-star Royal Orchid keys are being upgraded for better ADRs.
Answered by Arjun Baljee
Asked by Anubhav Jain: What is the plan for premiumization with ICONIQA and how will it improve yield over time?
p. 4
“What we propose to do going forward is we're signing hotels in the upper upscale category by using ICONIQA as the growth driver there.”
Arjun Baljee, page 4 of the filed PDF · View the filing
Management said the contribution from the newly added managed/franchisee hotels was negligible since most growth came from owned, leased and JV hotels.
Answered by Amit Jaiswal
Asked by Surbhi Mishra: How much of the revenue and EBITDA growth came from the 237 new keys added this quarter?
p. 5
“So the number to that would be very, very negligible.”
Amit Jaiswal, page 5 of the filed PDF · View the filing
Management said giving a specific number three years out was difficult but expected growth in both the managed segment and eventually the JLO segment once ICONIQA stabilizes.
Answered by Amit Jaiswal
Asked by Surbhi Mishra: What sustainable revenue growth rate should investors expect over the next two to three years?
p. 6
“But at this point of time, for three years down the line, giving a number will be a little difficult, but there will be definitely a growth in the company.”
Amit Jaiswal, page 6 of the filed PDF · View the filing
Management attributed flat profitability to a churning/ramp-up stage and pointed to ROCE, IndAS effects and the GST change as factors, while expressing confidence in future improvement.
Answered by Amit Jaiswal
Asked by Rahul Bangadia: When will profitability actually move given the company has stayed near INR 50 crore PAT despite room count growth?
p. 7
“Okay, because you are seeing flattish, because we are in a churning stage the company is going to take a big leap, but we are in a churning stage.”
Amit Jaiswal, page 7 of the filed PDF · View the filing
Management acknowledged the concern, saying they are not very happy and are looking at ways to improve PAT, citing tax costs as a factor.
Answered by Amit Jaiswal
Asked by Rahul Bangadia: Ex-ICONIQA and ex-IndAS, is management happy with performance since those numbers haven't moved much either?
p. 9
“I would not say that we are very happy. We are trying to find out ways to move.”
Amit Jaiswal, page 9 of the filed PDF · View the filing
Management said investors should look at non-IndAS numbers as those better reflect the true underlying business.
Answered by Amit Jaiswal
Asked by Harleen Kaur: Should investors treat EBITDA or cash profit as the better measure given EBITDA grew 39% while PAT declined?
p. 11
“So I think investors would look at non-IndAS number because that shows the true picture of our business.”
Amit Jaiswal, page 11 of the filed PDF · View the filing
Management explained that Q1 is seasonally the weakest for business hotels and that flight cancellations from a war reduced inbound Middle Eastern carrier traffic to zero.
Answered by Arjun Baljee
Asked by Renuka Sivasankar: What caused the sequential decline in ICONIQA occupancy from the 80% cited for Q4/April-May run rate?
p. 12
“We don't realize that 50% of inbound into India come through three Middle Eastern carriers. That went to zero.”
Arjun Baljee, page 12 of the filed PDF · View the filing
Management confirmed the break-even level and said a majority of incremental revenue above that level would flow to the bottom line since fixed costs are already covered.
Answered by Amit Jaiswal
Asked by Rahul Bangadia: At what annualized top line does ICONIQA break even without IndAS, and how much of incremental revenue drops to the bottom line?
p. 14
“So roughly around 60-65% will definitely go down.”
Amit Jaiswal, page 14 of the filed PDF · View the filing
Management cited the new wage code, annual increments, new leases and management team strengthening as reasons for higher employee costs.
Answered by Keshav Baljee
Asked by Surbhi Mishra: Why has employee cost risen from 19-20% to 23% of revenue over the last eight quarters?
p. 15
“Yeah, look, this year, also, there was a new wage code. So there was a slight increase due to the new wage code, which we have taken.”
Keshav Baljee, page 15 of the filed PDF · View the filing
Management clarified that Vision 2030 did not specify a fee target and declined to commit to a date for reaching that fee level, though they expect continued growth.
Answered by Keshav Baljee
Asked by Surbhi Mishra: By when can Royal Orchid build a 100-150 crore annual management fee business?
p. 16
“We are not assuring any date for hitting 150 crores of management fees from our side.”
Keshav Baljee, page 16 of the filed PDF · View the filing
Risks flagged
Higher financial costs, depreciation including IndAS impacts, and ramp-up of newer leased assets pressuring reported PAT
p. 3
“The diversion between robust operating performance and lower reported PAT reflects higher financial costs, depreciation including IndAS impacts and ongoing ramp-up of newer properties, particularly our larger-leased assets.”
Chander K. Baljee, page 3 of the filed PDF · View the filing
GST regulation change causing input tax credit loss
p. 8
“So we are getting an input loss.”
Amit Jaiswal, page 8 of the filed PDF · View the filing
War-related flight cancellations disrupting inbound travel and hotel occupancy
p. 12
“The entire market in that inbound, near the airport, domestic, international travel market in April and May took a huge hit because of all the flight cancellations that happened because of the war.”
Arjun Baljee, page 12 of the filed PDF · View the filing
Heavy monsoon rains in Bombay affecting occupancy
p. 13
“It has rained heavily in Bombay in July and August. It has rained havoc.”
Amit Jaiswal, page 13 of the filed PDF · View the filing
High tax cost affecting PAT growth
p. 9
“You know, we are we are in a little bad situation as far as the taxation also is concerned.”
Amit Jaiswal, page 9 of the filed PDF · View the filing
Competitive new hotel openings near ICONIQA reducing initial demand capture
p. 15
“So did three other hotels at the same time. Fairmont for 50 keys, Hilton Garden Inn opened with 170, and Roswin opened soon after that with 110.”
Arjun Baljee, page 15 of the filed PDF · View the filing
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