
Royal Orchid Hotels shares declined 2.50% to ₹331.50 following the release of its Q4 FY26 financial results. The company reported a 39.57% decline in consolidated net profit to ₹7.94 crore for the quarter ended March 2026, compared with ₹13.14 crore in the corresponding quarter last year. Despite the profit decline, the company showed strong operational performance with revenue from operations jumping 30.47% year-on-year to ₹113.17 crore in Q4 FY26, driven by new property additions and expansion under the Regenta brand.
The company's profit before exceptional items and tax stood at ₹6.82 crore, representing a significant 58.49% decline from ₹16.43 crore posted in Q4 FY25. The quarter included exceptional items of ₹2.17 crore during the reporting period. For the full financial year FY26, Royal Orchid Hotels reported a 31.87% decline in consolidated net profit to ₹32.18 crore, while revenue from operations rose 20.24% year-on-year to ₹384.15 crore compared with FY5. The 40% profit decline versus 30% revenue growth indicates significant margin pressure from operational or employee costs, potentially due to aggressive property renovations or new launches.
Chander K. Baljee, chairman and managing director, expressed satisfaction with the company's performance, stating they are pleased to report balanced portfolio growth across regions, supported by steady revenue expansion and disciplined cost management. According to the company's statement, their strategic additions in high demand markets and launch of marquee properties underscore their commitment to sustainable long-term value creation. The company maintains a strong pipeline of over 1,800 keys and new brand categories in development, positioning it to capitalize on India's growing travel and hospitality demand. Recent expansion includes signing new properties in leisure destinations like Kasauli and spiritual hubs like Shirdi, targeting 100+ hotels by the end of the fiscal year.
The board has recommended a final dividend of ₹2.5 per equity share of face value ₹10 each, subject to shareholder approval at the forthcoming Annual General Meeting. Royal Orchid Hotels operates and manages hotels/resorts and provides related services through its portfolio of hotel properties.