Royal Orchid Hotels reported a 20.25% revenue increase to Rs 384.15 crore for FY26. While the company declared a dividend of Rs 2.50 per share, profits declined by nearly 30% due to higher interest and depreciation from new asset launches. Crucially, the auditor has issued a qualified opinion regarding ongoing SEBI and NCLT legal matters.
Royal Orchid Hotels Reports FY26 Results Amid Legal Scrutiny
Revenue from Operations reached Rs 384.15 crore for FY26.
Profit for the year stood at Rs 33.33 crore.
Reader Takeaway: Revenue growth signals strong operations, but auditors’ qualified opinion regarding ongoing SEBI and NCLT litigation persists.
What just happened
Royal Orchid Hotels Ltd (ROHL) has released its financial performance for FY 2025-26. The company saw a 20.25% jump in revenue to Rs 384.15 crore. Despite top-line growth, consolidated profit fell by 29.83% to Rs 33.33 crore, primarily driven by rising depreciation and interest costs from new properties like the Iconiqa Mumbai airport asset. The board has recommended a final dividend of Rs 2.50 per share.
Why this matters
While the company is scaling its asset-light model and launching new lifestyle brands, it faces significant regulatory headwinds. The auditor’s report contains a qualified opinion linked to an NCLT petition filed by shareholders of its associate, Ksheer Sagar Developers (KSDPL), and a SEBI order regarding accounting practices from FY 2021-22. These legal disputes create uncertainty regarding the company's historical financial reporting.
The backstory
Royal Orchid continues to expand its footprint in Tier-2 and Tier-3 cities. It currently maintains a pipeline of 52 hotels. However, the accounting treatment of KSDPL as an associate remains the subject of a show-cause notice from SEBI, which the company is currently appealing before the Securities Appellate Tribunal (SAT).
Risks to watch
Investors must monitor the ongoing litigation with SEBI and the NCLT proceedings. As noted by the auditors, the financial impact of these matters is currently unascertainable. Furthermore, higher interest burdens from expansion could continue to pressure margins in the short term.
What to track next
Watch for updates on the SAT appeal regarding the SEBI order and any developments in the NCLT petition. Management remains focused on digital transformation and accelerating the operationalization of their 52-hotel pipeline to drive future earnings.