Royal Orchid Hotels Ltd (NSE:ROHLTD)
₹ 312.35 -3.4 (-1.08%) Market Cap: 8.59 Bil Enterprise Value: 14.14 Bil PE Ratio: 26.63 PB Ratio: 3.32 GF Score: 72/100

Q4 2025 Royal Orchid Hotels Ltd Earnings Call Transcript

Jun 06, 2025 / 11:30AM GMT
Release Date Price: ₹367.5 (+0.33%)

Key Points

Positve
  • Royal Orchid Hotels Ltd (BOM:532699) reported a 12% year-on-year increase in Q4 FY25 revenues, reaching INR 92.34 crore.
  • The company successfully launched Iconica, a new upscale lifestyle hotel near Mumbai International Airport, featuring innovative amenities like a dry cleaning and steam iron closet in every room.
  • Royal Orchid Hotels Ltd (BOM:532699) has a clear growth strategy with a vision to expand to 345 hotels and over 20,000 keys by 2030.
  • The company has invested in AI-driven technologies to enhance operational efficiency and customer experience, including AI-based guest chatbots and revenue management systems.
  • The introduction of the Regenta Rewards loyalty program aims to increase repeat business and customer engagement, with nearly half a million members already enrolled.
Negative
  • Despite revenue growth, the company's EBITDA only increased by 7%, indicating potential margin pressures.
  • The year-on-year decline in profit before tax was attributed to lease renewal costs and deferred tax credits from previous acquisitions.
  • The company faces challenges in brand recognition, as highlighted by concerns over the unfamiliarity of new brand names like Iconica compared to the established Royal Orchid brand.
  • There are concerns about the costs associated with promoting multiple new brands, which could impact profitability.
  • The company's margins have been volatile over the past few years, with recent investments in hotel upgrades impacting short-term profitability.
Operator

Hello.

It's proper. Hello.

We'll begin Ladies and gentlemen, good evening to you all.

On behalf of Captify Consulting, the investor relations partner of Royal Orchid Hotels Limited.

I welcome you all today to the Q4 and FI 25 analyst meet of Royal Orchid Hotels Limited at Iconico Hotel.

The newly launched hotel by Royal Orchid.

An upscale lifestyle 5 star hotel right next to Titu Mumbai International Airport. Before I begin, I would like to update you that Mr. Chandrabalji, CMD would not be able to join us physically for this event today, due to a last minute development which required his urgent presence in Bangalore. However, he will be joining us with a message virtually for a brief while.

In person from the management team we have with us, Mr. Arjun Balji, President, Mr. Keisha Balji, non-executive director, and Mr. Amit Jawal, Chief Financial Officer.

In 1,973, a young man at the age of 24, 25 came from Shimla to Bangalore.

And started Harsha Hotels.

When there were very few hotels in Bangalore those

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