Q1 2027 Royal Orchid Hotels Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 36% year-on-year to ₹107 crore, driven by the new Iconica hotel and strong operational momentum.
- EBITDA rose 39% year-on-year to ₹33 crore, with margin expanding to 30.7% from 30%.
- Portfolio expansion continues with five new hotels (237 keys) added in Q1, and a pipeline of 50+ hotels signed for the next 18-24 months.
- Occupancy and ADR improved in owned/leased hotels, with ADR up from ₹5,488 to ₹6,233 year-on-year.
- Management remains confident in medium-term outlook, citing strong domestic travel demand and a disciplined capital allocation strategy to improve ROCE.
- Net profit declined to ₹6.4 crore from ₹10.9 crore year-on-year, impacted by higher financial costs, depreciation, and Ind AS effects.
- GST regulation changes led to a ₹2.5 crore input credit loss in the quarter, which is a recurring cost pressure.
- Employee costs have risen to 23% of revenue due to new wage code and annual increments, with stabilization expected only in another year.
- Iconica's occupancy was hit by Q1 seasonality and flight cancellations due to the war, with April at 79%, May at 60%, and June at 70%.
- Management acknowledged that profitability has remained flattish despite revenue growth, and they are not happy with current PAT levels.
Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-conference call of Royal Orchid Hotels Limited. Today, on the call from the management, we have with us Mr. Chander K. Baljee, Chairman and Managing Director; Mr. Arjun Baljee, President; Mr. Keshav Baljee, Executive Director; and Mr. Amit Jaiswal, Chief Financial Officer.
As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risks and uncertainties. Also, this is a reminder that this call is being recorded.
I would now request the management to detail us about the business performance highlights for the period ended June 2026, the growth perspective and the vision for the coming year, post which we will open the floor for Q&A over to the management team.
Good evening, ladies and gentlemen. On behalf of the board and the entire leadership team at Royal Orchid
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