ROHLTD - Royal Orchid Hotels Ltd Share Price

Management of Royal Orchid Hotels provided an optimistic outlook during the earnings conference call on February 16, 2026, highlighting significant growth metrics for the third quarter and the nine months ending December 31, 2025. The management noted that income from operations increased by 26.6% year-on-year, while room revenue surged 45% year-on-year, and EBITDA grew by 32.8%.

A notable milestone was the strong performance of ICONIQA Mumbai, generating INR 17.4 crores in its initial months and achieving the status of No. 1 Hotel on TripAdvisor in Mumbai within just four months of operation. The company has expanded its portfolio to over 10,700 keys across 168-plus hotels, with a pipeline of over 47 hotels planned for future development.

Key forward-looking points mentioned include:

1. A continuation of the asset-light strategy for growth, aiming to create a technology-driven hospitality powerhouse.
2. The target of reaching 22,000 rooms by FY30, necessitating an annual addition of 3,000 to 4,000 rooms.
3. Expectation of a significant revenue uptick from new properties, projecting around INR 500 crores for FY27 with around INR 55-58 crores from managed business.
4. Upcoming revenue-sharing hotels in Goa, Gurgaon, and Lucknow expected to generate additional earnings of approximately INR 100 crores in the first operational year.
5. Iconic hotels are projected to peak in revenue next year, with estimates suggesting they could reach INR 28-30 crores.

Management emphasized their focus on enhancing operational efficiency and delivering a remarkable guest experience, ensuring sustainable long-term stakeholder value.

Here are the major questions asked in the Q&A section of the earnings transcript, along with detailed answers provided:

Question: What are the timelines for the execution of the upcoming hotels under revenue sharing, and what kind of top line and EBITDA can we expect from them?

Answer: We expect the two Goa hotels to be operational within 4 to 5 months. Gurgaon is slated for late September or October, while Lucknow will take about a year to complete due to ongoing interior work. From Lucknow, we anticipate a top line of approximately INR 40 crores and for Gurgaon around INR 25 crores. Both Goa properties should generate about INR 20 crores collectively.

Question: Can you provide the expected occupancy numbers for ICONIQA and its performance in the upcoming quarter?

Answer: While I cannot share specific occupancy numbers for competitive reasons, I can say that ICONIQA has been performing well. We anticipate revenues for the current quarter to reach around INR 23 to 24 crores, bolstered by robust booking rates.

Question: Why did the EPS drop significantly despite positive cash flow?

Answer: The drop in EPS is primarily due to the impact of IndAS accounting, particularly related to our lease for ICONIQA, which incurred a notional expense that affected our reported profits. Without this accounting effect, the underlying financial performance remains healthy.

Question: What guidance can you provide for revenue next financial year?

Answer: We are targeting a top line of around INR 500 crores for FY '27-'28. However, the exact profit figures remain to be finalized by the end of March after completing our budgets.

Question: Will you be considering any inorganic acquisitions with the capital coming from the multi-hotel sale?

Answer: At this stage, it's premature to discuss specifics about potential acquisitions or capital expenditure. We'll have a clearer picture by our next call in May, as internal discussions are ongoing regarding the optimal use of these funds.

Question: What is the expected revenue growth from managed hotels for next year?

Answer: We expect growth in the managed hotel segment to increase to approximately INR 55 to 58 crores next financial year, representing about a 20% increase, primarily driven by the new hotels coming into operation.

This format ensures key information is presented concisely and clearly for stakeholders reviewing the earnings call.