Royal Orchid Hotels Delivers Impressive Q3 FY26 Results with Robust Growth and Strategic Expansion

Royal Orchid Hotels has reported a solid performance in the third quarter of fiscal year 2026 (Q3 FY26), marked by strong revenue growth, effective operational management, and strategic expansion initiatives. Operating over 120 hotels across India, the company continues to thrive in the competitive hospitality market, driven by sustained demand across both business and leisure segments. With its strategic growth plan, Royal Orchid Hotels is well-positioned to continue its upward trajectory in the coming years.

Q3 FY26: Key Financial Highlights

For the third quarter ended December 31, 2025, Royal Orchid Hotels recorded a Total Income of USD 7.2 million, reflecting a modest increase from USD 7.0 million in Q3 FY25. This growth comes as a result of improved operational efficiency and the positive impact of expanding its portfolio in key markets.

The company posted an EBITDA of USD 2.0 million for the quarter, alongside a Profit After Tax (PAT) of USD 0.8 million, yielding an Earnings Per Share (EPS) of USD 0.03. This marks a strong performance despite the challenging environment in the hospitality industry.

For the nine months ending December 2025, Standalone Total Income reached USD 19.0 million, with EBITDA of USD 5.0 million and PAT of USD 1.7 million. The EPS for the period stood at USD 0.06, demonstrating steady progress and operational strength.

Consolidated Financial Growth Drives Performance

On a consolidated basis, Royal Orchid Hotels reported even stronger results. The Consolidated Total Income for Q3 FY26 grew to USD 14.2 million, an increase from USD 11.4 million in the same period of FY25. This rise in revenue is attributed to the strategic expansion of the company’s portfolio and its ability to generate higher returns from its properties across the country.

EBITDA for Q3 FY26 reached USD 4.2 million, with PAT standing at USD 1.2 million, resulting in an EPS of USD 0.04. Over the first nine months of FY26, Consolidated Total Income grew to USD 34.6 million, up from USD 30.2 million in the same period last year. EBITDA for the period reached USD 9.6 million, while PAT increased to USD 3.0 million, translating into an EPS of USD 0.11.

IND AS Adjustment Impact on Financials

The implementation of Indian Accounting Standards (IND AS) had an impact on the company’s financials, particularly in terms of depreciation and finance costs. For Q3 FY26, the IND AS adjustment resulted in an increase of approximately USD 4.6 million in depreciation and finance costs, leading to a reduction in PAT by around USD 1.5 million. A similar adjustment for the nine-month period reduced PAT by USD 0.8 million.

However, the company clarified that these adjustments are purely accounting-based and do not affect its operational cash flow. As such, the operational performance of Royal Orchid Hotels remains strong, and these adjustments do not alter the company’s long-term growth outlook.

Strategic Expansion and Asset-Light Growth

Royal Orchid Hotels continues to execute its asset-light growth strategy, which has proven effective in expanding the company’s portfolio while minimizing capital expenditure. During Q3 FY26, the company successfully added six new properties to its network, with a focus on high-demand markets such as National Capital Region (NCR) and Mumbai. These locations are among India’s busiest hospitality hubs, and the new properties are expected to contribute significantly to the company’s revenue growth in the coming quarters.

Looking ahead, Royal Orchid Hotels has an ambitious expansion plan in place. The company aims to add more than 1,800 keys to its portfolio within the next 6 to 9 months, further strengthening its presence in key urban centers. The company’s strategy to expand in high-demand markets, combined with its asset-light approach, provides a strong foundation for continued growth and profitability.

Outlook for the Future

Royal Orchid Hotels is well-positioned for continued success throughout FY26 and beyond. With a growing demand for both business and leisure travel in India, the company is poised to benefit from the recovery of the tourism sector. The company’s expansion strategy and operational efficiencies will allow it to capitalize on emerging opportunities in the hospitality market.

The focus on asset-light growth and expanding in key urban markets such as Mumbai and NCR is central to the company’s long-term strategy. With a strong pipeline of new properties and the continued recovery of the Indian travel market, Royal Orchid Hotels is on track to deliver further growth and increased profitability.

In conclusion, Royal Orchid Hotels has delivered strong financial results in Q3 FY26, supported by robust revenue growth, operational improvements, and a successful expansion strategy. As the company continues to execute its plans for portfolio growth and operational excellence, it is well-positioned to thrive in the competitive Indian hospitality sector and deliver long-term value for shareholders.

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