Royal Orchid Hotels delivered solid Q2 & H1 FY26 results.

Consolidated revenue for Q2 grew 10.7% YoY to ₹86.8 Cr, with H1 revenue up 8.7% to ₹169.6 Cr.

EBITDA increased 7.0% to ₹20.8 Cr in Q2 and 9.3% to ₹44.5 Cr in H1. Room nights saw an impressive 18.3% YoY jump in Q2, reflecting strong demand.

However, net profit (PAT) declined by 44.0% YoY to ₹4.3 Cr in Q2, primarily due to higher depreciation and finance costs from new Right-of-Use assets, including ₹6.35 Cr from a subsidiary.

The company's strategy is centered on an asset-light model, fueled by management contracts and franchising, which drove management fee growth of 19.7% in H1. They aim for ambitious 'Vision 2030' targets: 345+ hotels and 22,000+ keys (3x hotels, 2.3x keys from FY25). Recent developments include adding 3 new hotels in Q2 FY26, notably the upscale ICONIQA Mumbai with 292 keys.

Management emphasizes disciplined capital allocation and a target of +25% Return on Capital Employed (ROCE) for sustainable growth.