Room Revenue Growth
45%
+45% YoY
Room revenue surged 45% year-on-year, driven by Iconica Mumbai and strong portfolio performance.
ROYALORCHIDHOTELS
Other
10 Feb 2026
Royal Orchid Hotels Limited — Q3 FY26
Royal Orchid Hotels reported a strong Q3 FY26 with revenue from operations growing 26.6% YoY and room revenue surging 45% YoY, driven by the successful launch of Iconica Mumbai which contributed ₹17.4 crore in its initial months.
✓ Verified against BSE filing
2-Min Summary
Royal Orchid Hotels reported a strong Q3 FY26 with revenue from operations growing 26.6% YoY and room revenue surging 45% YoY, driven by the successful launch of Iconica Mumbai which contributed ₹17.4 crore in its initial months. EBITDA grew 13.8% YoY reflecting cost efficiency. The company crossed 10,700 keys across 168+ hotels with 47+ in pipeline. Management guided for ₹420 crore revenue in FY26 and reiterated the ₹500 crore target for FY27-28. Iconica is expected to turn profitable in Q4 with quarterly revenue of ₹23-24 crore, peaking at ₹28-30 crore next year. The subsidiary sale (sub-₹30 crore after tax) will strengthen the balance sheet. Risk: Non-Iconica organic growth remains in single digits, and the 47-pipeline hotel conversion timeline is uncertain.
Key Numbers
Total Keys
10,700
+47 hotels in pipeline
Crossed 10,700 keys across 168+ hotels, with 47+ hotels in the pipeline for future growth.
Iconica Mumbai Revenue (Q3)
₹17.4 Cr
N/A (new property)
Iconica Mumbai generated ₹17.4 crore in its initial months, ranked #1 on TripAdvisor in Mumbai within 4 months.
Managed Business Revenue (FY26E)
₹45 Cr
+20% expected in FY27
Managed business revenue expected at ₹45 crore in FY26, with ~48% flowing to EBITDA; FY27 target ₹55-58 crore.
Management Guidance
FY26 Revenue Target of ₹420 Crore
Management expects full-year FY26 revenue to be around ₹420 crore, driven by Iconica and existing portfolio.
revenueFY27-28 Revenue Target of ₹500 Crore
The company reiterated its aspirational target of ₹500 crore revenue by FY27-28, supported by new hotel openings and revenue share properties.
revenueIconica Q4 Revenue Guidance of ₹23-24 Crore
Iconica Mumbai is expected to generate ₹23-24 crore in Q4 FY26, with peak quarterly revenue of ₹28-30 crore in FY27.
revenueManaged Business Revenue Growth to ₹55-58 Crore in FY27
Managed hotel fee revenue is projected to grow from ~₹45 crore in FY26 to ₹55-58 crore in FY27, with ~48% EBITDA margin.
growthKey Risks
Non-Iconica Organic Growth in Single Digits
Excluding Iconica, revenue growth was in single digits, indicating reliance on new property additions for meaningful expansion.
medium · analyst_questionPipeline Hotel Conversion Delays
The 47 hotels in the pipeline may take 1-1.5 years to become operational, with potential delays due to licensing and construction issues.
medium · management_commentaryInd AS 116 Impact on Reported Profits
Notional interest and depreciation from Ind AS 116 (₹12 crore in Q3) depress reported PAT, though cash flows are unaffected.
low · data_observationUncertainty on Use of Subsidiary Sale Proceeds
Management was evasive on how the sub-₹30 crore (after tax) from the subsidiary sale will be deployed, creating uncertainty for investors.
medium · analyst_questionNotable Quotes
We have now crossed a significant milestone 10,700 keys across 168 plus hotels including upcoming properties with 47 plus hotels in the pipeline.
Our target for 2030 was to do eight and we announced that in June. Now after that we opened the iconica number one.
The notion that revenue sharing is more profitable than management actually needs just a little introspection because there is an inherent risk to revenue sharing but when it comes to management right it is pure cash flow.