Royal Orch.Hotel Q4 FY26 Results (NSE: ROHLTD)
Signal: Margin expansion
The read
Standalone Q4 operating revenue growth remained tepid (+2.1% YoY) even as EBITDA margin expanded 312bps on lower rent costs. The headline PAT of ₹19.84 Cr is massively distorted by a ₹14.95 Cr exceptional reversal (non-cash) — underlying PAT ~₹4.89 Cr is healthier but still modest. The auditor's qualified opinion over KSDPL classification and the ongoing SEBI/SAT litigation remain overhangs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹53.86 Cr | 2.1% | -8.2% |
| EBIT | ₹6.95 Cr | 29.8% | |
| Net profit | ₹19.84 Cr | 414.9% | |
| EPS | ₹7.24 | 413.5% | |
| EBIT margin | 26.72% |
P&L walk
Operating revenue grew modestly 2.1% YoY; EBITDA margin expanded 312bps primarily from lower rent and power/fuel costs. Reported PAT surged 415% due to ₹1,495.03 lakh exceptional reversal of impairment on investments (₹1,097.20 lakh associate + ₹397.83 lakh subsidiary held-for-sale). Excluding this exceptional, underlying PAT ~₹489 lakhs, up ~27% YoY.
Key positives
- EBITDA margin expanded 312bps YoY to 26.7%, driven by lower rent expense (-41% YoY).
- Full-year PAT ₹34.08 Cr, +51.8% YoY, even excluding exceptional items (~₹15 Cr) underlying PAT grew ~26%.
- Reversal of ₹14.95 Cr impairment indicates management's confidence in recoverable value of investments/associate.
Key concerns
- Q4 revenue growth of only 2.1% YoY is tepid for a hospitality company in a strong travel cycle.
- Exceptional items (₹14.95 Cr) constitute 75% of Q4 PAT — core operating PAT is ~₹4.89 Cr.
- Cash flow from operations fell 28% to ₹43.56 Cr despite higher PAT, driven by working capital outflows.
- Net debt increased to ~₹139 Cr from ~₹125 Cr a year ago; debt-to-equity at ~0.51x.
Research and educational content only. Not investment advice.