Royal Orchid Q2FY27: consolidated PAT +243% YoY, but one-off driven; adjusted ~15%

Royal Orchid Hotels posted consolidated revenue of ₹110.12 Cr for Q2 FY27 (quarter ended 30 September 2026), up 39.1% YoY and 2.7% QoQ, with reported consolidated PAT of ₹14.73 Cr, up 243% YoY and 117% QoQ. Standalone PAT was ₹12.46 Cr (EPS ₹4.54) against consolidated EPS of ₹5.25 — both headline numbers are inflated by the same event: a ₹9.79 Cr (consolidated) / ₹7.93 Cr (standalone) net gain on the completed sale of Tanzania subsidiary Multi Hotels Ltd, whose shares were transferred to the buyer on 6 July 2026. Stripping that out, adjusted consolidated PAT is ~₹4.94 Cr, putting underlying YoY profit growth at roughly +15% — a fraction of the 39% revenue growth and far below the reported +243% headline, so the print should be read as a one-off-boosted quarter rather than a profitability breakout. The margin picture is mixed and worth separating by line. Operating margin (revenue less pre-depreciation, pre-finance opex) expanded sharply to 23.41% from 16.68% a year ago, a genuine ~673bps improvement in the core hotel operations. But below that line, finance costs rose to ₹13.79 Cr (+61% YoY) and depreciation to ₹12.30 Cr (+57% YoY), both consequences of the company's lease-funded, asset-light expansion model (visible in the ₹562 Cr consolidated lease-liability book). Net of the one-off, adjusted net margin actually compressed to ~4.33% of total income from 4.95% a year ago — the opex above operating income is growing faster than the operating gains can absorb. Sequentially the same dynamic shows up more starkly: core pre-exceptional profit before tax fell to ₹5.57 Cr from ₹8.18 Cr in Q1 FY27 even as revenue ticked up, a slowdown the one-off gain fully masks in the reported QoQ PAT figure. Five new leased properties opened during the quarter (Vijayawada, Kota, Bhadohi, Baddi and Hubballi), consistent with the revenue growth and with the rising finance/depreciation load — the portfolio is scaling faster than the P&L below EBITDA is currently absorbing it. Management's prior concall guidance was non-quantified beyond an ICONIQA Mumbai breakeven target (₹85 Cr annualized revenue, aiming for ₹100 Cr) and an undated Vision 2030 ₹150 Cr management-fee goal; this filing carries no segment disclosure on ICONIQA, so there is no way to verify progress against either marker from the statement alone — vsGuidance is unknown rather than met or missed. No management press release accompanied this filing, and no analyst consensus for Q2 FY27 was available at the time of writing (the result was filed today), so vsStreet is also unknown. Standalone and consolidated growth rates (both roughly 220–245% YoY reported, both one-off-driven) do not materially diverge in story, so no separate flag is needed there.