Royal Orchid Hotels Limited (NSE: ROHLTD) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Unidentified Speaker
Arjun Baljee — President
Keshav Baljee — Non-Executive Director
Analysts:
Unidentified Participant
Presentation:
operator
Okay, I’ll.
operator
I’ll get the recording started and we’ll begin the call.
operator
This meeting is being recorded.
operator
Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q3 and nine months post earnings conference call of Royal Orchid Hotels Limited. Today on the call from the management team, we have with us Mr. Chandra Balji, Chairman and Managing Director, Mr. Arjun Balji, President, Mr. Keshav Balji and Mr. Amit Jaiswal, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended December 2025.
The growth, perspective and vision for the coming year. Post which we will open the floor for Q and A over to the management team.
Arjun Baljee — President
Good evening. A very warm welcome to all our investors, partners and stakeholders. Thank you for joining us today as we present our Q3 and 9 months for year ended 26 performance highlights. This quarter marks another important milestone in our journey of disciplined growth, operational excellence and strategic transformation. In Q3, Fidelity 26 we delivered a strong consolidated performance. With income from operations growing 26.6% year on year and room revenue surging 45% year on year. EBITDA grew by 13.8%. Reflecting our continued focus on cost efficiency and premium positioning, our operational metrics remain robust overall. A special highlight this quarter has been exceptional performance of Iconica Mumbai which generated 17.4 crores in income within its initial months of operation and achieved the distinction of being ranked number one a hotel on TripAdvisor in Mumbai within just four months.
This is a testament of our execution capability and brand strength. 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 expansion remains focused, scalable and aligned with our asset light philosophy. Driving higher returns while maintaining capital discipline. Over the past two decades, starting from a single property in Bangalore, Royal Akhir Hotel Limited has evolved into a diversified hospitality group with strong presence across business, leisure, wedding and wildlife destination. As we transition into the next phase of growth, we’re building a technology driven asset light hospitality power hub aimed at maximizing reach, enhancing operational efficiency, delivering superior shareholder value.
We have clearly defined brand architecture, Z Place, Regenta, Crestoria and Iconica. Combined with smart execution and relentless focus on returns, on invested capital, we are confident in shaping the future of Indian hospitality The company is on a growth path and we continue to follow asset light strategy for future growth as we talk to you through the detailed performance growth strategy. And further, we remain guided by one core principle. Delivering exceptional guest experience while creating sustainable long term value for all the stakeholders. The performance presentation have been uploaded in the stock exchanges. We have given a detailed presentation covering most aspects of our business.
I hope you had gone through the same. Thank you once again for your continued support and trust.
operator
Thank you sir. Arjun and Keshav, would you like to add something?
Arjun Baljee — President
You’ve got a question being asked but thank you investors. You all have been patient. You all have shown your confidence in the company over the last year since we’ve listed and we are eternally grateful. As you can see over the last one year. So we’ve pivoted and we now have clarity in the brands. Each one of them is on a growth path. We’ve demonstrated that with Iconica and the best is still ahead.
operator
Thank you Arjun. Kesha, would you like to say something?
Keshav Baljee — Non-Executive Director
No. I think we have a good pipeline of hotels coming up. I think we are quite proud of that and we look forward to executing well on our vision 2030. Happy to take questions going forward.
Unidentified Speaker
Sure.
operator
Thank you.
Unidentified Speaker
Thank you.
Questions and Answers:
operator
All those who wish to ask a question, we use the option of raise hand. We’ll take the first question from Yash Dantewariya. Yash, you can go ahead.
Unidentified Participant
Hello. Am I audible?
Unidentified Speaker
Yes.
Unidentified Participant
Yes. Hi. So I saw your list of upcoming hotels. You have four under avenue sharing, two in Goa, one in Lucknow and one in Gurgaon. So by when can we see all of these four getting executed? What are the timelines for the revenue share hotels to get executed? All four of them. And what kind of top line can we expect from top line and EBITDA can we expect from these four in particular? Because obviously revenue sharing should be more profitable than management, than just hotel management. Right.
Arjun Baljee
Yeah.
Arjun Baljee
So can I just stick that one? Yash, thanks so much for your question. The notion that revenue sharing is more profitable than management actually needs just a little introspection on because there is an inherent risk to revenue sharing. But when it comes to management. Right. It is pure cash flow. So while the numbers may not be as large as the revenue share hotel. Right. It you get into an asset light model predominantly to, you know, to speed up the J curve. Right. And so now we’ll, we’ll get to your second bit of the question which was when the four hotels are coming up and what we add so suggest.
Would you like to.
Unidentified Participant
Small Question in between. Sorry to interrupt you but revenue sharing and profit, profit sharing is risky inherently. But revenue sharing is basically you get a percentage of sales, I’m assuming.
Unidentified Speaker
No, no we don’t.
Arjun Baljee
No, it’s the other way around. So on revenue sharing we give the hotel owner a share of the top line revenue, right. For and you know, so in a management contract. So think about it in two ways, right. One is you own the P and L and 1, you don’t own the P and L. In a revenue share situation you own the P and L and you pay the owner out. And in a management contract the owner owns a P and L and you are paid a management fee. That’s the distinction between the two.
Unidentified Speaker
So the. See the four hotels which you said, out of which you know, two hotels is bound to come very shortly. The South Goa one and one in North. These two will come very shortly. Maybe in, you know, four to five months from now. Then the Gurgaon will come by maybe end of September or October and the Lucknow one will take at least a year because the work is going on interior. So it’ll take at least one year from now.
Keshav Baljee
Right. Could you share some numbers? What are you expecting?
Unidentified Speaker
See numbers. If you see the from luckroom on the top line, I can give some guidance. Like the top line from Lucknow will be somewhere around 40 crores and the Gurgaon will be around 25 crores. And both the, you know, North Goa one, Dodamar one will come roughly around 20, you know, first year it will be around 12 to 15 crores. Second year it should reach 18 crores. And South Goa one, that, that one will be around 6 to 6 crores.
Unidentified Participant
So from both the Goa properties I can expect a ballpark figure of 25 crores in the first year, right?
Unidentified Speaker
20. Yeah. 20. 20. 22 crores from both the Goa property and the, the Gurgaon 125. And Lucknow 40 crores.
Unidentified Participant
Right. And just a question on Iconica. Iconica I think has been sold out for most of January because I keep checking the kind of bookings that you’re getting and I think Feb also I think is hold out tomorrow. Today and tomorrow from what I can see and I think fair bit. March also seems quite busy. Right. So because the prices are on the higher end that might be a seasonal impact. But I think the traffic in the hotel also is picking up at a much smaller than anticipated pace. Right. Because you did 17 quarters in this particular.
17 crores in this particular quarter. So in the upcoming quarter which is the Current quarter, I think you’re sort of under. Under guiding. I think, I think you should easily be able to do 20, 25. Sorry, not 2025, sorry. 25 to 30 crores from Iconica in this particular quarter. Am I getting anything wrong or are we on track to do that?
Unidentified Speaker
Roughly, roughly 24 crores. 23, 24 crores in this quarter we should get from my.
Unidentified Participant
Yeah. So are we expecting the hotel to be profitable? Because I think this quarter it wasn’t profitable, right?
Unidentified Speaker
No, I tell you this quarter why it was not profitable. There were a lot of pre operating expenses. See the hotel started operation sometime end of September. Okay. And but the you know, bar license had not come which came end of October. So so hotel full fledged. It started from November. Okay. So there were certain pre operating expenses which as per the accounting standard cannot be capitalized. Okay. So those pre operating expenses had to be written off in this quarter because of all those issues of accounting. So that is why you are seeing that there is a little minus but going forward it will become profitable.
Unidentified Participant
Right? And why did the. I mean obviously you’re the CFO and I am not as smart in the whole accounting understanding as such, but why did the profit like the EPS drop by so much? I think it dropped by 40% year on year even though your cash profits were on. Can you just explain the India’s impact?
Unidentified Speaker
Primarily because of Iconica which is on a fixed lease for 25 years. So Indian accounting strategy, India’s 116 has created this. So notional, you know, India’s effect which has come almost 13 crores. We have taken 12 crores. We have taken the hit in this quarter. That is why I have always published India’s and without India’s result. And if you look at the. Without India’s result, it’s pretty good.
Unidentified Participant
Right? So that subsidiary sale. So I’ll just come back in the queue post this but I’m pretty sure a lot of people will ask this question. Could you just throw some light on the subsidiary sale? When is the cash going to reflect in our P and L or balance sheet?
Unidentified Speaker
See the subsidiary sale we have initiated, we have signed the MOU and the, you know, the money has started coming in into our account. Two tranches of money has already come. Almost 40, 45% money has already come into our account. Balance will come in March and April. So by April end the entire transaction will get closed.
Unidentified Participant
So I think post this. We are debt free, right?
Unidentified Speaker
It is debt free in the sense that we need to now decide how do we use these funds? Whatever funds is there, how do we. Should we clear the debt or should we use it for the growth of the company? You know now the. Since the debts have come down drastically, the cost of the debt is now almost around 7.75% percent. So we have to take a business decision on that. That how do we use this money to clear the debt or should we use it for further growth of the company?
Unidentified Participant
I have a lot more questions regarding this but I’ll just come back in queue.
operator
Sure, thank. Thank you. We’ll take the next question from Rahul Bhangari. You can go ahead.
Unidentified Participant
Good afternoon sir. Thank you for taking my question. First one is if you could just help us with the occupancy numbers of Iconica and if it is possible for the quarter but also probably how it has progressed month wise.
Unidentified Speaker
See Rahul, I’ll tell you one thing. See the hotel has started doing well. It has done very well in November. It dipped little bit in December because post 15th December Indigo issue also had come up in December. January it has done good. February, March also looks good. But you know sharing the occupancy of offline it will be not right on my part because you know competition also looks at the data and all so. But however let me tell you, it’s doing a good occupancy, you know, above 70, around 70 plus percentage and it will grow in time to come.
Unidentified Participant
Okay. I can understand the hesitation of not sharing the number sir, but competition does share it. In fact they’re doing on a property basis. But I. I take your hesitation right now in that sense. The other question I had sir, is on the now because you have disclosed the Iconica, non iconic or the impact of iconic on the numbers, we are also able to see what is happening on the non Iconica side. So yeah, essentially there the top line growth has kind of been in single digits. You know, we have moved from about last year there was no iconica.
So from 90 crores roughly we have gone to probably about a 98 or some number like that. Yes, just help us understand how so. So the way I am looking at it, please correct me if I’m wrong. Unless you grow that number at a healthy pace, the operating level is not going to come through because the management contracts are of that nature. So. And that the growth at let’s say a 25 or a 30 kind of number will need you to add homes also at that pace. How are you looking at the space? Because otherwise the profit numbers are not changing only There you are right, Raul.
Unidentified Speaker
You are absolutely right. Without Ipodika the numbers growth is in single digit. Okay. Now I. Let me tell you. Organic growth will be that much only. Okay. The organic growth can see we are already at around 70 occupancy. Now it can go up by 2% or 3%. It can’t go beyond that. And ADR.
Unidentified Participant
No sir, I was. I was specifically. Specifically on the managed hotel side. Not the.
Unidentified Speaker
The managed hotel side. See we have signed lot of hotels in the parkland. 47 hotels are in pipeline. The only thing is that all those hotels when it starts operation we start getting our fees. So there will be a robust growth in you know coming financial year Once the all these hotels opens up and we start getting our fees.
Unidentified Participant
Okay. Because otherwise the math as it. As you also admitted the maths isn’t adding up. Because otherwise how do we explain. You know Arjun has talked about an aspirational 100, 150 crore kind of part number. How do we reach that math is what I’m trying to understand. Without growth being fast enough.
Unidentified Speaker
You are right, Rahul. See once this 4750 Hotel opens up so our management fees will grow in a big way. Second, all these four revenue share hotels when it comes up. So that will give me an additional around 100 crores of top line. And you know around that kind of ebitda. And that is how we have projected. And plus we are on the verge of signing almost every week hotels.
Unidentified Participant
Fair enough. Sir, just one final question before I go back in the queue. It’s actually the. The way you give the guest numbers in the presentation. Are those only for the own properties or are those only for the lease? How. How is the. What’s the guest number there? Where. Where are we calculating that?
Unidentified Speaker
We are calculating the. All the. All the portfolio.
Unidentified Participant
Then that looks a very. I’m assuming it doesn’t include the managed portfolios.
Unidentified Speaker
No. No.
Unidentified Participant
Okay. So the own leased and the JB ones. Those are three are included there.
Unidentified Speaker
Yes. Yes.
Unidentified Participant
Sure. Okay. Thank you.
operator
Thank you. We’ll take the next question from Chirag. Chirag, you can go ahead.
Unidentified Participant
Yeah.
Unidentified Participant
Thanks for the opportunity. First question on the depreciation and finance cost. So you have mentioned in the PPT that for the quarter depreciation and finance cost has increased notionally by 19 crore. This is for the single quarter. Now when I take a 10% odd discount rate just to get an idea that what will be the incremental interest and depreciation on account of indes from iconica with your 36 crore lease rental. I think the difference comes to 17, 18 crore per year. Which means if my actual outflow is 36 odd crore my reported interest and depreciation in P l will be 53.
54 odd crore. Right. So that is on an annual basis the notional increase is 19cr in a single quarter. So.
Unidentified Speaker
No, no. See what happens is if you really look at it, you know pro rata we have to calculate what we do. 25 years rent divided it by this thing and the actual rent also will come. No, if you really look at it, so not only the India’s factor will come, the actual rent also will come every quarter.
Unidentified Participant
So 19 crore is not notional.
Unidentified Speaker
No, no it is not. Out of the 12 is notional. 12 crore is notional. And actual rent also we are paying 3 crores a month.
Unidentified Participant
Right. So 19.5 crore is the total increase. Because the words that are used is increased notionally by 19.48 crores. And hence I was bit confused. So 19.48 out of that 12 is notional which is the index effect and 7 is the actual actual for the two months or whatever the time period is.
Unidentified Speaker
Yes, three months.
Unidentified Participant
Okay. So going forward what will be the. So if you take Q3 as the base, how much interest and depreciation will increase from Q4 onwards since this is going to be fully operational now as.
Unidentified Speaker
You rightly said, 36 plus you know we have to add in that around 18. So around 53, 54. That one quarter divided by four, you know, so around the way around that that much will come.
Unidentified Participant
Okay. And so you mentioned that in Q4, you know for Iconica we can expect 2324 odd crores of revenues in, in Q4. So since all the, you know, the pre opening costs and all those things are captured in Q3.
Unidentified Participant
Yeah.
Unidentified Participant
Is it fair to assume 2 to 3 crore bottom line?
Unidentified Speaker
Yes, we are also. Yes, you are right sir.
Unidentified Participant
So we have done 1.6 crore loss in Q3. But 2 to 3 crore profit is doable in Q4.
Unidentified Speaker
Yes. Yes.
Unidentified Participant
Okay. And just to you know, so you mentioned the breakup for those four revenue sharing hotels. So cumulatively that adds roughly 100 odd crores to the revenue.
Unidentified Participant
Okay.
Unidentified Participant
And this should, should we expect this to come in by FY28 like full, fully operational next year?
Unidentified Speaker
Next year April onwards. I feel the entire thing will come.
Unidentified Participant
So all the four hotels should be up and running in the coming year.
Unidentified Speaker
Luck. Now we are expecting by you know, February, March, one month here and there.
Unidentified Participant
It should open February, March and what about the.
Unidentified Speaker
But you, you know our country how it is, you know Iconica was ready to open in the month of June July but we got delayed by almost three months due to license issues and all the stuff.
Unidentified Participant
Got it. Arjun, my next question is for you. So given that you know the kind of success we had with Iconica in the upcoming hotels, I can see that we are coming up with a new Iconica under a managed contract model. So since you know we don’t have if we manage contract right in the upcoming hotels there is one Iconic car which is coming under managed contract model in, in Jodhpur. So. So my question is that, you know, since we don’t have a lot of long term debt, I mean if you exclude lease liability, I don’t believe that we have a lot of net debt on the books and we are having healthy cash flows coming in every year.
How many like what do you think in 27 and 28 more iconicas you are expecting under the revenue sharing or lease model?
Arjun Baljee
So you know that’s really tough to say but our target for 2030 was to do eight and we announced that in June. Now after that we opened, you know, the Iconica number one. Now post this, there are a number of discussions on but the end of the day these hotels have to be to a certain standard, to a certain size, to a certain, you know, we’ve setting brand standard with Iconica so we’ve said we do eight by 2030 and I think that’s the target. So you know, if we can do it quicker, great. But that’s the, that’s kind of the guidance that I want to stick with for right now.
We don’t really want to be, you know, over promising today.
Unidentified Participant
So out of it. How many will be under managed? Because managed does not add any significant chunk to your top line.
Arjun Baljee
So that’s, that’s again it’s a discussion point that we’re having with a number of hotel owners and partners because there is an exacting brand standard that we’d like to do and you know, depends on their investment capability. So there’s a, there are discussions on, I think you know, in time with we’d get to the eight. Right. That’s, that’s our target and that’s my commitment to you. So we’ll, we’ll get there, we’ll get to the eight.
Keshav Baljee
Right.
Arjun Baljee
Within a combination of Flexilis and manager assets.
Unidentified Participant
Okay, got it. I’ll come back. Thanks.
operator
Thank you. We take the next question from Pawan. Pawan, you can go ahead.
Unidentified Participant
Thanks for the opportunity. So my first question is what is the timeline for the 47 Hotel sign to come into play?
Unidentified Speaker
Come again?
Unidentified Participant
What is the timeline for the 47 hotels that were signed?
Unidentified Speaker
That’s very difficult to say. We are expecting a rough estimate is next one year. But you know tells how some greenfield may take little more time. Some greenfield project also we have signed that may take a little more time. But it’s very difficult to really say that what should be the exact timeline for all these hotels. But we are expecting next one to one and a half year. Between that all hotels should come up.
Arjun Baljee
If some of them come up then there lot of hotels in the.
Arjun Baljee
Yes.
Arjun Baljee
You know, discussion stage which are conversion hotels. So where we may take over. And so if some of these 47 don’t come up then there will be some hotels which are. You know which would be conversion hotels which will come up. So I feel that our target of in one and a half years getting to about another 45 hotels should not be very difficult.
Unidentified Participant
Okay. Got it. Good. My another question is that can we expect the current legacy of EBITDA keep getting better for Iconica? Come again sir, I was asking about its trajectory of EBITDA which. Which kept getting better for iconic.
Unidentified Speaker
Definitely it will get better.
Unidentified Speaker
This quarter.
Arjun Baljee
We expect the better results.
Arjun Baljee
Q4 we will. We are expecting better result because Q3 we had to write a lot of pre operating expenses which. Which can’t be capitalized. So those expenses were written off. That is why you are seeing a minus figure. But Q4 will be in profit.
Unidentified Participant
Okay. And regarding that also with the delayed start do you think that we can land up anywhere between 420 450cr revenue this year? 424 around like 420 to 450. 450cr revenue.
Unidentified Speaker
Yeah, yeah, yeah, yeah. We are expecting that only around 420. You know top line we are expecting for this year.
Unidentified Participant
Okay sir. That’s it from my side. Thank you.
operator
Thank you. We’ll take a follow up question from Rahul. Rahul, you can go ahead.
Unidentified Participant
For taking my question. Again this is a question for Arjun and as actually a compliment just in addition to the previous question that I asked you know to reach our targets to. Let’s say your stated target is to go to 22000 rooms by FY30. That’s a four year thing. We need to go let’s say at a hundred of three to four thousand rooms for Anand to kind of reach that target. How are you looking at this? Because we have never Done this. It’s a very, very steep thing. Even the 3,000 room, you know, sign up that we have right now, you know, we need, we need to kind of keep creating visibility of let’s say 4,000 or 5,000 rooms to keep running that three year to 4,000 rooms.
How are you looking at this? And do you see there is enough, enough juice in the market to kind of keep doing this year on year.
Arjun Baljee
Well, listen, thanks. I do think that there is enough juice in the market. If you look at the fact that we’ve got this five brand architecture going on, you know, each market or most markets can do all five hotels brands and multiple hotels. Let’s say with Z you can do multiple hotels in a particular market. So it’s, you know, there are new markets opening up every day. I do think that, you know, India still has a really long way to go in terms of tourism development or destination development. So this, there, there is, there is an immense amount of scope going forward.
Unidentified Participant
And just a question for Jaiswaljit. What is the peak revenue potential quarterly number for Iconica? We are looking at, sir, this quarter you said we may touch 23, 24. Are we looking at maybe a 2830 peak number or in, in your internal assessments? Yeah.
Unidentified Speaker
So next year we will peak. Next year definitely we’ll peak. Because any hotel to come to a certain state, it takes at least six months to one year time. So next year we will definitely be peaking in the third and fourth quarter and that will be very good. And I think we will be doing much better than 23, 24 crores. We should be somewhere around 28 crores. We should be able to be able.
Unidentified Participant
To do 28, 30 crores. That kind of range. Sure sir.
Unidentified Participant
Thank you.
operator
Thank you. We’ll take the next question from Majid. Majid, you can go ahead.
Arjun Baljee
I’m audible sir.
Unidentified Participant
Yes, yes, yes sir.
Unidentified Participant
Sir, my first question is especially regarding the FNB revenue. Like earlier we were talking to maintain around 40% and now I think the FNB revenue is around 32 to 33%. So how are we.
Unidentified Speaker
No, no, Mr. Majid, we have never said that we’ll maintaining 40%. Historically it is around 30% only of the total revenue. The FNB revenue will be. Because you know most of our hotel don’t have huge banquets. To make 40% revenue you need lot of banqueting. Okay. With alone restaurants can’t do. So we maintain that figure of around 30, 32% only which we have done in the last quarter.
Unidentified Participant
Sir, out of the Iconica 17 crores this quarter. How much did we from the room nights and FNB sir, can you give the breakup?
Unidentified Speaker
Almost more than 80% is from rooms only.
Unidentified Participant
More than 80% from sir. Going forward as we are in targeting 8200 crores FY27 of which how much could be from FNP sir?
Unidentified Speaker
So again there see in this hotel the maximum rooms are there, there are restaurants are. But the you know contribution of restaurant will be lesser than room. So around 20, 25% only will come from the FNB and balance will come from rooms.
Unidentified Participant
Okay sir.
Unidentified Participant
And sir, finally for Q4 how much managed hotels are we adding? Sir?
Keshav Baljee
Yeah, Q4. We’ve got hotels opening in Ambala, Rishikesh, Burj, Badoy. These are the confirmed ones. We have two or three which may open additionally but all get pushed into Q1 next year. Roughly around 220 keys.
Keshav Baljee
Roughly around 220. Yeah. Of which how much is getting pushed to Q1 or does this include the.
Keshav Baljee
Ones that may get pushed to Q1? I’m not mentioning those. We have at least quite a bit opening in Q1. These are the ones which are confirmed. Optane right now.
Unidentified Participant
Got it. That’s all for my session and thank you.
operator
We’ll take a follow up question from Yash. Yes, you can go ahead.
Unidentified Participant
Yeah. Am I audible?
Arjun Baljee
Yes, yes, yes.
Unidentified Participant
So I think in the Bangalore central property you have some renovations going on, right? And the MG road property.
Unidentified Speaker
No, we have planned the renovation there right now it is not, we have not yet started that.
Unidentified Participant
So are we expecting some uptick in the revpar there in that particular hotel post the renovations and how much are we looking to invest?
Arjun Baljee
So that hotel, I think we’re in the middle of evaluating exactly what standard that hotel needs to be at in order to compete with the micro market over there. Right. And what is the gap in the micro market? So you know, we’re just in the middle and of course, you know if you put in any capital you do expect a return on that capital. So we’re just going to, you know we will definitely come back to you guys with exactly the plan that we’ve got. The moment it’s firmed up and we have a renovation plan in place but rest assured money is going in will ensure that they are, you know, there is an uptick.
Unidentified Participant
Yeah. And now coming back to the previous sort of conversation where you guys were basically saying that you guys are going to figure out what you’re going to do with the, the 30, 35 crores or 30, 32 crores that are going to come in from the multi hotel sale. Just wondering, are we looking at inorganic acquisitions, if any. Yes or no. Secondly, if not, are we looking to do something like another Iconica where we will also have some sort of capital outgo, sizable capital outgo. Not in terms of, obviously not in terms of expenditure like direct expenditure, but indirect expenditure like the advance that you gave for Iconica, for example.
So what are we looking. Because I think currently we have a pretty strong balance sheet. So I think a lot of stakeholders and shareholders are kind of looking forward to what you’re going to do with this extra capital that’s coming through.
Unidentified Speaker
Yes, it will be a very forward looking statement. The transaction is in the midway, the transaction is yet to close and you know, internal discussion has to happen. So it will be very difficult for all of us, any or other, any one of us to straightaway answer this. Probably you can ask this question in the next call in May. That time there will be some clarity, right?
Keshav Baljee
That that’s completely okay, I’ll come back next quarter. But can you give a revenue and a top line and a bottom line guidance for next financial year if that is not too early? Because I think Iconica is settled. You might understand how the flow of.
Unidentified Participant
Things are, but that that guideline will decline a bit. A bit? Not much because Iconica got delayed by a quarter.
Unidentified Participant
No, no guidance for next financial year, sir.
Unidentified Speaker
Next 27, 28. What? The guidance we have given 500 crores, we should be able to do it.
Unidentified Participant
That is top line, bottom line, cash profit or, or net profit, whatever you want to give.
Unidentified Speaker
It’s very difficult to tell now. But once we are in the process of making our budgets and all, once that get frozen by March and then probably we will be in a better position position to give you that kindly.
Unidentified Participant
But till now there’s no large capital expenditure planned for next year. Right.
Unidentified Speaker
We are maintaining gas, you know, asset light strategy. We continue to do that.
Unidentified Participant
Right. And from your 500 crore, can you share the amount of money you will get paid by managing hotels and how much of that flows to the bottom line? Because that’s the number I’ve been trying to kind of gauge but I’ve not been able to.
Unidentified Speaker
No, no, see, I’ll tell you see, like you know current financial, we are looking at a top line from managed business of roughly around 45 crores out of which almost 47, 48% flows down to the bottom line.
Unidentified Participant
Right. And out next year. What is that 45 crore going to?
Unidentified Speaker
Growth of. Growth of almost 20% will be there. Once these 47 hotels comes up then definitely there will be a substantial growth.
Unidentified Participant
No. So is it going to double the 45?
Unidentified Speaker
No, no, no, no, no, no. It will not double. See 47 Hotel will not come up in you know next financial year. It will come toward the end of the financial year. So next year projection roughly around for 55, 58 crores of top line in the managed business and around 48%. 47, 48% of the bottom line.
Unidentified Participant
Right. And when you mean bottom line, you mean ebitda. You mean part ebitda, right?
Unidentified Speaker
Yeah.
Unidentified Participant
Perfect. Okay, I’ll just come back in queue.
operator
Thank you. We’ll take another follow up question from Chera. Chera, you can go ahead.
Unidentified Participant
Yeah, sorry, I just need some more clarity on this, you know, interest and appreciation. So coming back to the you know previous question that I asked about interest and depreciation which you mentioned that a total increase is 19.48 crores for the quarter. So that 53, 54 crore if we take for Iconica that comes to 13 and a half crore increase, you know, per quarter. So what is the balance 6 crore increase that we have seen?
Unidentified Speaker
There is some India’s effect of other hotels also. We have certain other hotels also. Are there? No.
Unidentified Participant
So this is the increase in Q3, right? Only Q3. So which other hotels have come up in Q3 which would have contributed to the six?
Unidentified Speaker
There is a India’s impact of other hotels also. Like we have hotel in you know Pune. We have a fixed rent. We have. So that breakup. I’ll give it to Chirag offline.
Unidentified Participant
Okay. Okay, I’ll take it offline. Okay, thanks.
operator
Thank you. We’ll take another follow up question from Pawan. Pawan, you can go ahead.
Unidentified Participant
Just wanted to ask that as per the board meeting outcome has been appointed as executive director. So is he coming into active role now? What part of the business would Keshava be driving.
Arjun Baljee
Right now? Come in full time and he’s going to be actually right now diagnosing the issues of the company and then he’ll have a clarity by another one or two months. What all he’s going to be active learning right now. Main role is to get the hotels which are in the pipeline to get them operational asap. Also to look at the underperforming hotels, how to make them perform better than what they are doing right now. That is the current road.
Unidentified Participant
Okay, got it. And my next question is sir, that what next after Iconica Mumbai. So is there any other similar size of Property planned on these basis?
Arjun Baljee
Well you cannot really say because all this also in fact Iconica discussion we had about six years back and then they went to a cold store. Then of course various factors like Covid and all that came and the deal came back to us. So I cannot say predict very clearly whether such type of deals are there readily available. But yeah, we are on the lookout now that the we have a comfort that Iconica has stabilized. We can take a risk and somebody asks us a question of what we are going to do with the money that we are getting from multi hotel transaction and I want to correct it.
It’s not 40 crores, it is sub, sub 30 crore after paying taxes. But we will, we are the process of seeing how to quickly deploy that in management, you know, in revenue share properties, upgrading of our existing properties. And of course if something like a big hotel comes up then we’ll definitely bid for it and try to get that also.
Unidentified Participant
Yeah, we got it. Thank you so much.
operator
Thank you. We’ll take the next question from Rahul. Rahul, you can go on.
Unidentified Participant
Thank you. Once again just one final question sir. You already discussed on the depreciation interest element because of 116. So what we see in this quarter.
Unidentified Participant
Is the, you know going to be.
Unidentified Participant
The run rate for the future quarters as well. And of course if you keep adding properties on the revenue or the lease side it’ll have some impact broadly. This is the run rate.
Unidentified Speaker
This should be the run rate. Yes.
Unidentified Participant
So roughly we are Talking about a 24, 25 crore kind of interest debt number overall because your interest cost on your lending will, on your borrowing will not be a big number. This should all be an impact of rou.
Unidentified Speaker
Yes, yes. ROU asset. Yes.
Unidentified Participant
Right, right. Okay. Thank you very much sir. And also just we’ve been given feedback on what kind of disclosures we would want to have from the management and they have. You have been very, very receptive to all the feedback. So thank you for kind of giving us all those disclosures on the, on the PPT and we hope to have even more just like you know, the, the there’s a green for more, more and more information. Thank you so much for receiving that.
Arjun Baljee
Pleasure. Thank you for your continued involvement.
operator
Thank you. We’ll take a follow up question from Yash. Yes, you can go ahead. Yes. Since there are no further questions. So would you like to give any closing comments?
Arjun Baljee
Thank you very much for all the questions which you have asked. It’ll make us strive for better results and I can assure you that we leave most stones unturned to give you better and better performance in the coming years. So thank you very much.
Arjun Baljee
Okay.
operator
Thank you to the management and all the participants for joining this call. This brings us to the end of this conference. Thank you.
Unidentified Participant
Thank you very much.
Unidentified Participant
Thanks.
Arjun Baljee
Thank you. Thank you.
Unidentified Speaker
The recording has stopped.