Royal Orchid Hotels Limited (ROHLTD) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q3 and 9 months post earnings conference call of Royal Orchid Hotels Limited. Today on the call from the management team, we have with us Mr. Chander Baljee, Chairman and Managing Director; Mr. Arjun Baljee, President; Mr. Keshav Baljee; 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 risks 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&A. Over to the management team.

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 FY '26, we have 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 Iconiqa Mumbai, which generated INR 17.4 crores in income within its initial months of operation and achieved the distinction of being ranked #1 hotel on Tripadvisor in Mumbai in within just 4 months. This is a testament of our execution capability and brand. 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 2 decades, starting from a single property in Bangalore, Royal Orchid 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 are building a technology-driven asset-light hospitality powerhouse aimed at maximize reach, enhancing operational efficiency, delivering superior shareholder value. We have clearly defined brand architecture, Z, Place, Regenta, Crestoria and Iconiqa 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've talked to you, through the detailed performance, growth strategy and future -- 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 been -- we have given a detailed presentation covering most aspects of our business. I hope you have gone through yourself. Thank you once again for your continued support and trust.

Thank you, sir. Arjun and Keshav, would you like to add something?

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 Iconiqa and the best is still ahead.

Thank you, Arjun. Keshav, would you like to say something?

No, I think we have a good pipeline of hotels coming up. I think we're quite proud of that, and we look forward to executing well on our vision 2030. Happy to take questions going forward.

[Operator Instructions] We'll take the first question from Yash Dantewadia.

Am I audible?

Yes.

So I saw your list of upcoming hotels. You have 4 under revenue sharing, 2 in Goa, 1 in Lucknow, 1 in Gurgaon. So by when can we see all of these 4 getting executed? What are the time lines for the revenue share hotels to get executed, all 4 of them? And what kind of top line can we expect from top line and EBITDA can we expect from these 4 in particular? Because obviously, revenue sharing should be more profitable than management -- than just hotel management, right?

Can I just take that one Mr.? Yes, 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 a revenue share hotel, right, you get into an asset-light model predominantly to speed up the J-curve, right? And so now we'll get to your second bit of the question, which was when the 4 hotels are coming up and what we add. So Jaiswal would you like to...

Just a small question in between, sorry to interrupt you. But revenue sharing and profit sharing is risky inherently. But revenue sharing is basically you get a percentage of sales, I'm assuming.

No, it's the other way around. So on revenue sharing, we give the hotel owner a share of the top line revenue. For -- and so in a management contract, so think about it in 2 ways, right? One is you own the P&L and one you don't on the P&L. In the revenue share situation, you own the P&L and you pay the owner out. And so in a management contract, the owner owns the P&L and you are paid a management fee. That's the distinction between the two.

So the -- see, the 4 hotels which you said, out of which 2 hotels is bound to come very shortly. South Goa one and one in North Goa. These 2 will come very shortly, maybe in 4 to 5 months from now. Then the Gurgaon one 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 will take at least 1 year from now.

Right. Could you share some numbers? What are you expecting?

See, numbers, if you see the -- from Lucknow one, the top line, I can give some guidance, like the top line from Lucknow will be somewhere around INR 40 crores. And the Gurgaon one will be around INR 25 crores. And both the North Goa one to [indiscernible] one will come roughly around 20 -- first year, it will be around INR 12 crores to INR 15 crores. Second year, it should reach INR 18 crores. And South Goa one, that one will be around INR 6 crores.

So from both the Goa properties, I can expect a ballpark figure of INR 25 crores in the first year, right?

INR 20 crores, INR 22 crores from both the Goa property and the Gurgaon INR 25 crores and Lucknow INR 40 crores.

Right. And just a question on Iconiqa. Iconiqa 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 you sold out tomorrow -- today and tomorrow from what I can see. And I think Feb and 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 sooner than anticipated pace, right? Because you did 17 quarters in this particular -- INR 17 crores in this particular quarter. So in the upcoming quarter, which is the current quarter, I think you're sort of underguiding I think. I think we should easily be able to do INR 20 crores to INR 25 crores -- sorry, not INR 20 crores, INR 25 crores, INR 25 crores to INR 30 crores from Iconiqa in this particular quarter. Am I getting anything wrong? Or are we on track to do that?

Roughly INR 24 crores -- INR 23 crores, INR 24 crores in this quarter, we should get from Iconiqa.

Yes. So are we expecting the hotel to be profitable because I think this quarter, it wasn't profitable, right?

No. I tell you this quarter, why it was not profitable. There were a lot of preoperating expenses. See, the hotel started operations sometime end of September, okay. And -- but the bar license had not come, which came end of October. So hotel full fledged, it started from November, okay? So there are certain pre-operating expenses, which as per the accounting standard cannot be capitalized, okay? So those 3 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.

Right. And why did the -- I mean, a, 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 dropped by so much, I think it dropped by 40% year-on-year. Even though your cash profits were on. Can you just explain the IndAS impact?

Primarily because of Iconiqa, which is on a fixed lease for 25 years. So Indian accounting standard IndAS 116 has created this. So notional IndAS effect, which has come almost INR 13 crores, we have taken INR 12 crores, we have taken the hit in this quarter. That is why I have always published IndAS and without IndAS result and if you look at the -- without IndAS result, it's pretty good.

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&L or balance sheet?

See, the subsidiary sale we have initiated, we have signed the MoU and 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.

So I think post this, you're debt free, right?

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? Now since the debts have come down drastically, the cost of the debt is now almost around 7.75%. 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.

We'll take the next question from Rahul Bhangadia.

First one is, if you could just help us with the occupancy numbers of Iconiqa and if it is possible for the quarter, but also probably how it has progressed month-wise?

See, Rahul, I'll tell you one thing. See, the hotel has started doing well. It has done very well in November. It dipped a little bit in December because post 15 December, [indiscernible] issue also had come up in December. January, it has done good. February, March also looks good. But sharing the occupancy off-line, it will be not right on my part because competition also looks at the data and all. So -- but however, let me tell you that it's doing a good occupancy above 70 -- around 70-plus percentage, and it will grow in time to come.

Okay. I can understand the hesitation of not sharing the numbers, sir, but competition does share it. In fact, they're doing on a property basis. But I take your hesitation right now, focus in that sense. The other question I had, sir, is on the -- not because we have disclosed the Iconiqa non Iconiqa the impact of Iconiqa on the numbers, we are also able to see what is happening on the non Iconiqa side. So essentially, there, the top line growth has kind of been in single digits. We have moved from about -- last year, there was no Iconiqa. So from INR 90 crores, roughly, we have gone to probably about a 98% or some number like that. Just help us understand how -- so the way I'm looking at it, please correct me if I'm wrong, unless you grow that number at a healthy pace, the operating leverage 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 rooms also at that pace. How are you looking at this space? Because otherwise, the absolute profit numbers are not changing.

You are right, Rahul. You are absolutely right. Without Iconiqa, the numbers growth is in single digit. Okay. Now 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...

No, sir, I was specifically on the managed hotel side, not the others...

The managed hotel side, see, we have signed a lot of hotels in the pipeline, 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 the coming financial year once all these hotels opens up and we start getting our fees.

Okay. Because otherwise, sir, the math, as you also admitted, the math isn't adding up because otherwise, how do we reach -- Arjun has talked about an aspirational INR 100 crores, INR 150 crores kind of PAT number. How do we reach that math is what I'm trying to understand without growth being fast enough.

You are right, Rahul. See, once this 47, 50 hotel opens up, so our management fees will grow in a big way. Second, all these 4 revenue share hotels when it comes up, so that will give me an additional around INR 100 crores of top line and 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.

Fair enough, sir. Just one final question before I go back in the queue. It's actually -- the way you give the guest numbers in the presentation, are those only for the owned properties? Or are those only for the lease? How is the -- what's the guest number there? Where are we calculating that?

We are calculating all the portfolio.

I'm asking that doesn't include the managed portfolios.

No, no.

Okay. So the owned, lease and the JV ones. Those are 3 are included there?

Yes. Yes.

We'll take the next question from Chirag.

Yes. 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 INR 19 crores. 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 IndAS from Iconiqa with your INR 36 crores lease rental, I think the difference comes to INR 17 crores, INR 18 crores per year, which means if my actual outflow is INR 36-odd crores, my reported interest and depreciation in P&L will be INR 53 crores, INR 54-odd crores.

You are right, sir.

Right, So that is on an annual basis. The notional increase is INR 19 crores in a single quarter.

No, no. See, what happens is if you really look at it, pro rata, we have to calculate. What we do, 25 years rent divided it by this thing, and the actual rent also will come. So if you really look at it, so not only the IndAS factor will come, the actual rent also will come every year.

So INR 19 crores is not notional?

No, no, it is not. Out of that INR 12 crores is notional. INR 12 crores is notional. And actual rent also, we are paying INR 3 crores a month.

Right. So INR 19.5 crores is the total increase because the words that are used is increased notionally by INR 19.48 crores and hence, I was a bit confused. So INR 19.48 crores out of that INR 12 crores is notional, which is the IndAS effect and INR 7 crores is the actual for the 2 months or whatever the time period is.

Yes, 3 months.

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 you rightly said, INR 36 crores plus we have to add in that around INR 18 crores. So around INR 53 crores, INR 54 crores, that 1 quarter dividend by 4. So around that much will come.

Okay. And so you mentioned that in Q4, for Iconiqa, we can expect INR 23 crores, INR 24-odd crores of revenues in Q4. So since all the preopening costs and all those things are captured in Q3, is it fair to assume INR 2 crores to INR 3 crores bottom line in the...

Yes we are also -- yes, you are right, sir.

So we have done INR 1.6 crores loss in Q3, but INR 2 crores to INR 3 crores profit is doable in Q4?

Yes, yes.

Okay. And just to -- so you mentioned the breakup for those 4 revenue-sharing hotels. So cumulatively, that adds roughly INR 100-odd crores to the revenue.

Roughly INR 100-odd crores.

Okay. And this -- should we expect this to come in by FY '28 like fully operational?

Next year, April onwards, I feel the entire thing will come.

So all the 4 hotels should be up and running in the coming year?

Lucknow, we are expecting by February, March, one month here and there, it should open. You know how our country, how it is. Iconiqa was ready to open in the month of June, July, but we got delayed by almost 3 months due to license issues and all the stuff.

Got it. Arjun, my next question is for you. So given that the kind of success we had with Iconiqa, in the upcoming hotels, I can see that we are coming up with a new Iconiqa under a managed contract model. So since we don't have -- if we manage contract, right, in the upcoming hotels, there is one Iconiqa which is coming under managed contract model in Jodhpur. So my question is that 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 Iconiqa as you are expecting under the revenue sharing or lease model?

So that's really tough to say. But our target for 2030 was to do 8, and we announced that in June. Now after that, we opened the Iconiqa #1. Now post this, there are a number of discussions on. But at the end of the day, these hotels have to be to a certain standard, to a certain size to a certain -- we are setting a brand standard with Iconiqa. So we've said we do 8 by 2030, and I think that's the target. So if we can do it quicker, great. But that's kind of the guidance that I want to stick with for right now. We don't really want to be overpromising today.

So out of it, how many will be under managed? Because managed does not add any significant chunk to your top line.

So 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 it depends on their investment capability. So there are discussions on I think in time, we'll get to the 8, right? That's our target, and that's my commitment to you. So we'll get there. We'll get to the 8, right, within a combination of flexi lease and managed assets.

We'll take the next question from Pawan.

Sir, my first question is what is the time line for the 47 hotel signed to come into play?

Come again, Pawan?

What is the time line for the 47 hotels that were signed?

That's very difficult to say. We are expecting a rough estimate is next 1 year, but hotels, how some greenfield may take a 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 time line for all these hotels. But we are expecting next 1 to 1.5 years between that, all hotels should come up.

If some of that may come up, then there are a lot of hotels in the 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 -- which would be conversion hotels, which will come up. So I feel that our target of in 1.5 years, getting to about another 45 hotels should not be very difficult to achieve.

Okay. Got it. Good. My another question is that can we expect the current trajectory of EBITDA keep getting better for Iconiqa?

Come again?

Sir, I was asking about the trajectory of EBITDA, which keeps getting better for Iconiqa?

Definitely, it will get better.

This quarter, we expect better results.

Q4, we will -- we are expecting better results because Q3, we had to write off a lot of pre-operating expenses which can't be capitalized. So those expenses are written off. So that is why you are seeing a minus figure, but Q4 will be in profit.

Okay. And regarding that also, with the delayed start, do you think that we can land up anywhere between INR 420 CR, INR 450 CR revenue this year?

INR 424 crores?

Around like INR 420 CR to INR 450 CR revenue?

Yes, we are expecting that only. around INR 420 crores top line we are expecting for this year.

We'll take a follow-up question from Rahul.

Question for Arjun and as actually a complement, just in addition to the previous question that I asked. To reach our targets to, let's say, your stated target is to go to 22,000 rooms by FY '30. That's a 4-year thing. We need to go, let's say, at a run rate of 3,000 to 4,000 rooms per annum to kind of reach that target. How are you looking at this because we've never done this. It's a very, very steep thing, even the 3,000-room sign-up that we have right now, we need to kind of keep creating visibility of let's say, 4,000 or 5,000 room to keep running that 3,000 to 4,000 rooms. How are you looking at this? And do you see there is enough juice in the market to kind of keep doing this year-on-year?

Well, listen, I do think that there is enough juice in the market. If you look at the fact that we've got this 5 brand architecture going on, each market or most markets can do all 5 hotels brands and multiple hotels, let's say, with Z, you can do multiple hotels in a particular market. So it's -- there are new markets opening up every day. I do think that India still has a really long way to go in terms of tourism development or destination development. So this -- there is an immense amount of scope going forward.

And just a question for Jaiswal-ji. What is the peak revenue potential quarterly number for Iconiqa we're looking at, sir? This quarter, you said we may touch INR 23 crores, INR 24 crores. Are we looking at maybe a INR 28 crores, INR 30 crores peak number or -- in your internal analysis?

Yes. So next year, we will peak. Next year, definitely, we'll peak because any hotel to come to a certain stage, it takes at least 6 months to 1 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 INR 23 crores, INR 24 crores, we should be somewhere around INR 28 crores. We should be able to do.

It should be able to do INR 28 crores, INR 30 crores, that kind of range.

We'll take the next question from Majid.

Am I audible, sir?

Yes, sir.

Sir, my first question is especially regarding the F&B revenue. Like earlier, we're talking to maintain around 40%. And now I think the F&B revenue is around 32% to 33%. So how are we...

No, no. Mr. Majid, we have never said that we will be maintaining 40%. Historically, it is around 30% only of the total revenue, the F&B revenue will be because most of our hotels don't have huge banquets. To make 40% revenue, you need a lot of banquets, 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.

Sir, out of the Iconiqa's INR 17 crores this quarter, how much did we -- from the room nights and F&B, sir. Can you give the breakup?

Almost more than 80% is from rooms only.

More than 80% from room. Sir, going forward, as we are targeting INR 80 crores to INR 100 crores FY '27, of which how much could be from F&B, sir?

So again, there -- see, this hotel, the maximum rooms are there. There are -- the restaurants are there, but the contribution of restaurant will be lesser than rooms. So around 20%, 25% only will come from the F&B and balance will come from rooms.

Okay, sir. And sir, finally, for Q4, how much managed hotels are we adding, sir?

Yes. Q4, we've got hotels opening in Ambala, Rishikesh, Bhuj, Baddi these are the confirmed ones. We have 2 or 3 which may open additionally, but all get pushed into Q1 next year. Roughly around 220 keys roughly.

Of which, how much is getting pushed to Q1? Or does this include...

Yes, the 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 opening right now.

We'll take a follow-up question from Yash.

Am I audible?

Yes, Yash.

Yes. So I think in the Bangalore Central property, you have some renovations going on, right? And the MG Road property?

No, we have planned the renovation there. Right now, it is not -- we have not yet started that.

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?

So that hotel -- I'll take that. 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 we're just in the middle -- and of course, if you put in any capital, you do expect a return on that capital. So we're just going to -- 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, moneys going in will ensure that they are -- there is an uptick.

Yes. 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 INR 30 crores, INR 35 crores or INR 30 crores, INR 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 Iconiqa 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 Iconiqa, 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?

Yash, it will be a very forward-looking statement. The transaction is in the midway. The transaction is yet to close and internal discussion has to happen. So it will be very difficult for all of us -- rather any one of us to straight away answer this. Probably you can ask this question in the next call in May. That time, there will be some clarity.

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 Iconiqa settled, you might understand how the flow of things are.

Well, that guideline will decline a bit, not much because Iconiqa, we got delayed by a quarter.

Guidance for next financial year, sir?

Next '27, '28, what the guidance we have given, INR 500 crores, we should be able to do it.

That is top line and bottom line, cash profit or net profit, whatever you want to give?

It's very difficult to tell now. But once -- we are in the process of making our budgets and all. Once that gets frozen by March end, then probably we'll be in a better position to give you that guideline.

But till now, there's no large capital expenditure planned for next year, right?

No, no, no. We are maintaining asset-light strategy. We continue to do that.

Right. And from your INR 500 crores, 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 a number I've been trying to kind of gauge, but I've not been able to.

No, no. See, I'll tell you. See, like current financial year, we are looking at a top line from managed business of roughly around INR 45 crores, out of which almost 47%, 48% flows down to the bottom line.

Great. And next year, what is that INR 45 crores?

Next year, growth of almost 20% will be there. Once these 47 hotels comes up, then definitely, there will be a substantial growth.

No. So is it going to double the INR 45 crores?

No, no, no. It will not double. See, 47 hotels will not come up in next financial year. It will come towards the end of the financial year. So next year projection roughly around INR 55 crores, INR 58 crores of top line in the managed business and around 48% -- 47%, 48% of the bottom line.

And when you mean bottom line, you mean EBITDA or you mean PAT?

EBITDA.

We'll take another follow-up question from Chirag.

Yes. Sir, I just need some more clarity on this interest and depreciation. So coming back to the previous question that I asked about interest and depreciation, which you have mentioned that a total increase is INR 19.48 crores for the quarter. So that INR 53 crores, INR 54 crores, if we take for Iconiqa, that comes to INR 13.5 crores increase per quarter. So what is the balance INR 6 crore increase that we have seen?

So there is some IndAS effect of other hotels also. We have certain other hotels also are there.

No, this is the increase in Q3, right? Only Q3. So which other hotels have come up in Q3, which would have contributed to the INR 6 crores.

There is an IndAS impact of other hotels also like we have a hotel in Pune, we have a fixed rent. We have -- so that breakup, I'll give it to you Chirag offline.

We'll take another follow-up question from Pawan.

Just wanted to ask that as per the Board meeting outcome, maybe Mr. Keshav Baljee has been appointed as Executive Director. So is he coming into active role now? What part of the business would Keshav be driving?

He is 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 1 or 2 months, what all he is going to be active. 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 role.

Okay. Got it. And my next question is, sir, that what's next after Iconiqa Mumbai. So is there any other similar size of property client on these basis?

We cannot really say because all this also in fact, Iconiqa discussion we had about 6 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 they readily available. But yes, we are on the lookout. Now that we have a comfort that Iconiqa has stabilized, we can take a risk and somebody asks us the question of what we're going to do with the money that we are getting from multi-hotel transaction. And I want to correct it, it's not INR 40 crores. It is sub INR 30 crores after paying taxes. But we will -- we are in the process of seeing how to quickly deploy that in management -- 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.

We'll take the next question from Rahul.

Just one final question, sir. You already discussed on the depreciation interest element because of 116. So what we see in this quarter is the -- going to be 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 will have some impact, but broadly, this is the run rate?

This should be the run rate, yes.

So roughly, we are talking about a INR 24 crores, INR 25 crores 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 ROE...

Yes, yes. ROE.

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 PPT, and we hope to have even more just like there's agreed for more and more information. Thank you so much for receiving that.

We'll take a follow-up question from Yash. Since there are no further questions, sir, would you like to give any closing comments?

Thank you very much for all the questions which you've asked. It will make us strive for better results. And I can assure you that we're leaving no stones unturned to give you a better and better performance in the coming years. So thank you very much.

Thank you to the management and all the participants for joining this call. This brings us to the end of this conference call. Thank you.