Samhi Hotels Limited — Q1 FY26 earnings call

Call held 14 Aug 2025

Management summary

Samhi Hotels delivered a strong Q1 FY26, demonstrating robust growth in revenue, EBITDA, and PAT, despite a temporary slowdown in May due to geopolitical events. The company's strategic capital recycling initiatives and significant pipeline of upscale room additions are set to transform its revenue profile and strengthen its balance sheet, as evidenced by a recent credit rating upgrade. Management expressed confidence in achieving future growth targets and maintaining financial discipline.

Highlights

  • Total income grew 13% YoY to INR 287 crores.

  • EBITDA increased 19% YoY to INR 106 crores, with a consolidated margin of 37%.

  • Profit After Tax (PAT) rose more than three-fold to INR 19.2 crores.

  • Same-store RevPAR stood at INR 4,760, marking a 10% YoY increase.

  • Same-store income grew 9.1% YoY, despite a soft May due to geopolitical events.

  • Net debt reduced to approximately INR 1,370 crores post Caspia Delhi sale, implying a trailing 12 months net debt to EBITDA of 3x.

  • Monetized over INR 210 crores of assets since FY23 at an average EV to EBITDA multiple of 20x.

  • Over 1,000 rooms are in active rebranding, expansion, or development, including W Hyderabad and Westin-Tribute Bangalore.

Key financials

  1. Total Income ₹287 Cr +13%YoY
  2. EBITDA ₹106 Cr +19%YoY
  3. PAT ₹19.2 Cr +200%YoY
  4. Same-store RevPAR ₹4,760 +10%YoY
  5. Same-store Income Growth 9.1% +9.1%YoY
  6. EBITDA Margin 37%
  7. Net Debt (post Caspia sale) ₹1,370 Cr

What they filed

Q1 FY27: revenue up 12.1%, net profit up 31.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue262 292 319 272 293 +12%338 +16%345 +8%305 +12%
EBITDA92 110 122 90 107 +16%122 +11%112 −8%98 +9%
Net profit13 23 46 19 100 +669%48 +109%399 +767%25 +32%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Revenue

  • Same-store growth Revenue · next few years · High confidence 9% to 11%
    Expecting same-store growth of 9% to 11% and the impact of new openings over the next few years, we should generate an investable surplus of over INR1,700 crores over the next 5 years in addition to what we will require to fund committed capex.

    — Ashish Jakhanwala, MD and CEO

  • Total revenue (existing portfolio, FY25 rates) Revenue · FY25 average rate · High confidence INR 1,500 crores
    if that was to operate at FY '25 average rate FY '25 RevPAR, this portfolio should have delivered about a INR1,500 crores top line, right? So which means we do not buy anything.

    — Ashish Jakhanwala, MD and CEO

  • Total revenue (with new inventory) Revenue · next 3 to 5 years · High confidence INR 2,200 crores to INR 2,300 crores
    we actually expect that our total revenue should get to about INR2,200 crores to INR2,300 crores.

    — Ashish Jakhanwala, MD and CEO

  • W Hyderabad incremental revenue Revenue · High confidence about INR 110 crores
    So you should expect an incremental revenue of about INR110 crores from this hotel.

    — Ashish Jakhanwala, MD and CEO

  • Trinity Bangalore revenue growth Revenue · next 12 months · High confidence 25% to 30%
    we actually expect that revenue from that hotel without any renovation or rebranding should grow at about at least incremental 25% to 30%.

    — Ashish Jakhanwala, MD and CEO

  • F&B revenue growth Revenue · H2 FY26 · High confidence 10% to 11%

    Previously 8% → 10% to 11%

    So F&B growth should grow from current 8% to about 10% to 11% due to those changes.

    — Ashish Jakhanwala, MD and CEO

Profitability

  • EBITDA (existing portfolio, FY25 rates) Profitability · FY25 average rate · High confidence INR 600 crores to INR 630 crores
    EBITDA target will be about INR600 crores, INR630 crores.

    — Ashish Jakhanwala, MD and CEO

  • EBITDA from GIC asset (trailing 12-month) Profitability · trailing 12-month · High confidence INR 130 crores

    Previously INR 194 crores (erroneous) → INR 130 crores

    So total EBITDA from GIC asset on a trailing 12-month basis is INR194 crores. (Erroneously mentioned INR 194 Crs. Correct figure is INR 130 Crs)

    — Ashish Jakhanwala, MD and CEO

Capital

  • Investable surplus Capital · next 5 years · High confidence over INR 1,700 crores
    we should generate an investable surplus of over INR1,700 crores over the next 5 years in addition to what we will require to fund committed capex.

    — Ashish Jakhanwala, MD and CEO

Capex

  • Annualized capital expenditure Capex · annualized · High confidence INR 175 crores to INR 200 crores
    So we are currently estimating an annualized capital expenditure of circa INR175 crores to INR200 crores.

    — Ashish Jakhanwala, MD and CEO

  • Annualized capital expenditure Capex · annualized · High confidence INR 180 crores to INR 200 crores
    So annualized expense will be on average about between INR180 crores to INR200 crores.

    — Ashish Jakhanwala, MD and CEO

Debt

  • Annual interest outflow Debt · going forward · High confidence around INR 135 crores
    With an annual interest outflow of around INR135 crores going forward, we will now see a strong free cash flow generation to fund our growth endeavors.

    — Rajat Mehra, CFO

  • Total net debt Debt · end of this year · High confidence around INR 1,400 crores
    I think your net debt will remain in this ZIP code of -- let's say INR 1,400 crores.

    — Ashish Jakhanwala, MD and CEO

  • Total debt repayment Debt · next 5 years · High confidence about INR 300 crores
    So there is a total reduction of about INR300 crores over the next 5 years and that is as per the current contracted repayment schedules with some refinancing in place.

    — Ashish Jakhanwala, MD and CEO

  • Net debt repayment Debt · every year · High confidence INR 60-odd crores
    That's about INR60-odd crores repayment, net repayment every year.

    — Rajat Mehra, CFO

Other

  • ESOP expenses Other · Q1 FY26 (per quarter) · High confidence INR 2.4 crores
    So that's already accounted for in quarter 1 also. So if you see both the note on the financial summary slide and the Excel sheet, which has been uploaded on our website, it's INR2.4 crores per quarter.

    — Ashish Jakhanwala, MD and CEO

  • ESOP expenses Other · post FY27 (per quarter) · High confidence INR 1 crore

    Previously INR 2.4 crores → INR 1 crore

    So basis the current grants that have been approved by the shareholders, it will come down from INR2.4 crores a quarter to INR1 crores a quarter.

    — Ashish Jakhanwala, MD and CEO

  • ESOP expenses Other · per year (long-term) · High confidence INR 10-odd crores
    And we should maintain that -- what I'm saying is beyond FY '27, we should maintain that right -- about INR10-odd crores per year.

    — Ashish Jakhanwala, MD and CEO

Capacity

  • W Hyderabad full operational year Capacity · FY28 · High confidence FY28
    We should expect that FY '28 is the first full year of operational -- operations for this hotel.

    — Ashish Jakhanwala, MD and CEO

Risks & concerns

  • Geopolitical events impacting travel demand and occupancy

    medium

    The month of May was soft due to geopolitical events, impacting travel and performance, but June saw recovery to April levels, indicating a short-term blip.

    Management acknowledged

Q&A highlights

3 direct
Low revenue growth in May despite strong ARR in Bangalore/Hyderabad Direct
Across the portfolio, what we've witnessed is that only the occupancies took a dip in the month of May at the height of the India, Pakistan situation for about 2-odd weeks. The rates actually remained pretty strong. To that extent, we see rates continue to grow in high single digits to early double digits.

Clarified that the May slowdown was due to temporary occupancy dips from geopolitical events, not pricing pressure, and that recovery was swift.

Asked by Jinesh Joshi

Rationale for selling Caspia Delhi asset and its historical EBITDA contribution Direct
the hotel actually was not producing an EBITDA. It had resulted in a net loss -- operating loss of about INR 1.5 crores in FY '25 was the net loss from this asset. Having said that, the peak EBITDA from this asset before that was about circa INR3 crores.

Provided clear financial justification for the asset recycling strategy, indicating the sold asset was underperforming and capital could be better deployed elsewhere.

Asked by Samarth Agrawal

Definition of SAMHI's 'market leadership' target Direct
I think when we talk about market leadership, you're talking about our relevance within the hotel industry in terms of total revenue and therefore, total profits, right? ... our target here is to position SAMHI amongst the top tier of hotel companies in India in terms of total revenue, in terms of EBITDA.

Clarified the strategic ambition beyond just room count, focusing on financial metrics like total revenue and EBITDA to define market leadership.

Asked by Prashant Biyani

3 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Highlights and Recovery

Samhi Hotels reported a strong Q1 FY26, with total income growing 13% year-on-year to INR 287 crores. EBITDA increased 19% year-on-year to INR 106 crores, achieving a consolidated margin of 37%. Profit After Tax (PAT) saw a significant rise, more than tripling to INR 19.2 crores. Same-store RevPAR stood at INR 4,760, up 10% year-on-year, and same-store income grew 9.1% year-on-year. Management noted that while May was soft due to geopolitical events, performance rebounded to April levels from June onwards, indicating a short-term blip.

Strategic Capital Recycling and Balance Sheet Fortification

The company continues its disciplined approach to capital recycling, having monetized over INR 210 crores of assets since FY23 at an average EV to EBITDA multiple of 20x. The recent sale of the Caspia Delhi asset for INR 65 crores, which was operating at a net loss of INR 1.5 crores in FY25, will further reduce total net debt to approximately INR 1,370 crores. This strategic move, coupled with a INR 750 crores capital raise from GIC, has strengthened the balance sheet, leading to an ICRA credit rating upgrade from A- to A with a positive outlook.

Upscale Portfolio Expansion and Development Pipeline

Samhi Hotels is actively expanding its upscale portfolio with over 1,000 rooms in various stages of rebranding, expansion, or development. Marquee additions include the W in Hyderabad and the Westin-Tribute portfolio in Bangalore. The W Hyderabad is expected to generate approximately INR 110 crores in incremental revenue, with full operations anticipated in FY28. The Trinity Bangalore hotel, now managed by Marriott, is projected to achieve 25-30% revenue growth in the next 12 months without significant renovations.

Financial Outlook and Capex Projections

Management provided a robust outlook, projecting total revenue to reach INR 2,200-2,300 crores and EBITDA to be INR 600-630 crores in the coming years, driven by sustained same-store growth of 9-11% and new inventory additions. Annualized capital expenditure is estimated at INR 175-200 crores for the next few years, allocated towards completing current projects and new conversions. The company expects to generate an investable surplus of over INR 1,700 crores over the next 5 years to fund future growth.

Optimized Interest Costs and ESOP Structure

The strengthened balance sheet has enabled a reduction in the average blended interest rate to 8.5%, with incremental financing expected at 8.2%. The annual interest outflow is projected to be around INR 135 crores going forward. ESOP expenses are set to decrease from INR 2.4 crores per quarter in Q1 FY26 to INR 1 crore per quarter post-FY27, with a long-term annual target of approximately INR 10 crores, reflecting improved financial efficiency.

F&B Segment Revival and Future Growth

The Food & Beverage (F&B) segment, which had been a drag in previous quarters, showed a growth of 7-8% in Q1 FY26. Management anticipates F&B revenue growth to accelerate to 10-11% in H2 FY26, aligning with RevPAR growth. This improvement is expected as renovated boardroom spaces in key upscale hotels, including Hyatt Place Gurgaon, Sheraton Hyderabad, and Hyatt Regency Pune, become fully operational by September-October, attracting more corporate and MICE demand.

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