Samhi Hotels Limited — Q3 FY26 earnings call

Call held 29 Jan 2026

Management summary

Samhi Hotels delivered a strong Q3 FY26, demonstrating resilience and pricing power despite external disruptions like airline operational challenges. The company reported robust revenue and underlying EBITDA growth, though reported margins were impacted by GST changes. Management expressed confidence in its growth pipeline, ability to fund capex through internal accruals, and achieving long-term revenue and EBITDA targets, driven by strong market demand and strategic shift towards upscale segments.

Highlights

  • Total income grew 16% Y-o-Y to INR 342 crores for the quarter.

  • Same-store RevPAR increased 13% Y-o-Y to INR 5,643.

  • Reported EBITDA grew 13.2% Y-o-Y to INR 126 crores, with underlying EBITDA up 19% Y-o-Y.

  • EBITDA margins were 36.9%, down from 37.9% last year due to GST changes.

  • PAT attributable to SAMHI shareholders was INR 39.6 crores.

  • Net debt stood at INR 1,450 crores as of December 31, 2025, with net debt-to-EBITDA stable at 3x.

  • Same-store ADR grew 15.9% Y-o-Y, while occupancy was stable at 73% (down 1.6 percentage points).

  • Targeted revenue of circa INR 3,000 crores by 2030, with upscale/upper upscale contribution rising to 60%.

Key financials

  1. Total Income ₹342 Cr +16.2%YoY
  2. Consolidated EBITDA ₹126 Cr +13.2%YoY
  3. EBITDA Margin 36.9%
  4. Finance Cost ₹40 Cr
  5. PAT (Shareholders) ₹39.6 Cr
  6. Net Debt (Dec 31, 2025) ₹1,450 Cr
  7. Net Debt-to-EBITDA 3×
  8. Same-store RevPAR ₹5,643 +13%YoY
  9. Same-store ADR Growth 15.9% +15.9%YoY
  10. Same-store Occupancy 73%
  11. Same-store F&B Growth 10% +10%YoY

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

  • Total Revenue Revenue · by 2030 · High confidence circa INR 3,000 crores
    And the last bit is that we have a strong growth pipeline and all the resources to deliver to achieve our targeted revenue of circa INR 3,000 crores by 2030.

    — Ashish Jakhanwala, MD and CEO

  • Same-Store Revenue CAGR Revenue · by FY '30 · Medium confidence 9% and 11%
    The same-store will grow between 9% and 11% CAGR in terms of revenue.

    — Ashish Jakhanwala, MD and CEO

RevPAR

  • Same-Store RevPAR CAGR RevPAR · next 3 to 5 years · Medium confidence 7% to 11%
    So, while we've mentioned that in the long term, we expect RevPARs to remain between 7% to 11%, same store sorny, 9% to 11% CAGR for the next 3 to 5 years on same-store hotels.

    — Ashish Jakhanwala, MD and CEO

Debt

  • Debt Reduction Debt · by 2030 · High confidence INR 300 crores
    In terms of our long-term guidance, both on net debt and also on gross debt reduction continues to remain as is.

    — Ashish Jakhanwala, MD and CEO

Revenue Mix

  • Upscale/Upper Upscale Contribution Revenue Mix · upon completion · High confidence 60%

    From 42% today

    These projects will gradually shift our revenue mix towards upscale and upper upscale, which is currently 42% contribution to about 60% upon completion, improving long-term earnings quality.

    — Ashish Jakhanwala, MD and CEO

EBITDA

  • Total EBITDA Accumulation EBITDA · next 4 to 5 years · Medium confidence INR 3,000 crores, INR 3,500 crores
    the total EBITDA accumulation in the next 4 to 5 years is expected to be in the zip code of about INR 3,000 crores, INR 3,500 crores.

    — Ashish Jakhanwala, MD and CEO

Cash Flow

  • Free Cash Flow Cash Flow · next 12 months · Medium confidence INR 350 crores, circa INR 400 crores plus

    From INR 300 crores today

    our free cash will move from INR 300 crores to INR 350 crores, should be circa INR 400 crores plus in the next 12 months because of the growth in earnings.

    — Ashish Jakhanwala, MD and CEO

Risks & concerns

  • Short-term impact of GST regulation changes on EBITDA margins.

    medium

    GST changes led to a 150-200 basis point impact on margins in the short term, primarily affecting the mid-scale portfolio, but expected to be offset by increased sales volumes and absorbed in 1-2 quarters.

    Management acknowledged

  • External disruptions, such as airline operational challenges, impacting demand.

    medium

    The largest Indian airline facing operational challenges during December led to a '3-week wipe out' for the company, particularly affecting the upscale segment due to MICE cancellations.

    Management acknowledged

  • Demand sensitivity to various event risks (e.g., monsoons, specific events).

    low

    Management acknowledges the need to account for 'unknown events' and 'event risk' in demand forecasting, but expresses confidence in the portfolio's resilience and ability to manage such risks.

    Management acknowledged

Q&A highlights

3 direct
GST impact on margins and ability to pass through costs to customers. Direct
So, first of all, the pass-through is already happening. And if you see for the quarter when same-store grew at about 14%, and let me tell you, if we were to do an impact of the airline crisis in December, it was pretty, pretty substantial.

Clarifies how the company is managing the GST impact on profitability and confirms that cost pass-through is underway, mitigating long-term concerns.

Asked by Jinesh Joshi

Reasons for the increase in net debt and how capex for expansion will be funded. Direct
So Vikas, largely, the minor change in the net debt was on account of Navi Mumbai, where we had to make a certain extension payments to the authorities. Two, we are anticipating some inward investment from GIC in the Bangalore project. So, there's always a bit of a mismatch in those 2 things.

Provides specific reasons for the debt increase and reassures investors about the funding strategy for future capex, including external investments and internal accruals.

Asked by Vikas Ahuja

How Samhi Hotels tracks demand compression and its visibility for future quarters. Direct
So, I'll give you an example. What's happening is for the last 3 quarters, if you see, the days the occupancy was upward of 90% is almost 30%. So, 30% of all days in the last 9 months across our entire portfolio, the occupancy was upwards of 90%.

Offers insight into the company's internal demand tracking metrics, demonstrating a data-driven approach to pricing and revenue management, which is crucial for future growth.

Asked by Rajiv Bharti

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Highlights

Samhi Hotels reported a robust Q3 FY26, with total income growing 16% year-on-year to INR 342 crores. Same-store RevPAR increased by 13% year-on-year to INR 5,643, driven by a 15.9% year-on-year ADR growth, despite a slight 1.6 percentage point drop in occupancy to 73%. Consolidated EBITDA rose 13.2% year-on-year to INR 126 crores, with underlying EBITDA growth at a stronger 19% year-on-year. PAT attributable to SAMHI shareholders stood at INR 39.6 crores for the quarter.

GST Impact and Margin Management

The company's EBITDA margins moderated to 36.9% from 37.9% in the prior year, primarily due to changes in GST regulations. Management indicated a short-term impact of 150-200 basis points on margins, particularly affecting the mid-scale portfolio. However, they anticipate that the GST reduction will make hotels more affordable, leading to greater sales volumes and offsetting the impact in the long term. A recovery in margins is expected from February onwards, driven by strong revenue growth.

Strategic Growth Initiatives and Pipeline

Samhi Hotels currently operates 4,900 rooms and has an additional 1,900 rooms under development or rebranding, resulting in 1,450 net room additions. Key projects, including the 170-room W Hyderabad and the 220-room Westin block in Whitefield Bangalore, are progressing as planned. These developments are strategically aimed at shifting the revenue mix towards upscale and upper upscale segments, increasing their contribution from the current 42% to 60% upon completion, thereby enhancing long-term earnings quality.

Debt and Cash Flow Position

As of December 31, 2025, Samhi Hotels' net debt was INR 1,450 crores, maintaining a stable net debt-to-EBITDA ratio of 3x. The minor increase in net debt during the quarter was attributed to extension payments for the Navi Mumbai project. Management reaffirmed its commitment to the earlier guided INR 300 crores in debt reduction by 2030. The company's trailing 12-month free cash flow of INR 300 crores is projected to increase to INR 350-400 crores plus in the next 12 months, supported by earnings growth and stable interest costs.

Market Demand and Pricing Power

Management highlighted strong underlying market demand, fueled by India's economic growth and robust office absorption across core markets. They emphasized the company's significant pricing power, with hotels able to dynamically reprice rooms multiple times a day, especially during periods of high demand. This dynamic pricing strategy has allowed for strong revenue growth even in the mid-scale segment, demonstrating reduced dependence on fixed RFP prices and effective yield management.

Long-Term Outlook and Targets

Samhi Hotels is confident in achieving its long-term target of circa INR 3,000 crores in revenue by 2030. This growth is expected to be driven by a 9-11% CAGR in same-store revenue and incremental contributions from new upscale and upper upscale inventory. The company also projects total EBITDA accumulation of INR 3,000-3,500 crores over the next 4-5 years. Growth capex for new projects is primarily funded through internal accruals and capital-efficient variable leases, minimizing pressure on the balance sheet.

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