Financial Performance
Samhi Hotels delivered a consolidated EBITDA of ₹463 crore for FY26, representing an 8.8% year-on-year increase. When adjusted for GST regulatory changes—which transitioned room slabs from 12% with input credit to 5% without—EBITDA growth would have been approximately 13%. Profit before tax nearly doubled to ₹165 crore before exceptional items.
The company reported a substantial surge in quarterly net profit, largely attributed to a ₹300 crore deferred tax asset recognition and impairment reversals following the resolution of the Navi Mumbai litigation. Debt servicing ability improved as the interest cost run rate dropped to a range of ₹130-135 crore.
Management Outlook
The leadership team is projecting 9-11% same-store revenue growth for FY27, with total growth potentially reaching 14% including new capacity. The company has fully funded its ₹2,200 crore capex pipeline through a combination of internal accruals and its established capital recycling program. Management aims to further de-leverage the balance sheet toward a medium-term target of 2.5x net debt to EBITDA.
As free cash flow compounds beyond committed growth requirements, the board intends to evaluate disciplined mechanisms for returning capital to shareholders, marking a shift toward long-term value creation.
Business and Sector Dynamics
Operating in core commercial hubs, Samhi derives 76% of its asset income from Bangalore, Hyderabad, Pune, and Delhi NCR. Despite headwinds such as the Middle East conflict and domestic monsoons, commercial demand remains robust. The upscale segment is leading RevPAR growth, with asset-level margins reaching 42-43%.
Sector-wide, management noted that supply growth in Tier-1 markets remains manageable, with demand growth expected to outpace new inventory. The company's recent entry into the experiential leisure segment through the acquisition of Rare India adds a high-margin, asset-light dimension to its portfolio.
Growth Projects and Pipeline
- W Hyderabad: A 260-room upscale project at One Financial District scheduled to open by end-FY27
- Tribute Portfolio Bangalore: Expansion at Whitefield targeted for completion by end-FY28
- Navi Mumbai Development: A 700-room combination of Westin and Fairfield by Marriott, the company's largest to date
- Noida Sector 51: A 162-room upscale hotel in partnership with Ingka Centres structured as a long-term variable lease
- Marriott Sriperumbudur: Addition of a 135-room Marriott hotel to the existing operating Fairfield asset
Strategic Execution
The combination of consistent same-store revenue growth, further leverage for improved profit margins, decline in finance costs and fully capitalized growth pipeline gave us a free cash flow generation of approximately 300 crores in FY26.
