SAMHI Hotels (SAMHI) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw total income rise 11% year-over-year to INR 2,963 million, with consolidated EBITDA up 14.2% and PAT reaching INR 998 million, driven by a one-time reversal of Navi Mumbai land impairment.

• Major new projects include a dual-branded hotel in Navi Mumbai and a 260-room hotel in Hyderabad Financial District, with significant capital infusion from a GIC affiliate.

• Board approved restructuring within the group, including a demerger of a hotel business between subsidiaries.

• Statutory auditors issued unmodified review reports for both standalone and consolidated results.

• Balance sheet strengthened with net debt/EBITDA at 2.9x (2.4x for operating assets) and credit rating upgraded to A+ (stable outlook).

Financial highlights

• Q2 FY26 RevPAR was INR 5,026, up 11.2% year-over-year, with consolidated EBITDA margin at 37.3%.

• Finance costs declined by nearly INR 12 crores year-over-year due to deleveraging and asset sales.

• Exceptional one-time gain of INR 71 crores from Navi Mumbai impairment reversal and Caspia Delhi sale.

• Net debt at INR 1,370 crores; net debt/EBITDA at 2.9x, or 2.4x excluding non-EBITDA generating growth projects.

• Free cash generation improved, with TTM free cash flow at INR 350 crores and strong operating cash flow supporting growth.

Outlook and guidance

• H2 expected to outperform H1 in RevPAR, occupancy, and total revenue as business travel demand remains robust.

• Guidance maintained for 9%-11% CAGR same-store revenue growth over the next 3-5 years.

• Portfolio to exceed 6,300 rooms with over 1,500 rooms under development or rebranding.

• Committed pipeline projects could increase in-place revenue from INR 12,000 million to INR 19,000–21,000 million by Sep '25.

• Majority of future growth to be funded by operating free cash, with no anticipated stress on the balance sheet.