SAMHI Hotels Limited

Key Financial Figures

Full Year FY26 Performance:

  • Total Income: INR 1,279 crores (12.3% YoY growth)
  • Consolidated EBITDA: INR 463 crores (8.8% YoY growth)
  • EBITDA Margin: 36.2%
  • PBT before exceptional items: INR 165 crores (89% YoY growth)
  • Reported PAT: INR 567 crores (includes deferred tax income of INR 330 crores and impairment reversal of INR 83 crores)
  • Net Debt: INR 1,450 crores (reduction of INR 516 crores from FY25)
  • Net Debt-to-EBITDA: 3.0x
  • Total Equity: INR 2,286 crores (vs INR 1,142 crores in FY25)
  • Effective Interest Rate: 7.9% (as of May 21, 2026)
  • Annualized Interest Cost Run Rate: INR 130-135 crores
  • Free Cash Flow Generation: INR 300 crores (after interest and lease payments)

Q4 FY26 Performance:

  • Total Income: INR 354 crores (9.3% YoY growth)
  • Same-store revenue growth: 6.4%
  • Consolidated EBITDA: INR 120 crores (6% below same quarter last year)

Operational Highlights

Revenue Impact Factors:

  • Four one-time events compressed full-year revenue by INR 45-52 crores:
  • India-Pakistan conflict (May)
  • Severe monsoons and flooding (August)
  • Airline disruption (December)
  • Middle East conflict (March, ongoing)
  • GST regulatory change moved hotel slab from 12% with input credit to 5% without input tax credit, impacting H2 FY26 EBITDA by approximately INR 14 crores
  • Approximately INR 5 crores spent on FF&E product upgrades

Strategic Initiatives:

  • Launched GIC platform for upscale hotels with INR 750 crores commitment for 35% minority stake in 1,000-room platform (INR 600 crores already received)
  • Signed partnership with Ingka Centers (IKEA Group) for 162-room upscale hotel at Sector 51 Noida on long-term variable lease
  • Secured lease at One Financial District Hyderabad for 260-room hotel
  • Resolved Navi Mumbai litigation and announced development of 700-room combination of Westin and Fairfield by Marriott
  • Board approval sought for 135-room Marriott Hotel in Sriperumbudur
  • Acquired 70% stake in RARE India (73 hotels, 1,000 rooms) for experiential leisure segment entry

Capital Structure and Financing

  • Credit rating upgraded to A+ Stable by both CARE and ICRA
  • Capital recycling of approximately INR 960 crores over past 3 years:
  • INR 210 crores from monetizing 4 non-core hotels at average 20x EV/EBITDA
  • INR 750 crores from GIC capital infusion
  • INR 650 crores of GIC funds deployed to reduce debt

Future Outlook and Guidance

FY27 Expectations:

  • Same-store revenue growth: 9-11%
  • EBITDA margins: ~38%
  • Interest cost: INR 135-140 crores (factoring in potential 25 bps rate increase)
  • Capex allocation: INR 250-270 crores (primarily for W Hyderabad and Westin Bangalore)

Long-term Projections (FY27-FY31):

  • Cumulative free cash flow projection: >INR 3,000 crores
  • Capex commitment: INR 2,200 crores across existing pipeline
  • Net debt-to-EBITDA target: 2.5x
  • ROCE target: 14-15%

Pipeline Openings:

  • FY27: HITEC City Hyderabad (end of year)
  • FY28: Tribute portfolio Bangalore Whitefield (end of year), W Hyderabad
  • FY29-FY30: Westin Bangalore Whitefield, Ingka Noida hotel, Marriott Sriperumbudur Chennai

Management Commentary

Ashish Jakhanwala (MD & CEO) emphasized that FY26 was a year where free cash flow generation became real, with FY27 onwards focused on compounding. The company is positioned to expand portfolio in core markets without taking incremental leverage or diluting equity.

Rajat Mehra (CFO) highlighted the significant reduction in finance costs from INR 225 crores in FY25 to INR 171 crores in FY26, reflecting the impact of GIC capital infusion and consequent deleveraging.