Summary
SAMHI Hotels Limited - Q3 FY26 Earnings Call Summary Thursday, January 29, 2026 11:00 a.m.
Event Participants
Executives 4 Ashish Jakhanwala (Managing Director and CEO), Gyana Das (Executive Vice President and Head of Investments), Nakul Manaktala (Senior Vice President, Investments), Rajat Mehra (Chief Financial Officer)
Analysts 6 Achal Kumar (HSBC), Gazal Gupta (ASK Wealth Advisors), Hitaindra Pradhan (Maximal Capital), Jinesh Joshi (PL Capital), Rajiv Bharti (Nuvama), Vikas Ahuja (Antique Stock Broking)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹342 crores | +16.2% YoY; driven by same-store growth and new inventory in Kolkata and Greater Noida. |
| Same-store RevPAR | ₹5,643 | +13.3% YoY; resilient pricing power despite airline operational disruptions in December. |
| Same-store ADR | ₹7,730 | +15.9% YoY; occupancy remained stable at 73% (-160 bps YoY). |
| Consolidated EBITDA | ₹126 crores | +13.2% YoY; underlying growth was +19.2% excluding negative GST regulatory impacts. |
| EBITDA Margin | 36.9% | -100 bps YoY; impacted by ~200 bps headwind from GST regulation changes. |
| Profit After Tax | ₹48 crores | Significant turnaround from previous years; attributable PAT at ₹30.6 crores. |
| Finance Cost | ₹40 crores | -33.3% YoY; sharp decline from ₹60 crores due to debt restructuring and GIC investment. |
| Net Debt | ₹1,450 crores | Increased by ₹80 crores QoQ due to Navi Mumbai land payments; Net Debt/EBITDA stable at 3.0x. |
| Operational Rooms | 4,900 count | Increasing toward a goal of 60% upscale/upper-upscale mix from current 42%. |
Geographic & Segment Commentary
- Upper Upscale & Upscale: Segment RevPAR grew despite a slight occupancy dip in December caused by major airline operational challenges impacting MICE and group bookings. This segment is the primary focus for new additions, including the 170-room W Hyderabad and the 220-room Westin block in Bangalore.
- Mid-scale (HIE Portfolio): Demonstrated strong resilience with revenue growth of 14-16% despite being the segment hit hardest by GST input tax credit (ITC) losses. Management believes lower GST rates for consumers will eventually drive higher volumes to offset the ITC loss.
- Bangalore (Trinity/Whitefield): The Trinity asset (Marriott managed) saw monthly revenue jump from ₹1.8 crores to ~₹3.5 crores post-takeover with ADR doubling to ₹8,000-₹10,000. Expansion at Whitefield saw room revenue growth of 43% following the addition of 56 new rooms.
Company-Specific & Strategic Commentary
- Portfolio Rebalancing: Shifting revenue mix from 42% upscale to 60% upon completion of the 1,900-room development pipeline to improve long-term earnings quality.
- Capital Efficiency: Future growth focused on variable leases rather than asset-heavy acquisitions, allowing expansion using internal accruals (projected ₹400cr+ annual free cash).
- Asset Recycling: Management completed a large portion of recycling over the last 3 years but retains 1-2 assets for potential exit within the next 12-18 months.
- Demand Compression Strategy: Utilizing dynamic pricing during “sold-out” dates (occupancy >90%) which currently account for 30% of all days, allowing for 25%+ price premiums.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Total Revenue | ₹3,000 crores by FY30 | Based on 9-11% same-store CAGR and incremental upscale room additions. |
| Debt Reduction | ₹300 crores reduction by 2030 | To be funded via internal cash flows after accounting for current expansion capex. |
| EBITDA Margins | Recovery in Q4 FY26 | Expected normalization as revenue growth offsets the one-time GST impact baseline. |
| Tax Outflow | Minimal for 3-5 years | Company is utilizing significant carried-forward losses; tax will remain a non-cash book entry. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory (GST) | Changes in GST led to a loss of Input Tax Credit for rooms sold under ₹7,500, creating a 200 bps margin headwind. Management is attempting to pass this through via corporate renegotiations and dynamic pricing. |
| Operational Disruptions | Heavy reliance on air travel; December performance was dampened by airline operational issues leading to MICE cancellations. Management notes the portfolio is resilient but sensitive to such external “event risks.” |
| Project Execution | Large pipeline (W Hyderabad, Westin Bangalore) in design/demolition stages. Delays in converting these to operational keys could defer the projected ₹3,000 crore revenue target. |
Q&A Highlights
GST Impact and Pass-through
- Question: Can the loss of ITC be passed through to corporate and retail customers? (Jinesh Joshi)
- Answer: Pass-through has started; though reported costs are higher, total revenue in affected segments grew 14-16%. Corporate customers often cannot claim GST credit anyway if they lack a local office, making the lower headline rate attractive despite the hotel’s ITC loss (Ashish Jakhanwala).
Debt and Capex Funding
- Question: Why did net debt increase this quarter, and is the debt reduction target still valid? (Vikas Ahuja)
- Answer: The ₹80 crore increase was due to land extension payments for Navi Mumbai. The long-term target of ₹300 crore debt reduction remains intact as free cash flow is expected to exceed ₹400 crores annually (Ashish Jakhanwala).
Asset Performance (Trinity Bangalore)
- Question: How has the Marriott takeover affected the Trinity asset? (Vaibhav Muley)
- Answer: Revenue grew from ₹1.8 crores/month to over ₹3 crores/month. ADR has nearly doubled from ₹5,900 to the ₹8,000-₹10,000 range (Ashish Jakhanwala).
Growth Pipeline
- Question: Are you confident in the 2-2.5 year execution timeline for design-stage projects? (Vaibhav Muley)
- Answer: Most projects are retrofits of existing buildings (W Hyderabad) or phased renovations (Courtyard Pune), which have faster timelines than greenfield builds. Only Navi Mumbai and One Financial District are true greenfield designs (Ashish Jakhanwala).
Key Takeaway
SAMHI Hotels delivered a resilient Q3 FY26 with total income rising 16.2% YoY to ₹342 crores, supported by a strong 13.3% growth in same-store RevPAR. While a change in GST regulations for rooms priced under ₹7,500 created a 200 bps margin headwind, underlying EBITDA growth remained robust at 19.2% excluding this impact. The company is aggressively pivoting its portfolio toward the upscale segment, with 1,450 net new rooms under development and a target of 60% upscale revenue mix. Finance costs have decreased by 33% YoY following significant deleveraging and interest rate resets. Management remains committed to a ₹3,000 crore revenue target by FY30, underpinned by strong office absorption in core markets like Bangalore and Hyderabad. Investors should monitor the progress of the W Hyderabad launch and the successful pass-through of GST-related costs in the mid-scale segment.
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