SAMHI Hotels delivered exceptional financial results in Q1FY27, with net profit surging 29.6% year-on-year to ₹24.9 crore, significantly outperforming the previous quarter's ₹18.25 crore. According to The Hindu BusinessLine, total income grew 7.3% to ₹308.3 crore compared to ₹287.3 crore in Q1FY26, with revenue per available room (RevPAR) rising 9.6% year-on-year to ₹5,219 on a same-store basis. The company's profit before tax jumped 41.8% to ₹32.7 crore from ₹23.1 crore a year ago, demonstrating strong operational performance despite market challenges. However, stock prices fell nearly 2.6% to ₹176.26 on Tuesday, reflecting broader market sentiment despite the strong financial results.
Prabhudas Lilladher has issued a buy rating on SAMHI Hotels with a target price of ₹201, as reported in their research report dated August 5, 2026. The brokerage maintains a buy recommendation with a target price of ₹201 (10.5x FY28E EBITDA), citing the company's resilient operating performance despite near-term challenges. The research firm notes that SAMHI IN trades at an attractive valuation of 12.3x/10.1x their FY27E/FY28E EBITDA estimates, adjusted for minority interest in the JV platform with GIC. Despite cutting EBITDA estimates by 3%/5% for FY27E/FY28E due to margin pressures from lower international travel share and loss of input tax credit, the brokerage remains optimistic about the company's growth prospects.
SAMHI Hotels demonstrated robust operational improvements with occupancy rates increasing to approximately 79.3% from 74.2% in Q1FY26, as reported by The Hindu BusinessLine. The company's EBITDA stood at ₹101.3 crore, up 12.1% on a comparable basis, though it declined 4.1% on a reported basis due to a GST input tax credit impact of approximately ₹9.2 crore. MD & CEO Ashish Jakhanwala noted that disruptions to international travel from the West Asia conflict affected the quarter, but domestic corporate travel and MICE demand offset the impact, highlighting the company's strong domestic market position. The latest developments show July demand recovery and stable margins providing positive momentum for future quarters.
The company's financial position strengthened significantly with effective interest rates declining to 7.8%, approximately 300 basis points lower than at the time of its IPO in September 2023, as reported by The Hindu BusinessLine. Net debt stood at ₹1,492.8 crore as of June 30, 2026, with a net debt-to-EBITDA ratio of 3.2x, indicating improved leverage management. This improved financial position supports the company's expansion plans and provides a solid foundation for future growth initiatives.
SAMHI Hotels continues its aggressive expansion strategy with plans to raise up to ₹750 crore through a mix of equity and debt to fund its ambitious growth plans. The company currently operates 31 hotels with 4,899 rooms across 13 cities and has indicated plans to raise its upscale inventory share from approximately 41% currently to 60% by FY2030, as reported by The Hindu BusinessLine. With around 1,900 rooms under development or rebranding, of which nearly 1,450 are expected to be net additions, this strategic fundraise represents a significant step toward achieving the company's target of 35% revenue growth in the next few years through acquisitions and organic growth. The company's strong upscale expansion pipeline and stable margins provide good earnings visibility for future quarters, with Prabhudas Lilladher expecting revenue CAGR of 15% over FY26-FY28E driven by same-store revenue growth of 9-11% and incremental contribution from the asset-light RARE India platform.
