SAMHI Hotels cash falls to Rs 93.81 crore in first half

SAMHI Hotels Limited ended the six months to 30 September 2026 with Rs 93.81 crore in cash and cash equivalents, down Rs 64.96 crore from Rs 158.77 crore at 31 March 2026. SAMHI Hotels generated Rs 225.78 crore from operations, but investing and financing outflows exceeded that inflow.

Why did SAMHI Hotels' cash balance decline?

SAMHI Hotels' cash declined because Rs 246.21 crore used in investing activities and Rs 62.86 crore used in financing activities outweighed its Rs 225.78 crore operating cash inflow in the six months ended 30 September 2026. The three cash-flow categories resulted in a net decrease of Rs 83.29 crore before the cash balance acquired with subsidiaries.

Cash and cash equivalents acquired through subsidiaries added Rs 18.33 crore during the period. This reduced the effect of the Rs 83.29 crore net decrease and reconciled the opening cash balance of Rs 158.77 crore to the closing balance of Rs 93.81 crore. The company prepared the consolidated cash-flow statement using the indirect method prescribed under Indian Accounting Standard (Ind AS) 7, Statement of Cash Flows.

The balance-sheet movement shows the same reduction: cash and cash equivalents stood at Rs 93.81 crore on 30 September 2026, compared with Rs 158.77 crore on 31 March 2026. Bank balances other than cash and cash equivalents also fell to Rs 2.50 crore from Rs 35.10 crore over the same six-month period.

How much operating cash did SAMHI Hotels generate?

SAMHI Hotels generated net operating cash of Rs 225.78 crore in the six months ended 30 September 2026, compared with Rs 165.64 crore in the corresponding six months of 2025. The year-on-year increase was Rs 60.14 crore, based on the unaudited consolidated cash-flow statement.

Cash generated from operations was Rs 223.84 crore before taxes, and the group received a net tax refund of Rs 1.94 crore. The reconciliation started with profit before tax from continuing operations of Rs 90.05 crore and included adjustments for Rs 76.01 crore of finance costs, depreciation and amortisation, and other non-cash or non-operating items.

Working-capital movements included a Rs 6.25 crore increase in trade receivables and a Rs 13.48 crore decrease in inventories. Other financial assets increased by Rs 73.54 crore, while other financial liabilities increased by Rs 55.38 crore and trade payables rose by Rs 91.28 crore. These movements contributed to the cash generated from operations figure.

The comparable six-month period ended 30 September 2025 included Rs 5.46 crore of net tax paid, rather than the Rs 1.94 crore refund recorded in the latest period. SAMHI Hotels reports one operating segment, developing and running hotels, because its chief operating decision maker assesses performance at the overall group level.

What used SAMHI Hotels' investing cash flow?

SAMHI Hotels used Rs 246.21 crore in investing activities in the six months ended 30 September 2026. The disclosed uses included Rs 113.81 crore for property, plant and equipment, capital work in progress, intangible assets, advances and capital creditors, plus Rs 265.31 crore of bank deposits made.

Those outflows were partly offset by Rs 182.90 crore from bank deposits maturing, Rs 3.29 crore of proceeds from the sale of property, plant and equipment, and Rs 2.70 crore of interest received. The company also invested Rs 1.51 crore to acquire a 49% equity interest in Clean Max Nile Private Limited on 22 May 2026 for group captive solar arrangements at certain hotels.

Acquisition activity added Rs 18.33 crore of cash and cash equivalents through subsidiaries in the first half. SAMHI Hotels accounted for RARE India from 22 April 2026 using the acquisition method, after its board approved the acquisition of an 80% interest for aggregate consideration of Rs 47.59 crore on 5 March 2026.

SAMHI Hotels also acquired 100% of Itmenaan Lodges Private Limited on 4 August 2026 for Rs 12 crore. The company applied the acquisition method and completed a provisional purchase price allocation, or PPA, for identifiable assets acquired and liabilities assumed. Separately, it sold a land parcel on 1 July 2026 for Rs 11.50 crore and recorded an exceptional gain of Rs 3.88 crore, net of Rs 0.12 crore of expenses.

How did financing movements affect SAMHI Hotels' liquidity?

SAMHI Hotels used Rs 62.86 crore in financing activities during the six months ended 30 September 2026. The financing cash movement included Rs 645.30 crore of proceeds from long-term borrowings and Rs 646.15 crore of repayments of long-term borrowings.

The group also reported Rs 20.98 crore of net proceeds from short-term borrowings, while finance costs paid were Rs 70.40 crore. Lease-liability payments were Rs 5.72 crore and interest on lease liabilities was Rs 6.90 crore, meaning these two lease-related cash items totalled Rs 12.62 crore during the period.

Non-current borrowings were Rs 1,547.31 crore at 30 September 2026, up from Rs 1,508.53 crore at 31 March 2026. Current borrowings declined to Rs 183.04 crore from Rs 199.67 crore. Combined current and non-current borrowings consequently rose to Rs 1,730.35 crore from Rs 1,708.20 crore over the six months.

Non-current lease liabilities were Rs 122.56 crore at 30 September 2026 and current lease liabilities were Rs 18.53 crore. The balance-sheet classification and the separate cash-flow lines show that lease obligations remained part of the group’s financing structure alongside borrowings during the period.

Conclusion

SAMHI Hotels produced Rs 225.78 crore of operating cash in the six months to 30 September 2026, Rs 60.14 crore more than a year earlier. Yet investing outflows of Rs 246.21 crore and financing outflows of Rs 62.86 crore resulted in a lower cash balance of Rs 93.81 crore, despite Rs 18.33 crore of cash acquired with subsidiaries.

The next disclosed matter to watch is finalisation of the provisional PPA for Itmenaan Lodges Private Limited, which SAMHI Hotels acquired for Rs 12 crore on 4 August 2026. Future filings can also show how RARE India, consolidated from 22 April 2026, affects the group’s cash flows, asset values and financing requirements.