SAMHI Hotels FY26: PBT up 89%, debt ratio hits 3x

Key takeaways from FY26 and Q4

SAMHI Hotels Ltd (NSE: SAMHI) reported FY26 profit before tax (PBT) of about INR 165 crore, up 89% year-on-year, before one-time or exceptional items. The company also met its balance sheet target, ending the year with net debt of INR 1,450 crore and a net debt-to-EBITDA ratio of around 3x. Management said FY26 revenue growth came in at 12.3%, beating the company’s initial guidance range of 9% to 11%. The year, however, was not linear, with the company pointing to disruptions from geopolitical events and a GST-related regulatory change.

FY26 revenue growth beats guidance despite disruptions

For FY26, total income stood at INR 1,279 crore, representing 12.3% year-on-year growth. Management attributed the performance to commercial demand in core markets and said same-store RevPAR grew 9.5%, in line with its long-term guidance of 9% to 11%. The company also noted that the year’s growth was diluted versus a potential 16% to 17% pace due to disruptions such as the India-Pakistan conflict and the Middle East conflict.

The company’s concentration remained high in its key business hubs. Bangalore, Hyderabad, Pune, and Delhi NCR together contributed about 76% of asset income, according to the FY26 commentary.

EBITDA and margins: GST change creates a permanent drag

SAMHI Hotels reported FY26 consolidated EBITDA of INR 4,626 million (INR 462.6 crore), up 8.8% year-on-year, with an EBITDA margin of 36.2%. The company said the GST regulatory change impacted EBITDA by about INR 14 crore in H2 FY26. It also stated that, adjusted for the GST change impact, EBITDA growth would have been around 13% year-on-year.

Looking ahead, management indicated it expects group margins to be around 38%. It described the GST impact as permanent, but said it expects to maintain a 38%-plus margin at a group level, particularly because the pipeline is skewed toward upscale hotels where fewer rooms are sold below INR 7,500.

Q4 FY26: March shock hits growth, EBITDA dips

For Q4 FY26, total income was about INR 354 crore, up 9.3% year-on-year, with same-store revenue growth of 6.4%. Management said the quarter tracked around 12% revenue growth through end-February, but the Middle East disturbance reduced March revenue to sub-minus 1%, diluting the full-quarter growth.

Consolidated EBITDA for Q4 was about INR 120 crore (reported as INR 120.21 crore), down 4.81% year-on-year versus INR 126.29 crore in Q4 FY25. The company attributed the year-on-year decline mainly to the expanded GST impact as more rooms were sold below the INR 7,500 level, along with FFLE expenses routed through the profit and loss statement and pre-opening expenses for new inventory.

Profit swings driven by exceptional items and tax effects

Reported profitability also reflected non-operating and one-off factors. The company noted that FY26 reported PAT included Q4 deferred tax recognition, an impairment reversal related to Navi Mumbai and other items of close to INR 83 crore, and a gain on sale of discontinued operations in Caspia Delhi of about INR 567 crore.

On the reported quarterly print, SAMHI Hotels posted Q4 (March 2026) net profit of INR 353.67 crore, up 671.1% year-on-year from INR 45.87 crore. Earnings per share rose to INR 18.04 from INR 2.08 over the same period. Reported net sales for the quarter were INR 344.86 crore, up 8.17% year-on-year.

Deleveraging: net debt at INR 1,450 crore

A key FY26 focus area was balance sheet repair. SAMHI ended the year with net debt of INR 1,450 crore, translating to net debt-to-EBITDA of around 3x, which management described as meeting its target.

The company also highlighted a lower effective interest rate of 7.9% and said the annualised interest cost run-rate is now around INR 130 to 135 crore.

Strategic moves: GIC platform and entry into experiential leisure

During FY26, SAMHI launched a GIC platform for upscale hotels in India. It secured INR 750 crore for a 35% minority stake, which the company flagged as part of its capital strategy.

It also entered the experiential leisure segment by acquiring a 70% stake in RARE India. The company said this expanded its portfolio to 73 hotels and 1,000 rooms.

Early FY27 commentary: April flat, May strong

In commentary shared alongside the updates, the company said cumulative quarter-to-date performance is tracking double-digit revenue growth. It described April as flattish but said May is strong. Despite the Gulf crisis impacting numbers, management said it expects year-on-year growth to remain in double digits.

Market snapshot and investor context

SAMHI Hotels shares closed at INR 146.64 on May 20, 2026 (NSE), as per the provided update. The company also reported ROE of 23.04% for the year ended March 31, 2026, compared with a five-year average of -14.68% (based on consolidated financials cited).

Risks to monitor: supply additions and demand shocks

The company flagged potential risks from future supply increases in key markets such as Bangalore, which could affect occupancy and average daily rates (ADRs). It also showed, through Q4 trends, how geopolitical disruptions can quickly impact monthly performance, with March revenue turning negative year-on-year after a strong run-rate through February.

Summary table of reported numbers

What matters for the stock from here

FY26 results show SAMHI’s operating growth and deleveraging progress, but also highlight the sensitivity of quarterly performance to demand disruptions and regulatory changes. The permanent nature of the GST impact, the company’s margin guidance around 38%, and execution on upscale expansion will be key variables for investors to track. Future updates on the GIC platform deployment, integration of RARE India, and performance in core office-led markets will likely shape near-term sentiment.

Conclusion

SAMHI Hotels closed FY26 with income growth above guidance, a sharp increase in PBT (before exceptional items), and net leverage at around 3x. The company’s next focus areas include sustaining double-digit growth trends seen early in the quarter, managing the GST-linked margin drag, and executing its upscale and experiential leisure expansion plans.