SAMHI Q2 Income Rises 15.6% Despite GST Margin Reduction

SAMHI reported Q2 FY2027 total income of Rs 342.7 crore, up 15.6% year on year, while a GST input-tax-credit change reduced its reported EBITDA margin by 300 basis points to 36.1%. Excluding that effect, SAMHI reported a 39.1% comparable EBITDA margin and 21.3% comparable EBITDA growth.

How fast did SAMHI's Q2 FY2027 income grow?

SAMHI's Q2 FY2027 total income rose 15.6% to Rs 342.7 crore from Rs 296.3 crore in Q2 FY2026. Same-store revenue increased 12.6%, ahead of SAMHI's stated long-term guidance range of 9% to 11%. The same-store measure excludes Trinity, acquired in October 2024, HIEX Greater Noida, HIEX Kolkata, Caspia Delhi and Sheraton Commercial.

SAMHI's same-store occupancy reached 78.6% in Q2 FY2027, compared with 75.0% a year earlier. Revenue per available room, or RevPAR, increased 14.3% year on year to Rs 5,746, led by a 9.2% increase in average room rate, or ARR. Domestic travellers accounted for about 80% of total room nights sold during the quarter.

Why did SAMHI's reported EBITDA margin decline?

SAMHI's reported EBITDA margin declined to 36.1% in Q2 FY2027 from 37.3% in Q2 FY2026 because the GST regime shifted from 12% with input tax credit, or ITC, to 5% without ITC. SAMHI quantified the Q2 FY2027 ITC impact at about Rs 10.3 crore, equivalent to 300 basis points of reported margin dilution. The tax effect was not included in the Q2 FY2026 base period.

SAMHI reported consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 123.8 crore, up 12.0% on a reported basis. On a comparable basis that excludes the Rs 10.3 crore GST ITC impact, EBITDA grew 21.3% year on year and the margin was 39.1%. Incremental EBITDA represented about 57% of incremental revenue in the quarter.

SAMHI said most new openings are planned in the upscale segment, which it stated is not affected by the GST change. Management expects the expanding upscale mix to improve operating margins to about 40%, but that is an outlook rather than a Q2 FY2027 reported outcome.

What did SAMHI's hotel demand indicators show?

SAMHI recorded a higher share of near-full hotel days in Q2 FY2027, with 37% of days above 90% occupancy compared with 32% in Q2 FY2026. The company described this as demand compression, despite weaker international business linked to the Middle East conflict. It said a revival in international demand could support yield management and ARR.

SAMHI's core office markets also recorded net absorption of about 8 million square feet in Bangalore and Hyderabad during Q2 FY2027. Bangalore absorbed 4.1 million square feet and Hyderabad absorbed 3.8 million square feet, together accounting for most of the approximately 13 million square feet absorbed across the listed markets in the quarter.

Air travel was a countervailing indicator. Passenger traffic across 10 key metro cities fell 4.1% year on year to 67 million in Q2 FY2027 from 70 million in Q2 FY2026, based on Airports Authority of India data presented by SAMHI. Traffic fell 11.2% in Hyderabad, 11.9% in Chennai and 13.3% in Kolkata, which SAMHI attributed to reduced supply, high fuel prices and rupee depreciation.

How did SAMHI's first-half profit compare with last year?

SAMHI's H1 FY2027 total income was Rs 651 crore, up 11.5% from Rs 583.6 crore in H1 FY2026. Consolidated EBITDA rose 4.2% on a reported basis to Rs 225.1 crore, while comparable EBITDA increased 17.0%. The H1 comparable calculation excludes a Rs 19.4 crore GST ITC impact in H1 FY2027 and specified one-time items in the H1 FY2026 base.

SAMHI's profit before tax, or PBT, before exceptional items rose 34.5% to Rs 86.2 crore in H1 FY2027. Q2 FY2027 PBT before exceptional items increased 39.9% to Rs 53.4 crore. Reported profit after tax, or PAT, was Rs 41.1 crore in Q2 FY2027, compared with Rs 99.8 crore a year earlier, when the exceptional-items line was Rs 84.1 crore versus Rs 3.9 crore in Q2 FY2027.

What does SAMHI's balance sheet show after Q2 FY2027?

SAMHI reported net debt of Rs 1,457.9 crore at September 30, 2026, compared with Rs 1,492.8 crore at June 30, 2026 and Rs 1,450.7 crore at March 31, 2026. Net debt to trailing-12-month EBITDA was 3.1 times at September 30, 2026, unchanged from March 31, 2026 and lower than 5.3 times at September 30, 2023. The ratio adjusted for growth capital was 2.2 times.

SAMHI's effective interest rate was 7.8% at September 30, 2026, compared with 7.9% at March 31, 2026 and 10.8% at September 30, 2023. It estimated net annualised interest run rate at about Rs 125 crore, using an 8.0% rate after a recent Reserve Bank of India policy-rate increase. Q2 FY2027 free cash flow was about Rs 82.7 crore, alongside about Rs 35 crore of cash interest outflow.

SAMHI's total assets were Rs 4,556.7 crore in September 2026, up from Rs 4,445.3 crore in March 2026. Construction work in progress rose to Rs 219.2 crore from Rs 139.4 crore, including W Hyderabad, Hyatt Regency Pune apartments, Tribute Bangalore and Navi Mumbai projects. SAMHI also said 22 Hyatt Regency Pune apartments had been completed as of October 2025, although approval delays were causing lost revenue.

Conclusion

SAMHI's Q2 FY2027 result combined 15.6% total-income growth, 12.6% same-store revenue growth and 21.3% comparable EBITDA growth. The reported operating comparison was affected by the Rs 10.3 crore GST ITC impact, which lowered EBITDA margin to 36.1%, while the comparable margin was 39.1%.

The next reported indicators include progress toward management's expectation of about 40% operating margins as upscale inventory grows, approval of the 22 completed Hyatt Regency Pune apartments and the FY2027 to FY2032 pipeline. SAMHI's disclosed pipeline includes 1,059 new upper upscale and upscale rooms, 350 upper mid-scale openings and 260 mid-scale openings.