SAMHI Hotels Limited, a branded hotel ownership and asset management platform, posted a strong financial performance in the third quarter of FY26, supported by higher room rates, steady occupancy, and improved balance sheet discipline. The company reported solid growth across both the quarter and the nine months ended December 31, 2025, even as margins were impacted by recent changes in GST rules.
For Q3 FY26, total income reached Rs 3,419 million, reflecting 16.2 percent year-on-year growth. Operating indicators remained firm, with RevPAR at Rs 5,643, up 13.3 percent on a same-store basis, while occupancy stood at 73 percent. Demand across the portfolio remained resilient despite temporary disruption caused by operational issues at India’s largest airline during December 2025.
EBITDA Growth Moderates Due to GST Changes
EBITDA for the quarter rose to Rs 1,263 million, marking a 13.2 percent year-on-year increase. The consolidated EBITDA margin stood at 36.9 percent, compared to 37.9 percent in Q3 FY25. The moderation in margin was largely due to the change in GST slabs for hotels, which reduced input tax credit availability. Excluding this impact, consolidated EBITDA growth would have been significantly stronger, underlining the strength of core operations.
Profitability Surges Across the Quarter
Profit before tax, before exceptional items, increased sharply to Rs 562 million from Rs 228 million in Q3 FY25, representing 146.4 percent growth. After accounting for a one-time exceptional charge of Rs 11 million related to the implementation of new labour codes, profit before tax stood at Rs 551 million.
Profit after tax rose to Rs 481 million, more than doubling year on year with 111.3 percent growth. Of this, Rs 396 million was attributable to SAMHI shareholders, while Rs 85 million was attributable to minority interest.
Chairman and CEO on Q3 and Nine-Month Performance
Ashish Jakhanwala, Chairman and Managing Director, SAMHI Hotels, said,
“We are pleased to announce results for the quarter and nine months ending December 31, 2025, along with key developments across our portfolio. Our operating performance continued to be resilient, with same-store RevPAR growth of ~13.3 per cent YoY despite the disruptions caused by a crisis at India’s largest carrier airline in December 2025.
During the quarter, total revenue growth was ~16.2 per cent YoY with a consol. EBITDA growth of 19.2 per cent over the same period last year, before accounting for the impact of new GST regulations, indicating strong flow-through. The new GST regulations, removing input tax credit for hotels with rates less than Rs. 7,500 has resulted in EBIDTA growth moderating to 13.2 per cent YoY. While GST changes had a near-term impact on margins, the overall reduction is expected to structurally support demand over the long term.
With continued growth in EBITDA and a reduction in finance costs, we witnessed ~2.5x growth in PBT for the quarter. We are pleased to report a PAT of ~ Rs. 481mn for the quarter, which is 111.3 per cent growth over the same period last year. For the nine months of FY2026, total revenue growth was 13.5 per cent and consolidated. EBITDA growth of 15.2 per cent over the same period last year. With this we set a strong foundation for the performance in the remainder of FY2026 and position ourselves for sustained growth in FY2027. Importantly, we generated ~ Rs. 300 crores of surplus cash on a trailing twelve-month basis, reinforcing our financial strength and providing adequate internal accruals to fund ongoing and planned growth initiatives as envisaged.
We made significant progress on the ongoing growth projects during the quarter. Work on the W-Hyderabad, Westin Bengaluru and other initiatives continues to execute as planned. Backed with a robust pipeline of growth initiatives, sustained same-store growth within our forecast (~9–11 per cent CAGR) and strong free cash generation from operations, we are confident of SAMHI’s growth trajectory and its ability to sustainably compound long-term value for our shareholders”
Nine-Month Results Reinforce the Upward Trend
For the nine months ended December 31, 2025, total income rose to Rs 9,255 million, an increase of 13.5 percent year on year. RevPAR improved by 11.7 percent on a same-store basis, while occupancy averaged 74 percent. EBITDA for the period reached Rs 3,424 million, up 15.2 percent, with EBITDA margin improving to 37.0 percent from 36.5 percent in 9M FY25.
Profit before tax jumped to Rs 1,978 million, compared to Rs 381 million in the previous year, driven by higher operating performance and lower finance costs. Profit after tax stood at Rs 1,671 million, marking 321.7 percent year-on-year growth. All reported numbers have been adjusted for Caspia Delhi, which has been classified under discontinued operations.
Balance Sheet Strength and Cash Generation
SAMHI also recorded significant improvement in its financial position. Net debt reduced to Rs 14,503 million as of December 31, 2025, down from Rs 19,669 million at the end of March 2025. Trailing twelve-month EBITDA stood at Rs 4,818 million, bringing the net debt to EBITDA ratio down to 3.0x from 4.4x at the end of FY25.
The average interest rate declined to 8.3 percent, while annualised interest cost fell to around Rs 1,250 million, compared with approximately Rs 1,900 million earlier. Over the trailing twelve months, SAMHI generated about Rs 300 crores in surplus cash, strengthening its ability to fund ongoing and future growth.
Outlook for FY26 and Beyond
Development work on major assets such as W Hyderabad and Westin Bengaluru continued during the quarter, supported by a broader pipeline of growth initiatives. With stable same-store growth, improving leverage, and strong internal cash generation, SAMHI has positioned itself for sustained performance through the remainder of FY26 and into FY27 as it continues to expand its portfolio and build long-term shareholder value.
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