Samhi Hotels Reports Strong FY26 Financial Results

Samhi Hotels Ltd. announced a significant 5.6-fold year-on-year increase in Profit After Tax (PAT) for the fiscal year ending March 31, 2026, reaching Rs 5,665 million. Total income for the fiscal year climbed 12.3% to Rs 12,790 million.

Key Financial Highlights

The company's audited financial results for FY26 revealed a substantial 5.6x year-over-year jump in PAT to Rs 5,665 million and a 12.3% increase in total income to Rs 12,790 million. Consolidated EBITDA for FY26 also saw an 8.8% year-over-year rise to Rs 4,626 million. However, the fourth quarter of FY26 experienced a 6.0% decrease in EBITDA compared to the previous year, though it showed 16.8% growth on a like-to-like basis excluding certain items.

Growth Drivers and Strategic Moves

This robust profit growth signals enhanced financial health and operational efficiency for Samhi Hotels. The company's ability to increase total income and revenue per available room (RevPAR) underscores its growing revenue streams. Strategic initiatives, including a partnership with GIC and acquiring a stake in RARE India, are poised to strengthen the company's balance sheet and expand its portfolio.

Financial Turnaround and Future Outlook

Following a Net Debt to EBITDA ratio of 4.4x in FY25, the current fiscal year's performance represents a significant turnaround driven by strategic growth efforts. Samhi Hotels anticipates that future investments will be increasingly self-funded, with incremental EBITDA expected to convert into free cash flows from FY27 onwards, supported by a strengthened balance sheet and a growing portfolio.

Potential Risks

While FY26 was a strong year, the dip in Q4 FY26 Consolidated EBITDA warrants investor attention. The company must maintain its growth trajectory and effectively manage its debt levels.

Market Context

Although specific peer data was not detailed in the filing, Samhi Hotels' performance suggests a strong recovery and growth within the hospitality sector, potentially outpacing segments impacted by broader economic slowdowns.

Key Metrics

• FY26 Total Income: Rs. 12,790 million (12.3% YoY growth)
• FY26 PAT: Rs. 5,665 million (5.6x YoY growth)
• Q4 FY26 Total Income: Rs. 3,535 million (9.3% YoY growth)
• Net Debt (March 31, 2026): Rs. 14,507 million
• Net Debt to EBITDA ratio: Approximately 3.1x (down from 4.4x in March 2025)

Investor Focus

Moving forward, investors will closely monitor how Samhi Hotels utilizes its new partnerships and expanded portfolio to achieve sustained free cash flow generation and reduce debt in FY27.