Samhi Hotels (SAMHI IN) – Q3FY26 Result Update – GST reduction turns out to be a joker in the pack – BUY
Published on 29 Jan 2026
SAMHI IN reported a decent performance in 3QFY26 with same-store RevPAR increasing 13.3% YoY to Rs5,643. Adjusting for the loss of ITC post reduction in GST rate, EBITDA margin stood at 38.1% (PLe 37.9%). Addition of 42/22 keys at Hyderabad/Pune will aid growth in the interim, until “W” at HITEC City, Hyderabad begins operations (mock-up rooms will be ready by 4QFY26E) by FY27E. We broadly retain our estimates and expect top-line CAGR of 14% over the next 3 years with an EBITDA margin of 36.3%/38.6%/41.0% in FY26E/FY27E/FY28E. SAMHI IN trades at attractive valuation of 9.5x/7.6x our FY27E/FY28E EBITDA estimates (after adjusting for the minority interest factor in JV platform formed with GIC). We maintain BUY on the stock with a TP of Rs290. We have revised our target multiple to 12x (earlier 14x) as we roll forward our valuation to FY28E.
