Samhi Hotels (SAMHI IN) – Q2FY26 Result Update – Growth pedal in top-gear – BUY
Published on 29 Oct 2025
While SAMHI IN reported healthy operating performance with EBITDA margin of 36.6% (PLe 34.7%); bottom-line missed our estimates due to higher interest and taxation. After improving BS health post fund infusion by GIC, SAMHI IN has pressed the growth accelerator with plans to open new hotels in Navi Mumbai/Hyderabad with ~700/~260 keys respectively. Given both these projects have a longer lead time of ~3-4 years with strong FCFF generation in interim, we expect debt/EBITDA to be at 3.2x/2.6x/1.9x in FY26E/FY27E/FY28E alleviating concerns over excessive leverage. We expect top-line CAGR of 14% over the next 3 years led by addition of 273 keys with an EBITDA margin of 37.4%/38.7%/41.2% in FY26E/FY27E/FY28E. SAMHI IN trades at attractive valuation of 11.1x/8.8x 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 Rs305 (14x Sep-27 EBITDA; no change in target multiple).
