Samhi Hotels (SAMHI IN) – Q4FY26 Result Update – Subdued margin performance – BUY
Published on 22 May 2026
We cut our EPS estimates by ~22% for FY27E/FY28E as we fine tune our debt & interest expense forecast given capex commitment of INR22,000mn over the next 5 years. Adjusting for the Middle East conflict, GST transition and certain one-offs; SAMHI IN’s operational performance was broadly in-line with our estimate with EBITDA margin of 38.4% (PLe 37.3%). Led by addition of 192 keys, same-store RevPAR growth of ~9-11%, and accrual of B2C income from acquisition of RARE India, we expect revenue CAGR of 17% over the next 2 years with EBITDA margin of 38.1%/39.6% in FY27E/FY28E respectively. SAMHI IN trades at attractive valuation of 10.0x/7.8x 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 Rs230 (10.5x FY28E EBITDA; no change in target multiple).
