Samhi Hotels Q2 FY26 Earnings Analysis

- Total revenue growth is expected through both same-store growth and new inventory additions. - Same-store total revenue growth is targeted at around 9% to 11% annually over the next 3 to 5 years. - New inventory additions, including marquee projects like W Hyderabad and Westin-Tribute Bangalore, will significantly boost revenue. - Without any RevPAR growth from FY 25 levels, the current portfolio could generate about INR 1,500 crores in revenue, a 40% increase from the last year. - Combined effect of same-store growth and new openings could drive total revenue to INR 2,200 to 2,300 crores within 3 to 5 years. - Food & Beverage (F&B) revenue is growing at about 7% to 8%, slightly lower than room revenue's RevPAR growth of 12-13%, mainly due to geopolitical impacts on corporate events. - Investable surplus from growth and capital recycling is over INR 1,700 crores over five years, enabling tactical M&A and lease growth.

- SAMHI targets top-line growth to about INR 2,200-2,300 crores over the next 3-5 years, up ~40% from current levels. - EBITDA is expected to grow to INR 600-630 crores driven by same-store growth (9-11%) and new inventory additions. - The strong operating model and portfolio expansion set to enable higher profits and PAT improvements. - Q1 FY26 showed EBITDA growth of 19%, PAT more than tripled, signaling solid profit momentum. - Interest costs have decreased by ~30%, supporting better net earnings. - Investable surplus of INR 1,700 crores over 5 years post-capex will enable further value-creating expansions and M&A. - Overall, management aims to establish SAMHI as a market leader with improved earnings quality, profitability, and EPS growth funded primarily by internal accruals and capital recycling, without heavy reliance on external capital.

- SAMHI plans capex of around INR 880 crores between FY 26 and FY 30, with no specific year-wise breakdown provided for FY 26, '27, and '28. - Committed to invest about INR 1,000 crores towards inventory addition and repositioning existing hotels targeting 15%+ NOI yield. - Over 1,000 rooms in active rebranding, expansion, or development, including marquee projects like W Hyderabad and Westin-Tribute Bangalore. - Redevelopment projects at Four Points assets in Pune and Jaipur underway. - Expecting same-store growth of 9%-11% and new openings, generating over INR 1,700 crores investable surplus in the next 5 years after capex. - Capital recycling remains core, having raised INR 960 crores via asset sales (including INR 65 crores from Caspia Delhi) and GIC minority stake dilution of INR 750 crores to fund growth. - Selective asset recycling opportunities remain open to deploy capital more accretively. - Joint venture with GIC is the principal vehicle for upscale growth, with potential for incremental capital infusion by asset transfers.

- SAMHI Hotels does not currently rely heavily on external capital for growth; much of the growth is funded through internal accruals and capital recycling. - The company has already raised INR 750 crores through minority stake dilution with GIC, boosting capital capacity. - Incremental financing and refinancing occurs at a blended interest rate around 8.2%-8.5%. - SAMHI aims for long-term financing of 12 to 15 years with stable interest costs, targeting rates around 8.1%-8.35% by FY26-FY27. - No current conversations or plans for immediate large-scale fundraising, but selective asset recycling may raise additional capital (~INR130 crores) over time. - The company maintains the option to transfer assets to joint ventures (like with GIC) to recapitalize and fuel future growth, rather than traditional debt raising. - Overall, emphasis remains on disciplined capital recycling, internal accruals, and selective partnerships rather than new equity or large debt fundraises.

The document does not explicitly provide details on the current or expected order book/pending orders for SAMHI Hotels Limited. However, related growth and investment plans mentioned include: - Committed capex of around INR 880 crores between FY 26 and FY 30, with a request for year-on-year breakup (no specific breakdown provided in the document). - Over 1,000 rooms in active rebranding, expansion, or development, including marquee projects like W in Hyderabad and Westin-Tribute Bangalore. - INR 1,000 crores committed towards inventory addition and repositioning existing hotels targeting a 15%+ NOI yield. - Expected investable surplus of INR 1,700 crores over the next 5 years for tactical M&A and leases. - Continuously evaluating additional accretive opportunities in core markets. No direct order book or pending order details are stated.