Any current/future new fundraising through debt or equity?

The company targets to reduce net debt-to-EBITDA leverage from the current ~3.07x to a stable 2.5x within the next 12 to 18 months (Page 16, 24). They are focused on disciplined capital allocation to support growth, capex, and deleveraging without disturbing long-term prospects (Page 24). There is no explicit mention of immediate new debt or equity fundraisings planned. Minority dilution (equity) is mentioned only as a longer-term strategic option, dependent on value creation in assets (Page 19). Free cash flow generation (~INR 310 crores) is expected to largely fund capex and growth over the

Any current/future capex/capital investment/strategic investment?

FY27 capex allocation is about INR 250-270 crores. Major investment is INR 150 crores towards the W Hyderabad, targeted to open by end of FY27. Remaining capex for ongoing Westin Bangalore work, maintenance, and minor renovations at Four Points Pune and Jaipur, and some leisure investments. FY28 capex expected to be similar at INR 250-270 crores, primarily directed towards Westin Bangalore. Capex plans are secured by a stable free cash flow base (~INR 310 crores) over the next 4-5 years. Company focuses on disciplined capital allocation with an asset-light, leasehold strategy for growth. Asset

Future growth expectations in sales/revenue/volumes?

Long-term same-store revenue growth guidance is stable at 9% to 11% annually, maintained since IPO despite market fluctuations. FY27 expected same-store revenue growth is about 9% to 11% Y-o-Y, reflecting a cautious outlook amid ongoing crises. New hotel openings, notably W Hyderabad in FY28, expected to add an incremental 6% to 7% revenue growth that year. Beyond FY28, significant openings like Tribute Bangalore, Westin Bangalore, and Noida development will drive further growth. Overall, total revenue growth (including new openings) in FY27 estimated around 10% to 11%. Management ac

Future growth expectations in earnings/operating earnings/profits/EPS?

SAMHI Hotels expects long-term same-store revenue growth of 9% to 11%, maintained consistently since IPO (Page 16). EBITDA growth is expected at around 9% to 10%, generating incremental INR 700 crores free cash from existing assets over 5 years (Page 17). New hotel openings (e.g., W Hyderabad in FY28) will contribute an additional INR 400-500 crores EBITDA by FY31 (Page 17). Capital expenditures are planned around INR 250-270 crores annually for FY27 and FY28, mainly toward new hotels and renovations (Page 11). Margins are expected to remain stable at approximately 38%, despite permanent GST i

Current/ Expected Orderbook/ Pending Orders?

The opening of the W Hyderabad hotel is scheduled for 2027, with most of the work expected to be completed by the end of the year. Hyatt Regency Pune's pre-opening status is due to 22 completed apartments awaiting final regulatory approvals. Capital expenditure for FY27 is allocated at INR 250-270 crores, largely for W Hyderabad (INR 150 crores) and Westin Bangalore, including minor renovations at Four Points Pune and Jaipur. FY28 capex is expected to be in a similar range and primarily directed towards Westin Bangalore. The balance INR 150 crores from GIC's committed investment will be receiv

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Samhi Hotels LtdQ1 FY26Leisure Services

Samhi Hotels Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹175P/E: 21.0Market Cap: ₹3.3K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Long-term same-store revenue growth guidance is stable at 9% to 11% annually, maintained since IPO despite market fluctuations.
→FY27 expected same-store revenue growth is about 9% to 11% Y-o-Y, reflecting a cautious outlook amid ongoing crises.
→New hotel openings, notably W Hyderabad in FY28, expected to add an incremental 6% to 7% revenue growth that year.
→Beyond FY28, significant openings like Tribute Bangalore, Westin Bangalore, and Noida development will drive further growth.
→Overall, total revenue growth (including new openings) in FY27 estimated around 10% to 11%.
→Management acknowledges potential upside beyond guidance with stronger-than-expected market conditions, which would accelerate EBITDA and margins.
→Revenue growth is expected to be supported by micro-market evaluations, with focus on core areas to manage supply-demand effectively.

Margin guidance

Category 3

→SAMHI Hotels expects long-term same-store revenue growth of 9% to 11%, maintained consistently since IPO (Page 16).
→EBITDA growth is expected at around 9% to 10%, generating incremental INR 700 crores free cash from existing assets over 5 years (Page 17).
→New hotel openings (e.g., W Hyderabad in FY28) will contribute an additional INR 400-500 crores EBITDA by FY31 (Page 17).
→Capital expenditures are planned around INR 250-270 crores annually for FY27 and FY28, mainly toward new hotels and renovations (Page 11).
→Margins are expected to remain stable at approximately 38%, despite permanent GST impact (Page 7).
→Interest costs are forecasted at INR 135-140 crores for FY27 considering expected interest rate hikes (Page 11).
→Management is cautious in outlook but optimistic for upside beyond these conservative estimates (Pages 14-15).

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Fundraise plans

Yes

→The company targets to reduce net debt-to-EBITDA leverage from the current ~3.07x to a stable 2.5x within the next 12 to 18 months (Page 16, 24).
→They are focused on disciplined capital allocation to support growth, capex, and deleveraging without disturbing long-term prospects (Page 24).
→There is no explicit mention of immediate new debt or equity fundraisings planned.
→Minority dilution (equity) is mentioned only as a longer-term strategic option, dependent on value creation in assets (Page 19).
→Free cash flow generation (~INR 310 crores) is expected to largely fund capex and growth over the next 4-5 years, suggesting internal funding is prioritized (Page 16).
→Asset recycling initiatives (selling non-core assets worth INR 200-250 crores) aim to redeploy capital into higher-ROCE opportunities, potentially reducing the need for external fundraising (Pages 18-19).

Order book

Yes

→The opening of the W Hyderabad hotel is scheduled for 2027, with most of the work expected to be completed by the end of the year.
→Hyatt Regency Pune's pre-opening status is due to 22 completed apartments awaiting final regulatory approvals.
→Capital expenditure for FY27 is allocated at INR 250-270 crores, largely for W Hyderabad (INR 150 crores) and Westin Bangalore, including minor renovations at Four Points Pune and Jaipur.
→FY28 capex is expected to be in a similar range and primarily directed towards Westin Bangalore.
→The balance INR 150 crores from GIC's committed investment will be received over the next two years, aligning with Westin Bangalore's capex spending.
→There are no current plans for investments at the subsidiary level; only identified smaller hotels valued at around INR 200 crores may be considered.

Capex plans

Yes

→FY27 capex allocation is about INR 250-270 crores.
→Major investment is INR 150 crores towards the W Hyderabad, targeted to open by end of FY27.
→Remaining capex for ongoing Westin Bangalore work, maintenance, and minor renovations at Four Points Pune and Jaipur, and some leisure investments.
→FY28 capex expected to be similar at INR 250-270 crores, primarily directed towards Westin Bangalore.
→Capex plans are secured by a stable free cash flow base (~INR 310 crores) over the next 4-5 years.
→Company focuses on disciplined capital allocation with an asset-light, leasehold strategy for growth.
→Asset recycling targeted at INR 200-250 crores over the next 2 years to redeploy capital in higher-growth opportunities.
→Board will consider shareholder returns once leverage and capex plans are on track.

How does Samhi Hotels Ltd rank vs peers in Leisure Services?

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