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SAMHI IN reported a miss at operating level with EBITDA margin of 33.2% (PLe 34.7%) as revenue growth in May-25 dropped to mid-single digit due to geopolitical events. However, recovery was swift in June-25 with same-store RevPAR registering a growth of 10.3% YoY to Rs4,760 in 1QFY26. We expect top-line CAGR of 13% over the next 2 years led by addition of 245 keys with an EBITDA margin of 37.5%/38.8% in FY26E/FY27E. After the fund infusion by GIC and sale of Caspia, Delhi net debt has declined to Rs13.7bn and consequently we expect the interest cost to fall from Rs2,223mn in FY25 to Rs1,486mn in FY27E resulting in a PAT CAGR of 67% over the next 2 years. SAMHI trades at attractive valuation of 13.6x/11.2x our FY26E/FY27E EBITDA estimates (after adjusting for the minority interest factor in JV platform formed with GIC). We expect re-rating to follow amid improvement in BS health and strong PAT growth. Retain BUY on the stock with a TP of Rs300 (15.5x FY27E EBITDA; no change in target multiple).

Same store RevPAR increases 10.3% YoY: Topline increased 10.0% YoY to Rs2,722mn (PLe Rs2,767mn). Same store RevPAR grew 10.3% YoY to Rs4,760 while occupancy stood at 74.0%.

EBITDA margin stood at 33.2%: EBITDA increased 9.9% YoY to Rs905mn (PLe Rs960mn) with a margin of 33.2% (PLe 34.7%). PAT before minority interest rose 353.8% YoY to Rs192mn. After adjusting for one-offs, PAT after minority interest was up 259.0% YoY to Rs152mn (PLe Rs185mn) with a margin of 5.6% (PLe 6.7%).

Con-call highlights: 1) In 1QFY26, there was a revenue loss of ~Rs50mn arising from sale of an hotel and conversion of commercial space into hotel rooms at Sheraton, Hyderabad. 2) Following the sale of Caspia, Delhi, net debt has reduced to ~Rs13.7bn. 3) ICRA has upgraded SAMHI IN’s credit rating from A- to A+. SAMHI IN’s current blended borrowing rate stands at 8.5%. However, marginal cost of borrowing has declined to 8.2%. The interest cost is expected to moderate to ~8.3%/~8.1% by end of FY26E/FY27E. 4) As a part of asset recycling strategy; Caspia, Delhi, which reported an EBITDA loss of Rs1.5mn has been divested for Rs650mn. 5) One more asset/hotel may get added under the JV platform formed with GIC. 6) Litigation pertaining to Navi Mumbai hotel is still ongoing and some resolution is expected by year-end. 7) TTM EBITDA of hotels co-owned by GIC stood at ~Rs1.3bn. 8) Capex for FY26E/FY27E is estimated to be in the range of Rs1.7-Rs2bn/Rs1.8bn-Rs2bn respectively. 9) Total 75 rooms are expected to be added in FY26E between Sheraton, Hyderabad and Hyatt Regency, Pune. Current revenue per key for these hotels stands at ~Rs5.5mn. On an annualized basis, ~Rs410mn is estimated to be generated from these renovated rooms out of which ~60% will be directly flowing to EBITDA. 10) Once the new ballrooms at Hyatt Place, Gurgaon, Sheraton, Hyderabad, and Hyatt Regency, Pune become operational in 2HFY26E, F&B revenue growth is likely to be in the band of ~10-11%. 11) ESOP expenses are expected to decline from ~Rs24mn per quarter in FY26E to ~Rs10mn per quarter in FY27E. 12) In 1QFY26, revenue from new hotel openings accounted for Rs73mn. 13) Trinity, Bangalore is being managed & marketed by Marriott from 1st August’25.

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