SAMHI Hotels reported a consolidated net profit of ₹249.27 million for Q1FY26, a 12% year-on-year increase from ₹192.16 million, as revenue from operations expanded to ₹3,052.06 million. The Board of Directors approved the unaudited financial results on August 3, 2026, alongside an enabling resolution to raise up to ₹750 crore through equity instruments and the acquisition of 100% stake in Itmenaan Lodges Private Limited for ₹12 crore. These moves signal aggressive expansion plans despite margin pressure.

The Board meeting, held on August 3, 2026, also saw the approval of an increase in authorized share capital from ₹25 crore to ₹29 crore. The enabling resolution allows the company to issue equity shares, fully convertible debentures, or convertible preference shares in one or more tranches through private placement or qualified institutions placement. This flexibility aims to strengthen the balance sheet for upcoming capital expenditure cycles and potential acquisitions. Shareholder approval is required at the forthcoming Annual General Meeting scheduled for August 31, 2026.

Financial Performance

Revenue from operations rose to ₹3,052.06 million in Q1FY26, up from ₹2,722.11 million in the corresponding period last year. However, EBITDA declined slightly to ₹1,013.05 million from ₹1,055.87 million YoY, causing the EBITDA margin to contract to 33.19% from 38.79%. Operating expenses grew faster than revenue, with other expenses rising to ₹1,355.96 million from ₹1,133.73 million. Despite this, net profit improved due to lower finance costs and tax benefits.

Note: Net profit attributable to owners of the company was ₹182.50 million.

Strategic Acquisitions and Capital Raise

The Board approved the acquisition of 29,582 equity shares of Itmenaan Lodges Private Limited, constituting 100% ownership, for a cash consideration of ₹12 crore. Itmenaan Lodges operates the 'Itmenaan Estate' hotel in Almora, Uttarakhand, as part of the RARE India brand. The transaction is expected to close by August 30, 2026. This acquisition aligns with Samhi's strategy to scale up RARE India through tactical property-level investments.

Additionally, the company acquired a 55% partnership interest in RARE India during the quarter, obtaining control over the partnership. The remaining 15% interest will be acquired subsequently. Samhi also acquired a 49% equity interest in Clean Max Nile Private Limited for ₹15.05 million to source renewable energy via group captive solar arrangements.

What the Numbers Show

The divergence between revenue growth and EBITDA contraction highlights rising operational costs, particularly in employee benefits and other expenses. While top-line expansion is robust, the compression in operating margins suggests that cost management remains a critical focus area. The significant jump in net profit, despite EBITDA decline, is largely aided by lower finance costs and deferred tax credits, indicating that non-operational factors are currently supporting bottom-line performance more than operational efficiency.

Samhi Hotels has reported a significant rise in occupancy rates for the month of June, with figures climbing to almost 80%. The development highlights robust demand across the company's portfolio and underscores improving performance in the hospitality segment.

Strong Occupancy Performance in June

The near-80% occupancy rate recorded in June reflects healthy utilisation levels across Samhi Hotels' properties. This performance points to sustained demand in the markets where the company operates, contributing positively to its overall operational metrics.

Revenue Expansion Plans

Alongside the occupancy update, Samhi Hotels has announced plans to substantially scale its revenue base. The company aims to grow its revenue from ₹1,200 crores to ₹3,000 crores, representing a significant step-up in its financial targets.

The key highlights from the company's announcements are summarised below:

The combination of improving occupancy metrics and an ambitious revenue growth roadmap positions Samhi Hotels as a notable player to watch in India's hospitality industry. The company's focus on scaling revenues reflects its broader strategy to strengthen its market presence.