Samhi Hospitality profit falls 59% to 41.07 crore rupees despite revenue growth
Key Facts
Samhi Hospitality posted net profit of 41.07 crore rupees in the quarter from July to September 2026, down about 59% from 99.79 crore in the year-earlier period, Business Standard reported on November 3. The decline came as consolidated revenue from operations rose 15% to 338.07 crore rupees from 292.9 crore. Total income increased to 342.6 crore rupees, compared with 296.3 crore a year earlier. The results highlight a widening gap between revenue growth and bottom-line profitability during the quarter. Earnings before interest, tax, depreciation and amortization also rose to 123.7 crore rupees, up about 12% from 110.4 crore in the corresponding quarter.
Hotels’ operating metrics improved during the quarter, with occupancy at 78.6% compared with 75.0% in the year-earlier period. Revenue per available room grew more than 14.3% year on year, while the average room rate increased more than 9.2%. These figures combine a higher share of occupied rooms with increased revenue generated per available room. This coincided with growth in revenue from operations, but did not prevent net profit from falling year on year. The divergence shows that improved operating activity was not accompanied by a comparable increase in net profit during the quarter.
The decline in net profit extended to the first half of fiscal 2027, from April to September, falling to 66 crore rupees from 119.01 crore in the corresponding period. By contrast, consolidated revenue from operations rose 13.8% to 643.28 crore rupees, compared with 565.19 crore a year earlier. Earnings before finance costs, depreciation, amortization, exceptional items and tax were 225.89 crore rupees, versus 216.08 crore in the first half of the previous fiscal year. The comparison shows that revenue growth over the six months did not prevent net profit from declining. The improvement in earnings before those costs and items was also limited relative to the fall in net profit.
The company expects the second half of fiscal 2027 to be operationally stronger, Business Standard reported, citing the company. It said incremental earnings before interest, tax, depreciation and amortization are expected to convert into free cash flow. It added that interest payments will remain stable. This outlook links the operational improvement expected by the company with the ability of additional earnings to support cash available after spending. It comes after quarterly and first-half revenue recorded year-on-year growth alongside declines in net profit in both periods.
Samhi is expanding its room portfolio, with 4,899 operational rooms as of November 3, 2026. The company plans to add or renovate 1,669 rooms through expansion and new openings. If completed, the plan would bring the planned total to 6,568 rooms. These figures place hotel expansion alongside the growth in operating revenue recorded in the quarter. The announced increase depends on completing the additions, renovations and openings included in the plan.
The company has scheduled a call to discuss its second-quarter and first-half fiscal 2027 results on November 4, 2026. The call starts at 9:30 a.m. India time, according to the invitation posted on Samhi’s website. It is scheduled to cover the period from July to September, as well as the six months through the end of September. The call follows results that combined revenue growth and improvements in occupancy and revenue per available room, on one hand, with a decline in net profit, on the other. It gives the company an opportunity to discuss its second-half outlook and announced room plans.