SAMHI Hotels Limited reported a substantial jump in its consolidated net profit for the quarter ended September 30, 2025 (Q2 FY26), driven primarily by one-time exceptional gains. The company’s net profit surged nearly eightfold to Rs 99.75 crore, compared to Rs 12.62 crore in the same quarter last year, aided by improved operational performance and an exceptional income reversal.
Revenue and operations
Revenue from operations grew 11.8% year-on-year (YoY) to Rs 292.97 crore from Rs 262.13 crore in Q2 FY25. Including other income of Rs 3.36 crore, total income stood at Rs 296.33 crore, higher than Rs 266.85 crore recorded a year ago. The increase was supported by stronger occupancy levels and higher average room rates across its hotel portfolio.
Total expenses rose to Rs 185.83 crore, up from Rs 170.13 crore last year, primarily due to higher employee costs and other operating expenditures.
Profit and exceptional gains
Operationally, the company maintained steady performance, with EBITDA rising to Rs 110.49 crore, up from Rs 96.72 crore in Q2 FY25. Despite similar EBITDA levels, profit before tax (PBT) excluding exceptional items improved to Rs 38.18 crore from Rs 23 crore a year earlier, largely on account of reduced finance costs.
However, the significant boost to the bottom line came from exceptional income of Rs 84.15 crore, arising from two one-time items:
- Gain on sale of business undertaking (Rs 14.49 crore):
The company sold its Caspia Hotel, owned under SAMHI Hotels Ltd, on August 13, 2025. The sale generated a gain of Rs 14.49 crore after deducting related costs. - Reversal of impairment in right-of-use asset (Rs 69.65 crore):
SAMHI had earlier impaired the value of a land parcel in Navi Mumbai leased from MIDC after receiving a termination notice. With MIDC subsequently extending the lease, the company reversed the impairment, recognizing a gain of Rs 69.65 crore.
Together, these one-off items contributed to the total exceptional gain of Rs 84.15 crore, resulting in the sharp spike in net profit for the quarter.
Half-yearly performance and cash flows
For the first half of FY26, SAMHI reported a total income of Rs 583.63 crore, up from Rs 521.07 crore in H1 FY25. Net profit stood at Rs 119.01 crore, compared to Rs 16.81 crore a year earlier. The company also generated operating cash flows of around Rs 200 crore during the six-month period, broadly in line with expectations.
Outlook
The Q2 results underscore SAMHI Hotels’ continued recovery in both business and leisure segments, supported by a strong portfolio of upscale hotels and disciplined cost control. While the exceptional gain inflated profitability in this quarter, the company’s core business metrics — stable EBITDA and improving leverage — indicate sustained operational strength heading into the second half of FY26.
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