Suba Hotels H1 FY26 results have reaffirmed the company’s position as one of India’s fastest-growing homegrown hospitality chains. Suba Hotels reported a robust performance for the first half of FY26, marked by strong revenue growth, margin expansion, and a 249% surge in earnings per share (EPS). In a significant development during H1 FY26, ace investor Ashish Kacholia acquired a 1.24% stake in Suba Hotels through Bengal Finance and Investment.
Riding on its asset-light, capital-efficient business model and continued post-IPO expansion, the company has showcased resilience and operational excellence in India’s mid-market hospitality landscape.
Suba Hotels H1 FY26: Financial Highlights
| Particulars | H1 FY25 | H1 FY26 | YoY Change |
| Revenue | 28.81 | 43.79 | +52% |
| EBITDA | 5.97 | 8.65 | +45% |
| Net Profit | 3.32 | 5.24 | +58% |
| Net Profit Margin (%) | 11.52 | 11.97 | +45 bps |
| Diluted EPS | 0.86 | 3.00 | +249% |
“We reported a strong H1 performance with revenue growing 52%, EBITDA up 45%, and PAT increasing 58%, supported by healthy occupancy levels and improved operational efficiencies,” said Mr. Mansur Mehta, Managing Director, Suba Hotels. “Our EPS grew 249%, reaffirming the resilience of our asset-light business model.”
Strategic Expansion After IPO
In the wake of its public listing, Suba Hotels H1 FY26 results highlight how the company leveraged IPO proceeds to fuel growth. The brand made two major expansions during the period:
- A 132-room leased property in Madhapur, Hyderabad, is boosting its presence in South India’s IT and business hub.
- The launch of Quality Inn Rama, Ayodhya, a 44-room property catering to pilgrims and business travelers in one of India’s fastest-growing tourism markets.
These additions are in line with Suba’s disciplined, asset-light growth strategy, focusing on scalable, capital-efficient expansion.
Consistent Multi-Year Financial Performance
| Metric | FY23 | FY24 | FY25 |
| Revenue | 35.03 | 52.28 | 79.24 |
| Net Profit | 2.78 | 8.96 | 15.15 |
| EBITDA Margin (%) | 24.85 | 26.18 | 29.09 |
| ROCE (%) | 22.37 | 26.80 | 35.55 |
| Debt/Equity | 1.96 | 1.41 | 1.06 |
| EPS | 1.60 | 5.14 | 8.69 |
Over three years, Suba Hotels has demonstrated steady margin expansion, rising ROCE, and declining debt levels, reflecting strong financial discipline and sustainable growth — trends further reinforced in Suba Hotels H1 FY26.
Suba Hotels IPO Success and Market Reception
Suba Hotels’ IPO, held between 29 September and 1 October 2025, witnessed an overall subscription of 15.4 times, underscoring strong investor confidence.
- Issue Price: INR 105 – 111 per share
- Listing Price: INR 161.90 (+45.9%)
- Category-wise Subscription: QIB (20.98×), NII (22.76×), Retail (9.07×)
The market’s positive response to the IPO has set the stage for Suba Hotels H1 FY26 to be a benchmark half-year for the company’s listed journey, showing sustained operational delivery post-listing.
Brand Portfolio and Market Leadership
Suba Hotels operates across diverse hospitality segments:
- Premium & Upper Midscale: Suba, Clarion
- Midscale: Click Hotels, Quality, GenX
- Economy: Comfort, RnB
As the exclusive master franchisee of Choice Hotels in India since 2022, Suba integrates global hospitality standards with domestic market strength.
As of 31 August 2025, the company operates 90 hotels (4,158 keys) across 50+ cities, with 40 pre-opening properties and 1,831 rooms in the pipeline. Notably, 81% of its footprint lies in Tier-2 and Tier-3 cities, a focus that continues to drive growth in Suba Hotels H1 FY26.
Analyst’s Take: Scaling with Precision
Suba Hotels H1 FY26 performance underscores a company in transition — from a regional chain to a national mid-market leader with global aspirations. Its asset-light model provides flexibility and resilience amid evolving travel patterns, while its balance sheet discipline positions it favorably for sustainable growth.
The Hyderabad and Ayodhya additions reflect strategic geographic diversification, and their steady profitability expansion signals operational maturity uncommon among SME-listed hospitality players. If the current momentum continues, Suba could soon emerge as a benchmark for mid-tier hospitality chains in India’s public markets.
Conclusion
Suba Hotels H1 FY26 performance not only validates its IPO narrative of robust fundamentals and scalable growth but also sets a precedent for SME hospitality companies eyeing the capital markets. With EPS growth of 249% YoY, strategic expansions, and consistent operational gains, Suba Hotels has positioned itself as a formidable player in India’s rapidly evolving hospitality landscape.
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