Sterling Posts 27th Consecutive Profitable Quarter; Record Expansion Takes Portfolio Past 4,000 Keys

/

Sterling Holiday Resorts Limited (SHRL) has reported its 27th consecutive profitable quarter, with record Q2 revenue of ₹1,272 million, up 17% year-on-year, in what is traditionally the weakest quarter of the hospitality calendar. Q2 EBITDA stood at ₹289 million, occupancy improved to 60%, ARR rose 12% to ₹6,494 and Total RevPAR grew 12%.

Key highlights

  • 27 consecutive profitable quarters, with record Q2 revenue of ₹1,272 million, up 17% year-on-year

  • Biggest quarterly expansion: seven resorts opened in Q2, taking the portfolio to 83 resorts and more than 4,000 keys

  • H1 performance: revenue up 19% to ₹2,971 million, EBITDA up 15% to ₹910 million and PBT up 22% to ₹623 million

  • Operating metrics: H1 occupancy up 500 bps to 68% and ARR up 11% to ₹7,222

  • Balance sheet: debt-free, with cash reserves of ₹3,805 million

Record expansion past 4,000 keys

Sterling opened seven resorts in Q2 FY27, its highest-ever quarterly expansion, taking its portfolio to 83 resorts and past 4,000 keys. Six further resort sign-ups during the quarter strengthened the pipeline.

The managed-resort business is emerging as a significant growth driver. Q2 revenue from managed resorts grew 67% year-on-year to ₹379 million, contributing 23% of enterprise revenue. With 42 managed resorts, Sterling is scaling its asset-right model across India.

Strong first half

In H1 FY27, revenue from operations grew 19% year-on-year to ₹2,971 million, EBITDA rose 15% to ₹910 million and profit before tax increased 22% to ₹623 million. Higher room demand and improved pricing lifted occupancy by 500 bps to 68%, while ARR rose 11% to ₹7,222. The company continued to focus on revenue productivity and maximising revenue beyond rooms.

Debt-free balance sheet

Sterling ended Q2 FY27 with cash reserves of ₹3,805 million, up 12% sequentially, and zero debt. Operating free cash flow for H1 grew 16% to ₹593 million, giving the company flexibility to invest in resort upgrades, technology, guest experience and expansion while maintaining capital discipline.

Guest experience and recognition

Sterling's TripAdvisor rating improved to 4.63 from 4.60 a year ago, with 31 resorts ranked No. 1 in their respective areas. The company was named "Fastest Growing Leisure Hotel Chain" at the Today's Traveller Awards 2026 for the third consecutive time, while its distribution platform, Sterling ONE, won "Smart Tech Enabled Platform of the Year 2026 – B2B" at the Indian Travel & Technology Summit & Awards 2026.

Vikram Lalvani, Managing Director & CEO, SHRL, said: "Our 27th consecutive profitable quarter reflects the resilience of Sterling's business model and our ability to sustain growth through different demand cycles. Delivering record Q2 revenue in a seasonally weaker leisure quarter is significant alongside as our increasingly diversified operating model gains scale and momentum.

"Our record pace of openings, crossing 4,000 keys, and a strong, debt-free balance sheet give us the confidence to accelerate our growth while remaining disciplined about returns. We remain focused on building a larger, sustainably profitable and capital-efficient hospitality enterprise while consistently enhancing guest experience and creating long-term stakeholder value.

"With the seasonally stronger second half ahead, we remain optimistic about sustaining our growth momentum, improving revenue productivity across our portfolio and delivering greater value from our expanding hospitality network."

Sterling operates 83 resorts, hotels and retreats across more than 67 destinations in India, serving leisure travellers, MICE, destination weddings, reunions and group travel. It is a 100% independently managed subsidiary of Thomas Cook (India) Limited and part of Fairfax Financial Holdings Limited.

Images: courtesy of Sterling Holiday Resorts