TTT NEWS NETWORK
CHENNAI | 5 NOVEMBER 2026
Sterling Holiday Resorts Limited (SHRL) has delivered its 27th consecutive profitable quarter, reporting a record Q2 revenue of ₹1,272 million. The 17% year-on-year growth comes despite Q2 historically being the weakest period in the leisure hospitality calendar. The company’s Q2 EBITDA stood at ₹289 million, driven by a 12% increase in both Average Room Rate (ARR) to ₹6,494 and total RevPAR, alongside improved occupancy of 60%.
This operational momentum pushed Sterling’s first-half (H1) revenue up 19% to ₹2,971 million, with Profit Before Tax (PBT) jumping 22% to ₹623 million. H1 occupancy also climbed 500 basis points to 68%. [1]
Supported by a completely debt-free balance sheet and cash reserves of ₹3,805 million, the company executed its largest-ever quarterly expansion by launching seven new resorts. This brings Sterling’s total portfolio to 83 properties and successfully crosses the 4,000-key milestone. Growth was highly accelerated by its managed-resort segment under an asset-right model, which expanded by 67% YoY to ₹379 million, now contributing nearly a quarter of the company’s entire enterprise turnover.
Sterling delivered a robust H1 FY27, with Revenue from Operations growing 19% YoY to ₹2,971 million. EBITDA increased 15% to ₹910 million, and Profit Before Tax rose 22% to ₹623 million, driven by higher room demand and improved pricing. Occupancy expanded 500 bps to 68%, while the Average Room Rate (ARR) grew 11% to ₹7,222, reflecting sustained operating momentum and non-room revenue productivity.
Robust Balance Sheet
Sterling closed Q2 FY27 with a zero-debt balance sheet and cash reserves of ₹3,805 million, a 12% sequential increase. H1 operating free cash flow grew 16% to ₹593 million. This financial strength provides the flexibility to self-fund resort upgrades, technology, guest experiences, and expansion while maintaining strict capital discipline.
Guest Experience & Awards
Sterling’s TripAdvisor rating improved to 4.63 (up from 4.60 last year), with 31 resorts ranked No. 1 locally. The company won “Fastest Growing Leisure Hotel Chain” at the Today’s Traveller Awards 2026 for the third consecutive time, while its B2B distribution platform, Sterling ONE, was named “Smart Tech Enabled Platform of the Year 2026” at the Indian Travel & Technology Summit.
Commenting on the performance, Mr. 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.”
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