Sterling Clocks 27th Profitable Quarter, Crosses 4,000 Keys Amid Record Expansion
With revenue rising 17% year-on-year to ₹127.2 crore, Sterling marks its 27th consecutive profitable quarter, supported by portfolio expansion, stronger room rates and growing contributions from managed resorts.
By SOH Edit Team
Sterling Holiday Resorts Limited (SHRL) has reported its 27th consecutive profitable quarter, recording its highest-ever Q2 revenue of ₹127.2 crore, a 17% year-on-year increase, despite the traditionally weaker leisure travel season.
Q2 EBITDA stood at ₹28.9 crore, while occupancy improved to 60%. Average room rate (ARR) rose 12% to ₹6,494, with Total RevPAR also increasing 12%, reflecting improved pricing and revenue performance.
Expansion Takes Portfolio Beyond 4,000 Keys
Sterling recorded its highest-ever quarterly expansion, opening seven resorts during Q2 FY27 and taking its portfolio to 83 properties, surpassing 4,000 keys. Six additional resort signings further strengthened its development pipeline.
The managed-resort business emerged as a key growth driver, with revenue rising 67% year-on-year to ₹37.9 crore, contributing 23% of enterprise revenue. With 42 managed resorts, Sterling continues to scale its asset-right operating model.
For H1 FY27, revenue from operations increased 19% to ₹297.1 crore, while EBITDA grew 15% to ₹91 crore. Profit before tax rose 22% to ₹62.3 crore.
Occupancy improved by 500 basis points to 68%, while ARR increased 11% to ₹7,222, supported by stronger room demand and pricing.
Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts.
Focus on Sustainable, Capital-Efficient Growth
Sterling ended Q2 with cash reserves of ₹380.5 crore, up 12% sequentially, while maintaining a zero-debt balance sheet. H1 operating free cash flow increased 16% to ₹59.3 crore, providing financial flexibility for expansion, technology investments and resort upgrades.
Commenting on the performance, Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts, said, “Our 27th consecutive profitable quarter reflects the resilience of Sterling's business model and our ability to sustain growth through different demand cycles.”
With the seasonally stronger second half ahead, Sterling remains focused on improving revenue productivity, expanding its resort network and maintaining profitability.
The results underline the growing importance of managed-resort operations and capital-efficient expansion in India's leisure hospitality sector, as Sterling looks to translate its expanding footprint into sustained financial performance.
