Sterling Holiday Resorts reported its highest-ever fourth-quarter revenue in FY26, supported by strong growth in its resort business, higher occupancy levels and continued expansion across domestic leisure destinations.
The hospitality company posted total revenue of Rs 1,409 million in Q4 FY26, reflecting a 14 per cent year-on-year increase. EBITDA for the quarter stood at Rs 348 million, up 10 per cent year-on-year, while profit before tax (PBT) rose to Rs 206 million. EBITDA margin remained at 25 per cent despite continued investments in expansion, technology and customer experience initiatives.
The company also completed its 25th consecutive profitable quarter during the reporting period. For the full financial year FY26, Sterling reported revenue of Rs 5,487 million and EBITDA of Rs 1,701 million, with EBITDA margins at 31 per cent. Annual PBT stood at Rs 1,142 million.
The company’s resort business continued to remain the primary growth driver during the year. Resort revenue increased 15 per cent year-on-year to Rs 4,678 million and contributed 85 per cent of overall revenue, compared to 79 per cent in the previous year.
Room revenue for FY26 grew 21 per cent, while food and beverage revenue increased 14 per cent year-on-year.
In Q4 FY26, room revenue rose nearly 40 per cent to Rs 672 million. Occupancy improved to 64 per cent from 58 per cent in the corresponding period last year, while Average Room Rate (ARR) increased 12 per cent to Rs 6,347.
Total Revenue Per Available Room (RevPAR) grew 16 per cent despite a 20 per cent increase in room inventory during the quarter. Sterling also said its second-half revenues were 21 per cent higher than the first half of the financial year.
The company expanded its portfolio to 78 resorts, hotels and retreats across 65 destinations during FY26, taking its total inventory to more than 3,800 rooms. Sterling added 31 resorts over the last 24 months and said it expects to cross 95 resorts and 4,500 rooms in 2027, with over 20 sign-ups currently in the pipeline.
Sterling maintained a debt-free balance sheet during FY26. Cash reserves grew to nearly Rs 3,400 million, while operating free cash flow increased 49 per cent year-on-year to Rs 1,140 million.
The company also continued investments in digital and operational infrastructure through Sterling ONE, its proprietary technology platform, which currently connects more than 7,000 travel partners and 360 corporates.
During the year, several Sterling properties and restaurants received industry recognition across travel, hospitality, and wellness categories, including awards from TripAdvisor, Agoda, Booking.com, and IRCTC.
Commenting on the performance, Vikram Lalvani, Managing Director & CEO, said, “Q4 FY26 was a record-breaking quarter across all key operating and financial metrics. Sterling delivered its best-ever Q4 Revenue, EBITDA and Profit Before Tax while completing its 25th consecutive profitable quarter. FY26 has been a defining year for Sterling. We have delivered record revenues, sustained profitability, aggressively expanded our resort footprint, and strengthened our balance sheet — all while remaining debt-free. India’s domestic leisure travel opportunity remains extremely strong and Sterling is well-positioned to capitalise on this opportunity through our expanding network, stronger brand proposition, digital capabilities and customer-centric operating model.” |
