Chennai, Aug 5: Sterling Holiday Resorts Limited, one of India’s hospitality companies, reported its strongest-ever quarterly performance, delivering record Revenue, EBITDA, Profit Before Tax and Operating Free Cash Flow in Q1 FY27. More importantly, the quarter reflects the emergence of a business that has fundamentally transformed itself over the last few years into a scalable, profitable and resilient hospitality platform.
Total Revenue grew 21% year-on-year to ₹1.7 Billion, while EBITDA increased 21% to over ₹620 Million, maintaining an industry-leading 37% EBITDA margin. Profit Before Tax grew even faster, rising 30% year-on-year and expanding PBT margins by 200 basis points, while Operating Free Cash Flow increased 30%, reflecting stronger operating leverage, disciplined cost management and robust cash generation. Sterling remains completely debt-free, with cash reserves exceeding ₹3.7 Billion, providing significant flexibility to invest in expansion, technology and guest experience.
The quality of Sterling’s earnings continued to strengthen. Occupancy improved by 700 basis points to 77%, despite a significant increase in available inventory. Average Room Rate reached a record ₹7,809, while TRevPAR increased 20%, supported by strong commercial execution, disciplined revenue management and the growing strength of the Sterling brand. Room Revenue grew 29%, Food & Beverage Revenue increased 15%, and demand continued to outpace supply additions.
Sterling today operates 78 resorts with nearly 3,800 rooms across more than 65 destinations, making it one of the fastest-growing listed hospitality companies in India. The Company has a visible development pipeline of 35+ resorts and over 2,000 additional rooms, supported by its asset-right strategy that balances owned, leased and managed properties while maintaining capital discipline.
Customer excellence remained Sterling’s strongest differentiator. Sterling Kanha received Tripadvisor’s prestigious “Best of the Best” Award for the fourth consecutive year, placing it among the top 1% of resorts globally and making Sterling one of the very few resort brands in the world to achieve this distinction four years in succession. In addition, 28 Sterling resorts received Tripadvisor Travellers’ Choice Awards, with 12 resorts earning the recognition for three consecutive years.
Commenting on the performance, Mr. Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts Limited, said:
“Q1 FY27 represents a defining milestone in Sterling’s journey. While it has been our best quarter ever across every key operating and financial metric, its significance extends well beyond the numbers. It reflects the emergence of a business that has fundamentally transformed itself into a scalable, profitable and resilient hospitality platform.
Virtually every growth engine delivered during the quarter. Our balance sheet has never been stronger, our development pipeline provides excellent visibility, and we continue to invest in technology, Artificial Intelligence and leadership as strategic enablers for the next phase of growth. Over the last five years, Sterling has built the foundations of a high-quality hospitality company. Over the next five years, our ambition is to compound that transformation into consistent growth, stronger returns on capital, increasing cash generation and sustained stakeholder value creation. We firmly believe Sterling’s journey has only just begun.”