Restaurant India News: Sterling Holiday Resorts Reports Record Q4 FY26 Revenue and Profit Growth

Sterling Holiday Resorts Ltd reported its highest-ever fourth-quarter performance in FY26, posting record revenue, EBITDA, and Profit Before Tax (PBT) while extending its profitable run to 25 consecutive quarters.

For Q4 FY26, the company recorded total revenue of Rs 1,409 million, up 14 percent year-on-year. EBITDA stood at Rs 348 million, reflecting 10 percent growth, while PBT reached Rs 206 million. Sterling maintained an EBITDA margin of 25 percent during the quarter despite continued investments in expansion, technology, and customer experience initiatives.

For the full FY26 financial year, Sterling reported revenue of Rs 5,487 million and EBITDA of Rs 1,701 million, with EBITDA margins at 31 percent. PBT for the year stood at Rs 1,142 million.

The company’s resort business remained the primary growth driver during the year. Resort revenue increased 15 percent year-on-year to Rs 4,678 million, while room revenue rose 21 percent and food and beverage revenue grew 14 percent. Resort operations contributed 85 percent of total revenue in FY26, compared to 79 percent in the previous year.

In Q4 FY26, room revenue grew nearly 40 percent to Rs 672 million. Occupancy improved to 64 percent from 58 percent a year earlier, while Average Room Rate (ARR) increased 12 percent to Rs 6,347. Total RevPAR rose 16 percent despite a 20 percent increase in room inventory.

Sterling expanded its portfolio to 78 resorts, hotels, and retreats across 65 destinations during FY26, crossing 3,800 rooms in inventory. The company added 31 resorts over the last 24 months and expects to cross 95 resorts and 4,500 rooms in 2027, supported by a pipeline of more than 20 sign-ups.

The company continues to focus on Tier 2 and Tier 3 business and leisure destinations as part of its growth strategy. Sterling also maintained a debt-free balance sheet, with cash reserves growing at a multi-year CAGR of 55 percent to nearly Rs 3,400 million. Operating free cash flow increased 49 percent year-on-year to Rs 1,140 million.

The hospitality company strengthened its digital and customer engagement capabilities during the year through Sterling ONE, its proprietary platform powered by Distributed Ledger Technology and AI, which currently connects more than 7,000 travel partners and 360 corporates.

During FY26, multiple Sterling properties and restaurants received industry recognition, including TripAdvisor Excellence Awards and hospitality industry accolades across resort, dining, wellness, and learning categories.

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.”

He added, “FY26 has been a defining year for Sterling. We have delivered record revenues, sustained profitability, expanded our resort footprint aggressively and strengthened our balance sheet — all while remaining debt-free.”

Lalvani said, “India’s domestic leisure travel opportunity remains extremely strong and Sterling is well-positioned to capitalize on this opportunity through our expanding network, stronger brand proposition, digital capabilities and customer-centric operating model.”