Sterling Holiday Resorts Reports Record Q1 FY27 Revenue and Profit Growth

Sterling Holiday Resorts Limited (SHRL) has reported its strongest quarterly performance to date for the first quarter of FY27, recording its highest-ever revenue, EBITDA, Profit Before Tax (PBT) and Operating Free Cash Flow as the hospitality company continued to benefit from higher occupancy, improved room rates and operational efficiency.

The company reported Total Revenue of Rs 1.7 Billion, up 21 percent year-on-year, while EBITDA increased 21 percent to more than Rs 620 Million, maintaining an EBITDA margin of 37 percent. Profit Before Tax grew 30 percent year-on-year, with PBT margins improving by 200 basis points. Operating Free Cash Flow also rose 30 percent, supported by stronger operating leverage, disciplined cost management and higher cash generation.

Sterling said it remains debt-free and ended the quarter with cash reserves of more than Rs 3.7 Billion, providing financial flexibility to invest in expansion, technology and guest experience initiatives.

Operational performance also improved during the quarter. Occupancy increased by 700 basis points to 77 percent, despite the addition of new inventory. The company reported its highest-ever Average Room Rate (ARR) of Rs 7,809, while TRevPAR increased 20 percent through revenue management initiatives and higher demand. Room Revenue grew 29 percent, while Food & Beverage Revenue rose 15 percent during the quarter.

Sterling currently operates 78 resorts with nearly 3,800 rooms across more than 65 destinations. The company also has a development pipeline of 35+ resorts and over 2,000 additional rooms, supported by its asset-right strategy combining owned, leased and managed properties.

On the guest experience front, Sterling Kanha received Tripadvisor's "Best of the Best" Award for the fourth consecutive year, placing it among the top 1 percent of resorts globally. Additionally, 28 Sterling resorts received Tripadvisor Travellers' Choice Awards, with 12 resorts earning the recognition for three consecutive years.

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."

The results underline continued momentum for the hospitality company as it expands its resort network, strengthens operational performance and advances investments in technology and guest experience while maintaining a debt-free balance sheet.