Sterling tops 4,000 keys as Q2 revenue hits Rs 127.2 crore

By Daniel Okafor

Sterling Holiday Resorts Ltd. reported record Q2 FY27 revenue of Rs 127.2 crore, about Rs 1.27 billion, up 17% year over year, and posted its 27th consecutive profitable quarter. The company published the results Nov. 5, 2026.

The performance came in the hospitality calendar’s traditionally weakest quarter. Q2 EBITDA reached Rs 28.9 crore. Using the company’s stated revenue figure, that equates to an approximate 22.7% EBITDA margin. Occupancy improved to 60%, average room rate increased 12% to Rs 6,494, and Total RevPAR increased 12%.

Sterling opened seven resorts in Q2 FY27, its highest-ever quarterly expansion, lifting the portfolio to 83 resorts and beyond 4,000 keys. Six additional resort sign-ups during the quarter extended the development pipeline, giving the company two near-term channels for adding capacity.

What does Sterling’s managed-resort growth change for owners and investors?

Managed resorts generated Q2 revenue of Rs 37.9 crore, up 67% year over year, and contributed 23% of enterprise revenue. The segment’s growth outpaced the group’s 17% increase by 50 percentage points.

With 42 managed resorts inside the 83-resort portfolio, Sterling is scaling its asset-right model across India while building a larger contribution to turnover. The update did not disclose a company-operated-versus-franchised split, so property-level returns across ownership models cannot be compared.

H1 FY27 provided broader evidence of demand and pricing gains. Revenue from Operations rose 19% year over year to Rs 297.1 crore, while EBITDA increased 15% to Rs 91 crore and profit before tax advanced 22% to Rs 62.3 crore. On the stated figures, H1 EBITDA equaled roughly 30.6% of operations revenue, and pretax profit equaled about 21.0%.

Occupancy climbed 500 basis points to 68%, and average room rate rose 11% to Rs 7,222. Sterling said it continued to prioritize revenue productivity and maximizing revenue beyond rooms. It did not quantify those ancillary sales, cost of goods or payroll, leaving the contributions from volume, pricing, mix and cost control unstated.

Cash reserves ended Q2 at Rs 380.5 crore, about Rs 3.81 billion, up 12% sequentially, and Sterling maintained a zero-debt balance sheet. H1 operating free cash flow rose 16% to Rs 59.3 crore. Management says that financial capacity gives it flexibility to fund resort upgrades, technology, guest experience and expansion while preserving capital discipline.

Vikram Lalvani, managing director and CEO of SHRL, said: “Our 27th consecutive profitable quarter reflects the resilience of Sterling's business model and our ability to sustain growth through different demand cycles.” He called record Q2 revenue in the seasonally weaker leisure quarter significant as Sterling’s increasingly diversified operating model gained scale and momentum.

“Our record pace of openings, crossing 4,000 keys, and a strong, debt-free balance sheet give us the confidence to accelerate our growth while remaining disciplined about returns,” Lalvani said. He also said the company would focus on building a larger, sustainably profitable and capital-efficient enterprise while enhancing guest experience and creating long-term stakeholder value.

Lalvani expressed optimism that the seasonally stronger second half would sustain growth momentum, improve revenue productivity across the portfolio and deliver greater value from Sterling’s expanding hospitality network.

For owners and investors, the practical change is that managed resorts supplied 23% of Q2 enterprise revenue while the company operates with no debt. Sterling must now convert six pipeline sign-ups and its 42-resort managed platform into sustained revenue productivity without weakening that balance-sheet discipline. The stronger second half will test whether it can turn the sign-up pipeline into profitable openings while preserving zero-debt discipline and continued gains in revenue productivity.