Sterling Holiday Resorts has reported its strongest fourth-quarter and full-year financial performance for FY26, achieving record revenue, EBITDA, and Profit Before Tax (PBT) while completing 25 consecutive profitable quarters.
The company posted its highest-ever Q4 results, supported by strong growth in resort operations, expanding room inventory, and sustained demand for domestic leisure travel.
Record Financial Performance
For Q4 FY26, Sterling reported total revenue of Rs 1,409 million, registering a 14 percent year-on-year increase. EBITDA grew 10 percent to Rs 348 million, while Profit Before Tax reached Rs 206 million. The company maintained an EBITDA margin of 25 percent during the quarter despite continued investments in expansion and technology.
For the full FY26 financial year, Sterling recorded Rs 5,487 million in revenue and Rs 1,701 million in EBITDA, with EBITDA margins of 31 percent. Annual Profit Before Tax stood at Rs 1,142 million.
Resort Business Drives Growth
The resort segment remained the company’s primary growth engine during FY26.
Resort revenue increased 15 percent year-on-year to Rs 4,678 million, while room revenue grew 21 percent and food and beverage revenue increased 14 percent. Resort operations contributed 85 percent of the company’s total revenue, compared to 79 percent in the previous financial year.
During Q4 FY26, room revenue rose nearly 40 percent to Rs 672 million. Occupancy improved from 58 percent to 64 percent, while the Average Room Rate (ARR) increased 12 percent to Rs 6,347. Total RevPAR grew 16 percent despite a 20 percent increase in room inventory.
Aggressive Portfolio Expansion
Sterling expanded its portfolio to 78 resorts, hotels, and retreats across 65 destinations during FY26, taking its total room inventory beyond 3,800 rooms.
Over the past 24 months, the company has added 31 resorts and plans to cross 95 resorts and 4,500 rooms by 2027, supported by a pipeline of more than 20 signed properties.
The company said it will continue to focus on Tier II and Tier III leisure and business travel destinations as part of its long-term expansion strategy.
Strong Balance Sheet and Digital Growth
Sterling maintained a debt-free balance sheet during the year. Cash reserves grew at a multi-year CAGR of 55 percent to nearly Rs 3,400 million, while operating free cash flow increased 49 percent year-on-year to Rs 1,140 million.
The company also expanded its digital ecosystem through Sterling ONE, its proprietary platform powered by Distributed Ledger Technology and Artificial Intelligence, which currently connects more than 7,000 travel partners and 360 corporate clients.
Leadership Perspective
Commenting on the performance, Vikram Lalvani, Managing Director and CEO, Sterling Holiday Resorts, 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, expanded our resort footprint aggressively 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 capitalize on this opportunity through our expanding network, stronger brand proposition, digital capabilities and customer-centric operating model.”
