Sterling records Q2 revenue of INR 1,272 mn, up 17% YoY
Sterling Arka Suites Puri
The company reported revenue growth of 19% to INR 2,971 mn; EBITDA rose 15% to INR 910 mn and PBT increased 22% to INR 623 mn. The company opened 7 resorts in Q2, taking the portfolio to 83 resorts with over 4,000 keys.
Sterling Holiday Resorts Limited (SHRL) recorded its 27th consecutive profitable quarter and delivering record Q2 revenue of INR 1,272 million, up 17% year-on-year, despite the quarter traditionally being the weakest in the hospitality calendar. Q2 EBITDA stood at INR 289 million, while occupancy improved to 60%, ARR increased 12% to INR 6,494 & Total RevPAR grew 12%.
The company recorded its highest-ever quarterly expansion, opening seven resorts in Q2 FY27 and taking its portfolio to 83 resorts, crossing the milestone of 4,000 keys. Six additional resort sign-ups during the quarter further strengthened its expansion pipeline.
The managed-resort business is emerging as a significant growth driver. Q2 revenue from managed resorts grew 67% year-on-year to INR 379 million, contributing 23% of enterprise revenue. With 42 managed resorts, Sterling is scaling its asset-right model, expanding its footprint across India while building a meaningful and growing contribution to overall turnover.
Sterling delivered a strong H1 FY27, with Revenue from Operations growing 19% year-on-year to INR 2,971 million. EBITDA grew 15% to INR 910 million, while Profit Before Tax increased 22% to INR 623 million, reflecting sustained operating momentum and improving business fundamentals.
The company's first-half performance was supported by higher room demand and improved pricing. Occupancy increased 500 bps to 68%, while ARR rose 11% to INR 7,222. Sterling continued to focus on improving revenue productivity and maximising revenue beyond rooms.
Commenting on the performance, Vikram Lalvani, Managing Director & CEO, 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. Delivering record Q2 revenue in a seasonally weaker leisure quarter is significant alongside as our increasingly diversified operating model gains 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. We remain focused on building a larger, sustainably profitable and capital-efficient hospitality enterprise while consistently enhancing guest experience and creating long-term stakeholder value. With the seasonally stronger second half ahead, we remain optimistic about sustaining our growth momentum, improving revenue productivity across our portfolio and delivering greater value from our expanding hospitality network,” he added.
