Thomas Cook (India) Limited has received an order from the Commercial Tax Officer, Group-IX, Intelligence-I, Chennai, confirming a demand regarding the short payment of Goods and Services Tax (GST). The order, dated May 25, 2026, was received by the company on the same day. The authority has confirmed a demand related to the wrongful adjustment of Input Tax Credit (ITC) against tax liability for the 5% turnover tax amounting to INR 33,30,988.

Details of the Demand

The regulatory order confirms a GST demand of INR 33,30,988. In addition to the principal tax amount, the authority has levied applicable interest and a penalty. The interest amounts to INR 18,57,870, while the penalty imposed is INR 3,33,098. The demand and penalty have been issued under Section 50 of the Central Goods and Services Tax (CGST) Act 2017 and Section 73 of the CGST Act 2017, respectively.

Financial Impact Assessment

Regarding the consequences of this order, the company disclosed that it is taking necessary steps to appeal against the order before the appropriate authority and believes it has a good case on merits. However, Thomas Cook stated that there is no material financial or operational impact on the entity resulting from this order.

Breakdown of Demands

The intimation regarding this regulatory order was submitted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Sterling Holiday Resorts Limited , a wholly owned subsidiary of Thomas Cook (India) Limited, reported a record-breaking FY26 performance, delivering its highest-ever Q4 revenue, EBITDA, and Profit Before Tax (PBT), while extending its streak of profitability to 25 consecutive quarters. The results were disclosed via a press release intimation filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated May 14, 2026.

Record Q4 and Full-Year FY26 Financial Performance

Sterling posted strong financial results across both Q4 FY26 and the full fiscal year. The company maintained healthy EBITDA margins of 25% in Q4 FY26 despite continued investments in expansion, technology, and customer experience enhancements. For the full year, EBITDA margins stood at 31%.

The following table summarises the key financial metrics:

Resort-Led Growth Drives Revenue Momentum

The resort business remained the primary engine of Sterling's growth during FY26, demonstrating the success of the company's strategic shift towards a focused hospitality-led operating model. Resort Revenue now contributes 85% of total revenue, compared to 79% in the previous year.

Key resort business highlights for FY26 and Q4 FY26 are outlined below:

FY26 Resort Business Performance:

• Resort Revenue grew 15% YoY to ₹4,678 million
• Room Revenue increased 21% YoY
• F&B Revenue grew 14% YoY
• Resort Revenue share rose to 85% of total revenue from 79% last year

Q4 FY26 Operating Metrics:

• Room Revenue grew nearly 40% to ₹672 million
• Occupancy improved to 64%, up from 58% last year
• ARR increased 12% to ₹6,347
• Total RevPAR increased 16% despite a 20% increase in room inventory

With two record quarters, H2 revenues outperformed H1 by 21%.

Rapid Expansion Across India

Sterling crossed the milestone of 78 resorts, hotels, and retreats across 65 destinations, with over 3,800 rooms during FY26, adding nearly 1.5 resorts per month and 31 resorts over the last 24 months. The company expects to cross 95 resorts and 4,500 rooms in 2027, with more than 20 sign-ups in the pipeline. Sterling remains focused on high-growth Tier 2 and Tier 3 business-cum-leisure corridors.

Strong Balance Sheet and Cash Generation

Sterling maintained a completely debt-free balance sheet, with cash reserves growing at a multi-year CAGR of 55% to nearly ₹3,400 million. Operating Free Cash Flow grew 49% year-on-year to ₹1,140 million, reflecting strong capital discipline alongside high growth.

Brand, Technology, and Awards

Sterling continued to strengthen its customer proposition and operating capabilities during the year. The company's proprietary digital platform, Sterling ONE, powered by Distributed Ledger Technology and AI, now provides direct access to over 7,000 travel partners and 360 corporates.

The company received a wide range of industry recognitions during the period:

Commenting on the performance, Mr. Vikram Lalvani, Managing Director & CEO, stated: "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."