Thomas Cook (India) Limited's wholly owned subsidiary Sterling Holiday Resorts has announced the opening of Sterling Saryu Ayodhya, its second resort in the holy city. The launch on February 13, 2026, strengthens Sterling's destination-led growth strategy in one of India's most significant spiritual hubs, responding to the sharp rise in visitor movement supported by improved connectivity and upgraded infrastructure.

Strategic Expansion in Pilgrimage Tourism

The new resort addresses the evolving needs of pilgrimage travel, which has witnessed increased movement from multi-generational families, senior travelers, and group tours. Sterling Saryu Ayodhya focuses on providing comfort, reliability, and calm experiences, particularly during peak movement seasons when dependable accommodations become essential.

Resort Features and Positioning

Inspired by Ayodhya's spiritual identity and named after the sacred River Saryu, the resort has been designed as a restful retreat for faith-led journeys. The accommodations are thoughtfully planned to align with the rhythm of pilgrimage days, where early mornings, temple circuits, and long walks make restorative sleep essential.

The property serves familiar, wholesome vegetarian flavors through The Saryu Café, while calm common areas and a well-appointed banquet hall make it suitable for spiritual group travel, family gatherings, and focused meetings.

Regional Connectivity and Access

Sterling Saryu Ayodhya serves as a convenient base for extended heritage journeys across North India, with strategic access to key regional destinations:

Management Commentary

Vikram Lalvani, Managing Director & CEO of Sterling Holiday Resorts, emphasized the significance of Ayodhya in India's pilgrimage landscape, noting the destination's transformation through stronger infrastructure and rising demand. He highlighted Sterling's commitment to providing comfort, calm, and reliability delivered with warmth, recognizing that hospitality in spiritual destinations involves supporting both the physical and emotional aspects of the journey.

Rishi Uppal, Director of Kalyan KK Hotels India Pvt Ltd, acknowledged the growing demand for organized, comfort-led hospitality in Ayodhya and praised Sterling's leadership in heritage and pilgrimage destinations as the right partnership for this vision.

About Sterling Holiday Resorts

Sterling Holiday Resorts Limited operates a portfolio across 58 unique destinations with over 3,700 keys operational. The company maintains resorts at India's popular holiday destinations spanning pilgrimage sites, hill stations, wildlife sanctuaries, and coastal locations. As a 100% independently managed subsidiary of Thomas Cook (India) Limited, Sterling is part of the Fairfax Financial Holdings Limited group.

Thomas Cook (India) Limited demonstrated strong operational resilience in Q3 FY26, delivering impressive financial results despite challenging market conditions. The company's consolidated performance reflected disciplined execution and effective margin management across its diversified business portfolio.

Financial Performance Highlights

The company's consolidated total income for 9M FY26 increased 8% year-on-year to INR67,523 million, while Q3 total income grew 5% to INR21,866 million. Profit before tax for Q3 stood at INR897 million, representing a 20% improvement when excluding the one-time impact of new Labour Code implementation.

The significant improvement in other income, growing from INR22 crores to INR40 crores in Q3, reflects efficient treasury operations. Approximately 60% of other income derives from fixed deposits arising from Foreign Exchange business float deployment, demonstrating effective yield management despite the declining interest rate environment.

Foreign Exchange Segment Leads Growth

The Foreign Exchange segment delivered exceptional performance with EBIT increasing 10% to INR316 million in Q3 FY26. EBIT margins expanded significantly to 41.5% from 38.7% in the previous year, showcasing strong operational leverage and disciplined execution.

Despite industry headwinds reflected in RBI's LRS data showing travel declining 6%, maintenance of close relatives down 5%, and study abroad contracting 22%, the company maintained strong performance through effective market positioning and digital initiatives.

Sterling Holiday Resorts Achieves Record Quarter

Sterling Holiday Resorts delivered its strongest quarterly performance with record revenue, EBITDA, and PBT figures. The resort chain demonstrated successful scaling while maintaining margin discipline across its expanding network.

The company added 607 rooms year-on-year, representing 20% supply growth, while room nights sold increased 22%, indicating strong demand absorption outpacing supply expansion. Sterling ONE proprietary distribution platform contributed over INR1,000 million to top line during 9M FY26.

Travel Segment Shows Mixed Performance

The Travel and Travel-related segments faced varied market conditions across different geographies and business lines. EBIT margins for the segment stood at 3.1% versus 2.9% in the previous year, with 9M EBIT improving 4% to INR1,979 million.

B2B Business Performance:

• International DMS portfolio grew 9% YoY with strong performance in Southeast Asia (+14%), Southern Africa (+41%), and East Africa (+20%)
• Corporate Travel segment revenue improved 21% in Q3 and 17% for 9M period
• Air revenue growing 12.4% YoY with non-air transactions increasing 19.8%
• Added 8 new corporate accounts across ITES, automobile, telecommunications, and e-commerce sectors

B2C Business Challenges:

• Revenue declined 6% YoY in Q3 but grew 8% for 9M period to INR15,592 million
• Calendar shifts affected performance with Durga Puja advancement impacting festival demand timing
• Customer preference shifted toward short-haul destinations, growing 23% on 9M basis versus 5% for long-haul
• Domestic travel sluggishness due to airline disruptions

Strong Balance Sheet Position

The company maintains robust financial health with total cash of INR2,500 crores, including INR1,500 crores float from Foreign Exchange operations. Net cash position stands at INR780 crores after accounting for INR220 crores debt, significantly improved from INR405 crores in December 2024.

Strategic Initiatives and Outlook

Recent budget announcements provide positive tailwinds with TCS rationalization on overseas tour packages reduced to flat 2% from earlier rates of 5% and 20%. The company continues investing in technology initiatives including AI-powered digital avatar TACY for Europe packages and Rahi AI-enabled travel automation system for domestic holidays.

Management expressed confidence in maintaining growth trajectory, targeting double-digit earnings growth for FY27 under normal macro conditions while focusing on customer obsession and seamless journey experiences.

Source: Exclusive earnings conference call transcript