Thomas Cook India to Spin Off Resorts Business Amid Analyst Skepticism Thomas Cook (India) Ltd. announced plans to separate its resorts and resort management operations into a new entity, Sterling Holiday Resorts Ltd. (SHRL). Shareholders will receive 0.81 SHRL shares for each TCIL share they hold. The move, which also involves share consolidation and merging inactive subsidiaries, aims to create a focused hospitality business. This decision comes as TCIL faces margin pressures and widespread analyst skepticism, with most rating its stock a 'Sell'. The demerger involves consolidating TCIL's shares by combining four ₹1 face value shares into one ₹4 share, followed by reducing the face value to ₹3 per share. Three inactive subsidiaries will also be merged to streamline operations and cut administrative costs. The plan requires approval from the National Company Law Tribunal (NCLT) and other regulatory bodies before it can proceed. Following the announcement, TCIL shares rose 5.17% to ₹103.80 on March 20, 2026. The newly separated hospitality unit, SHRL, which manages six Nature Trails resorts, reported strong financial performance in FY25. Its revenue grew 13% year-on-year to ₹5,202 million, with a consistent 34% EBITDA margin. SHRL operates without debt, positioning it to capitalize on the Indian hospitality sector’s projected 9-12% revenue growth in 2025-26. In contrast, TCIL’s core travel segment struggled, with a 12% year-on-year decline in EBITDA for Q2 FY26. Revenue for the quarter increased 3% year-on-year to ₹20,738.40 million, but net profit fell slightly to ₹707.50 million. TCIL’s return on equity (ROE) of 11.9% lagged behind industry peers like IRCTC (35.32%) and BLS International (24.97%), highlighting inefficiencies the demerger aims to address.#thomas_cook_india #national_company_law_tribunal #irctc #sterling_holiday_resorts_ltd #mahesh_iyer
Thomas Cook (India) Demerges Resort Enterprise Thomas Cook (India) Limited’s board of directors has approved a proposal to demerge its Resorts and Resort Management business into Sterling Holiday Resorts Limited (SHRL) and restructure the company’s capital. The plan, which requires approval from the National Company Law Tribunal (NCLT) and other regulatory bodies, aims to unlock value for shareholders by separating the resort operations and attracting investors to each business segment. The demerger will involve transferring TCIL’s resort management activities, including six properties under the Nature Trails brand, to SHRL. These resorts are located in scenic regions across India and cater to diverse market segments such as adventure holidays, educational trips, and corporate getaways. The move is expected to streamline TCIL’s capital structure, improve earnings per share, and allow for a more focused approach to each business vertical. In a statement, Thomas Cook India Limited’s Managing Director and CEO, Mahesh Iyer, expressed optimism about the demerger, stating it would “unlock tremendous value and potential for TCIL shareholders” by enhancing financial performance and enabling SHRL to pursue independent growth in India’s expanding hospitality sector. The restructuring also paves the way for a potential future listing of SHRL, giving it autonomy to develop its own strategies in the industry. The decision reflects a broader trend among companies to reorganize operations for efficiency and shareholder value. By separating its resort assets, TCIL aims to address challenges in the hospitality sector while positioning both entities for long-term success. The approval marks a significant step in reshaping the company’s business model and aligning with market demands.#thomas_cook_india #national_company_law_tribunal #sterling_holiday_resorts #mahesh_iyer #nature_trails
