Travel Food Services Limited has received a rectification order from the Office of the Commissioner of CGST and Central Excise, Mumbai Central, significantly reducing the total tax demand and penalty from ₹40.20 crore to ₹14.40 crore. The order, dated May 21, 2026, was received by the company on May 27, 2026. The reduction follows submissions made by the company regarding an earlier order that alleged variance in tax liability due to mismatched Input Tax Credit (ITC) and excess ITC availment.

The rectification order specifies a tax demand of ₹7.20 crore and a penalty of ₹7.20 crore. While the interest component was not quantified in the order, it is to be paid as prescribed. The company stated that this revised demand has no material impact on its financials, nor does it affect its operational or other activities.

Despite the reduction, Travel Food Services Limited maintains that the order was passed without considering the complete facts submitted by the company. The management believes it has a strong case on merit and is currently evaluating further legal remedies. The company intends to take appropriate action, including filing an appeal with the relevant authorities pursuant to applicable laws.

The earlier order, dated December 19, 2025, had alleged contraventions related to mismatched ITC between returns and the GST portal or GSTR 9. The company had filed an appeal against that initial demand. The latest rectification order provides substantial relief by lowering the financial liability, though the company remains committed to challenging the remaining demand.

Details of the Rectification Order

Travel Food Services Limited reported a 21.5% year-on-year increase in consolidated profit after tax (PAT) to ₹4,523.17 million for the financial year ended March 31, 2026 (FY26). System-wide sales for the full year rose 25.4% to ₹32,144 million. The board recommended a final dividend of ₹10.25 per equity share for FY26, subject to shareholder approval.

Financial Performance

The company’s consolidated sales for FY26 stood at ₹16,477.06 million. The growth was driven by like-for-like sales expansion and net contract gains. For the quarter ended March 31, 2026 (Q4FY26), consolidated PAT increased 15.1% to ₹1,226.02 million, while system-wide sales grew 27.7% to ₹8,954 million.

The following table summarises the financial performance for Q4FY26 and FY26:

Operational and Strategic Updates

Travel Food Services expanded its system-wide network to 550+ Travel QSR Outlets and Lounges across 20 airports as of March 31, 2026, up from 18 airports in the previous year. The brand portfolio grew to 145 brands with the addition of 18 new concepts, including Lucknow Street, Nando's, and Wagamama. The company is progressing with the mobilisation of new units at Delhi, Navi Mumbai, Cochin, and the upcoming Noida Airport.

The board of directors approved the audited financial results at its meeting on May 25, 2026. The company was recognised as a Great Place to Work for the second consecutive year.