Travel Food Services submitted its inaugural Business Responsibility and Sustainability Report (BRSR) for FY26 to the Bombay Stock Exchange and National Stock Exchange on August 25, 2026. The filing covers environmental, social, and governance disclosures aligned with SEBI regulations.

The company reported total energy consumption of 88,424 Giga Joules, with renewable sources accounting for 9.20% of the mix. Scope 1 and Scope 2 greenhouse gas emissions totaled 13,060 metric tonnes of CO2 equivalent.

Operational Metrics

Travel Food Services operates across 284 locations nationally, comprising 245 food and beverage outlets, 13 lounges, 18 land-side stores or warehouses, and 7 central kitchens. The company serves customers in 12 states and one union territory.

Employee Welfare and Safety

The workforce stood at 4,477 employees as of March 31, 2026, with no workers in the statutory category. The company reported a Lost Time Injury Frequency Rate (LTIFR) of 0.73 per million person-hours worked, down from 1.02 in the previous year. Eight recordable work-related injuries were reported during the year.

Health insurance and accident insurance coverage extended to 100% of permanent employees. The company incurred costs equivalent to 0.30% of total revenue on employee well-being measures, up from 0.23% in FY25.

What the Numbers Show

Renewable energy consumption grew faster than total energy usage. Renewable sources increased by approximately 15.5% (from 7,048 GJ to 8,133 GJ), while total energy consumption rose by roughly 9.2% (from 81,009 GJ to 88,424 GJ). This divergence indicates a deliberate shift toward cleaner energy sources despite overall operational expansion.

Governance and Compliance

The Board of Directors oversees sustainability matters directly, supported by the Corporate Social Responsibility Committee and Risk Management Committee. The company reported zero material fines or penalties from regulators in FY26. Human rights training covered 100% of employees.

Customer complaints totaled 2,612, with 1,217 pending resolution at year-end. The company attributes outstanding cases primarily to unreachable customers or awaited information for closure.

Travel Food Services delivered robust financial performance in the first quarter of FY27, reporting a 35.6% year-on-year increase in consolidated profit after tax (PAT) to ₹1.3 billion. This growth occurred against a backdrop of broadly flat passenger traffic, driven by disruptions in international routes due to geopolitical tensions in the Middle East.

System-wide sales expanded by 18% year-on-year to ₹8.4 billion, while consolidated revenue from operations grew by 20.6% to ₹4.5 billion. The company maintained its debt-free status, holding a consolidated cash balance of approximately ₹9.7 billion as of June 30, 2026.

Financial Performance

The company’s top-line growth was supported by strong net contract gains and operational efficiency. Consolidated like-for-like (LFL) sales grew by 4.2%, while net contract gains stood at 20.2%, reflecting contributions from recently commissioned units in Delhi, Cochin, Noida, and other key locations.

EBITDA rose by 11% year-on-year to ₹1.6 billion. However, the EBITDA margin moderated to 35.8% from the prior period, primarily due to higher employee costs and operating expenses associated with ramping up new airports and business initiatives. Reported gross profit stood at ₹3.9 billion with a margin of 85.7%. Adjusting for the reclassification of ₹223 million in lounge aggregation costs, the adjusted gross profit margin remained at approximately 81%.

What the Numbers Show

A significant portion of the profit growth was driven by non-operational factors. The improvement in PAT included a benefit of ₹131 million arising from the write-back of a GST provision following a favorable rectification order. This indicates that while operational revenue grew strongly, the bottom-line acceleration was partly aided by this one-time accounting adjustment.

Operational Updates

Travel Food Services continued to expand its footprint, commencing operations at Noida International Airport during the quarter. The system-wide presence now spans 21 airports, with a total of 580 travel QSR outlets and lounges across 153 brands. Over the last 12 months, the company added 87 travel QSR outlets and two lounges.

Despite flat overall traffic, domestic air traffic saw resilience, with May recording the highest-ever single month of domestic air traffic in India. International traffic faced headwinds, particularly affecting markets with high exposure to Middle East routes, such as certain South India locations.

Outlook and Strategy

Management highlighted a robust pipeline with over 50 outlets currently under development. The opening of Bhogapuram Airport on August 17 marks another milestone, where the company will operate multiple outlets under its joint venture, GHL.

The company is also expanding into passenger services, launching meet-and-greet and porter services under its Elite Assist brand at Noida Airport. These services will integrate into the EATS technology platform to enhance passenger engagement. Travel Food Services remains focused on disciplined capital allocation, targeting returns that mimic its existing portfolio maturity levels as it pursues opportunities in airports and highways.