Thomas Cook India Reports Strong Q3 FY26 Performance with 20% PBT Growth
Thomas Cook (India) Limited reported strong Q3 FY26 results with 20% PBT growth (excluding one-time charges) driven by exceptional Foreign Exchange performance showing 41.5% EBIT margins and 10% growth. Sterling Holiday Resorts achieved record quarterly performance with 10% revenue growth and maintained 36% EBITDA margins. The company's consolidated income grew 8% for 9M FY26 to INR67,523 million, supported by robust balance sheet with INR2,500 crores total cash and strategic expansion across business segments.
*this image is generated using AI for illustrative purposes only.
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.
| Metric | Q3 FY26 | Growth |
|---|---|---|
| Total Income (Q3): | INR21,866 million | +5% YoY |
| Total Income (9M): | INR67,523 million | +8% YoY |
| PBT (Q3): | INR897 million | +20% (adjusted) |
| Other Income (Q3): | INR40 crores | Growth from INR22 crores |
| Other Income (9M): | INR124 crores | Growth from INR88 crores |
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.
| Parameter | Performance |
|---|---|
| EBIT Growth: | +10% to INR316 million |
| EBIT Margin: | 41.5% (vs 38.7% last year) |
| Retail Sales Growth: | +25% YoY |
| Education Segment Growth: | +39% YoY |
| Holiday Segment Growth: | +11% YoY |
| Digital Adoption: | ~21% |
| App Transactions: | 2.7x growth to 835 transactions |
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.
| Metric | Q3 FY26 | Growth |
|---|---|---|
| Revenue: | INR1,568 million | +10% YoY |
| EBITDA: | INR561 million | +7% YoY |
| PBT: | INR426 million | +11% YoY |
| EBITDA Margin: | 36% | Sustained healthy levels |
| Cash & Investments: | INR3,243 million | +54% YoY |
| Network Size: | 75 resorts, 3,705 keys | 607 rooms added YoY |
| Occupancy: | 68% | +4 percentage points |
| ARR: | INR6,976 | +5% YoY |
| RevPAR Growth: | +17% YoY | Strong performance |
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
Historical Stock Returns for Thomas Cook
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.27% | +1.08% | -19.42% | -29.24% | -17.29% | +132.94% |
18
