Travel Food Services Reports 18.4% System-Wide Sales Growth and 15.3% PAT Increase in Q2FY26

Travel Food Services Limited (TFS), India's leading operator of Travel QSR outlets and Lounges, has reported strong financial results for the second quarter of fiscal year 2026. The company's performance demonstrates resilience and growth despite temporary challenges in the aviation sector.

Key Financial Highlights

System-wide sales grew by 18.4% year-over-year to Rs. 7,284.00 million in Q2FY26
Consolidated PAT increased by 15.3% year-over-year to Rs. 979.00 million in Q2FY26
PAT margin expanded by 268 basis points to 27.5%
H1FY26 system-wide sales growth of 22.4% year-over-year to Rs. 14,435.00 million
H1FY26 consolidated PAT growth of 17.2% year-over-year to Rs. 1,929.00 million

Operational Performance

TFS achieved significant milestones in its operational expansion:

Surpassed 500 Travel QSR outlets and Lounges system-wide
Expanded brand portfolio to 135 brands, adding 16 new brands in the last year
Increased footprint to 464 Travel QSR outlets and 37 Lounges across domestic and international airports

Growth Drivers

The company's growth was driven by:

Like-for-like (LFL) sales growth of 9.2% year-over-year in Q2FY26, despite a 1% decline in passenger traffic
Net contract gains of 9.3% year-over-year in Q2FY26, reflecting the mobilization of 50 new Travel QSR outlets and 4 new Lounges

Strategic Developments

TFS continues to strengthen its market position:

Won new F&B concessions at Cochin Airport Domestic terminal and Delhi IGI Airport Terminal 2
Launched India's first Gordon Ramsay Street Burger outlet at Delhi's Indira Gandhi International Airport
Enabled a new technology platform for direct integration with banks and card networks for lounge access

Financial Stability

The company maintains a strong financial position with:

No debt on the balance sheet
Cash balance of Rs. 7,490.00 million as of September 30, 2025

Management Commentary

Varun Kapur, Managing Director and CEO of TFS, commented on the results: "This quarter has been marked by robust execution of operations and mobilisation of new sites, taking us over the 500-outlet mark, thereby reinforcing our leadership position in the sector. With our continued focus on driving profitable growth, we delivered a strong financial performance with system-wide sales growth of 18.4% YoY and adjusted consolidated PAT increase of 15.3% YoY in Q2FY26, despite a short-term moderation in passenger traffic."

Outlook

Despite temporary challenges in passenger traffic due to additional maintenance and safety procedures following an aircraft accident in Ahmedabad, TFS remains optimistic about future growth. The company is well-positioned to capitalize on the recovering passenger traffic and is prepared to commence operations at new locations, including Cochin International Airport and the newly built Noida and Navi Mumbai airports.

TFS's strong performance in Q2FY26 demonstrates its ability to navigate challenges in the aviation sector while continuing to expand its presence and improve profitability. The company's focus on revenue enhancement initiatives, strategic expansions, and technological advancements positions it well for sustained growth in the travel food and beverage industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.78%	-3.31%	-7.85%	+16.54%	+16.54%	+16.54%

Travel Food Services Limited (TFS) has announced a significant expansion of its food and beverage operations at one of India's busiest airports. The company's wholly-owned subsidiary, TFS Gurgaon Airport Services Private Limited, has entered into a license agreement with Delhi International Airport Limited (DIAL) to operate multiple F&B outlets at Terminal 2 of Indira Gandhi International Airport, New Delhi.

Key Details of the Agreement

Aspect	Details
Licensee	TFS Gurgaon Airport Services Private Limited
Licensor	Delhi International Airport Limited (DIAL)
Agreement Date	October 3, 2025
Duration	3 years
Scope	Design, develop, set up, operate, manage, and maintain F&B outlets
Location	Terminal 2, Indira Gandhi International Airport, New Delhi
Number of Outlets	14

Financial and Operational Implications

The agreement includes provisions for license fees, minimum guarantee amounts, and other related charges, as per the terms of the license agreement. While specific financial details have not been disclosed, the operation of 14 F&B outlets at a major international airport terminal represents a significant business opportunity for TFS.

Corporate Governance and Compliance

TFS has promptly disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this agreement does not fall under related party transactions, and there is no involvement of the promoter or promoter group in the entity awarding the contract.

Market Impact

This strategic move by TFS could potentially strengthen its position in the airport F&B sector, capitalizing on the high foot traffic and captive audience at one of India's premier international airports. The three-year duration of the license provides a stable platform for TFS to establish its brand presence and potentially drive revenue growth in the coming years.

As the travel and hospitality sectors continue to recover and grow post-pandemic, such strategic partnerships between airport operators and specialized F&B service providers are likely to play a crucial role in enhancing passenger experience and driving non-aeronautical revenues for airports.

Investors and market watchers will be keen to observe how this expansion impacts TFS's financial performance and market position in the coming quarters.