Travel Food Services Limited (TFS), a leading operator of Travel QSR outlets and Lounges in India, has announced robust financial results for the first quarter of fiscal year 2026, ended June 30, 2025. The company demonstrated significant growth across key metrics, despite facing some temporary sector headwinds.

Financial Highlights

• System-wide sales reached ₹7,151.00 million, representing a 26.7% year-over-year increase
• Consolidated revenue from operations grew to ₹3,750.54 million, up from ₹3,665.74 million in the previous quarter
• Consolidated Profit After Tax (PAT) rose to ₹949.63 million, marking a 19.3% year-over-year growth on an adjusted basis
• Like-for-Like (LFL) sales growth was 12.5%, while net contract gains contributed 10.1% to system-wide sales

Operational Performance

TFS continued to expand its presence and offerings during the quarter:

• The company's system-wide network reached 454 Travel QSR outlets and 37 lounges as of June 30, 2025
• TFS expanded its brand portfolio to 130 in-house and partner brands
• Launched India's first Nando's airport outlet at Delhi's Indira Gandhi International Terminal 3
• Plans to open the first two outlets of Gordon Ramsay's F&B concepts in India at Delhi Terminal 1 and Mumbai Terminal 2

Strategic Initiatives

The company implemented several strategic initiatives to enhance customer experience and operational efficiency:

• Developed a technology platform for direct connection between banking and card network partners and lounge access systems
• Entered into a deeper arrangement with Coca-Cola across multiple airports in TFS's travel network
• Transitioned to a direct partnership with American Express for lounge services

Management Commentary

Varun Kapur, Managing Director and CEO of Travel Food Services Limited, commented on the results: "I am pleased to share that in our first quarter as a public company, TFS delivered a healthy performance, with system-wide sales rising by 26.7% and adjusted consolidated PAT increasing by 19.3%, despite temporary sector headwinds. This was driven by disciplined execution, strategic expansion, and a strong focus on cost optimization."

Industry Recognition

TFS received several accolades during the quarter:

• Won eight awards at the 2025 FAB Awards in Barcelona, including Airport Lounge of the Year for 080 Lounge
• The Global Lounge at Kuala Lumpur International Airport was honored by Etihad Airways for exceptional guest experiences

Future Outlook

With over 70 additional outlets currently under design and construction, including at Navi Mumbai and Noida airports, TFS is well-positioned for continued growth. The company remains committed to strengthening its portfolio and driving strategic initiatives to capture emerging opportunities in the travel F&B sector.

As Travel Food Services Limited continues to expand its footprint and enhance its offerings, the company appears poised for sustained growth in the dynamic travel retail market.

Travel Food Services Limited (TRAVELFOOD), a leading player in the travel food and beverage sector, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company has demonstrated robust growth in profitability, particularly on a consolidated basis.

Consolidated Performance Highlights

Travel Food Services reported a significant increase in consolidated profit after tax, which grew by 59.5% to Rs 949.63 crore for Q1 FY2026, compared to Rs 595.46 crore in the same quarter last year. This substantial growth in profit comes despite a slight dip in consolidated revenue from operations, which stood at Rs 3,750.54 crore, down from Rs 4,098.64 crore in Q1 FY2025.

The company's performance shows strong cost management and operational efficiency, as reflected in the improved profit margins. The consolidated earnings per share (EPS) for the quarter stood at Rs 6.97, showcasing a solid return for shareholders.

Standalone Financial Results

On a standalone basis, Travel Food Services also exhibited strong growth:

Key Developments

During the quarter, Travel Food Services made significant strides in its corporate journey:

1. Initial Public Offering (IPO): The company successfully completed its IPO of 18,182,802 equity shares at a price of Rs 1,100 per share. The shares were subsequently listed on both the National Stock Exchange of India Limited (NSE) and BSE Limited on July 14, 2025.

2. Employee Stock Options: As part of its employee retention and motivation strategy, the company granted 284,522 stock options to eligible employees under its Employee Stock Plan 2024.

Management Commentary

Varun Kapur, Managing Director & Chief Executive Officer of Travel Food Services Limited, stated, "We are pleased with our performance in the first quarter of FY2026. The significant growth in our profitability, especially on a consolidated basis, reflects our strong operational execution and cost management strategies. While we saw a slight decrease in consolidated revenue, our ability to substantially increase profit demonstrates the resilience and efficiency of our business model."

He added, "The successful completion of our IPO marks a new chapter for Travel Food Services, providing us with enhanced visibility and access to capital markets. We remain committed to delivering value to our shareholders and continuing our growth trajectory in the travel food and beverage sector."

Outlook

With its strong financial performance and recent listing on major stock exchanges, Travel Food Services Limited is well-positioned to capitalize on the growing travel and hospitality sector. The company's focus on operational efficiency and strategic expansion is expected to drive future growth and shareholder value.

Investors and analysts will be keenly watching Travel Food Services' performance in the coming quarters, as the company navigates the dynamic travel and food service landscape post its public listing.

Note: All figures are in Indian Rupees (INR) and have been rounded to two decimal places where applicable.