Travel Food Services delivered exceptional financial performance in Q3 FY26, demonstrating the resilience and strength of its travel F&B business model despite temporary market disruptions. The company achieved robust growth across key metrics while successfully expanding its operational footprint and enhancing its market leadership position.

Strong Financial Performance Drives Growth

The company reported impressive financial results for Q3 FY26, with system-wide sales reaching INR8.75 billion, representing a substantial 28.1% year-on-year increase. This growth was primarily driven by the successful mobilization of more than 50 units over the past 12 months, showcasing the company's execution capabilities in scaling operations.

Consolidated sales reached INR4.56 billion, marking an 18.3% year-on-year growth, while the company maintained strong profitability with gross profit margins expanding to 83.9% compared to 82.1% in the same period last year. The margin expansion was supported by efficient procurement practices, lower cost inflation, and value unlock from the lounge aggregation business.

Operational Resilience During Market Challenges

The third quarter presented both opportunities and challenges for the travel industry. While Q3 is traditionally the strongest seasonal period driven by festive and holiday travel demand, the quarter experienced temporary disruptions in December due to FDTL (Flight Duty Time Limitations) regulations affecting the country's largest airline.

Despite these challenges, passenger traffic at TFS-operated airports increased by 1.6% year-on-year in Q3, showing improvement compared to the nearly 1% year-on-year decline seen in Q2. The company's centralized operations framework and master-concession structure across airports proved highly effective during the disruption period.

Key Operational Highlights:

• Real-time monitoring of flight cancellations and delays
• Dynamic stock planning and manpower redeployment
• Uninterrupted food service to affected passengers
• Maintained service continuity despite operational complexity

Strategic Expansion and Brand Portfolio Growth

The company continued its aggressive expansion strategy, growing its system-wide footprint to over 530 travel QSR outlets and lounges with the addition of approximately 30 units during the quarter. This expansion strengthens the company's market leadership position in the travel F&B segment across 19 airports.

The brand portfolio expanded to 140 brands with 15 new additions over the past year, including premium celebrity-led brands such as Gordon Ramsay Street Burger and Street Pizza launched at Delhi and Mumbai airports, and internationally acclaimed brands like Nando's. These additions enhance both the depth and premium positioning of the company's offerings.

Technology Integration and Revenue Optimization

The company continued leveraging technology through its EATS platform, enabling direct bank-to-lounge access as an integrated service. This technological advancement represents an important step in the company's evolution toward becoming a tech-enabled, scalable travel hospitality company.

Revenue optimization initiatives included innovative customer-centric offerings such as premium sleeping pods at Bengaluru International Airport lounge, signature filter coffee, and automated cocktail dispensers. These initiatives drive higher passenger engagement and spend per passenger while reinforcing the company's position as a premium travel QSR player.

International Growth and Future Pipeline

The company's international expansion strategy showed positive momentum with the opening of a second Kyra Lounge at Hong Kong International Airport, marking continued global expansion. The company maintains an active presence in Malaysia and Hong Kong, demonstrating its ability to successfully enter and operate in competitive international markets.

Upcoming Developments:

• New outlets at greenfield terminals at Noida Airport
• JV operations at Guwahati Airport
• Contract to operate 33 travel QSR units at Delhi Airport Terminal 1 for 11 years
• Continued focus on Asia-Pacific and Middle East market opportunities

Nine-Month Performance and Financial Position

For the nine-month period, system-wide sales reached INR23.2 billion, registering 24.5% year-on-year growth with like-for-like sales growth of 12.2% and net contract gains of 10.2%. Consolidated PAT increased by 24% year-on-year on an adjusted basis during the first nine months.

The company maintains a robust balance sheet with zero debt and a cash balance of nearly INR8 billion, providing strong financial flexibility to pursue new growth opportunities and continue its expansion strategy across both domestic and international markets.

Travel Food Services Limited has officially announced that its Board of Directors will convene on February 12, 2026, to review and approve the company's unaudited financial results for the third quarter of fiscal year 2026. The meeting will focus on both standalone and consolidated financial statements for the quarter ended December 31, 2025.

Board Meeting Details

The company communicated this development to both major stock exchanges through formal notifications dated February 5, 2026. The announcement was made in compliance with Regulation 29 and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Trading Window Restrictions

In accordance with insider trading regulations, Travel Food Services Limited has implemented trading window restrictions for designated persons. The trading window, which was initially closed on December 29, 2025, will continue to remain closed until February 14, 2026.

These restrictions are implemented under the company's Code of Conduct for Regulating, Monitoring and Reporting of Trading by Designated Persons, which is framed in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015.

Regulatory Compliance

The announcement demonstrates the company's adherence to regulatory requirements and transparency standards. Company Secretary and Compliance Officer Neeta Arvind Singh signed the official communication, ensuring proper documentation and compliance with stock exchange requirements.

The information has been made available on the company's official website at www.travelfoodservices.com , providing stakeholders with easy access to corporate announcements and updates.