Travel Food Services Limited (TFSL) finds itself in the spotlight as the Central Bureau of Investigation (CBI) launches a probe into alleged irregularities in airport food and beverage contracts. The investigation, which dates back to tender processes from 2012-2013, involves two of TFSL's former subsidiaries that have since merged with the parent company.

Investigation Details

The CBI has filed a First Information Report (FIR) alleging irregularities in the master concessionaire contracts for food and beverages at Chennai and Kolkata airports. The FIR, numbered RC2162025A0015 and dated December 02, 2025, names several entities and individuals, including:

• Travel Food Services Chennai Pvt. Ltd.
• Travel Food Services Kolkata Pvt. Ltd.
• Other entities and government officials (not specifically named in the disclosure)

It's important to note that both named subsidiaries merged with Travel Food Services Limited on September 13, 2024, over a year before the FIR was filed.

Company's Response

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Travel Food Services Limited has made a formal disclosure to the stock exchanges. The company acknowledged the ongoing investigation and provided details about the FIR in its statement.

Financial Context

While the investigation is not directly related to the company's current financial performance, it's worth noting some key financial metrics for context:

These figures suggest that despite the ongoing investigation, the company has shown growth in its asset base and equity over the past year.

Implications and Next Steps

The CBI investigation into past tender processes could have potential implications for Travel Food Services Limited, even though the alleged irregularities occurred before the merger of the subsidiaries. As the investigation unfolds, investors and stakeholders will likely be watching closely for any developments that could impact the company's operations or reputation in the airport food and beverage sector.

Travel Food Services Limited has stated that it will continue to provide updates on this matter as required by regulatory obligations. The company's transparency in disclosing this information aligns with its responsibilities as a listed entity.

As the situation develops, it will be crucial to monitor any further statements from the company or findings from the CBI investigation that could affect Travel Food Services Limited's business operations or market position in the airport hospitality sector.

Travel Food Services Limited (TFS), India's leading travel food and retail company, demonstrated resilience in its Q2 FY26 performance, achieving system-wide sales of INR 7.30 billion with an 18.4% year-on-year growth. This growth came despite a 3.5% decline in passenger traffic at consolidated airports, primarily due to the India-Pakistan conflict and reduced flight schedules.

Financial Highlights

• Consolidated PAT reached INR 979.00 million, marking a 15.3% growth year-on-year
• System-wide sales grew by 18.4% year-on-year to INR 7.30 billion
• Like-for-like (LFL) sales growth of 9.2% system-wide, outperforming the passenger traffic trend
• Consolidated sales touched INR 3.50 billion with LFL growth of 3.8%

Operational Achievements

• Expanded to over 500 travel QSR outlets and lounges system-wide
• Added 50 new travel QSR outlets and four new lounges in the last 12 months
• Secured new contracts at Cochin International Airport and Delhi Terminal 2
• Launched India's first outlet of Gordon Ramsay Street Burger at Delhi Terminal 1

Strategic Initiatives

TFS implemented several strategic initiatives to drive growth and enhance customer experience:

1. Introduced a quick commerce menu at select outlets, promising food delivery within five minutes
2. Launched festival-specific menus and curated events in lounges to engage travelers
3. Developed a technology platform through Elite Assist Technology and Services for seamless lounge access integration with banks and card networks

Market Outlook

Despite short-term challenges, TFS management remains optimistic about the long-term growth prospects of the Indian aviation market. The company expects its performance to benefit from recovering passenger traffic trends in the seasonally stronger second half of the fiscal year.

Management Commentary

Varun Kapur, Managing Director and CEO of TFS, stated, "Against this challenging backdrop, TFS has performed well and delivered a strong quarter. We achieved this by taking immediate and decisive action, managing the cost base tightly and driving efficiencies."

Vikas Kapoor, Whole-time Director and CFO, added, "Our consolidated PAT increased to INR 979.00 million in Q2 FY'26 from INR 849.00 million in Q2 FY'25, registering strong 15.3% year-on-year growth on an adjusted basis. The profit growth is driven by sales growth, cost efficiency and uptick in JV profit."

TFS's ability to outperform passenger traffic trends and maintain strong growth in a challenging environment demonstrates the company's resilience and effective business strategies. As the aviation sector continues to recover, TFS is well-positioned to capitalize on the growing travel food and retail market in India.