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Travel Food Services Ltd. (TFSL) is a leading player in India’s fast-growing airport travel QSR and lounge segments, operating across 14 airports in India, 3 in Malaysia, and 1 in Hong Kong. The company began its F&B operations at Mumbai Airport in 2009 and quickly expanded to Delhi, Chennai, and Kolkata. A strategic investment in 2016 by SSP Asia Pacific Holdings Ltd. (part of the global F\&B major SSP Group) strengthened TFSL’s international presence. In 2021, TFSL entered Malaysia through a joint venture for airport F\&B and lounges, followed by the launch of its Hong Kong lounge in 2024. Domestically, the company has expanded to newer airports such as Mopa (Goa) and secured concessions at upcoming international airports in Noida and Navi Mumbai. TFSL is backed by a strong and diversified promoter group, including the SSP Group, a global leader in travelrelated F\&B, and the Kapur Family, who bring deep expertise in hospitality and have played a key role in the company’s strategic growth and operations.

Objects and Details of the Issue:

The issue consists solely of an Offer for Sale of 2000Cr, and the proceeds will be received by the selling promoter.

Investment Rationale:

* Market Leadership in Travel QSR and Lounge Segments

* Aviation’s Role in Topline Growth

* High-Growth Sector with Significant Headroom for Expansion

* Consistent Financial Growth

Valuation and Recommendation:-

TFSL is well-positioned to benefit from India’s rapidly growing aviation sector. It presents a compelling growth opportunity with a dominant 26% market share in airport QSRs and 45% in lounges and a strong concession retention rate of 93.9%. Co is increasing its footprint across the new airports and highways and has international lounge expansion plans under the ARAYA brand. Revenues/EBIDTA have grown at a CAGR of 63%/87.9%% over FY22-25 with good return ratios of ROCE of 51.4%. At higher price band, IPO is available at attractive valuation of EV/EBITDA of 25x which is below the industry average of 28.6x and thus we recommend a SUBSCRIBE to the issue.

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SEBI Registration number is INH00000176