Travel Food Services Q1FY26 Announcement
Travel Food Services Limited (TFS), a leading operator of Travel QSR outlets and Lounges in India, has announced its results for the quarter ended June 30, 2025.
Key Highlights
* System-wide sales1 of Rs.7,151 million, representing 26.7% YoY growth in Q1FY26
* LFL2 (Like-for-Like) growth was 12.5% and net contract gains3 were 10.1% for system-wide sales in Q1FY26
* Consolidated PAT registered a healthy growth of 59.5% YoY, and 19.3% YoY on an adjusted basis4 in Q1FY26
* Strong system-wide network of 454 Travel QSR outlets and 37 lounges as of June 30, 2025
* Portfolio of 130 in-house and partner brands at system-wide level, as of June 30, 2025
Financial Performance (Rs. Million)
|
Particulars |
Q1FY26 (Reported) |
Q1FY25 (Adjusted)* |
YoY |
|
System-wide Sales |
7,151 |
5,646 |
26.7% |
|
Consolidated Sales |
3,751 |
3,5274 |
6.3% |
|
Consolidated PAT |
950 |
7964 |
19.3% |
*Q1FY25 consolidated financials (and therefore consolidated YoY comparisons) are adjusted for the one-time effect of the deconsolidation of the JV business. For more details refer Note 4.
Key Financial Highlights
* System-wide sales of Rs.7,151 million grew by 26.7% YoY supported by LFL growth and net contract gains:
* LFL sales growth was 12.5% YoY driven by ongoing revenue optimisation initiatives and passenger traffic growth, despite some moderation in passenger numbers, as a consequence of both geopolitical tensions and the temporary grounding of aircraft for maintenance, following the tragic Air India plane crash incident in Ahmedabad towards the end of the quarter
* Net contract gains increased by 10.1% YoY, as 57 new Travel QSR outlets were mobilised in the past 12 months, mainly at the Mumbai, Hyderabad, Ahmedabad and Lucknow airports. Additionally, 31 lounges increased to 37 lounges at a system-wide level, as of June 30, 2025.
* Consolidated sales of Rs.3,751 million grew by 6.3% YoY, on an adjusted basis. LFL sales growth was 5.5% YoY, despite some moderation in passenger traffic growth as referred to above. Net contract gains showed a decrease by 2.7% YoY, due to expiry of few contracts and subsequent pick-up of new contracts by the JV.
* Consolidated PAT increased to Rs.950 million, representing a growth of 19.3% YoY on an adjusted basis, driven by sales growth and cost efficiency initiatives.
* Gross margin increased to 83.0% as efficient procurement strategies coupled with effective supply chain management lowered cost of goods sold.
* Additionally, continuous focus on process optimisation, efficient occupancy cost management and operational discipline, lowered other expenses as a percentage of sales by nearly 180 bps, thereby supporting operating margins.
Impact of the deconsolidation of the JV business
Q1FY25 adjusted consolidated financials (and therefore YoY comparisons) exclude the one-time impact arising from the deconsolidation of the JV, Semolina Kitchens Private Limited (Semolina Kitchens), effective October 14, 2024. Therefore, for FY25, we will continue to show the adjustment for this impact up to the anniversary i.e., October 14, 2025.
Key Operational Highlights
Travel QSR Outlets
* Partnered and opened 13 more brands in last 12 months, expanding the system-wide portfolio to 130 brands as on June 30, 2025
* Successfully increased our footprint with 57 new Travel QSR outlets in the past year, strengthening presence and reach with 454 outlets at the system-wide level as on June 30, 2025
* Launched the country’s first-ever Nando’s outlet in an airport at Delhi T3 Terminal and shortly opening the first two outlets of Gordon Ramsay’s F&B concepts in India at Delhi Terminal 1 and Mumbai Terminal 2
Lounges
* System-wide network of 37 lounges with best-in-class services across domestic and international markets as on June 30, 2025
* In the past year, 31 lounges increased to 37 lounges at a system-wide level, 4 lounges in the domestic market and 2 lounges in the international markets (1 each, in Hong Kong and Malaysia)
Recent Awards
* Successfully won eight awards at the prestigious 2025 FAB Awards in Barcelona, with recognition spanning across categories such as F&B innovation, sustainability, and inclusivity, thereby reinforcing TFS’ strong position in airport hospitality in the Asia Pacific Region
* Our Global Lounge at Kuala Lumpur International Airport, Malaysia, was honoured by Etihad Airways for service excellence to the Airline’s guests in the quarter. The award underscores our commitment to exceptional guest experience, premium amenities, and culturally inspired hospitality.
Commenting on the Q1FY26 performance, Mr. Varun Kapur, Managing Director and CEO, Travel Food Services Limited., said:
‘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 optimisation.
Our brand partnerships continue to be a key strength — we have opened Nando’s at Delhi Terminal 3 and will soon launch Gordon Ramsay concepts at Delhi Terminal 1 and Mumbai Terminal 2. By June-end, our system-wide network reached 491 outlets across Travel QSRs and Lounges, with additionally over 70 more outlets currently under design & construction, including at Navi Mumbai and Noida airports. We are committed to strengthening our portfolio and driving strategic initiatives that will enable us to capture emerging opportunities and create lasting value for our stakeholders.’
Notes:
1. TFS system-wide numbers (including system-wide sales) are based on TFS’ system-wide presence covering TFS, its subsidiaries, associates and joint ventures.
2. LFL (Like-for-Like) sales growth refers to growth in revenues generated in the equivalent period of the fiscal year for Travel QSR and Lounge outlets opened for at least 12 months. Revenues in respect of closed outlets (other than temporary closures) are excluded from the calculation. LFL sales growth is calculated as revenue from Travel QSR and Lounge services in a fiscal year minus revenue from Travel QSR and Lounge outlets opened for less than 12 months, divided by the revenue from Travel QSR and Lounge services from the previous period minus the Revenue from Travel QSR and Lounge outlets that were closed during the equivalent period in the previous fiscal year. LFL calculations exclude revenues from management and other services.
3. Net Contract Gains represent revenue in outlets of the Company and its Subsidiaries/JVs/Associates open for less than 12 months. Prior period revenues for closed outlets are excluded from LFL sales and classified as contract losses. Net Contract Gains are contract gains less contract losses.
4. Q1FY25 adjusted consolidated sales exclude Rs.664 million of Semolina Kitchens sales, however related party transaction elimination of Rs.92 million with Semolina Kitchens has been added back. Similarly, adjusted consolidated PAT excludes net loss of Rs.267 million from Semolina Kitchens, but includes loss in proportion to TFS’ shareholding in the JV (i.e. Rs.67 million).
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