Travel Food Services Limited (TFS) is India's largest travel Quick Service Restaurant (QSR) and lounge operator, commanding a significant presence in the country's aviation ecosystem. The company operates a vast, system-wide network of over 530 units, comprising 494 travel QSR outlets and 37 lounges as of December 2025. Its operations span 19 airports across India, Malaysia, and Hong Kong, including a presence in 13 of India's 15 largest airports, which collectively serve approximately 74% of the nation's air passenger traffic. TFS has established a dominant market position, holding a 26% market share in the Indian airport travel QSR market and a 45% share in the Indian lounge market.

The company's business model is built on two core pillars: Travel QSRs and Lounges. The QSR segment features an extensive and diversified portfolio of 140 brands, strategically balanced between in-house creations (46 brands) and partnerships with regional and international franchises (94 brands). This multi-brand strategy allows TFS to cater to a wide spectrum of traveler preferences and price points. The lounge business provides premium experiences, including local and international cuisine, spa facilities, and business amenities, generating revenue through partnerships with airlines, banks, credit card issuers, and corporate clients.

TFS's growth and market leadership are underpinned by strategic joint ventures with major Indian airport operators like Adani Airport Holdings Ltd. and GMR Airports Ltd. Furthermore, the company benefits from the backing of its promoters: K Hospitality, a veteran in the Indian F&B industry, and SSP Group, a leading global travel F&B operator. This combination provides TFS with deep local consumer insights, global operational best practices, and enhanced credibility in securing long-term airport concessions.

Official Website: www.travelfoodservices.com

• Q3 FY26 Performance (Quarter ended Dec 31, 2025)

• System-wide Sales: Grew 28.1% year-over-year (YoY) to ₹8,754 million. This metric includes sales from TFS, its subsidiaries, associates, and joint ventures, providing a comprehensive view of the entire network's performance.

• Consolidated Sales: Increased by 18.3% YoY to ₹4,562 million on an adjusted basis.

• Consolidated Profit After Tax (PAT): Surged by 35.3% YoY to ₹1,368 million on an adjusted basis, indicating strong bottom-line growth that outpaced revenue growth.

• Consolidated EBITDA: Stood at ₹1,812 million for the quarter.

• 9M FY26 Performance (Nine months ended Dec 31, 2025)

• System-wide Sales: Rose 24.5% YoY to ₹23,189 million.

• Consolidated Sales: Grew 9.9% YoY to ₹11,871 million on an adjusted basis.

• Consolidated Profit After Tax (PAT): Increased by 24.1% YoY to ₹3,297 million on an adjusted basis.

• Historical Financial Track Record (FY23 - FY25)

• System-wide Sales Growth: The company has demonstrated strong historical growth, with system-wide sales increasing from ₹13,857 million in FY23 to ₹25,265 million in FY25, marking a compound annual growth rate (CAGR) of 34.9%.

• Consolidated PAT Growth: Profitability has followed a similar strong trajectory, with PAT growing from ₹2,513 million in FY23 to ₹3,797 million in FY25, a CAGR of 22.9%.

• Balance Sheet and Cash Flow

• Debt Position: The company maintains a strong balance sheet with zero consolidated debt.

• Cash Position: As of December 31, 2025, the consolidated cash balance was robust at ₹7,926 million.

• Cash Flow: Operating cash flows have shown consistent growth, increasing from ₹3,221 million in FY23 to ₹5,148 million in FY25, reflecting strong operational liquidity.

• Return Ratios: For FY25, the company reported a Return on Equity (ROE) of 35.5% and a Return on Capital Employed (ROCE) of 51.4%, indicating highly efficient use of capital.

TFS has delivered strong, profitable growth with expanding margins, supported by a debt-free balance sheet and robust cash generation.

• Scale and Market Dominance

• As India's largest operator in its segment, TFS benefits from significant economies of scale in procurement, labor scheduling, and overheads. Its presence in 13 of the top 15 Indian airports provides unparalleled access to passenger traffic.

• Long-Term Contracts and High Retention

• The business is secured by long-term concession agreements with airport operators, with an average duration of 8.21 years.

• TFS boasts a contract retention rate of 93.9%, demonstrating its reliability and strong relationships with airport partners, which creates a significant barrier to entry for competitors.

• Synergistic and Scalable Operating Model

• The company's model creates a virtuous cycle: success in winning contracts leads to greater scale, which drives operational leverage and cost efficiencies. This financial strength and operational track record, in turn, increase the competitiveness of its bids for new tenders.

• Strategic Promoter and Partner Backing

• The partnership with K Hospitality provides deep-rooted understanding of the Indian consumer, while the association with SSP Group brings global best practices, access to international brands, and credibility. This dual backing is a key differentiator in bidding for and operating concessions.

• Master Concessionaire Expertise

• TFS's ability to manage a diverse portfolio of in-house and third-party brands allows it to act as a one-stop solution for airport operators. This master concessionaire model enables a coordinated, terminal-wide F&B strategy that is difficult for smaller, single-brand operators to replicate.

The company's competitive moats are built on its market-leading scale, high-retention long-term contracts, and the strategic advantages conferred by its experienced promoters.

• Indian Aviation Market Tailwinds

• The Indian aviation market is poised for rapid expansion, driven by several factors. Air travel penetration remains low at 0.27 trips per capita, compared to 0.81 in China and 5.58 in the USA, indicating substantial room for growth.

• The government plans to expand the number of airports from 138 to 350 by 2047, and Indian airlines have placed orders for approximately 2,400 new aircraft, nearly tripling the current fleet size. This infrastructure and capacity expansion will directly increase passenger traffic.

• Global Airport Lounge Market Growth

• The global airport lounge market is projected to grow significantly, from a size of USD 6.7 billion in 2023 to between USD 15-16 billion by 2034.

• The Asia-Pacific region is a dominant force in this market. High entry barriers, including the need for substantial capital and hard-to-replicate partnerships with banks and card networks, favor established players like TFS.

• Emerging Expressway QSR Opportunity

• The Indian expressway travel QSR market is expected to witness explosive growth, expanding from ₹15 billion in FY24 to ₹220-240 billion by FY34.

• This growth is fueled by government initiatives like the Bharatmala project and the planned development of 1,000 Wayside Amenities (WSAs) by the National Highways Authority of India (NHAI).

TFS is well-positioned to capitalize on powerful, long-term tailwinds in the Indian aviation sector and has identified attractive growth opportunities in the global lounge and domestic expressway markets.

• Dual Growth Drivers

• The company's sales growth is driven by a healthy balance of two key factors:

1. Like-for-Like (LFL) Sales Growth: This represents growth from outlets that have been open for at least 12 months, reflecting the company's ability to increase revenue from its existing asset base.

2. Net Contract Gains: This represents revenue from new outlets opened within the last 12 months, showcasing successful network expansion.

• Q3 FY26 Growth Breakdown

• At a system-wide level, LFL sales growth was a strong 12.5% YoY.

• Net contract gains contributed an additional 13.5% YoY, driven by the successful mobilization of new outlets.

• 9M FY26 Growth Breakdown

• For the nine-month period, system-wide LFL sales growth was 12.2% YoY.

• Net contract gains contributed 10.2% YoY, sustaining the expansion-led growth momentum.

• Network Expansion as a Growth Engine

• The contribution from net contract gains is a direct result of tangible network growth. In the 12 months leading to December 2025, the number of travel QSR outlets grew from 441 to 494, and lounges increased from 35 to 37.

TFS's growth strategy is robust and well-balanced, driven by both the effective management of existing stores and an aggressive, successful execution of new business wins.

• International Lounge Expansion

• TFS is actively pursuing growth in international lounge operations, with a focus on the Asia-Pacific (APAC) and Middle East markets.

• The company is establishing ventures and subsidiaries in regions like the UAE and Indonesia to build a foundation for sustained global brand leadership in the lounge segment.

• Expressway QSR Growth

• The company has identified the rapidly growing expressway QSR market as a key long-term opportunity.

• It plans to scale its presence on major expressways to capitalize on the rise in leisure road travel and government-led infrastructure development.

• Technology-Enabled Services

• TFS is evolving into a tech-enabled hospitality company. Through its subsidiary, Eliteassist Technology and Services Pvt. Ltd. (EATS), it has developed and deployed an integrated platform enabling seamless, direct bank-to-lounge access.

• This technological infrastructure is scalable and merges hospitality with data intelligence, creating new efficiencies and revenue opportunities.

The company is strategically pursuing new growth horizons in international markets, adjacent domestic verticals like expressways, and technology-driven service enhancements.

• Strengthening the Core Business

• The primary focus remains on expanding the core airport F&B and lounge business by optimizing product offerings to drive LFL sales and strategically winning new contracts in both existing and new airports.

• Executing Recent Contract Wins

• Growth in the near term will be supported by the operationalization of several recent strategic wins. These include:

• Delhi Airport (IGI): Awarded contracts for 14 outlets in Terminal 2 (now operational) and 33 outlets in Terminal 1 (valid until May 2036). This solidifies TFS's presence across all three terminals of India's largest airport.

• Cochin International Airport: Commenced operations at the Domestic Terminal 1 in January 2026.

• Navi Mumbai and Noida Airports: Operations have commenced at the new Navi Mumbai airport, and the company has won bids for the upcoming Noida airport, securing an early foothold in future growth hubs.

• Leveraging Financial Strength for Growth

• The company's debt-free status and strong cash reserves provide the financial flexibility to aggressively pursue and fund new growth opportunities, both domestically and internationally.

TFS's future plans are centered on executing its strong pipeline of recently won contracts to solidify its domestic leadership while leveraging its financial strength to expand into new growth verticals.

• Q3 FY26 Margin Profile

• Gross Profit Margin: Stood at 83.9%, an expansion of 184 basis points YoY, driven by sales growth and moderate cost inflation.

• EBITDA Margin: Was 39.7%, remaining strong and broadly in line with the previous year.

• Profit After Tax (PAT) Margin: Reached 30.0%, a significant expansion of 377 basis points YoY, reflecting strong operating leverage and higher profit contribution from joint ventures.

• 9M FY26 Margin Profile

• Gross Profit Margin: 83.7%.

• EBITDA Margin: 38.9%.

• Profit After Tax (PAT) Margin: 27.8%.

• Historical Margin Stability

• The PAT margin has remained consistently strong, recorded at 22.8% in FY23, 20.4% in FY24, and 21.5% in FY25, demonstrating sustained profitability through different phases of growth.

The company operates with high and expanding profitability margins, which underscores its operational efficiency and strong pricing power within the travel retail environment.

• New Operations Commenced

• During Q3 FY26, TFS successfully commenced operations at two key new locations: the Indira Gandhi International (IGI) Airport Terminal 2 in Delhi and the new Navi Mumbai International Airport (through its JV, Semolina Kitchens).

• Technology Platform Deployment

• The company successfully deployed its end-to-end technology platform (EATS) that integrates with multiple banks and card networks. This enables seamless, direct bank-to-lounge access for customers, enhancing user experience and operational efficiency.

• Demonstrated Operational Resilience

• TFS showcased its operational excellence and supply chain agility during a period of large-scale flight cancellations. The company rapidly scaled up food and beverage services, ensured 24/7 service continuity, and proactively managed inventory to serve stranded passengers, strengthening its relationships with airport and airline partners.

• Brand Portfolio Expansion

• The company continues to enrich its brand portfolio, having added 15 new brands over the last 12 months. This includes the launch of Gordon Ramsay Street Pizza at Mumbai Airport and a second Kyra Lounge at Hong Kong International Airport.

The company is not only expanding its physical footprint but is also advancing its technological capabilities and proving its operational robustness under challenging conditions.