Travel Food Services Posts Robust Q1 FY26 Results

Mumbai, India — Travel Food Services Limited (TFS), a leading operator of travel quick service restaurant (QSR) outlets and lounges in India, has announced robust results for the quarter ended June 30, 2025 – its first quarter as a publicly listed company.

Strong Sales and Profit Growth

System-wide sales for the quarter reached ₹7,151 million, marking a 26.7% year-on-year increase. This growth was supported by 12.5% like-for-like (LFL) sales growth and 10.1% net contract gains.

Consolidated sales stood at ₹3,751 million, up 6.3% year-on-year on an adjusted basis. LFL sales rose by 5.5%, even as passenger traffic moderated due to geopolitical tensions and the temporary grounding of aircraft following the Air India crash in Ahmedabad toward the end of the quarter.

Consolidated profit after tax reached ₹950 million, up 19.3% year-on-year (adjusted), driven by strong sales momentum and cost optimisation initiatives.

Operational Efficiency and Margins

Gross margin improved to 83.0%, supported by efficient procurement and supply chain strategies. Other expenses as a percentage of sales fell by nearly 180 basis points, thanks to operational discipline and effective occupancy cost management.

Expansion of QSR and Lounge Network

By June 30, 2025, TFS had expanded its system-wide network to 454 travel QSR outlets and 37 lounges, adding 57 new QSR outlets in the past year, mainly at Mumbai, Hyderabad, Ahmedabad, and Lucknow airports.

The lounge portfolio grew from 31 to 37, with notable openings in Hong Kong and Malaysia. TFS now operates 130 partner and in-house brands, including:

• India’s first Nando’s at Delhi Terminal 3
• Upcoming Gordon Ramsay food and beverage concepts at Delhi Terminal 1 and Mumbai Terminal 2

Industry Recognition and Awards

In Q1 FY26, TFS received eight awards at the 2025 FAB Awards in Barcelona for innovation, sustainability, and inclusivity. Additionally, the Global Lounge at Kuala Lumpur International Airport was recognised by Etihad Airways for service excellence.

Leadership Perspective

Varun Kapur, Managing Director & CEO of TFS, 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 per cent and adjusted consolidated PAT increasing by 19.3 per cent, 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 I and Mumbai Terminal II. By June-end, our system-wide network reached 491 outlets across travel QSRs and lounges, with over 70 more outlets currently under design and 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.”

Our brand partnerships remain a key strength – with Nando’s launched at Delhi Terminal 3 and Gordon Ramsay concepts set to debut soon at Delhi Terminal 1 and Mumbai Terminal 2. As of June-end, our system-wide network stood at 491 outlets across QSRs and lounges, with over 70 more in the pipeline, including at Navi Mumbai and Noida airports. We are committed to enhancing our portfolio and seizing emerging opportunities to create lasting value for stakeholders.