Travel Food Services (TRAVELFOOD) Q2 25/26 earnings summary

Executive summary

• System-wide sales reached INR 7.3 billion in Q2 FY26, up 18.4% YoY, and INR 14.44 billion in H1 FY26, up 22.4% YoY, with consolidated PAT at INR 979 million in Q2 FY26, a 15.3% YoY increase on an adjusted basis.

• Over 500 Travel QSR outlets and lounges are operational, with new contracts at Cochin International Airport and Delhi IGIA Terminal 2, reinforcing sector leadership.

• Passenger traffic was temporarily impacted by external events, including geopolitical tensions and aircraft maintenance, but has shown signs of recovery in recent weeks.

• Launched a new technology platform for lounge access integration and introduced India's first Gordon Ramsay Street Burger at Delhi IGIA Terminal 1.

• Completed IPO in July 2025, listing on NSE and BSE, raising INR 19,999.98 million via an offer for sale.

Financial highlights

• System-wide sales for Q2 FY26: INR 7.28 billion, up 18.4% YoY; H1 FY26: INR 14.44 billion, up 22.4% YoY; like-for-like sales growth of 9.2% in Q2 and 10.4% in H1.

• Consolidated sales: INR 3.56 billion in Q2 FY26 (+4.1% YoY); INR 7.31 billion in H1 FY26 (+5.2% YoY).

• Consolidated PAT: INR 979 million in Q2 FY26 (+15.3% YoY); INR 1,929 million in H1 FY26 (+17.2% YoY).

• EBITDA margin improved to 38.0% in Q2 FY26 (from 35.6% YoY); PAT margin rose to 27.5% (from 24.8% YoY).

• Cash balance rose by INR 1.2 billion to INR 7.5 billion as of September 30, 2025; zero debt.

Outlook and guidance

• Expectation of continued recovery in passenger traffic and a seasonally strong second half, with operations to commence at Cochin International, Noida, and Navi Mumbai airports in H2 FY26.

• EBITDA margins expected to remain range-bound due to new unit mobilizations, typically stabilizing in 12-18 months.

• Full-year passenger traffic growth expected in mid-single digits, with improving trends week-on-week.

• Focus on expanding international lounge presence and expressway QSRs, leveraging technology and brand partnerships.

• Second half typically contributes 55% of annual revenue, with first half at 45%.