Travel Food Services (TRAVELFOOD) Q1 25/26 earnings summary

Executive summary

• Achieved system-wide sales growth of 26.7% YoY to ₹7,151 million in Q1 FY26, with adjusted consolidated PAT up 19.3% despite sector headwinds.

• Network expanded to 491 outlets, including 454 Travel QSRs and 37 Lounges, with 70+ more under development and a 26% and 45% market share in respective segments as of June 30, 2025.

• Strategic brand partnerships advanced, including the launch of India's first Nando's airport outlet and upcoming Gordon Ramsay concepts.

• Maintained a contract renewal rate of 94% since 2009, reflecting robust partnerships and operational excellence.

• Completed IPO in July 2025, listing on NSE and BSE.

Financial highlights

• Consolidated sales rose 6.3% YoY to ₹3,751 million, with like-for-like growth of 5.5% and system-wide sales at ₹7.15 billion.

• Gross margin improved to 83% (up 223 bps YoY) due to lower inflation, efficient procurement, and supply chain management.

• Consolidated PAT rose to ₹950 million, marking a 19.3% YoY increase; reported PAT grew 59.5% YoY.

• EBITDA margin reached 38.9% (up 361 bps YoY), with consolidated EBITDA at ₹1,458 million.

• Earnings per share stood at ₹6.97 for Q1 FY26, up from ₹4.21 in Q1 FY25.

Outlook and guidance

• Expects air passenger traffic to normalize by end of H1, with stronger H2 performance due to seasonality.

• Plans to mobilize over 50 new units in the current year, including major expansions at Navi Mumbai and Noida airports.

• International expansion ongoing, with new lounges in Malaysia and Hong Kong and active pursuit of opportunities in Asia-Pacific and the Middle East.

• Focus remains on LFL sales growth, network expansion, and capital efficiency.

• Financials for Q1 FY26 presented for the first time post-IPO, aligning with SEBI listing regulations.