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

Executive summary

• Delivered strong Q2 FY26 results with system-wide sales of INR 7.3 billion, up 18.4% YoY, and consolidated PAT of INR 979 million, up 15.3% YoY on an adjusted basis, despite temporary passenger traffic declines due to external events.

• Expanded to over 500 Travel QSR outlets and lounges, securing major new contracts at Cochin International Airport and Delhi IGIA Terminal 2.

• Launched India's first Gordon Ramsay Street Burger outlet and a new technology platform for seamless lounge access.

• Revenue from operations for H1FY26 reached ₹9,102.91 million, up from ₹7,309.44 million YoY, with net profit at ₹1,698.94 million.

• Completed IPO in July 2025, raising ₹19,999.98 million and listing on NSE and BSE.

Financial highlights

• System-wide sales for Q2FY26 were INR 7.28 billion (+18.4% YoY), and H1FY26 reached INR 14.44 billion (+22.4% YoY), with consolidated PAT of INR 979 million in Q2FY26 (+15.3% YoY) and INR 1,929 million in H1FY26 (+17.2% YoY).

• Consolidated sales for Q2FY26 were INR 3.5 billion, with 3.8% like-for-like growth and 3.4% net contract gains.

• EBITDA margin improved to 38.0% in Q2FY26 (from 35.6% YoY); PAT margin rose to 27.5% (from 24.8% YoY).

• Gross profit margin increased to 83.9% in Q2FY26 (from 81.1% YoY).

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

Outlook and guidance

• Expect continued recovery in passenger traffic and a seasonally strong second half, with operations to commence at Cochin International, Noida, and Navi Mumbai airports in H2FY26.

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

• EBITDA margins expected to remain range-bound as new units ramp up over 12-18 months.

• Full-year passenger traffic growth expected to be in mid-single digits, with week-on-week improvement observed.

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