Travel Food Services (TRAVELFOOD) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 system-wide sales reached INR 8.75 billion (Rs.8,754 million), up 28.1% year-over-year, driven by passenger traffic recovery, new site contributions, and over 50 new units mobilized in the last 12 months.

• Adjusted consolidated PAT grew 35.3% year-over-year to INR 1.37 billion (Rs.1,368 million), reflecting strong operational execution, cost efficiency, and increased JV profit share.

• The network expanded to over 530 QSR outlets and lounges, with 15 new brands added in the past year and new operations at Delhi T2, Navi Mumbai, and Cochin airports.

• Secured major contracts at Delhi T1 (33 units), Cochin Domestic Terminal, and Noida Airport, reinforcing market leadership.

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

Financial highlights

• System-wide sales: INR 8.75 billion (Rs.8,754 million) in Q3 FY26 (+28.1% YoY); nine-month sales INR 23.2 billion (Rs.23,189 million) (+24.5% YoY).

• Consolidated sales: INR 4.56 billion (Rs.4,562 million) in Q3 FY26 (+18.3% YoY); nine-month consolidated sales INR 13.21 billion (Rs.13,211.65 million).

• Adjusted consolidated PAT: INR 1.37 billion (Rs.1,368 million) in Q3 FY26 (+35.3% YoY); nine-month PAT INR 3.30 billion (Rs.3,297 million) (+24.1% YoY).

• Gross profit margin expanded to 83.9% in Q3 FY26 (up 180bps YoY); EBITDA margin nearly 40%.

• Consolidated cash balance of nearly INR 8 billion (Rs.7,926 million) as of December 31, 2025; zero consolidated debt.

Outlook and guidance

• Growth momentum expected to continue, driven by disciplined execution, new contract wins, and upcoming airport launches at Noida, Delhi, and Cochin.

• Focus on leveraging technology, expanding international lounges, and scaling expressway QSRs for future growth.

• Passenger traffic growth projected at 7%-9% annually over the next decade, with additional like-for-like growth from revenue initiatives.

• PAT margin expected to remain in the 25%-30% range as new projects scale up.