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

Executive summary

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

• Adjusted consolidated PAT grew 35.3% year-over-year in Q3 FY26 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, valid until May 2036), 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 listed shares on NSE and BSE.

Financial highlights

• System-wide sales were INR 8.75 billion (Rs.8,754 million) in Q3 FY26 (+28.1% YoY); consolidated sales were INR 4.56 billion (Rs.4,562 million) in Q3 FY26 (+18.3% YoY).

• Like-for-like sales growth was 12.5% system-wide and 7.1% at the consolidated level.

• Gross profit margin expanded to 83.9% in Q3 FY26, up 180bps year-over-year, supported by procurement efficiencies and value unlock in lounge aggregation.

• Consolidated PAT rose to INR 1.37 billion (Rs.1,368 million) in Q3 FY26 (+35.3% YoY); nine-month PAT was INR 3.30 billion (Rs.3,297 million), up 24% YoY.

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

Outlook and guidance

• Management expects continued strong growth from disciplined execution, operational excellence, and new contract wins, including upcoming airport launches at Noida and expanded presence at Delhi and Cochin.

• Passenger traffic growth is expected to return to the 7%-9% range annually over the next decade, supporting further sales and profit expansion.

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