TTT NEWS NETWORK
KOLKATA | 13 NOVEMBER 2026
Travel Food Services Limited (TFS), a leading operator of travel quick-service restaurant (QSR) outlets and airport lounges in India, reported a 50.5% year-on-year (YoY) jump in consolidated profit after tax (PAT) to Rs. 1,473 million for the second quarter ended September 30, 2026, up from Rs. 979 million in Q2FY26. For the first half of the fiscal year (H1FY27), consolidated PAT rose 43.2% YoY to Rs. 2,761 million compared to Rs. 1,929 million in the corresponding period last year.
Despite broader passenger traffic headwinds, TFS recorded strong top-line momentum driven by net contract gains and like-for-like (LFL) sales growth. System-wide sales grew 18.8% YoY to Rs. 8,654 million in Q2FY27 and 18.4% YoY to Rs. 17,090 million in H1FY27. Consolidated sales saw a 19.5% YoY increase to Rs. 4,253 million during the quarter, while first-half consolidated sales rose 20.1% YoY to Rs. 8,775 million.
Profitability margins improved significantly alongside revenue growth, with consolidated PAT as a percentage of consolidated sales expanding by 714 basis points YoY to 34.6% in Q2FY27. For the six-month period, the consolidated PAT margin stood at 31.5%, marking a 508-basis-point expansion over H1FY26.
On the operational front, TFS expanded its footprint to 22 airports as of September 30, 2026, following the commencement of operations at Alluri Sitarama Raju International Airport in Bhogapuram. The company also maintained a debt-free balance sheet backed by a cash balance of Rs. 10,309 million at the end of the quarter. Moving forward, TFS remains focused on scaling operations across existing and greenfield airports while expanding its EATS ecosystem to capture future growth as air passenger traffic rebounds.
Travel Food Services (TFS) posted a sharp 50.5% year-on-year (YoY) jump in consolidated Profit After Tax (PAT) to Rs. 1,473 million for the second quarter of FY27, driven by higher sales, increased other income, and a boost from joint ventures. For the first half of the fiscal year (H1FY27), consolidated PAT climbed 43.2% YoY to Rs. 2,761 million. Bottom-line figures were further aided by net-of-tax provision write-backs of approximately Rs. 468 million in Q2FY27 and Rs. 566 million in H1FY27, which included a partial GST provision write-back of Rs. 98 million from Q1FY27.
Consolidated sales rose 19.5% YoY to Rs. 4,253 million in Q2FY27, bringing H1FY27 revenue to Rs. 8,775 million, up 20.1% YoY. This top-line momentum was anchored by net contract gains of 11.0% in Q2 and 15.7% in H1, alongside like-for-like (LFL) sales growth of 6.6% and 5.3% for the respective periods.
Despite a broader dip in airport passenger traffic—which fell 4.8% YoY in Q2 and 2.2% in H1 across TFS-managed airports due to disruptions linked to the West Asia crisis—the company maintained positive system-wide LFL growth of 3.5% in Q2 and 2.2% in H1. Management attributed this resilience to ongoing menu enhancements and premiumisation strategies.
Operational expansion remained a key growth driver, with system-wide net contract gains reaching 11.1% YoY in Q2FY27 and 13.5% in H1FY27. Over the past 12 months, TFS mobilised more than 70 new units and expanded its lounge aggregation business, focusing on major hubs including New Delhi (Terminals 1 and 2), Cochin (Domestic Terminal 1), Navi Mumbai, Bhogapuram, and the newly opened Noida Airport.
Travel Food Services (TFS) expanded its system-wide airport presence to 22 locations and grew its Travel QSR portfolio to 535 outlets as of September 30, 2026. The company achieved this growth despite first-half industry headwinds—including geopolitical uncertainties, elevated airfares, and airline capacity adjustments—that weighed on passenger volumes and consumer confidence. TFS expects a gradual recovery in the second half driven by seasonally stronger demand and is leveraging supply chain efficiency and flexible staffing to ramp up new sites.
Over the past year, TFS added operations at Alluri Sitarama Raju International Airport in Bhogapuram, increasing its footprint from 18 airports. It also opened over 70 new QSR outlets across major hubs like New Delhi, Navi Mumbai, Cochin, and Noida, up from 464 outlets a year earlier. While the lounge portfolio shifted from 37 to 35 due to airport renovations, the company added 21 new in-house, regional, and international brands to reach a total of 156 brands, strengthening its ability to meet evolving traveller preferences.
Commenting on the Q2 & H1FY27 performance, Mr. Varun Kapur, Managing Director and CEO, TFS, said:”Despite a challenging quarter for passenger traffic and a volatile environment, TFS’ system-wide sales grew 18.8% year-on-year with healthy underlying profitability, demonstrating our portfolio’s resilience.
Over the past twelve months, we mobilised over 70 units and expanded to 22 airports. With many outlets ramping up and a strong pipeline ahead, alongside new avenues like EATS, we have clear visibility for sustained growth.
Looking ahead, our priorities are to deepen our presence at existing airports, scale across new and greenfield airports, and expand selectively into international lounges and expressways. Backed by a strong, debt-free balance sheet, TFS is well-positioned to capture long-term opportunities across the travel ecosystem.”
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