TFS delivers 18.8% YoY system-wide sales growth in Q2FY27 amid passenger traffic headwinds and Consolidated PAT increases to Rs.1,473 million in the second quarter

Key Highlights

• Strong system-wide1 sales growth, with sales increasing by 18.8% YoY in Q2FY27 and 18.4% YoY in H1FY27, despite a decline in passenger traffic
• Consolidated PAT increases to Rs.1,473 million in Q2FY27 and Rs.2,761 million in H1FY27, from Rs.979 million in Q2FY26 and Rs.1,929 million in H1FY26
• Presence expanded to 22 airports as of September 30, 2026, with the commencement of operations at Alluri Sitarama Raju International Airport, Bhogapuram, further strengthening the system-wide network
• Strong balance sheet with no debt, supported by a cash balance2 of Rs.10,309 million as of September 30, 2026
• Focused on scaling operations across existing and new airports including greenfield opportunities, alongside expansion of the EATS ecosystem, thereby strengthening the platform for future growth as passenger traffic improves

Travel Food Services Limited (TFS), a leading operator of Travel QSR outlets and Lounges in India, announces its results for the second quarter and the first half-year ended September 30, 2026.

Financial Performance (Rs. Million)

Particulars	Q2FY27	Q2FY26	YoY	H1FY27	H1FY26	YoY
System-wide Sales	8,654	7,284	18.8%	17,090	14,435	18.4%
Consolidated Sales	4,253	3,559	19.5%	8,775	7,309	20.1%
Consolidated PAT	1,473	979	50.5%	2,761	1,929	43.2%
Consolidated PAT as % of Consolidated Sales	34.6%	27.5%	714bps	31.5%	26.4%	508bps

Key Financial Highlights – Q2FY27 & H1FY27

System-wide sales increased to Rs.8,654 million (up 18.8% YoY) in Q2FY27 and Rs.17,090 million (up 18.4% YoY) in H1FY27, driven by a combination of net contract gains3 and Like-for-like (LFL) sales growth4.

• Net contract gains were 11.1% YoY in Q2FY27 and 13.5% YoY in H1FY27, supported by the mobilisation and ramp-up of new units across airports and contribution from the lounge aggregation business. Over the last one year, more than 70 units have been mobilised, primarily across New Delhi, Cochin, Navi Mumbai, Noida and Bhogapuram airports.
• LFL sales growth was 3.5% YoY in Q2FY27 and 2.2% YoY in H1FY27 at the system-wide level. During the quarter, while passenger traffic declined at TFS-managed airports due to factors influenced by the West Asia crisis, LFL sales growth has been supported by menu enhancement and premiumisation initiatives. On a system-wide basis, passenger traffic declined by 4.8% YoY for the second quarter and 2.2% YoY for the first half of the year.

Consolidated sales stood at Rs.4,253 million (up 19.5% YoY in Q2FY27), and Rs.8,775 million (up 20.1% YoY in H1FY27) mainly driven by:

• Net contract gains of 11.0% YoY in Q2FY27 and 15.7% YoY in H1FY27, supported by the mobilisation of new units and contribution from the lounge aggregation business. In the last 12 months, new units have been mobilised at the Delhi Airport (Terminal 1 and Terminal 2), Cochin Airport (Domestic Terminal 1), and the recently opened Noida Airport.
• LFL sales grew 6.6% YoY in Q2FY27 and 5.3% YoY in H1FY27, supported by our continued focus on premiumisation and menu optimisation, despite a decline in passenger traffic.

Consolidated PAT was Rs.1,473 million in Q2FY27 and Rs.2,761 million in H1FY27, representing YoY increases of 50.5% and 43.2%, respectively. Profitability was supported by sales growth, higher other income and an increase in share of profit from joint ventures. PAT included write-back of provisions (net of tax) amounting to ~Rs.468 million in Q2FY27 and ~Rs.566 million in H1FY27 (also includes a partial GST provision write-back of ~Rs.98 million (net of tax) recognised in Q1FY27).

Our balance sheet remains strong and debt-free, supported by a strong liquidity position with cash balance of Rs.10,309 million as of September 30, 2026.

Operating Environment and Industry Dynamics

• Geopolitical uncertainties, elevated airfares, changes in airline schedules and capacity rationalisation weighed on passenger volumes and travel patterns in the first half. This has also led to inflationary pressures and hampered consumer confidence. However, the operating environment is expected to improve gradually in the second half, supported by the potential easing of geopolitical pressures and seasonally stronger travel demand. While the pace of recovery in passenger traffic remains a key monitorable, these factors should provide a more favourable backdrop for travel volumes.
• TFS continues to navigate the evolving environment through strong execution, an efficient supply chain, and flexible manpower deployment. The Company remains focused on driving productivity across the existing network, ramping up recently opened locations, progressing its development pipeline and scaling new growth initiatives, positioning the business well for continued growth as passenger traffic improves.

Key Operational Highlights

• TFS expanded its airport presence to 22 airports as of September 30, 2026, on a system-wide basis (from 18 airports as of September 30, 2025), with start of operations at Alluri Sitarama Raju International Airport, Bhogapuram.
• The system-wide Travel QSR portfolio expanded to 535 outlets as of September 30, 2026, from 464 outlets a year earlier, with over 70 outlets added across New Delhi, Navi Mumbai, Cochin, Noida and other key airports. The lounge portfolio stood at 35 lounges, compared with 37 lounges a year earlier, primarily reflecting closures related to terminal transitions and airport infrastructure renovations.
• Our brand portfolio expanded to 156 brands as of September 30, 2026, on a system-wide basis, with 21 in-house, regional and international brands added over the last 12 months. The broader portfolio enhances our ability to curate the right brand mix across locations and address evolving traveller preferences.
• Under Elite Assist Technology and Services Private Ltd. (EATS), we continue to broaden the EATS ecosystem by extending lounge access distribution beyond banking and card-network channels.
• For the second consecutive year, Kyra Lounge at Hong Kong International Airport has been named Asia’s Leading Airport Lounge at the World Travel Awards 2026.

Commenting on the Q2 & H1FY27 performance, Mr. Varun Kapur, Managing Director and CEO, TFS, said: ‘It was one of the most challenging quarters for passenger traffic in recent periods, amid an unusually volatile operating environment. Despite these headwinds, TFS’ system-wide sales grew 18.8% year-on-year and the business continued to deliver healthy underlying profitability, demonstrating the resilience of our portfolio and expanding network. This performance reinforces our confidence in the business and its ability to grow through periods of near-term volatility.

Our strategy remains focused on strengthening the core while building the next phase of growth for TFS. Over the last twelve months, we have mobilised more than 70 units and expanded our presence to 22 airports. Many of these are still ramping up, and with a significant pipeline of outlets yet to be mobilised across new and existing airports, we have good visibility of continued growth as these operations mature. Alongside this, we continue to develop new growth avenues in passenger services, including EATS.

Looking ahead, our priorities remain clear: deepen our presence at existing airports, scale operations across new and greenfield airports, and selectively expand beyond our core, particularly in international lounges and expressways. With a strong, debt-free balance sheet and an expanding network, we believe TFS is well positioned to capture the long-term growth opportunities across the aviation and broader travel ecosystem.’