The Initial Public Offering (IPO) of Travel Food Services Ltd (TFS), a leading player in India’s airport food and lounge services space, has received strong backing from brokerages, with Anand Rathi, SBI Securities, and Nirmal Bang all recommending a ‘Subscribe’ to the public issue. The company operates a wide network of Travel QSRs and lounges across airports in India, Malaysia, and Hong Kong, and has built a reputation for offering high-quality food and beverage services tailored for travellers.
Analysts are bullish on TFS’s business model, which capitalizes on the exponential growth of India’s aviation sector and rising consumer spending at airports. The company holds a 26% market share in India’s airport QSR segment and a dominant 45% share in the airport lounge space, as per the CRISIL Report for Fiscal 2025. Its presence spans 14 key Indian airports—including Delhi, Mumbai, Bengaluru, and Chennai—as well as highway locations and overseas hubs.
In its IPO note, SBI Securities called TFS “a proxy to the Indian aviation growth story,” pointing to its strong airport footprint and upcoming wins at Noida and Navi Mumbai airports. The brokerage noted that at the upper price band of ₹1,100, the stock is valued at 39.9x FY25 EPS, which is at a discount to listed QSR peers. Backed by superior margins, robust return ratios, and a healthy balance sheet, SBI recommended investors to subscribe to the issue at the cut-off price.
Nirmal Bang in an IPO note to clients highlighted TFS’s “compelling growth opportunity” due to its strong retention rate of 93.9%, expansion into new airports and highways, and plans to scale its international lounge brand ARAYA. The firm reported that TFS posted 63% revenue CAGR and 87.9% EBITDA CAGR over FY22-25 and boasts a ROCE of 51.4%. With the IPO priced at 25x EV/EBITDA, below the industry average of 28.6x, Nirmal Bang issued a ‘Subscribe’ recommendation, citing attractive valuations and leadership positioning.
Meanwhile, Anand Rathi praised the company’s dominance in both Travel QSR and Lounge formats, with 384 of its 413 active outlets located at airports. The brokerage said the company is well-positioned to benefit from the under-penetration of air travel in India, and is actively working to improve product offerings, customer experience, and space utilization. At a P/E of 38.2x FY25 EPS and a post-issue market capitalization of ₹14,484.7 crore, Anand Rathi said the IPO is fully priced but backed by strong fundamentals and long-term potential, leading to a ‘Subscribe – Long Term’ recommendation.
Other brokerages that have recommended a ‘Subscribe’ rating on the IPO include Ajcon Global, Arete Securities, BP Wealth, CanMoney, Eureka Stock & Share Broking, GEPL Capital, Kunvarji Wealth, Marwadi Financial Services, and Ventura Securities, reinforcing broad-based institutional confidence in the company’s growth prospects.
The company reported a 27.35% YoY increase in profit to ₹379.66 crore in FY25 on the back of 20.87% revenue growth, underscoring the scalability and strength of its operations. With a diversified portfolio of 127 brands, a robust concession pipeline, and continued growth in passenger traffic, TFS’s public issue is seen by analysts as a gateway to participate in India’s next phase of airport-led consumption.
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