- System-wide sales were Rs. 8,437 million in Q1FY27, growing 18.0% YoY despite passenger traffic being impacted by disruptions arising from the Middle East conflict
- Consolidated sales were Rs. 4,522 million and Consolidated PAT was Rs. 1,288 million in Q1FY27, recording growth of 20.6% and 35.6% YoY, respectively
- Successfully commenced commercial operations at Noida International Airport and launched a suite of passenger services during the quarter, expanding the system-wide network to 21 airports as of June 30, 2026
- Now operating a system-wide network of 580 Travel QSR outlets and Lounges, with a portfolio of 153 brands as of June 30, 2026
National: Travel Food Services Limited, a leading operator of Travel QSR outlets and lounges in India, announced its results for the first quarter of the financial year 2026-27.
Financial Performance (Rs. Million)
| Particulars | Q1FY27 | Q1FY26 | YoY |
| System-wide Sales | 8,437 | 7,151 | 18.0% |
| Consolidated Sales | 4,522 | 3,751 | 20.6% |
| Consolidated PAT | 1,288 | 950 | 35.6% |
| Consolidated PAT as % of Consolidated Sales | 28.5% | 25.3% | 315bps |
Key Financial Highlights – Q1FY27
System-wide sales were Rs. 8,437 million, up 18.0% YoY during the quarter:
- Net contract gains3 were 15.9% YoY at a system-wide level, driven by mobilisation of new units. In the last 12 months, 87 new Travel QSR outlets and 2 Lounges were added across the network. Key unit additions were at the Mumbai, Delhi, Hyderabad, Cochin and recently opened Navi Mumbai and Noida airports.
- Like-for-like (LFL)² sales growth was 0.8% YoY at a system-wide level. Growth was moderated by temporary factors in certain markets, including traffic migration to newer airports/terminals and the impact of the Middle East conflict on airports especially in Southern India, which had higher exposure to the region. Excluding these markets, system-wide LFL sales growth was approximately 7.0% YoY, reflecting the benefits of multiple initiatives undertaken to enhance passenger spend and drive sales growth.
- In terms of overall passenger traffic at TFS-managed airports, traffic was broadly flat YoY in Q1FY27, as the continuing conflict in the Middle East weighed on flight schedules, though the rate of decline eased through June 2026.
- While the first quarter was impacted by the continuing conflict in the Middle East, resulting in input cost pressures and weaker passenger traffic trends, we expect passenger traffic growth to improve strongly in the second half of the financial year as operating conditions are expected to normalise. In the interim, TFS remains focused on disciplined execution, prudent cost management, and operational efficiency to navigate the near-term environment. Importantly, we believe the long-term growth drivers of Indian aviation remain firmly intact, supported by rising air travel penetration, continued airport infrastructure expansion, increasing connectivity, and a growing propensity to travel.
Consolidated sales were Rs. 4,522 million, up 20.6% YoY in Q1FY27, mainly driven by:
- Net contract gains of 20.2% YoY during the quarter, driven by the mobilisation of new units at TFS consolidated airports, including Delhi Airport (Terminal 1 and Terminal 2), Cochin Airport (Domestic Terminal 1), and the recently opened Noida Airport.
- LFL sales growth of 4.2% YoY was impacted by the moderation in passenger traffic at certain airports due to Middle East conflict, however, the impact was offset by our menu innovation initiatives, targeted promotions and calibrated premiumisation strategies.
Consolidated PAT was Rs. 1,288 million in Q1FY27, up 35.6% YoY, with a PAT margin of 28.5% compared with 25.3% in the prior year. PAT growth was supported by sales growth and higher other income. In Q1FY27, other income included a partial write-back of GST provisions of Rs. 131 million, following a favourable order received during the quarter.
Commenting on the Q1FY27 performance, Mr. Varun Kapur, Managing Director and CEO, TFS, said: ‘Q1FY27 was a strong quarter for TFS, with sales and profitability delivering double-digit growth despite a challenging operating environment impacted by disruptions arising from the Middle East conflict. The quarter reflects the benefits of our ongoing network expansion and continued focus on operational excellence across the business. During the quarter, we commenced operations at Noida International Airport, launching multiple Travel QSR outlets, the airport’s first Lounge, and new passenger-facing services under our Elite Assist brand, further strengthening our presence across key airport locations.
While the quarter was affected by external disruptions beyond our control, TFS has consistently demonstrated its ability to navigate periods of volatility through operational agility and disciplined execution. Historically, passenger traffic and consumer spending trends have recovered quickly following such events, and we expect a similar recovery as geopolitical uncertainties ease. We remain focused on driving productivity across our existing network, accelerating the ramp-up of newly opened locations, progressing the development of our strong pipeline of new units, enhancing the customer experience, and scaling our emerging service offerings. As operating conditions normalise, we believe these initiatives position us well to deliver sustained growth and create long-term value for our stakeholders.’
Leave a Reply