Strong system-wide sales growth of 18.4% YoY along with an increase in consolidatedPATto Rs.979 million in Q2FY26, up 15.3% YoY on an adjusted basis 

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 Sep 30, 2025. 

Financial Performance (Rs. Million) 

*Q2FY25 and H1FY25 consolidated financials (and therefore consolidated YoY comparisons) are adjusted for the one-time effect of thedeconsolidation of the JV business. For more details refer Note 2. 

Key Financial Highlights – Q2FY26 & H1FY26 

⮚ System-wide Sales increased to Rs.7,284 million (up 18.4% YoY) in Q2FY26 and Rs.14,435million (up 22.4% YoY) in H1FY26 comprising: 

o Like-for-like (LFL)⁴ sales growth of 9.2% YoY in Q2FY26 and 10.4%YoYinH1FY26was driven by ongoing revenue enhancement initiatives, such as menu engineeringand targeted promotional activities. The performance was achieved despite passenger traffic across the system-wide airports declining marginally by 1%YoY in Q2FY26andshowing a modest 1.8% YoY increase in H1FY26. This was a consequenceof thereduced flight schedules due to additional maintenance and safety proceduresthat followed the tragic aircraft accident in Ahmedabad. Encouragingly, passenger trafficvolumes have begun to recover, with momentum gaining pace in recent weeks. 

⁵ of 9.3% YoY in Q2FY26 and 10.0% YoY in H1FY26 reflectedthe

o Net contract gains 

mobilisation of 50 travel QSR outlets in the last 12 months, mainly in the Mumbai, Delhi, Ahmedabad and Hyderabad airports. Additionally, 4 lounges have been mobilised, with 3 Lounges in India and 1 Lounge in Malaysia.

⮚ Consolidated sales increased to Rs.3,559 million (up 4.1% on an adjusted basis) inQ2FY26and Rs.7,309 million (up 5.2% on an adjusted basis) in H1FY26 consisting of: 

o LFL sales growth of 3.8% YoY in Q2FY26 and 4.7% YoY in H1FY26 which wasdrivenby ongoing revenue enhancement initiatives, despite the temporary slowdowninpassenger traffic. For TFS’ consolidated airports, passenger traffic declined 3.5%YoYin the quarter and was broadly unchanged over the first half, for the reasons explainedabove. 

o Net contract gains of 3.4% YoY in Q2FY26 and 0.3% in H1FY26. In the secondquarter, net contract gains benefitted from increase in mobilisation of new units at theTFS’ consolidated airports. For the first half, net contract gains were broadly flat, reflectingthe expiry of few contracts and subsequent pick-up of new contracts by thejoint venture. 

⮚ Consolidated PAT increased to Rs.979 million (up 15.3% YoY, on an adjusted basis) withaPAT margin of 27.5% (expanding by ~268bps) in the second quarter of the year andRs.1,929million (up 17.2% YoY, on an adjusted basis), with a PAT margin of 26.4%(expandingby~270bps) in the first half of the year. This increase was achieved through a combinationof sales growth, cost efficiency and step up in the share of profit of the associates andjoint ventures. 

⮚ Our balance sheet remains strong with no debt and a cash balance of Rs.7,490 million. Impact of the deconsolidation of the JV business 

Q2 and H1FY25 adjusted consolidated financials (and therefore YoY comparisons) exclude the one-timeimpact arising prior to the deconsolidation of the JV, Semolina Kitchens Limited, effective October 14, 2024. Therefore, for FY25, we will continue to adjust for the impact of deconsolidation up to the anniversaryi.e., October 14, 2025. 

Key Operational Highlights 

⮚ Travel QSR Outlets and Lounges 

o Brand portfolio has expanded to 135 brands by Sep-25 at a system-wide level, after addition of 16 exciting new brands in the last year. 

o As of Sep-25, footprint scaled to 464 Travel QSR outlets (up from414 as of Sep-24) and 37 Lounges (up from 33 as of Sep-24) across domestic & international airports. 

o TFS, in partnership with celebrity chef Gordon Ramsay, unveiled India’s first GordonRamsay Street Burger outlet at Delhi’s Indira Gandhi International Airport (T1) inAug-

25. 

⮚ New Business 

o Awarded a new contract to operate 11 Travel QSR outlets and 1 lounge at CochinInternational Airport Domestic Terminal in Sep-25. With this win, TFS will increaseitspresence to 14 out of 15 top busiest airports in India. 

o Elite Assist Technology & Services Private Ltd, a wholly owned subsidiary of TFS, hasenabled a technology platform for direct integration with banks & card networksfor providing lounge access to their card customers. 

o Additionally in Oct-25, contract has been awarded to operate 14 Travel QSRoutletsat Terminal 2 of Indira Gandhi International Airport, New Delhi.

Commenting on the Q2 & H1FY26 performance, Mr. Varun Kapur, Managing Director andCEO, TFS, said: 

‘This quarter has been marked by robust execution of operations and mobilisation of newsites, takingusover the 500-outlet mark, thereby reinforcing our leadership position in the sector. With our continuedfocus on driving profitable growth, we delivered a strong financial performance with system-widesalesgrowth of 18.4% YoY and adjusted consolidated PAT increase of 15.3% YoY in Q2FY26, despite ashort term moderation in passenger traffic. We also successfully enabled a new technology platform, whichdirectly integrates banks & card networks for lounge access to travellers, delivering a seamless experience. 

Passenger growth is currently recovering following the temporary slowdown seen since June-25, andweare focused on executing our plans and strategic initiatives to drive business growth, as we enter theseasonally stronger second half. We recently began operations at the reopened Delhi Terminal 2andarewell prepared to commence operations at Cochin International Airport, and the newly built Noida andNavi Mumbai airports. 

We are proud of our achievements to date, and we are equally excited about the future & buildingour business to create value for all our stakeholders.’ 

Notes: 

1. TFS system-wide numbers (including system-wide sales) are based on TFS’ system-wide presence covering TFS, itssubsidiaries, associates and joint ventures. 

2. Q2FY25 adjusted consolidated sales exclude Rs.1,672 million and H1FY25 adjusted consolidated sales exclude Rs.2,336 million Semolina Kitchens sales, however related party transaction elimination of Rs.87 million and Rs.180million with Semolina Kitchens has been added back for the respective periods. Similarly, adjusted consolidatedPATexcludes net profit of Rs.339 million for Q2FY25 and Rs.72 million for H1FY25 from Semolina Kitchens, but includesprofit in proportion to TFS’ current shareholding in the JV (i.e. Rs.85 million and Rs.18 million, respectively). 

3. Cash Balance includes Cash and Cash Equivalents, other Bank balances and Current Investments. 

4. LFL (Like-for-Like) sales growth refers to growth in revenues generated in the equivalent period of the fiscal year for Travel QSR and Lounge outlets opened for at least 12 months. Revenues in respect of closed outlets (other than temporary closures) are excluded from the calculation. LFL sales growth is calculated as revenue fromTravel QSRand Lounge services in a fiscal year minus revenue from Travel QSR and Lounge outlets opened for less than 12 months, divided by the revenue from Travel QSR and Lounge services from the previous period minus the Revenuefrom Travel QSR and Lounge outlets that were closed during the equivalent period in the previous fiscal year. LFLcalculations exclude revenues from management and other services. 

5. Net Contract Gains represent revenue in outlets of the Company, and its Subsidiaries/JVs/Associates open for less than 12 months. Prior period revenues for closed outlets are excluded from LFL sales and classified as contract losses. Net Contract Gains are contract gains less contract losses. 

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