Travel Food Services Limited – Investor Presentation Summary

Key Operational Highlights

  • System-wide presence expanded to 22 airports as of September 2026, up from 18 airports a year earlier
  • Operates a network of 570 Travel QSR outlets and lounges as of September 2026 (535 Travel QSR outlets and 35 lounges)
  • Travel QSR portfolio increased from 464 outlets in September 2025 to 535 outlets in September 2026
  • Added 70+ outlets across New Delhi, Cochin, Navi Mumbai, Noida, Bhogapuram and other key airports
  • Enhanced brand portfolio to 156 brands as of September 2026, adding 21 new brands over last 12 months
  • Commenced operations at Alluri Sitarama Raju International Airport, Bhogapuram on August 17, 2026 through JV GMR Hospitality Limited
  • Launched 6 Travel QSR outlets at Bhogapuram airport with additional outlets under fit-out

Key drivers of operational performance: Network expansion to new airports, mobilisation of new units across existing airports, menu innovations and calibrated premiumisation strategies

Financial Highlights

Q2FY27 Performance:

  • Revenue: ₹4,253 million (consolidated sales)
  • Gross Profit: ₹3,649 million
  • Gross Profit Margin: 85.8% (80.7% excluding lounge aggregation business accounting impact)
  • EBITDA: ₹1,579 million
  • EBITDA Margin: 37.1%
  • PAT: ₹1,473 million
  • PAT Margin: 34.6%
  • EPS: Not specified

H1FY27 Performance:

  • PAT: ₹2,761 million, up from ₹1,929 million in H1FY26

YoY comparison Q2FY27:

  • Consolidated Sales: +19.5% YoY (from ₹3,559 million)
  • Gross Profit: +22.1% YoY (from ₹2,987 million)
  • EBITDA: +16.8% YoY (from ₹1,352 million)
  • PAT: +50.5% YoY (from ₹979 million)

Drivers of financial performance: System-wide sales growth of 18.8% YoY, higher other income, write-back of provisions amounting to ₹468 million (net of tax) in Q2FY27, increased share of profit from JVs

System-wide Performance:

  • System-wide sales: ₹8,654 million in Q2FY27 (+18.8% YoY)
  • System-wide sales: ₹17,090 million in H1FY27 (+18.4% YoY)
  • Like-for-like sales growth: 3.5% YoY in Q2FY27, 2.2% YoY in H1FY27
  • Net contract gains: 11.1% YoY in Q2FY27, 13.5% YoY in H1FY27

Key Risks: Geopolitical uncertainties, higher input costs, inflationary pressures, passenger traffic volatility, capacity rationalisation by airlines, higher airfares

Balance Sheet Snapshot

  • Cash Balance: ₹10,309 million as on September 30, 2026 (includes Cash and Cash Equivalents, other Bank balances and Current investments)
  • Net Debt/Equity: Not specified
  • Reserves: Not specified
  • Current Assets/Liabilities: Not specified

Financial Health Insights: Strong, debt-free balance sheet, healthy cash position

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified

Investment Rationale: Focus on capacity expansion across new and existing airports, technology upgrades through EATS platform development

Strategic & R&D Initiatives

Investments in Innovation: Scaling EATS platform to extend lounge access distribution beyond banking and card-network channels

Expected impact on growth: Continued expansion of network and outlet mobilization provides visibility of continued growth as operations mature

Strategic Rationale: Deepen presence at existing airports, scale operations across new and greenfield airports, selectively expand beyond core into international lounges and expressways

Industry Trends & Business Environment

Macro/Industry Trends: Passenger traffic decline of 4.8% YoY in Q2FY27 at TFS-managed airports due to geopolitical uncertainties, higher airfares and capacity rationalisation by airlines; Domestic passenger traffic more significantly impacted than international

Impact on Company: Softness in passenger traffic partially offset by revenue optimization initiatives and network expansion; Expected easing of geopolitical pressures and seasonally stronger travel demand in second half of year

Management Commentary & Growth Outlook

Strategic Outlook: "Our strategy remains focused on strengthening the core while building the next phase of growth for TFS" - Varun Kapur, MD & CEO

FY Guidance: Not specified

Market Share Targets: Not specified

Risks and Opportunities: Near-term passenger traffic and consumption trends may remain volatile, but long-term growth drivers of Indian aviation sector remain intact