Key Financial Figures

Q4 FY26 Performance:

  • System-wide sales: ₹9 billion (27.7% YoY growth)
  • Consolidated PAT: ₹1.2 billion (15.1% YoY growth)
  • Consolidated revenue: ₹4.6 billion (25.7% YoY growth)
  • Gross profit margin: 87.3% (vs 83.0% YoY); adjusted for one-time reclassification would be 85.6%
  • EBITDA: Increased by 38.3% YoY
  • One-time provision for litigation: ₹78 million reclassification impact

Full Year FY26 Performance:

  • System-wide sales: ₹32.1 billion (25.4% YoY growth)
  • Adjusted consolidated PAT: ₹4.5 billion (21.5% YoY growth)
  • Consolidated revenue: ₹16.5 billion (13.9% YoY growth on adjusted basis)
  • Gross margins: 84.7% (vs 81.7% YoY)
  • EBITDA: ₹6.5 billion (21.3% YoY growth)
  • Like-for-like sales growth: 9.4% for system-wide, 6.3% for consolidated
  • Net contract gains: 13.1% for system-wide, 8.8% for consolidated

Revenue Mix:

  • Travel QSR: 55% of consolidated revenues
  • Lounges: 41% of consolidated revenues
  • Management and other services: 4% of consolidated revenues

Balance Sheet Position:

  • Zero-debt company
  • Cash and investments: ₹8.4 billion as of March 31, 2026
  • Trade receivables: Increased by approximately ₹1 billion due to EATS business ramp-up
  • Annual dividend: ₹10.25 per share proposed for FY26

Operational Highlights

Network Expansion:

  • Presence across 20 airports
  • System-wide footprint: 550+ travel QSR outlets and lounges
  • 76 travel QSR units mobilized in FY26 across Delhi, Mumbai, Ahmedabad, Cochin, and Navi Mumbai
  • New lounge opened at Cochin Airport
  • Kyra Lounge opened at Hong Kong International Airport in partnership with SSP and Airport Dimensions

Brand Portfolio:

  • Over 145 brands including global, regional, and in-house brands
  • New international brand partnerships: Gordon Ramsay, Nando's, Wagamama
  • In-house brands: idli.com, Cafeccino, Delhi Street
  • Regional partners: Sri Krishna Sweets, Bikanervala

Technology Initiatives:

  • EATS platform launched enabling direct bank-to-lounge access
  • Platform stabilization underway with plans to add ancillary services

Upcoming Projects:

  • Noida Airport operations commencement expected in coming months
  • Bhogapuram Airport (Vizag) contract: approximately 7 outlets planned
  • Pipeline: 50+ outlets in mobilization phase

Management Commentary

Industry Context:

  • FY26 marked by multiple disruptions: India-Pakistan conflict (May 2025), aircraft safety issues (June 2025), FDTL Crew Rest Regulations (December 2025), Middle East conflict (March 2026)
  • Passenger traffic growth: 1.2% YoY for full year FY26 across managed airports
  • Q4 passenger traffic broadly flat YoY due to Middle East conflict impact on international travel
  • Structural drivers remain strong: low air travel penetration, rising disposable incomes, airport infrastructure expansion

Operational Response:

  • Maintained operational continuity through disruptions
  • Reduced gas reliance, menu re-engineering, centralized supply chain management
  • Premiumization initiatives: regional menus, specialty beverages, value combos
  • Lounge enhancements: seasonal activations, thematic offerings, culinary masterclasses

International Expansion:

  • Subsidiaries established in Dubai (Middle East opportunities) and Indonesia
  • Existing presence in Malaysia (3 airports) and Hong Kong (2 lounges)
  • Leveraging relationships with global card networks and airlines

Outlook:

  • Near-term environment remains dynamic due to geopolitical developments and airline capacity changes
  • FY27 passenger traffic growth expectation: approximately 5% (industry estimates)
  • Capex guidance: ₹50-60 crores annually for FY27
  • Focus areas: mobilization of committed pipeline, international lounge expansion, expressway amenity opportunities

Q&A Session Highlights

Traffic Trends:

  • January 2026: strong performance
  • February 2026: started strong but ended muted
  • March-April 2026: impacted by Middle East conflict, particularly international traffic
  • May 2026: showing improving trends

Margin Outlook:

  • Gross margin expected to remain in 80-83% range
  • Inflationary impact anticipated from Middle East conflict on LPG prices
  • Input cost inflation manageable at 3-5% levels

Lounge Business:

  • Premium credit card segment growing >50% despite mass market card restrictions
  • Frequent flyers driving lounge visitation patterns

Receivables Management:

  • EATS business ramp-up increased receivables by ₹1 billion
  • Expected normalization by H1 FY27
  • Current outstanding: ₹264 crores vs normal 40-45 days outstanding

Regulatory Matters:

  • Litigation provision: ₹212 million provided conservatively despite strong case position
  • Delhi T3 concession: short-term 6-month extension received