Travel Food Services Ltd

Financial Performance

• System-wide sales: INR 8.4 billion, up 18% YoY.
• Consolidated revenue from operations: INR 4.5 billion, up 20.6% YoY.
• Consolidated LFL growth: 4.2%; ex-Mumbai and Guwahati ~7%.
• Net contract gains: 20.2%.
• Gross profit: INR 3.9 billion; gross margin 85.7%.
• Adjusted gross profit: INR 3.65 billion; adjusted margin ~81%.
• EBITDA: INR 1.6 billion; EBITDA margin 35.8%.
• PAT: INR 1.3 billion; PAT margin 28.5%.
• GST write-back: INR 131 million.

Operating Update

• Noida International Airport commenced operations; system-wide footprint 580 travel QSR outlets & lounges; 153 brands; 21 airports.
• 87 travel QSR outlets and 2 lounges added in the last 12 months.
• Elite Assist passenger services launched at Noida; integrated with EATS platform.
• Traffic commentary: domestic growth; international traffic weakness; overall quarter broadly flat YoY.
• 50 outlets under development across network; some in Delhi, Navi Mumbai, Bhogapuram, Cochin.
• Delhi T3 JV with GMR: transition to new SPV with 30% stake; not consolidated.

Balance Sheet and Cash

• Debt-free balance sheet; consolidated cash ~INR 9.7 billion as of 30 June 2026.
• Significant headroom to fund airport expansions, lounges, and passenger services.

Guidance and Outlook

• Bhogapuram Airport opening on 17 August; operate multiple outlets under JV GHL.
• Pipeline: over 50 outlets under development; expected to provide meaningful uplift to revenue and earnings as they open and mature.
• Maturity profile: existing running airports typically normalize in 12–18 months; greenfield 18–24 months.
• Long-term drivers of Indian aviation remain intact: rising travel penetration, expanding airport infrastructure, increasing connectivity, growing propensity to travel.
• Capital allocation: returns at maturity to mimic rest of portfolio; growth pursued only if sustainable long-term profits.

Q&A Highlights

• Q: What drives 4.2% LFL in Q1? A: LFL linked to passenger traffic; pricing was tempered; mix and new outlets contribute.
• Q: Economics of scale over 3–5 years; which lever dominates? A: Upfront investments in new/greenfield airports; normalization occurs after 12–24 months; volume/mix and contract terms matter.
• Q: 50 outlets under development; are they all in existing airports? A: Yes, largely in airports we have already announced; some in Delhi, Navi Mumbai, Bhogapuram.
• Q: Delhi T3 JV transition; impact on margins/revenue? A: JV structure changes; margins largely comparable; revenue share reflects ownership split.

Business Overview

• Integrated airport hospitality platform for Travel QSR and lounges across 580 outlets in 21 airports.
• Noida International Airport operations commenced June-2026; Elite Assist passenger services launched.
• Brand portfolio expanded to 153 brands as of Jun-26; system-wide lounges 39; outlets 541.
• Expressway QSR expansion and international lounge growth planned.
• Early entry into Noida airport with 6 outlets and 1 domestic lounge.

Operational Highlights

• Noida International Airport launched with 6 outlets and 1 lounge.
• System-wide network expanded to 21 airports; 580 outlets.
• Travel QSR outlets increased to 541; 87 outlets added in 12 months.
• Lounges total 39 system-wide; launches at Noida and Cochin; Elite Assist services rolled out.
• Awards and partnerships supporting growth; FIFA campaign across lounges and bars.

Financial Performance

• System-wide Sales ₹8,437 mn; YoY growth 18.0%.
• Consolidated Sales ₹4,522 mn; YoY growth 20.6%.
• Consolidated PAT ₹1,288 mn; YoY growth 35.6%.
• Gross Profit ₹3,877 mn; Margin 85.7%.
• EBITDA ₹1,619 mn; Margin 35.8%.
• PAT Margin 28.5%.
• EPS ₹9.60; YoY growth 38.1%.
• Consolidated Cash ₹9,698 mn; Debt NIL.

Capital Structure & Liquidity

• Debt-free with no material borrowings; cash balance ₹9,698 mn as at Jun-30-2026.
• Consolidated debt: NIL; strong cash reserves supporting growth opportunities.

Strategic Priorities & Outlook

• Sustain network expansion; ramp-up of new units and enhanced guest experience.
• Expand global lounge reach in APAC and Middle East markets.
• Leverage technology-enabled scalable platform; expand expressway QSR footprint.
• Phase rollout of additional passenger services at Noida as traffic ramps.

Risks & Mitigation

• Geopolitical tensions in the Middle East causing traffic volatility; viewed as transitory.
• Inflationary input costs; mitigated by integrated supply chain and agile operations.

Governance & Leadership

• No governance changes disclosed in this update.

Financial highlights

• Consolidated PAT rose 35.6% YoY to Rs 1,288 million in Q1FY27.
• Consolidated sales grew 20.6% YoY to Rs 4,522 million.
• System-wide sales increased 18.0% YoY to Rs 8,437 million.
• PAT margin improved to 28.5% from 25.3% prior year.
• GST write-back of Rs 131 million included in other income.

Operational expansion

• Noida International Airport commenced commercial operations; six QSR outlets and one lounge live.
• Network expanded to 21 airports as of June 30, 2026.
• System-wide Travel QSR outlets at 541; 87 added in past 12 months.
• Lounges increased to 39 system-wide; 153 brands in portfolio.
• Net contract gains rose 15.9% YoY due to new unit mobilisations.

Outlook and strategy

• Management expects passenger traffic growth to strengthen in H2 FY27 as conditions normalise.
• Long-term growth drivers—air travel penetration, airport expansion, connectivity—remain intact.
• Focus remains on disciplined execution, cost management, and operational efficiency.

Financial results approved

• Board approves unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Limited Review Report by B S R & Co. LLP furnished.
• Auditors issued unmodified limited review conclusions.

Licence expiry and going concern

• Delhi T3 licence expiry 30 Sep 2026; going concern maintained for Group.
• Group operates a single operating segment; revenue from Travel QSR outlets and lounges.

Share-based compensation

• Stock options: 284,522 granted; 279,870 outstanding; no new grants or forfeitures in quarter.
• No equity shares allotted under Travel Food Services ESOP.

Auditor conclusions

• Limited Review Report issued with unmodified conclusion.
• Annexure I lists entities included in unaudited consolidated results.

Key financial highlights

• Standalone results: revenue 3,474.26m; total income 3,934.29m; profit after tax 1,111.46m.
• Consolidated results: revenue 4,522.24m; total income 4,983.79m; profit after tax 1,287.54m.
• Standalone EPS: basic 8.44; diluted 8.42.
• Consolidated EPS: basic 9.62; diluted 9.60.

Meeting Details

• Date and time: 19 August 2026, 9:00 A.M. onwards.
• Type of interaction: One-to-One and Group meetings.
• Mode and venue: Physical meetings in Mumbai.
• Organizer: Motilal Oswal 22nd Annual Global Investor Conference.

Participants

• Key company participants: Company Secretary and Compliance Officer.

Purpose

• Purpose: Participation in investor conference discussions based on public information.
• Discussions will not disclose unpublished price-sensitive information.

Change in EATS auditors

• Shambhu Gupta & Co resigned as EATS statutory auditors, effective 11 August 2026.
• Board approved appointment of B S R & Co. LLP as EATS statutory auditors from 12 August 2026.
• Term: five years from the ensuing AGM until the sixth AGM, subject to shareholder approval.
• Casual vacancy arrangement approved; details in Annexures A and B and on the company website.

Meeting Details

• Date and time: Friday, Aug 14, 2026 at 2:00 p.m. IST.
• Type and mode: Group investor/analyst conference call (virtual).
• Event/organiser: Travel Food Services Limited hosting the Q1FY27 Results Conference Call.
• Key participants: MD & CEO; Whole-time Director & CFO; VP Investor Relations.
• Purpose: Discuss unaudited Q1FY27 results for quarter ended June 30, 2026.