Travel Food Services Limited (NSE: TFS), India’s leading operator of travel quick-service restaurants (QSRs) and lounges, announced strong unaudited consolidated results for the third quarter and nine months ended December 31, 2025. Consolidated profit after tax (PAT) surged to Rs. 1,368 million in Q3 FY26, up 35.3% year-over-year (YoY) on an adjusted basis and 32.6% on a reported basis. This performance highlights resilient sales growth and operational efficiency despite aviation sector headwinds.
Strong System-Wide Sales Momentum
System-wide sales reached Rs. 8,754 million in Q3 FY26, reflecting 28.1% YoY growth, and Rs. 23,189 million for 9M FY26, up 24.5% YoY. Key drivers included like-for-like (LFL) sales growth of 12.5% YoY in the quarter and 12.2% in 9M, fueled by product enhancements, menu optimizations, and a 1.6% YoY rise in passenger traffic at TFS-managed airports. Traffic rebounded from Q2 declines due to aircraft maintenance issues post a June 2025 incident, with brief December disruptions proving short-lived.
Net contract gains contributed 13.5% YoY in Q3 and 10.2% in 9M, driven by mobilizing over 50 travel QSR units in the past year at high-traffic hubs like Mumbai, Delhi, Ahmedabad, and Hyderabad.
Consolidated sales hit Rs. 4,562 million in Q3 FY26 (18.3% YoY adjusted growth) and Rs. 11,871 million in 9M FY26 (9.9% adjusted). LFL growth was 7.1% in the quarter and 5.5% in 9M, supported by sales initiatives amid flat 9M traffic. Net contract gains added 12.3% in Q3 but moderated to 4.6% in 9M due to JV shifts post deconsolidation of Semolina Kitchens Ltd. effective October 14, 2024.
Profitability Expansion and Margin Gains
Consolidated PAT for 9M FY26 climbed to Rs. 3,297 million, a 24.1% YoY adjusted increase. Q3 PAT margin improved to 30.0% from 26.2% YoY, while 9M margin rose to 27.8% from 24.6%. Efficient execution and higher joint venture profit shares drove these gains, offsetting prior JV deconsolidation impacts in FY25 comparisons.
Operational Scale-Up and Network Growth
TFS’s system-wide network expanded to over 530 travel QSRs and lounges by December 2025, featuring 140 brands—up with additions like Gordon Ramsay and Nando’s. Travel QSR outlets grew to 494 from 441 YoY, and lounges to 37 from 35.
New wins included 14 outlets at Delhi’s IGI Terminal 2 via subsidiary TFS Gurgaon, operations at Navi Mumbai International Airport through Semolina Kitchens (now at 19 airports system-wide), and a January 2026 license for 33 units at IGI Terminal 1.
Upcoming mobilizations at Cochin Domestic Terminal and Noida Airport, plus scale-up at Delhi Terminals 1 & 2, position TFS for sustained growth. The second KYRA Lounge opened at Hong Kong International Airport in January 2026.
Tech advancements shone through subsidiary Eliteassist Technology and Services Pvt. Ltd. (EATS), integrating bank-to-lounge access with multiple networks.
Leadership Outlook
Mr. Varun Kapur, Managing Director and CEO, stated: “We maintain our trajectory of delivering strong performance, with system-wide sales growth of 28.1% YoY and adjusted consolidated PAT increase of 35.3% YoY in Q3FY26. Improving passenger traffic trends, coupled with disciplined execution, and an increase in the contribution from new sites, have been the growth drivers for the business.” “Our continued emphasis on leveraging technology as a catalyst for business growth – exemplified by our EATS platform enabling direct bank-to-lounge access – marks an important step in our evolution into a tech-enabled, scalable travel hospitality company.”
“With the commencement of operations at the Delhi Airport (Terminal 2) and Navi Mumbai International Airport, we now operate a strong network of over 530 units and have built a portfolio of 140 brands as of December-25. Additionally, the mobilization of units in the new year at Cochin Airport (Domestic Terminal), recent wins at Delhi Airport (Terminal 1), and the upcoming Noida Airport are expected to further strengthen our market leadership position.”
“Driven by these strong contract wins and their execution being translated into on‑ground expansion, we are well positioned to deliver continuing returns for the business.”