Travel Food Services Ltd (NSE: TRAVELFOOD) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Ashutosh Joytiraditya — Equity Analyst
Chhavi Agarwal — Vice President – Investor Relations
Varun Kapur — Managing Director and Chief Executive Officer
Vikas Vinod Kapur — Whole Time Director and Chief Financial Officer
Analysts:
Naim Patel — Analyst
Aachal Pal — Analyst
Dhiraj Mistry — Analyst
Purva — Analyst
Aman A. Bbaheti — Analyst
Rahul Agarwal — Analyst
Vatsal Dujari — Analyst
Praneeth Kumar Reddy Acholu — Analyst
Akshay Krishnan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Travel Food Services Limited Q3FY26 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashutosh Jyotiraditya. Thank you. And over to you sir.
Ashutosh Joytiraditya — Equity Analyst
Thank you. Huda. Hello and good afternoon everyone present on the call. I on behalf of ICICI securities welcome you on Travel Food Services Limited Q3FY26 earnings call. I now hand the call over to Ms. Shavi Agarwal from Travel Food Services for further remarks. Thank you.
Chhavi Agarwal — Vice President – Investor Relations
Thank you Ashutosh and good afternoon everyone. Welcome and thank you for joining us on the Travel Food Service Limited earnings conference call for the third quarter ended December 31, 2025. I have with me Mr. Varun Kapoor, Managing Director and CEO and Mr. Vikas Vinod Kapoor, full time Director and CFO of PFS. We will start the call with management presenting their perspective on the company’s operational and financial performance during the quarter. Post that we will open the forum for the question and answer session. Before we proceed, here is a disclaimer to the call. A few statements by the company’s management in the call can be forward looking in nature and we request you to refer to the disclaimer in the earnings presentation for further details.
Now I would like to hand over the call to Mr. Varun Kapoor for opening remarks. Thank you.
Varun Kapur — Managing Director and Chief Executive Officer
Thanks Shavit. Good afternoon ladies and gentlemen and thank you for joining us for today’s earnings call. We appreciate your continued interest in our company and its long term growth journey. We hope you had the opportunity to go through our Q3 results and the presentation that was released yesterday as well. So starting off, I’m pleased to share that Q3 was an excellent quarter for the company characterized by strong financial performance. We delivered robust sales growth with system wide sales increasing by 28.1% year on year to 8.75 billion rupees. This impressive growth was primarily driven by successful mobilization of more than 50 units over the last 12 months driven by strong sales momentum as well as our efforts on cost efficiency.
We have achieved a 35.3% year on year increase in our adjusted PAT in the quarter showcasing the continued strength of our business model and our market leadership. Moving to passenger traffic trends. The third quarter is seasonally the strongest period of the year driven by festive and holiday travel demand. In line with this trend, the quarter began with a visible rebound in passenger traffic during October and November following the softness observed as we’ve all seen in the preceding quarter due to aircraft maintenance related issues. This positive trajectory was briefly disrupted at the start of December due to airline related operational challenges arising from the implementation of the FDTL regulations.
These were the E Crew Restrictions regulations which temporarily led to flight restrictions for the country’s largest airline, so this resulted in short term moderation in passenger volumes. However, the impact was short lived. Underlying demand fundamentals remained robust and traffic trends in recent weeks indicated an immediate passenger volume recovery for TFS operated airports. Passenger Traffic increased by 1.6% year on year in quarter three reflecting an improvement compared to the nearly 1% year on year decline seen in quarter two. A point of note that during the temporary disruption in December, we ensured uninterrupted food service to affected passengers through proactive planning and operational action on the ground.
Our centralized operations framework, supply chain efficiencies, master concession structure across airports and the scale of our operations proved highly supportive to the airport clients and passengers during this challenging period. We had real time monitoring of flight cancellations and delays, followed dynamic stock planning along with closely monitoring the manpower redeployment across lounges and travel QSR outlets. This helped us meet the unpredictable food and beverage requirements at the airport during those days, thereby allowing us to maintain service continuity despite heightened congestion and operational complexity. While the business continues to be highly agile to tackle such challenging situations, our growth has been continuing at a robust pace with our system wide footprint now expanded to over 530 travel QSR outlets and lounges with the addition of about 30 units during the quarter.
This continued expansion further strengthens our market leadership position in the Travel F and B segment. Our brand portfolio now spans 140 brands with 15 new brands added over the past year including famous celebrity led brands such as Gordon Ramsay, Street Burger and Street Pizza currently launched at Delhi and Mumbai airports as well as internationally acclaimed brands like Nando’s, enhancing both the debt and premium positioning of our offerings. During the quarter we operationalized 14 travel QSR outlets at Terminal 2 of Delhi Airport offering a curated mix of regional and international cuisines. Additionally, we commenced operations at Navi Mumbai International Airport through our joint venture, further increasing our presence in 19 airports.
These milestones significantly strengthen our footprint across India’s two largest aviation markets, Delhi and Mumbai, reinforcing our strategic position in high traffic high growth hubs. I would like to highlight, as reiterated in earlier calls as well, that we remain strongly focused on leveraging technology to drive business growth. Through our EATS platform, we have enabled Direct bank to lounge access as an integrated service. This marks an important step in our evolution of becoming a tech enabled scalable travel hospitality company. Further, as spoken about in the previous quarter, we continue to focus on revenue optimization initiatives and targeted promotions aimed at increasing throughput and premiumizing our offerings.
For example, we launched premium sleeping pods at the Bangalore International Airport Lounge with this wellness offering designed to elevate passenger comfort while creating an incremental experience led revenue stream within our lounge portfolio. In addition, we introduce innovative and engaging customer centric initiatives such as Signature filter Coffee and automated cocktail dispensers, enhancing the passenger experience through differentiated offerings. These initiatives not only drive higher passenger engagement as well as spend per packs, but also reinforce our position as a premium and innovative travel QSR player. Turning to our international growth strategy, we are actively pursuing lounge opportunities across the Asia Pacific and Middle east markets where we see significant long term potential.
We have already established a presence in Malaysia and Hong Kong demonstrating our ability to successfully enter and operate in competitive international markets. Most recently we opened our second Kaira Lounge at Hong Kong International Airport marking an important step in our continued global expansion journey and reaffirming our ability to build strong relationship with airport operators and other clients. As a preferred partner of choice, we commenced operations at a domestic terminal of Cochin International Airport on schedule with additional outlets expected to be launched through the year. We also secured the contract to operate 33 travel QSR units at Terminal 1 of the Delhi airport for 11 years which included extensions for existing outlook being operated there.
With this win, we have further strengthened our presence across all three terminals at the Delhi Airport. In addition to this, we are excited to be close to launching new outlets at the GREENFIELD terminals at Noida Airport and through our JV at Guwahati Airport as well, further contributing to a robust committed pipeline in the period ahead. Therefore, before concluding, I would like to mention that our focus remains firmly on sustaining our strong growth trajectory and continuing our financial outperformance. This momentum is expected to be driven by disciplined execution across our existing business, continued operational excellence and the successful mobilization of our recent wins.
So thank you ladies and gentlemen. Now I’ll request our CFO Vikas to walk you through the financial performance of the company in more detail.
Vikas Vinod Kapur — Whole Time Director and Chief Financial Officer
Thank you Varun and good afternoon everyone. As highlighted in our earlier call, I would like to reiterate that our JV entity, Semolina Kitchens was part of our consolidated financials for the first half and part of Q3 of FY25 and was subsequently deconsolidated as planned effective October 14, 2024. Accordingly, to ensure a like for like comparison and consistency in performance evaluation, the third quarter and first nine month numbers have been adjusted to exclude the contribution of Semolina Kitchens. The details of these adjustments have been shared in the presentation. The third quarter is seasonally strong for the business and the scale up of recent business wins is also reflected in our performance during the quarter.
System wide sales reached 8.75 billion registering a 28% year on year increase. Like for like, sales growth stood at 12.5% at TFS managed airports on a system wide basis supported by strong execution across both domestic and international markets. Net contract gains increased by 13.5% year on year driven by mobilization of the new site. Moving to the consolidated numbers, Consolidated sales reached Rs 4.56 billion representing a year on year growth of 18.3%. Like for like, sales growth for the quarter was 7.1% while net contract gains increased by 12.3% supported by operationalization of new business. In terms of profitability, gross profit margins expanded to 83.9% compared to 82.1% in the same period last year.
This margin expansion was supported by efficient procurement practices, lower cost, inflation and value unlock of our lounge aggregation business which together contributed to the improvement in gross profitability. We have continued to manage our employee cost efficiently during the quarter. We assessed the impact of the new labor code on employee cost and have taken a one time charge which is not material. In spite of this small one off impact, employee cost as a percentage of sales were maintained at 15% which is similar to Q3 of the previous year. This is because scale up of operation across key airports which enabled better manpower utilization.
We continue to maintain strong operating profitability with an EBITDA margin of nearly 40% during the quarter, our consolidated PAT increased to Rs 1.37 billion in Q3FY26 compared to rupees 1.1 billion in the same period last year reflecting a 35.3% year on year growth. On an adjusted basis. This improvement was driven by disciplined execution, effective cost management and increasing share of profit from joint ventures. On a sequential basis, consolidated sales increased by 28.2% supported by strong passenger growth of approximately 14% in Q3 compared to the previous quarter. This momentum Translated into a 40% increase in profit after Tax on a Q on Q basis.
While this is seasonally a strong quarter, the improvement in earnings quality also reflects enhanced operating leverage, disciplined cost management and the benefits of scale across our expanding network. Turning to the nine month performance system wide sales reached rupees 23.2 billion registering a 24.5% year on year growth like for like, sales stood at 12.2% while net contract gains were 10.2%. Y o y this translated into a strong profitability growth with consolidated PAC increasing by 24% year on year on an adjusted basis during the first nine months our balance sheet remains strong with zero debt and a cash balance of nearly 8 billion, enhancing our financial flexibility to pursue new growth opportunities.
With that, I will close the opening remarks and will hand it back to the operator to open it for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Naim Patel from Bastion Research. Please go ahead.
Naim Patel
Hi. Thank you for this opportunity and congratulations on a very good set of numbers. So my questions were around our working capital side. If I look at our trade table they were around 330 to 340 crores in FY25 as well as in H2 and FY26. So I’m puzzled in to understand that would we owe the state payables and what is the right way to look at it considering that we are in a QSR business. So if you could throw some color and that would be. Yeah.
Vikas Vinod Kapur
Hi, this is Vikas here. I take this question. So our trade payables are to our normal vendors per se in terms of this yes, we are a QSR player and we pay our vendors on timely basis. But a part of our trade payables is also for Capex and some of the projects that we currently are underway in terms of building capacity across our network. So from that perspective these are regular trade payables that we have in our books of account. Another important point is a part of our trade payables is also reflective of our lounge aggregation business which we do for some of the long tail lounges and that is getting reflected in terms of those payables as well.
Naim Patel
Got it. And considering that like we have opened a new Launch in Koshi Network as well. Like you have mentioned in the past that it would take 12 to 18 months for us typical launch to mature. I think this is already an operational airport. How long would it take us to stabilize this launch?
Varun Kapur
So yeah, so I can take this varun here. So in terms of, you know, in a running airport while there, you know part of the thing in a running airport as well we will be doing, you know, mobilization of that lounge and upgradation of that lounge in a phased manner. So I think in that question you have versus a greenfield while running airport has those numbers coming through. But in terms of capacity you’ll be seeing some upgradation happening there. So no doubt over a period of time the performance and the ability to generate additional revenue once that phasing is complete, say over the next 12 to 14 months, it would have a kicker tied into it.
Naim Patel
Understood. That’s all from my side. Thank you and best of luck.
Varun Kapur
Thanks Vikra.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and while on the touchstone telephone the next question is from the line of Anshal Pal from Monarch Network. Please go ahead.
Aachal Pal
Hi. Thank you for the opportunity and congratulations on good set of numbers. So my first question is in the current LFL growth, how much growth is coming from volume and how much is from value?
Vikas Vinod Kapur
Hi, I’ll take this question so in terms of as Varun had mentioned earlier, the PACS growth has been roughly in the range of 1.6% for the quarter as well as for the nine month period across our system wide sales from that perspective. But what we do as a standard approach and an operating leverage that we across our network we focus on revenue enhancement activities, improving the ATV and the penetration level so that the realizations at airports improve further to this. What we have also seen is that some of our international markets have performed strong LFL growth mainly because of an uptick in their profit in their traffic and improvement in their realizations as well.
Varun Kapur
Just maybe adding to what we got said as well. I think your particular point. So LFS you would have seen our system wide numbers about 12.5%. You know passenger traffic at the same time has been in the quarter about one and a half percent. So the delta for about 11, you know our price normally is largely in line with the increases with inflation. So you would assume a decent proportion of that would be driven portion by price but a decent amount driven by revenue enhancement objectives. Which is what I was mentioning as well, you know in my introduction.
Aachal Pal
Okay. Okay, so my second question is like, could you share the current building pipeline and how many airports are under evaluation over the next two to three years.
Varun Kapur
In terms of the way we look at the opportunities in airports? You know, the way we work as well, you know, opportunities come up not only for the while master concession, but you also come up in sections for airport. For example, certain airports have terminals. Sometimes there’s an opportunity for a certain set of units. So for example, if you look at our wins which I was talking about, we recently won at Delhi Terminal 2, which we had mobilized. And similarly, Cochin Airport was one where we started mobilizing. So that’s still in the pipeline. In addition to that, we have Delhi T1, a recent tender which includes some existing outlets.
But as well as new outlets In Delhi Terminal 1, we have also Noida, we have new Guwahati airport coming in Vichanda jv there we’ll be mobilizing units and aside from that opportunity is not only in India. We’ll be looking at opportunities even outside of India for which we had set up joint ventures as well. So the pipeline, both in India and internationally, as these opportunities come one, there’s a lot of mobilization already in the pipeline as well as obviously new tenders as and when come up. We are quite active in looking at these.
Aachal Pal
Okay, so could you, you know, like, could you number it like by FY28, how many airports we will be present? If I see currently we are at 19 airports. So if you want to number it, sure.
Varun Kapur
We can probably say so what we do look at the universe, you know, because our ways that we would not compromise our return metrics. So you know, we do take part in opportunities. Aviation as you know, is a fast growing sector. And obviously the infrastructure that’s happening on all fronts is quite impressive there in terms of the growth. So the opportunities are quite a few. We obviously the market leader, so we will be present. One would see as in the past, inconsiderable number of those. But I’d like to call it probably a number may not be there, but the universe what we generally look at is, you know, airports that are over, you could say roughly that 2 to 3 million mark is airports that make sense for us from a scale point of view to look at.
So as those opportunities keep coming up, we would look at that universe for expanding into. Aside from obviously the international airport opportunities that we did Malaysia, we did Hong Kong, including one this year as well, we opened an additional lounge in Hong Kong airport. So those opportunities are over. And above that, that we are actively looking at.
Aachal Pal
Okay, okay, got it. So sir, currently we are just focusing on airport or we are planning to expand our highway QSR as well.
Varun Kapur
That’s a good question. So like you know, answering early piece airports I think was answering that particular question. But yes, highways very evidently for us is a key growth area. We see highways as being where airports were probably when we entered the business in 2008. And we see highways being at that stage significant government investment, private participation happening. Even the way nature of highways right now is in the form of expressways which are access controlled highways with the wayside amenities. These are semi captive locations, set distances apart. Expressways have controlled access. So they work very well for a player like us.
Larger investments, scale, multi brand opportunity. And we do see that as being now it’s not something that we’ll say we just jump into and do everything today, but it will be a phase wise calibrated approach to ensure we deliver the returns and get the business model right. So we see that being a long term opportunity because there’s a very significant scalable opportunity there in India, no doubt.
Aachal Pal
Yeah. Okay. Okay, thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Dhirajmestri from ICICI securities. Please go ahead.
Dhiraj Mistry
Yeah. Hi. Good afternoon, sir. First of all, congratulation on good set of number. I have two questions. One is on the new airport which is going to come in our portfolio. Kochi Airport and Noida Airport. What is the expected timeline then when we can start building in revenue from those airports going ahead?
Varun Kapur
Hi. Hi. Thank you for the congrats. So just in terms of those particular airports, it depends actually. So first maybe just the overarching element. It obviously depends on the nature of the airport. So running airport like Cochin would obviously the numbers would come in because it has a particular capacity there. In the case of Cochin particularly, we have some units already mobilized there and part of the scheduled plan there, we will be mobilizing additional units through this year. So you will be seeing that revenue uptick happen as we mobilize those units. In the case of airports like Noida or even Navi Mumbai, which are generally Greenfield airports, those airports ramp up in a phased manner as the airports open up, as their phases open up, as additional passengers come in, our revenues get tied in.
So I think those airports you would potentially see being more meaningful in the next financial year or the second half of the next year as those passenger volumes uptick does happen and our stores get mobilized. So I think that’s probably the way to look at it in terms of a Greenfield versus an airport that was already running a brownfield airport.
Dhiraj Mistry
Okay. And just for clarification in Kochi airport we have lounge business as well, right?
Varun Kapur
That’s right. We operate the lounges in Terminal 1 domestic airport and we have currently mobilized it with like I mentioned, I think to an earlier question that we will be doing the uplift and upgradation of that in a phased manner. But we are running that lounge currently.
Dhiraj Mistry
Okay. It’s currently operational, right?
Varun Kapur
That’s right. And our value proposition obviously with the renovation upgrade obviously will improve as that kicks in. But yes, we are currently operating.
Dhiraj Mistry
Got it. Got it. And second question is about our share of profit in Associate and JV and then minority interest also. So we have seen good amount of. We have already seen somewhere around 44 crore of share of profit from associates. How we should think of this line item going ahead, obviously it’s going to increase. But then there is no clarity in terms of what kind of increase we can expect on those kind of a number. Can you give some maths where we can work on this number?
Vikas Vinod Kapur
So Dheeraj Vikash here, thanks for the question. So in terms of jv, basically what is happening in our joint ventures is as we said that each JV is going through its own phase of expansion. And within that expansion quite a few of the units are materializing faster. So say for example Mumbai Airport was an existing running airport in our joint venture Semolina Kitchen. And recently we have kick started operations in NAVIM Mumbai. As Varun alluded earlier, NAVIM Mumbai will grow in phases. And from that perspective as it mobilizes much more, those profits pick up from that will start contributing to the overall pie.
Similarly, in Semolina Kitchens we are expecting the new Guwahati terminal to contribute substantially to the Semolina Kitchen’s profitability. In the case of GMR Hospitality, the other joint venture, we have mobilized quite a few units in Hyderabad. But still there is furthermore mobilization which will happen in the current year as well as in the next year. And as that starts picking up, we will see an uptick in the JV Associates profit line. Also. Another point you have to note is that we have an international business which have started performing well. Specifically markets like Malaysia and Hong Kong wherein traffic uptake was a bit slower compared from the COVID phase that has now started normalizing. And from there we are seeing improved contributions to our GVs and associate life.
Dhiraj Mistry
Got it. Got it. But just for one clarification, this part, whether the PNL of all this gv, especially semolina, would be more or less replicating to TFS pnl.
Vikas Vinod Kapur
Yes, because in terms of the business model, it is same travel, QSR and lounge business which is kind of a replica of the TFS model from that perspective.
Dhiraj Mistry
Got it, Got it. And last question from my end on minority interest. When is Delhi T3 is going in GMR JV and what would be the amount of minority interest going forward after that?
Vikas Vinod Kapur
So our Delhi T3 is an existing joint venture as part of the SPV. When we had won that contract wherein we had pulled 60% and dial pulls 40%, the contract as you are aware has been extended till September 3rd 30th when the contract will come up for renewal. People will bid for it, these various entities and whoever wins the tender would be consolidating or running the operations for that. So at this moment I can’t say where it will land because it’s an open tender.
Dhiraj Mistry
Got it, Got it. Thank you. That’s it from my side.
Varun Kapur
Thank you.
operator
Thank you. The next question is from the line of Purva from BNK Security. Please go ahead.
Purva
Hi, good afternoon team. Congratulations on both side of number. So my question was related to Delhi Terminal 3. So with domestic traffic at Delhi Terminal 3 reportedly declining to 50% due to flight movements to T1 and T2, how this will affect our Delhi Terminal 3 revenue?
Varun Kapur
So Apuva, just conceptually, Varun, thank you for that. So in terms of just conceptually what we see in the airport and that’s why our business model is about being present across there and being market leaders. That’s the advantage of, I think that position and it makes sense in trial because obviously airports have multiple terminals. Now in the case of Delhi, Delhi is continuously growing. It’s an airport that’s growing well and however there obviously terminal capacity, part of the overall line of expansion, you know, you mobilize today, T1, T2, T3 are running T1 is, you know, very impressive.
The new T1 terminal, significant capacity. So obviously traffic is being balanced across the terminals to unlock more potential in the existing airports. So with that movement, Delhi Tunnel street particularly may have seen some dropping numbers. They’re doing some upgradation work there and that reflects probably the numbers while we’ve driven. I think with our good amount of sales and profitability there. But I think the additional area is that in T1 you’re seeing incremental demand where we are present as well. You’re seeing T2 where we won the Tender as well. So we actually touch all three terminals at Delhi airport and actually leverage the consumer there.
In addition in Delhi, part of the T3 upgradation, what you see play out in the future is there will be a third international payer unlocked and that will actually unlock international demand where spend is actually higher. So in reality, I mean that’s just generally the direction in travel in India there is unlock of additional passenger capacity. As these infrastructure movements happen. You could have short term impact at one airport. But our beauty of our business model is we tap across and we see the benefit. If it goes a bit down somewhere, we get a bit much more than that elsewhere.
So that’s I think what works well for us.
Purva
Okay, got it. And the second question was related to pat margins for your SSP Malaysia and Hong Kong entities. They have been lower than overall company average. So could you help explain the key factors for this and can we expect it to go back to the company level part margins?
Varun Kapur
Sure. So international I think I spoke about this also in a previous conference call. If you see international relatively, I mean both are enterprises set up post Covid and in the case of Malaysia was a ramp up that happened over a period of time. You know, set of units mobilizing from 21, 22, 23 and 24 as well. So as expected that business has been mobilizing and you know, as you always say in the greenfield and especially more so in a new market we set up, it takes you that 18 months of getting there, maybe the case of Malaysia, 18 to 24 months to get there.
Currently the business is performing very well. Traffic also in that market compared because of the Chinese travel effect. As many of you will be aware, they came much later recovery post Covid. But this year actually Malaysia and Hong Kong have been very, very strong passenger traffic recoveries in those markets. So those numbers are reflective and I think Vikas alluded to the fact that that they actually contributed quite strongly now and we expect that we see that we’ll be at a similar level. We don’t see any difference really in how that financials do play out for us.
I think especially with Hong Kong being more recent. We had set up a second lounge in Hong Kong just last month. So you’ll see the benefit of that also probably kicking in over a period of 12 months. So I think both the businesses currently are performing quite well and will further improve from here.
Purva
Okay. And lastly was can you quantify how much was revenue for SKPL and ghl for the 3QF by 26 and 9 months.
Vikas Vinod Kapur
Yeah. So Purva, both the sales have grown in terms of, in spite of the passenger traffic remaining at 1.6%. What we have seen is an improvement in the ATV and the realization because of the expanded network, we would not be sharing the specific numbers of the jv. But on a broad basis, if you subtract between system wide sales and consolidated sales, that would be roughly around 4.1 billion of sales which we have from our JVs and predominantly within that semolina and DHL contribute substantially.
Purva
Okay, thank you.
operator
Thank you. The next question is from the line of Aman from Incred Capital. Please go ahead.
Aman A. Bbaheti
Hi. Thank you for the opportunity, sir. So my first question was that in terms of our growth, what was the mix between lounges and QSRs?
Vikas Vinod Kapur
Aman, thanks for the question. So in terms of growth, basically our growth, the way we look at it, our travel QSR and lounge contribution to our revenue or top line has not seen any differential change in the mix from that perspective. So the growth has come from both the businesses as such and it is reflected in the 12.5% on a system wide and similarly 7.1% at a console level. So both units are performing well in terms of contributing to LFL and net gates.
Aman A. Bbaheti
Okay. Any breakup you have in mind.
Vikas Vinod Kapur
So predominantly lounge contributes somewhere in the range of 40 to 42% of our overall revenue mix and travel QSR is in the 50 to 55% range from that perspective. So that’s being a typical range of both the business mixes from that perspective and that.
Aman A. Bbaheti
Okay, okay. And the second question was, so we are in 13 of the airports out of 15 in India. So what has led to the growth? I mean the top five airports are seeing the growth in terms of, you know, the passengers transacting more in terms of QSRs or lounges. Or is it a broad based trend that you are seeing?
Varun Kapur
Hi, Varun. So I think what we’ve been seeing, I think the big difference is happening actually even before COVID as well, but surely after India is seeing a very broad based growth on passenger traffic. So leave aside Q2 of this year because that was when the aircraft maintenance issues happened, unfortunately post the crash. But basically other than that, what we’ve seen is it’s been quite a broad based growth across both the big and the small airports. So I think that’s the impressive piece because obviously measures in the big airports, no doubt with the international traffic, those areas do grow well.
But at the same time with some of the initiatives done by the government around Oran Scheme and the proliferation of more airlines. The fact is many of the smaller airports are getting a fair share of growth as well. So actually it has been quite a broad based set of growth and obviously within that you may have some airports likely doing more. For example, you see an airport like Goa Mopa growing very well. Places like Guwahati, you have examples like that. But generally it has been quite a broad based growth across the country.
Aman A. Bbaheti
All right sir, so my last question was that, you know, but can you.
operator
Please rejoin the queue for more questions?
Aman A. Bbaheti
Sure.
operator
Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Rahul Agarwal
Yeah, hi, very good afternoon. Just few questions. Firstly on the renewable. Sorry. On the renewal lineup going into from now to next two years, could you just highlight which are the airports on the existing network which are lined up for renewals?
Varun Kapur
Hi Rahul. Yes. So in terms of opportunities coming up, we have next two years, three contracts. The Delhi contract, I think someone asked that before. So Delhi airport, the contract for Terminal 3 does come up in September. We obviously had a short term extension on that. We have then in the next financial next year coming up, our contracts at Chennai and then Calcutta come up as well for renewal. So these are probably the next two years. The only ones in my mind that come up for renewal.
Rahul Agarwal
Chennai, Calcutta. Do you win?
Varun Kapur
It is in the next, next one is. It’s in the next calendar year, I think next financial year. It comes yearly. First FY28. 27. 28.
Rahul Agarwal
Okay, okay, got it. Thanks for that. And in terms of, you know, new airport bidding right now, could you just highlight like which airports are going to, you know, go for bidding from a new contract angle going into next 12 months. And this is only domestic I’m talking about.
Varun Kapur
So in terms of opportunities coming up for bidding. So for example, we know Bangalore Airport T1 just as a perspective. You’re a traveler, you see there’s a lot of upgradation work happening there. I think the airport’s got quite ambitious in terms of what they’re planning there. It’s very interesting and I think that’s an opportunity because I think when you fly there you can see that work happening in that airport. So significant upgrade which will obviously have upgraded the non aero side as well, which will therefore entail new opportunities coming up. So we see that obviously as one that will come up in the short term.
I mean there will be multiple. So for example, we are present at 14 of the 15 largest airports. Our universe is about 25 airports. Even those 14 or 15, there are a lot of areas we’re not present at. So there will be opportunities. For example, In Mumbai Airport T2 there will be opportunities coming up there for redeveloping units as well. So I think there will be multiple opportunities coming up in this phase. But I think Bangalore is a big immediate one that I know was coming up. I think I spoke previously in the last quarter about last quarter about Cochin and Delhi.
So obviously those are fructified. So I think the next probably one to look at would be Bangalore immediately.
Rahul Agarwal
Perfect. And just lastly on on the Chennai and Calcutta Bangalore overall, like for like how is the traffic behaving there? Because those are like core part of the portfolio. Just some sense on outlook. How do you look at traffic growth and you know our like for like growth going into next year? That’s all from my side.
Varun Kapur
Chennai and Calgary obviously from a size point of view would be in the top 10 airports in terms of traffic. You know that. So I think the growth has been in those airports while Chennai has generally I think even if you read Chennai has been a bit of a stronger performer in terms of traffic growth. Calcutta has had a slower growth. So Calcutta has been one of those airports where I think in Q3 saw a slight decline. But Chennai and I think it was the only one in the top 10 if I recollect in Q3 saw a bit of a decline.
Otherwise we saw most of the other airports actually have increase during that period.
Rahul Agarwal
I was looking for more color for the next year. In terms of your own thoughts on like for like growth for these airports.
Varun Kapur
In terms of passenger traffic when you refer to that because obviously that’s a key determinant. So generally passenger traffic has been positive in airports. You know we’re not used to talking about the growth. Obviously this year was the one period where we had it in Q2 and little bit remnants of that. Obviously now you can see very evidently the trend is changing. So I think it would be prudent to say we’ll be back to growth in next year. The indication has been that over the next even at the time of the IPO when we had and during our first call we spoke a bit about this.
I think the expectation of passenger traffic growth generally is the 7% to 9% range is what we generally heard over the next decade or so travel. So you may have some years a little bit less, some years a bit more. I think that’s generally been the call out if you refer to any source of credible information that tends to be over the next 10 years, what passenger traffic looks at and obviously our perspective is on top of that price, on top of that, our initiatives, we drive. On top of this passenger traffic, which is our LFL plus net gains we can drive, which is new wins like some of the ones we spoke about.
I think the pipeline of growth is quite significant for us on new wins. So I think that’s the way we look at our business model. It’s quite healthy. Between LFL net gains and even the challenging period like this, we’ve been able to deliver 28% system wide growth in sales to a balanced combination of LFL and net gains almost equally split between both.
Rahul Agarwal
Perfect. Got it. Thank you so much, Varun, for answering the questions and best wishes to you guys. Thank you.
Varun Kapur
Thank you so much. Thanks for your questions. Appreciate it.
operator
Thank you. The next question is from the line of Watsal Dujari from Tata AIA Life Insurance. Please go ahead.
Vatsal Dujari
Hi. Thanks for the opportunity and congratulations on our set of numbers. I wanted to get some more clarity on the LFL situation this quarter. So you mentioned how December was impacted by disruption. So could you provide some more granularity as to how was the LFR growth looking like in October and November and what it went to in December and any clarity on whether it’s back on the normal path?
Varun Kapur
Yes. Hi Vasil. So thanks for your question. Thanks for the congratulations. So in terms of where we saw, I think the perspective actually would have been probably would have ended higher in terms of the numbers. While I think we did see robust growth. And that’s not saying yes, we probably would have even done better if there wasn’t a slight disruption that caused December traffic to be hit. So we saw October bounce back reasonably well. We saw November actually be at many airports, record traffic. We saw some very strong traffic in November, December, in a sense, there was a slight plateauing in some airports, a degrowth as well because of the very short term temporary effect that happened.
Yes, it did, but it was quite extreme. Right, because you did see for that period delay for the first two, three days and then you saw a considerable amount of cancellations. So undoubtedly the effect of that would be that the overall numbers for the month and therefore our numbers and LFL would get disrupted, which did happen. But I think the demand was so strong that it came back very quickly. Already January trends are completely back to normal and actually growing quite well. So I think the perspective is our lfs, yes, for the month of December would have been even better if it was business as usual.
If that’s answering your question.
Vatsal Dujari
Got it. And another question on the lsl, more from a medium term perspective. So the divergence between traffic growth at an airport and LSL is you know, 10, 11% kind of danger. So how, I mean from a three to five year perspective, how much do you feel this kind of divergence is sustainable? This double digit kind of divergence between your LFL and passenger traffic And I mean what kind of an LFL growth are you comfortable with? You expect this divergence to this extent of divergence to continue over the medium term?
Varun Kapur
Yes, sure. So I would maybe take a step. Back in the way we see our business model always is that there is undoubtedly in our sector underlying passenger growth and that is obviously a key driver of tax coming in and therefore our sales. But what we drive and we’ve seen that I think over the entire period we’ve been operating, I think we’ve understood that quite well and we drive it quite well as a business is that over and above passenger traffic we do achieve a delta to drive our lfn. And that’s done through a combination. And maybe I’ll simplify it. I mean I could go, but I’ll probably simplify for the sake of the call is in probably two factors I spoke, I did alluded to briefly earlier but it is one on price and one in terms of revenue driving initiatives.
So in terms of you see LFL like in this quarter was about 1.6%. We achieved an LFL of about 12.5%. So you see 11% Delta playing out there where that 11% comes from. And that’s roughly I think we normally see that range. You normally see that upside being in that 9, 10, 11, 12% range in terms of outperformance. And that comes through that combination of A, yes, inflation which drives up price, but B and importantly our revenue enhancement that we drive. So this could be promotions, this could be initiatives we do around things. Like we did food at gate, which is a thing we piloted where we actually delivered food to consumers at gates.
When they go straight passengers in Indian airports, a lot of people go straight to the gate. Anxious first time flyers. We actually made people go around with iPads and going to the gates and taking orders that contributed to incremental lfl. So those type of initiatives on a continuing month on month basis. Like a simple example, we gave special filter coffee. I spoke about that when I was talking something like that. That’s very much filter coffee. People around not only in the south, but people are enjoying it across the the country. We did a wide initiative around that.
Very successful for us, that’s a pure LFL driver in terms of revenue optimization. So you know, those type of areas drive that delta between passenger traffic and LFL growth. And it’s been quite stable for us. And that’s what we do. That’s the USP of our business model.
Vatsal Dujari
Thanks a lot for your answer and all the best for the coming quarters.
Varun Kapur
Thanks a lot. Thanks.
operator
Thank you. The next question is from the line of Praneet Kumar from Kotak Securities. Please go ahead.
Praneeth Kumar Reddy Acholu
Hi. Thanks for the opportunity. First one is on eth. So how should we think about the revenue potential of this particular business? And at this early days, how many launch did we expand? This one is it. Does it also cater to other launches which are beyond the system of tss? And how about profitability of this particular business?
Varun Kapur
Thanks. Yeah. Hi, Marvin. So in terms of our each solution. Yes, I think as you rightly said, it is early days for us. We are a business, no doubt technology has always been an important part for us, but even more so it has been something obviously you can imagine that rolling out and going live entails a lot of work and period at the back end, which we have done. The key point is it has been successfully rolled out. I think it’s clear evidence in terms of some of the outperformance as well as the consumer experience at the ground.
So we rolled out the direct bank to lounge access that is there one can see directly on this EATS platform. And we are confident while it is early days, it’s already showing us benefits we’re seeing that contribute positively to us both in incremental revenue, we believe, and it will I think already incremental profit as well. And we see that playing out probably more so over the next few quarters as we build this out more effectively. It’s a constant learning experience. We see a lot of potential for this. But one of those areas where we believe we have quite a focused strategy on this and as we unlock more and more, we’ll be coming back and we love we will be constitutional sharing some of those initiatives.
But there’s a lot we’re working on. A lot of opportunity we see in taking this even further than the initial success that this has proven for our business model that’s been there in this financial year. We are touching and maybe answering the last part, we are touching all of our lounges, as you’d imagine, but also the solution being quite effective. And recently we’ve actually tied up with lounges even that are not ours and we can provide that solution to them. So that’s also an additional upside that we get by developing such a successful solution. It can be actually used outside of our network to support other smaller players in smaller airports, those type of areas.
But it has actually been quite a big success for us and we will undoubtedly be growing on this part of our DNA with tfs.
Praneeth Kumar Reddy Acholu
Thank you. Very helpful. And my second question is on the occupancy fee direction. Now we have a couple of new airports. One is Noida and then we have onboarded a couple of units from Cochin and Delhi as well. So directionally for the next two years, what, what do you think that occupancy fee would be? I mean, are these new airports coming at higher occupancy fee compared to what we have currently or at similar levels? So that’s it. Thanks.
Vikas Vinod Kapur
So Praneet Vikas here. So in terms of occupancy fee, what has been the general trajectory in our business is that when an airport kind of gets in our network, we do see a jump in the occupancy fee for that purpose. But it kind of stabilizes after a point of time which we have built into our business case because we know how the sales will ramp up and how the airport traffic will move. And from that perspective it tends to then which is the exact 12 to 18 months which we normally allude to that by 12 to 18 months we see it coming back to the normal level as the rest of the portfolio.
So that is how has been the general trajectory and we work towards that from that perspective. So it would be in the same ballpark after a small blip for some of the new airports.
Praneeth Kumar Reddy Acholu
Got it. Thank you so much.
operator
Thank you. The next question is from the line of Akshay Krishnan from ICICI Securities. Please go ahead.
Akshay Krishnan
Hi Varun. And with us a great performance and things. So a few questions from my end. So if you look at the last few quarters, when we compare the revenue growth and the passenger growth with service, the revenue growth has been a notch higher than the passenger growth. So I just wanted to understand the delta that’s been coming in from the higher spend that per passenger versus the premiumization and the mix shift. So how sustainable is this revenue performance versus the classic growth?
Varun Kapur
So I think the point is, I think what we’ve seen is that this actually has been our business model from the very beginning. I think what we’ve done is over the last few years actually been able to unlock that quite well and sustainably. So you’d always see a Scenario where we’ve always seen that scenario where our that incremental offer combination of price and more importantly revenue optimization initiatives have led to that delta. And that’s purely on lfl. This is aside from net gains. So you see in terms of tax, we outperform on the LFL side.
But the net gains, which has been the DNA of our business, I mean a few years back we were at present at for example 7 airports pre Covid and this was a few years before. Today we are present as you see the entire network, 19 airports. That’s the question of net gains that irrespective of the passenger growth, which has been quite robust and on top of that we’ve had LFL above that, we’ve also delivered quite high net gains. But we generally believe we’re just scratching the surface because new terminals, even the existing terminals we add, there’s significant growth in that.
So that’s why the entire opportunity is a combination of LFL and a combination of net gains. And obviously catering to such areas as delayed flight, the fact that our scale plays out and with our scale we can unlock more opportunities. I think all of those elements really play out in that LFL growth as well. Aside from the revenue optimization I was speaking on earlier.
Akshay Krishnan
Perfect. Perfect. The second question is on the pack margin. So if you look at the Q3 numbers, margins have expanded close to around 31%. So how much of this expansion is from the operating leverage from the new unit ramp ups versus the structural cost optimization? And should we view this current margin as a new base or is it closer to the peak?
Vikas Vinod Kapur
Basically, in terms of the PAT margin, what exactly happens is yes, our PAT margin has improved due to quite a bit of factors. One is of course the disciplined execution on the new projects that have we we have been following. The further important thing is that yes, our pat margin has been in the range of 27% in Q3, but it is a seasonally strong quarter from that perspective. Very similar to what Varun eluded As part of the delayed flights and the scale that we operate, our PAT margin has been in the range of 20 to 22% before the share of the joint ventures.
And with the addition of the JV profitability, it kind of moves to the 25 to 26%. We believe it will be stable around that phase. But as we continue to expand and build on new projects, we expect the past margin to continue in that same threshold from that perspective.
Akshay Krishnan
So what will be the contribution from the new unit ramp up which is actually helped us in this Delta buildup.
Vikas Vinod Kapur
So see one important factor you have to take is yes, some bit of the pack margin has started to be contributed by Eats which is just started to contribute to that. Also with Cochin which is one of our existing airport which is there and not a Greenfield airport, we believe very similar to what Varun said at the start of the call will start contributing a bit faster. But from a range perspective I believe that we should should be in the comfortable range of that 25 to 28%. We will continue to outperform that but it opens from that perspective.
Akshay Krishnan
Perfect. Great. And one final question, may I? So what proportion of the system wide revenue is from the premium brand versus the mass format and how does this impact the margin volatility going forward?
Varun Kapur
We don’t see it as being one versus the other. We don’t look at the business in that way. What it tends to be for us is aid is a portfolio approach across. So in terms of the brands as well, we look at it as having a multitude of offerings there. So it could be the very same traveler. And today many people try frequently it could be that very much that you’re going today in the morning and you want to go to the South Indian concept which may be deemed as value. But maybe the next time when you’re flying in the night and you’re with your family, you want to go try the Nando’s or the Gordon Ramsay restaurant and want a nice premium experience there.
So in some sense we see the same traveler actually unlock multiple areas. So our portfolio approach is what we see. And yes, it has to be because you’ll have some outlets which may be in house which may be slightly more profitable. You don’t have royalty to play. We have third party brands, we a royalty. But the portfolio approach of all that coming together is the way our business model works. Because you can’t have one concept across 50 locations in an airport. So getting the right mix to maximum to extract value and therefore the highest irr that is our business model.
And that’s how we generally look at our business as a multitude of offerings. Rather than saying that oh let’s do more premium or more value or for example let’s do more in house or it always a portfolio approach. That’s the way we look at evaluating the business.
Akshay Krishnan
Perfect. Perfect. And that’s it from end and good luck in all the best. Thank you.
Varun Kapur
Thank you so much.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir?
Varun Kapur
No. Thank you. Thank you very much to the ICICI security team for hosting us. And appreciate all of you taking the time today to join us for the earnings call post our Q3 results. So if you have any further queries, do feel free to reach out to our investor relations team. Thanks a lot.
operator
Thank you. On behalf of ICICI securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.