Company Overview
Travel Food Services Limited is the leading player in the fast-growing Indian airport travel quick service restaurant (“Travel QSR”) and lounge (“Lounge”) sectors based on revenue in Fiscal 2025, with a market share of approximately 26% in the Indian airport Travel QSR sector and approximately 45% in the Indian airport Lounge sector, according to CRISIL.
Their Travel QSR business comprises a wide range of curated food and beverage concepts across cuisines, brands, and formats, designed for speed and convenience within travel environments. The brand portfolio includes 127 partner and in-house brands, operating 442 Travel QSRs across India and Malaysia as of March 31, 2025.
The company also manages 37 Lounges across India, Malaysia, and Hong Kong, including 28 private airport lounges in India across 10 airports. Since 2009, they have maintained an impressive contract retention rate of 93.94%.
Key Highlights
Market leader in the Travel QSR and Lounge sectors in Indian airports.
Strong operational expertise in the complex airport F&B environment.
Proven track record of long-term partnerships with airport operators.
Diversified portfolio of franchised and in-house F&B brands.
Deep understanding of traveller preferences and behaviour.
Objects of the Issue
Offer for Sale of equity shares aggregating up to ₹2,000 Cr by the Promoter Selling Shareholder.
To achieve the benefits of listing on the stock exchanges.
The company will not receive any proceeds from the Offer for Sale.
Our View
Founded in 2007, Travel Food Services operates high-volume, fast-moving Travel QSR and Lounge businesses primarily in airport terminals and select national highways. The company’s brand portfolio spans 32 international, 58 regional Indian, and 37 in-house brands, complemented by premium airport lounges catering to loyalty program members, premium-class passengers, and cardholders.
Risks: High dependence on concession agreements, inability to attract new brand or lounge partners, regulatory risks, changes in airport operator models, and competition from government initiatives like the Udaan Yatri Café.
Financial Performance: FY23–FY25 CAGR – Revenue: 25.76%, EBITDA: 21.51%, PAT: 22.91%. FY25 EBITDA margin: 40.07%, PAT margin: 21.54%, ROCE: 51.4%, ROE: 35.47%. P/BV: 13.82 (NAV ₹79.62), P/E: 38x vs industry average of ~951x.
Conclusion: Positioned as a leader in the travel hospitality sector with strong financial performance and growth opportunities, this IPO offers potential for long-term investors. However, investors should weigh the competitive and operational risks before investing.
Brief Financials
| PARTICULARS |
₹ in Million |
| FY ‘25 |
FY ’24 |
FY ‘23 |
| Total Income |
17,627.09 |
14,623.95 |
11,035.82 |
| Total Expenditure |
13,056.47 |
11,467.20 |
8,242.06 |
| EBITDA |
6,763.46 |
5,499.93 |
4,580.54 |
| Profit before Tax |
5,043.35 |
3,874.68 |
3,271.40 |
| Profit after Tax |
3,796.59 |
2,981.20 |
2,512.99 |
| E.P.S. (Diluted) |
27.58 |
21.85 |
18.52 |
| P/E (x) (Diluted) |
38 |
- |
- |
| RONW (%) |
34.64 |
33.12 |
37.45 |
PRICE CHART (@ ₹ 1,100) (Retail Category)
| LOT SIZE |
| Amount |
| 13 |
14,300 |
| 26 |
28,600 |
| 39 |
42,900 |
| 52 |
57,200 |
| 65 |
71,500 |
| 78 |
85,800 |
| 91 |
100,100 |
| 104 |
114,400 |
| 117 |
128,700 |
| 130 |
143,000 |
| 143 |
157,300 |
| 156 |
171,600 |
| 169 |
185,900 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
182 |
200,200 |
| Big HNI |
910 |
1,001,000 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
10/7/2025 |
| Initiation of refunds/unblocking ASBA Fund |
11/7/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
11/7/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
14/7/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
