Restaurant India News: TFS Sees 26.7 Percent Surge in Sales, Expands Nando’s and Lounge Operations

Travel Food Services Limited (TFS) reported strong financial and operational growth for the quarter ended June 30, 2025. System-wide sales grew 26.7 percent year-on-year to Rs 715.1 crore in Q1FY26, supported by 12.5 percent like-for-like (LFL) growth and a 10.1 percent net contract gain, according to the company’s earnings release.

Consolidated profit after tax (PAT) rose 59.5 percent year-on-year, with adjusted PAT increasing 19.3 percent during the quarter. As of June 30, 2025, the system-wide network included 454 travel quick service restaurant (QSR) outlets and 37 lounges, offering a portfolio of 130 in-house and partner brands.

Consolidated sales stood at Rs 375.1 crore, a 6.3 percent year-on-year growth on an adjusted basis. LFL sales were up 5.5 percent year-on-year, despite some slowdown in passenger traffic growth. Net contract gains declined by 2.7 percent year-on-year due to the expiry of certain contracts, partially offset by new contracts secured by a joint venture.

The adjusted consolidated PAT increased to Rs 95 crore, up 19.3 percent year-on-year, driven by sales growth and cost efficiency measures. Gross margin improved to 83 percent due to procurement strategies and supply chain efficiencies that reduced the cost of goods sold. Process optimisation, occupancy cost management, and operational discipline lowered other expenses as a percentage of sales by nearly 180 basis points, further supporting operating margins.

Varun Kapur, Managing Director and CEO, TFS, said, “I am pleased to share that in our first quarter as a public company, TFS delivered a healthy performance, with system-wide sales rising by 26.7% and adjusted consolidated PAT increasing by 19.3%, despite temporary sector headwinds. This was driven by disciplined execution, strategic expansion, and a strong focus on cost optimisation.”

Kapur further added, “Our brand partnerships continue to be a key strength - we have opened Nando's at Delhi Terminal 3 and will soon launch Gordon Ramsay concepts at Delhi Terminal 1 and Mumbai Terminal 2. By June-end, our system-wide network reached 491 outlets across Travel QSRs and Lounges, with additionally over 70 more outlets currently under design & construction, including at Navi Mumbai and Noida airports. We are committed to strengthening our portfolio and driving strategic initiatives that will enable us to capture emerging opportunities and create lasting value for our stakeholders.”

Operationally, TFS partnered with and launched 13 more brands in the last 12 months, expanding the system-wide portfolio to 130 brands. The company added 57 new travel QSR outlets during the year, taking the total to 454 outlets as of June 30, 2025.

Notable brand launches included India’s first Nando’s outlet at an airport, located at Delhi Terminal 3, and the country’s first two Gordon Ramsay F&B concept outlets at Delhi Terminal 1 and Mumbai Terminal 2. The lounge network expanded from 31 to 37 lounges in the past year, including four new domestic lounges and two international lounges in Hong Kong and Malaysia.