Restaurant India News: Travel Food Services Q3FY26 PAT Jumps 35% YoY to Rs 1,368 Million; Network Expands to 530+ Units

Travel Food Services Limited (TFS), a leading operator of Travel QSR outlets and airport lounges in India, reported a strong performance for the third quarter ended December 31, 2025, with consolidated profit after tax (PAT) rising 35.3% year-on-year (YoY) on an adjusted basis to Rs 1,368 million.

System-wide sales grew 28.1% YoY to Rs 8,754 million in Q3FY26, while consolidated sales increased 18.3% YoY (adjusted) to Rs 4,562 million. 

PAT margin expanded sharply to 30.0% from 26.2% a year ago, reflecting improved operating leverage, disciplined execution, and a higher contribution from joint ventures. On a reported basis, PAT grew 32.6% YoY.

For the first nine months of FY26, system-wide sales rose 24.5% YoY to Rs 23,189 million, while consolidated sales stood at Rs 11,871 million, up 9.9% YoY (adjusted). Consolidated PAT for 9MFY26 increased 24.1% YoY to Rs 3,297 million, with margins improving to 27.8% from 24.6% in the corresponding period last year.

“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,” shared Varun Kapur, Managing Director and CEO, TFS. “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.”

Growth during the quarter was driven by like-for-like (LFL) sales growth of 12.5% YoY at the system-wide level and 7.1% YoY on a consolidated basis. Passenger traffic at TFS-managed airports recovered in Q3, growing 1.6% YoY, following a temporary dip in the previous quarter due to aircraft maintenance issues. Traffic disruptions in December were short-lived, with improving trends in the new year.

Network expansion remained robust. As of December 2025, TFS operated over 530 Travel QSR outlets and lounges system-wide, including 494 QSR outlets and 37 lounges across 19 airports. 

The company added more than 50 outlets over the past 12 months at key airports such as Mumbai, Delhi, Ahmedabad, and Hyderabad. Its brand portfolio expanded to 140 brands, with additions including celebrity chef Gordon Ramsay and global chain Nando’s.

“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 mobilisation 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,” he added.

During the quarter, TFS commenced operations of 14 Travel QSR outlets at Terminal 2 of Indira Gandhi International Airport, New Delhi. Its joint venture, Semolina Kitchens Ltd, also began operations at Navi Mumbai International Airport, further strengthening its footprint.

Looking ahead, the company expects continued momentum from recently won concessions at Delhi Airport (Terminals 1 and 2), Cochin Airport (Domestic Terminal), and the upcoming Noida International Airport. Additionally, the second KYRA Lounge opened at Hong Kong International Airport in January 2026 in partnership with SSP Asia Pacific and Airport Dimensions.