Restaurant India News: Travel Food Services Reports 21.5 Percent PAT Growth in FY26

Travel Food Services Limited has reported strong growth for the fourth quarter and full year ended March 31, 2026, supported by outlet expansion, new airport operations, and growth across its travel QSR and lounge businesses.

The company recorded system-wide sales of Rs.8,954 million in Q4FY26, reflecting a growth of 27.7 percent year-on-year, while full-year system-wide sales reached Rs.32,144 million, up 25.4 percent YoY. Consolidated sales stood at Rs.4,607 million in the quarter, growing 25.7 percent YoY, while FY26 consolidated sales rose to Rs.16,478 million, an increase of 13.9 percent on an adjusted basis.

Consolidated profit after tax for Q4FY26 stood at Rs.1,226 million, up 15.1 percent year-on-year. For FY26, consolidated PAT increased to Rs.4,523 million, recording a 21.5 percent growth on an adjusted basis, with PAT margin improving to 27.4 percent from 25.7 percent in the previous year.

The company said growth during the year was driven by like-for-like sales growth, menu innovation, value-focused offerings, promotional campaigns, and continued addition of new outlets across airports. Over the last 12 months, the company added 76 travel QSR outlets and 2 lounges across airports including Mumbai, Delhi, Ahmedabad, Hyderabad, Cochin, and Navi Mumbai.

TFS stated that passenger traffic remained under pressure during parts of the year due to airline disruptions and geopolitical events, including the Middle East conflict during the fourth quarter. However, the company noted that traffic recovered after each disruption and demand for air travel in India remained stable.

As of March 2026, the company operates across 20 airports compared to 18 airports a year earlier. Its travel QSR portfolio increased to 518 outlets, while lounges expanded to 39 locations. The company also expanded its brand portfolio to 145 brands with the addition of 18 brands during the year, including in-house concepts and international names such as Nando's, Wagamama, and Gordon Ramsay branded concepts.

The company’s subsidiary, EATS (Eliteassist Technology and Services Pvt. Ltd.), also expanded its operations by integrating with multiple banks and card networks for airport lounge access services. Meanwhile, operations at Cochin Airport, Delhi Airport Terminals 1 and 2, and Navi Mumbai Airport continued to scale up during the quarter. TFS also confirmed that fit-out and construction work at Noida International Airport is progressing ahead of commercial operations expected in H1FY27.

The Board of Directors has recommended a final dividend of Rs.10.25 per share with a face value of Rs.1 each for FY2026, subject to shareholder approval.

Varun Kapur, Managing Director and CEO, TFS, said, “FY26 has been a landmark year for TFS - our first full year as a listed company that has been marked by strong financial performance, with system-wide sales growing 25.4 percent YoY and adjusted consolidated PAT growing 21.5 percent YoY. We continued to demonstrate our operational resilience, delivering steady performance despite the near-term challenges seen in Q4FY26.

Crossing 550+ outlets, expanding to 20 airports, deepening our brand portfolio to 145 brands, and progressing on our EATS technology platform, reflect the breadth of our execution and the directions in which TFS is growing. Operations at Cochin and Delhi Airports are scaling up well, Navi Mumbai is seeing the opening of new concepts, and we remain excited about our upcoming units at Noida Airport ahead of its commercial launch.

The near-term environment carries its share of headwinds - the Middle East conflict, firming input costs, and temporary traffic disruptions have added some volatility. We are watching these developments carefully, navigating them with discipline, and responding with the operational execution that has defined our journey. Our conviction in India's long-term aviation growth story is unchanged. With a growing network, a strong brand portfolio, and new revenue streams taking shape, TFS enters this next phase from a position of strength.”