Travel Food Services Expands to 21 Airports, Adds 87 QSR Outlets in 12 Months

Travel Food Services Limited (TFS), which operates Travel QSR outlets and lounges across airports, reported an 18.0% year-on-year increase in system-wide sales to Rs 8,437 million in Q1 FY27, while consolidated sales rose 20.6% to Rs 4,522 million. Consolidated profit after tax (PAT) increased 35.6% to Rs 1,288 million, taking the PAT margin to 28.5% from 25.3% a year earlier.

The company attributed the sales growth primarily to network expansion. TFS recorded net contract gains of 15.9% at the system-wide level, with 87 new Travel QSR outlets and 2 lounges added over the past 12 months. New units were opened across airports including Mumbai, Delhi, Hyderabad, Cochin, Navi Mumbai and Noida.

System-wide like-for-like (LFL) sales growth stood at 0.8% in Q1 FY27. TFS said performance was affected by passenger traffic moving towards newer airports and terminals, along with the impact of the Middle East conflict on flight schedules, particularly in southern markets. Excluding the affected markets, system-wide LFL sales growth was approximately 7.0%.

Passenger traffic across airports managed by TFS was broadly flat year-on-year during the quarter. The company said the Middle East conflict continued to affect flight schedules, although the decline in traffic eased through June 2026.

Consolidated sales growth was supported by 20.2% year-on-year net contract gains, including new units at Delhi Airport’s Terminal 1 and Terminal 2, Cochin Airport’s Domestic Terminal 1 and Noida International Airport. Consolidated LFL sales grew 4.2%, with the company citing menu changes, targeted promotions and premiumisation as factors that helped offset weaker traffic at some locations.

TFS’s consolidated PAT also benefited from higher other income, which included a partial write-back of GST provisions worth Rs 131 million following a favourable order received during the quarter.

The company increased its system-wide airport presence to 21 airports as of June 2026, compared with 18 airports in June 2025. Its Travel QSR network reached 541 outlets, following the addition of 23 outlets during the quarter and 87 over the last 12 months. The company also operated 39 lounges across the network as of June 2026.

TFS expanded its brand portfolio to 153 brands from 130 a year earlier. The additions include in-house concepts, local brands and international brands across its airport network.

Noida International Airport became a new operating market for TFS during the quarter, with six Travel QSR outlets and one lounge commencing operations. The company also introduced passenger services under its Elite Assist brand at the airport, including meet-and-greet and porter services, with plans to extend the offering to other airports.

In July 2026, TFS won 10 honours at the FAB 2026 Awards hosted by Bangalore International Airport Limited, including 9 Asia Pacific regional awards across sustainability, F&B innovation and marketing categories, along with the FAB Superstars Star Team (Back of House) award.

Varun Kapur, Managing Director and CEO, TFS, said, ‘Q1FY27 was a strong quarter for TFS, with sales and profitability delivering double-digit growth despite a challenging operating environment impacted by disruptions arising from the Middle East conflict. The quarter reflects the benefits of our ongoing network expansion and continued focus on operational excellence across the business. During the quarter, we commenced operations at Noida International Airport, launching multiple Travel QSR outlets, the airport's first Lounge, and new passenger-facing services under our Elite Assist brand, further strengthening our presence across key airport locations. While the quarter was affected by external disruptions beyond our control, TFS has consistently demonstrated its ability to navigate periods of volatility through operational agility and disciplined execution. Historically, passenger traffic and consumer spending trends have recovered quickly following such events, and we expect a similar recovery as geopolitical uncertainties ease. We remain focused on driving productivity across our existing network, accelerating the ramp-up of newly opened locations, progressing the development of our strong pipeline of new units, enhancing the customer experience, and scaling our emerging service offerings. As operating conditions normalise, we believe these initiatives position us well to deliver sustained growth and create long-term value for our stakeholders.’