💡 At a Glance
Travel Food Services (TFS), India’s king of overpriced airport sandwiches and coffee that costs more than your flight, is launching a mega ₹2,000 Cr IPO. But plot twist: it’s a full offer for sale (OFS). Promoters (SSP Group, Kapur Family Trust & co.) are cashing out — not raising a paisa for the business. With top-tier revenue, 20% PAT margin, and presence in 14 Indian airports, it’s a dominant force in travel QSRs and lounges. But will investors bite into this air-fried valuation?
🎬 1. Introduction with Hook
“Jo khata hai, wohi samajhta hai.”
If you’ve ever paid ₹460 for a dry sandwich at Mumbai Airport, you’ve already invested emotionally in TFS.
Now, the promoters want you to invest financially too — at their exit party.
- IPO Size: ₹2,000 Cr (100% OFS)
- No fresh issue = No money to the company
- Price band: TBD (but brace yourself)
- IPO Dates: July 3–7 | Listing: July 10
This is not a fundraising round. This is shareholders offloading stock — likely at a spicy valuation. Let’s chew.
🛠️ 2. WTF Do They Even Do? (Business Model)
TFS operates in two juicy segments:
🥪 1. Travel QSR (Quick Service Restaurants)
- Operates 397 outlets across 14 airports in India & 3 in Malaysia
- Brands include KFC, Domino’s, Starbucks, Vaango, Caféccino, and their in-house heroes like Dilli Streat
- Fast, branded, overpriced — just like airport WiFi
🍷 2. Airport Lounges
- Partnered with credit cards, airlines & loyalty programs
- Offers chicken tikka + WiFi for delayed flight survivors
- Major presence in Delhi, Mumbai, Bengaluru, Chennai
Fun Fact: They’ve been operating at Mumbai Airport for 15 years. If you’ve eaten a ₹200 muffin there, chances are, you’ve already contributed to this IPO.
📊 3. Financials Overview – Profit, Margins, ROE, Growth
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) | PAT Margin | ROE |
|---|---|---|---|---|---|
| FY22 | 441.66 | 5.03 | 140.27 | 1.1% | 1.2% |
| FY23 | 1,103.58 | 251.30 | 458.05 | 22.8% | 38.6% |
| FY24 | 1,462.29 | 298.02 | 549.89 | 20.4% | 36.6% |
| Q1FY25 | 425.20 | 59.55 | 132.89 | ~14% | — |
💥 Revenue 3.3x in two years
💸 PAT jumped ~60x from FY22
🔥 EBITDA margin: 39.4% — better than Domino’s and McDonald’s India
This business is printing profits like boarding passes.
💸 4. Valuation – Cheap, Meh, or Crack?
No price band yet, but let’s do back-of-the-samosa math.
Assume:
- FY24 PAT = ₹298 Cr
- Market looking at a 30x P/E multiple (standard for QSR & lounge plays)
- Fair valuation range = ₹8,940 Cr
So if the IPO seeks ₹2,000 Cr via 22.4% dilution (estimated),
🧮 Implied valuation = ₹8,929 Cr
💡 Translation: They’re aiming for ~30x earnings — fully priced, maybe even a little toasted.
🔥 5. What’s Cooking – News, Triggers, Drama
- 💼 Full OFS — company gets zero money
- ✈️ High moat: airports don’t change vendors easily
- 🇲🇾 Presence in Malaysian airports too
- 📉 Airport food biz highly dependent on air traffic & travel trends
- 🤝 Deep integration with SSP Group & K Hospitality
👀 No mention of major future expansion plans, tech revamps, or capex — because it’s not their money anymore.
🧾 6. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 |
|---|---|
| Total Assets | ₹1,623.39 Cr |
| Net Worth | ₹796 Cr |
| Debt | ₹63.78 Cr |
📦 D/E = 0.08 — virtually debt-free
💰 Clean books, high asset base, lean leverage
Nothing alarming. Also… nothing new being added via IPO.
💰 7. Cash Flow – Sab Number Game Hai
Given EBITDA of ₹550 Cr and low interest cost:
- Operating cash flows: Strong
- Free cash flows: Likely decent post capex
- No urgent need for funding = aligns with full OFS nature
But again, this is a shareholder liquidity event, not a business cash injection.
📉 8. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| PAT Margin | 20.38% |
| EBITDA Margin | 39.38% |
| ROE | 36.57% |
| ROCE | 49.97% |
| D/E | 0.08x |
TFS is a financially sexy beast.
These ratios are hotter than the oven inside a Dunkin’ kiosk at Terminal 3.
💸 9. P&L Breakdown – Show Me the Money
FY24 Revenue: ₹1,462 Cr
- Majority from Travel QSRs
- Lounges likely more profitable per sq. ft, but lower volume
- No breakup of brand-wise or airport-wise revenue
They operate across 117 brands. But no clarity on who contributes how much.
What’s the ARPU per flyer? No clue.
Repeat footfall? Untracked.
Loyalty tie-ups? Not monetized data-wise.
🧪 10. Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | PAT Margin | P/E | Notes |
|---|---|---|---|---|
| Devyani Intl | 3,400+ | 8.5% | 70x | KFC, Pizza Hut, Costa |
| Sapphire Foods | 2,900+ | 9% | 60x | KFC & Taco Bell |
| Jubilant Food | 5,000+ | 9% | 75x | Domino’s |
| TFS (Est.) | 1,460 | 20% | ~30x | Airport monopoly |
🍟 TFS looks way more profitable
💰 And yet aiming for half the multiple — fair.
🧠 11. Miscellaneous – Shareholding, Promoters
Promoters:
- SSP Group (UK-based airport F&B leader)
- K Hospitality Corp (TFS’s original builder)
- Varun & Karan Kapur
- 100% held pre-IPO
Post-IPO shareholding will depend on % OFS, but promoter exit is partial — not a complete vanishing act.
🎯 12. EduInvesting Verdict™
🎤 Travel Food Services = Airport Dominator, Investor Dilemma
✅ Monopoly moat
✅ High margins
✅ Zero debt
✅ Solid growth
❌ No fresh capital
❌ No discount for early believers
❌ No clarity on digital scale-up, lounge monetization, or global push
👀 If priced at ~30x earnings, it’s fair.
If priced like Devyani or Jubilant (50–70x), just grab a muffin and exit left.
🎯 Verdict: “More substance than Subway, but still just a well-dressed sandwich.”
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Travel Food Services IPO, TFS IPO Review, Airport QSR IPO, Lounge Business India, EduInvesting, SSP India IPO, QSR Stocks, IPO Deep Dive, Indian F&B IPO
