At a Glance
Thomas Cook India, the OG travel name that survived the pandemic apocalypse, just posted Q1 FY26 profit of ₹736 Mn with revenues soaring 15% YoY to ₹2,408 Cr. While IRCTC prints cash and BLS International steals visas, Thomas Cook is hustling hard across foreign exchange, MICE, leisure, and corporate travel. Stock is trading at 31x P/E, so either investors believe in fairy tales or they’re really into nostalgia.
Introduction
Once upon a time, Thomas Cook was synonymous with holidays. Then COVID-19 turned it into a sad story. But guess what? The phoenix is flapping its wings again! With a CRISIL rating upgrade, an acquisition in Q1, and a diversified services bouquet, the company is proving that not all old brands fade away. But hold your boarding passes—debt, promoter stake cuts, and high borrowing costs still lurk in the background.
Business Model (WTF Do They Even Do?)
- Foreign Exchange – the cash cow, helping tourists avoid dodgy airport forex counters.
- Corporate Travel & MICE – because companies still love overpriced conferences.
- Visa & Passport Services – the most underrated money spinner.
- Leisure Travel & E-Business – holidays, packages, and OTA plays.
- Subsidiaries: 19 brands including SITA, TCI, and Distant Frontiers.
Roast: The model works only if people travel, spend, and don’t switch to DIY booking on Skyscanner.
Financials Overview
| ₹ Cr | Q1 FY26 | Q4 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | 2,408 | 1,969 | +15% |
| EBITDA | 127 | 98 | +30% |
| OPM % | 5% | 5% | Flat |
| Net Profit | 736 | 66 | +1,015% |
| EPS (₹) | 1.53 | 1.37 | +12% |
Comment: Profit jump looks juicy but includes strong other income—watch sustainability.
Valuation
- P/E: 31x – fair in a travel rebound, but pricey.
- P/B: 3.5x – market trusts revival.
- EV/EBITDA: ~20x – premium vs peers.
- Fair Value Range: ₹140 – ₹180 (assuming mid-growth trajectory).
What’s Cooking – News, Triggers, Drama
- CRISIL Rating Upgrade: Investor confidence booster.
- Q1 Acquisition: Expanding services portfolio.
- Travel Boom: Post-COVID pent-up demand still fueling revenues.
- Trigger: Further expansion in digital booking and outbound travel.
- Drama: Promoter stake fell to 63.8% (from 72%), raising eyebrows.
Balance Sheet
| ₹ Cr (Mar 2025) | Value |
|---|---|
| Total Assets | 7,116 |
| Liabilities | 4,903 |
| Net Worth | 2,260 |
| Borrowings | 465 |
Roast: Debt is manageable, but past crises show this balance sheet isn’t bulletproof.
Cash Flow – Sab Number Game Hai
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | 649 | 829 | 717 |
| Investing | -179 | -437 | -329 |
| Financing | -230 | -291 | -183 |
Comment: Strong operating cash, but investing outflows remain heavy due to expansions.
Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 12% |
| ROCE | 19% |
| P/E | 31x |
| PAT Margin | 6% |
| D/E | 0.2 |
Roast: Margins are thin, but returns are improving—finally behaving like a travel leader.
P&L Breakdown – Show Me the Money
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Revenue | 5,048 | 7,299 | 8,140 |
| EBITDA | 178 | 437 | 477 |
| PAT | 10 | 271 | 258 |
Roast: Consistent revenue growth but profit still volatile—COVID scars are visible.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| IRCTC | 4,675 | 1,281 | 46x |
| BLS International | 2,193 | 508 | 31x |
| Le Travenues | 1,047 | 64 | 140x |
| Thomas Cook | 8,442 | 259 | 31x |
Roast: Revenue leader among peers but lags in margins—needs to sweat assets better.
Miscellaneous – Shareholding, Promoters
- Promoters: 63.8% (declining).
- FIIs: 4.4% (growing).
- DIIs: 7.8% (slightly falling).
- Public: 22.9% (stable).
Buzz: Stake cuts hint at promoter monetization, not necessarily bad but watch governance.
EduInvesting Verdict™
Thomas Cook India is no longer the pandemic zombie but also not the invincible travel giant of old. With strong Q1 profits, a rating upgrade, and steady revenue growth, the company is rebuilding trust. However, high P/E, low margins, and promoter stake reduction keep risk elevated.
SWOT Analysis
- Strengths: Global presence, diversified travel services, strong brand.
- Weaknesses: Thin margins, high cost of borrowing, promoter stake cuts.
- Opportunities: Outbound travel surge, digital transformation, acquisitions.
- Threats: Economic downturn, competition from online players, forex volatility.
Final Word: A recovering travel stock with legs, but investors must buckle up for turbulence.
Written by EduInvesting Team | 30 July 2025SEO Tags: Thomas Cook India, Travel Stocks, Q1 FY26 Results
