Travel Food Services Ltd Q2FY26: From Airport Parathas to Global Lounges – A ₹17,423 Cr Buffet of ROE, Moats & Masala!

1. At a Glance

If airports are temples of travel, then Travel Food Services Ltd (TFSL) is the undisputed high priest serving hot idlis and cold cappuccinos at every gate. Incorporated in 2007, this ₹17,423 crore hospitality powerhouse is redefining what “airport food” means — moving from “how expensive is this sandwich?” to “I’ll miss my flight but not this biryani.” With astock price of ₹1,322, a3-month return of 7.35%, and aP/E of 49.6, TFSL is trading like an airport lounge pass — premium, limited, and with a queue outside.

ItsROE of 39.1%andROCE of 41.7%make it the dream airport kiosk of capital efficiency. Meanwhile, the company’sFY25 sales of ₹1,688 croreandPAT of ₹362 croremean that even turbulence couldn’t shake its margins. Its dominance:26% market share in Travel QSRand45% in airport lounges— including JVs and associates — is like claiming both the burger counterandthe recliner chair in the departure lounge.

In the spirit of theBhagavad Gita, “You have the right to the work, not the fruits thereof.” Clearly, TFSL ignored the second half — because these fruits are sweet, profitable, and served with free Wi-Fi.

2. Introduction

Picture this: you’re at the airport, late for a flight, and starving. The last thing you expect is gourmet-level food before takeoff. EnterTravel Food Services Ltd, the company that made “eating at the airport” cool again. TFSL’s empire includesKFC,Subway,Third Wave Coffee, and in-house inventions likeCaféccinoandDilli Streat— basically, it’s the Avengers of Indian airport food.

Founded bySunil Kapur and the Kapur Family Trust, withSSP Asia Pacific Holdingsholding the global fork, this company has turned airport F&B from a side business into a cash-minting express. As of FY25, it’s serving over14 airports in India, plusMalaysia and Hong Kong, managing479 total outletsand37 lounges— of which 24 are operated through JVs and associates.

And just like your flight always boards “soon,” TFSL is always expanding — whether it’s its newARAYA lounge brand(a posh, global hospitality experience co-created with SSP Group) or snapping up new airport licenses faster than a security line clears at 2 AM.

Yet, here’s the kicker: even in a high-cost, high-rent business like airports, TFSL pulls off anOPM of 32.8%. That’s not efficiency — that’s culinary wizardry with a spreadsheet.

3. Business Model – WTF Do They Even Do?

So, what exactly does Travel Food Services do, apart from ensuring you spend ₹600 on coffee before a ₹5,000 flight?

TFSL runs two main verticals:(a)Travel QSRs (Quick Service Restaurants)— 442 outlets across India and Malaysia, spanning127 brands. These include both international partners (KFC, Pizza Hut, Subway, Wagamama, Jamie Oliver’s Pizzeria) and Indian favourites (Bikanervala, Hatti Kaapi, Sangeetha). About 270 are directly operated; the rest are viaJVs and associates.(b)Airport Lounges— 37 lounges across India, Malaysia, and Hong Kong. Think soft couches, stronger coffee, and free Wi-Fi for people pretending to work.

But here’s the clever bit — TFSL doesn’t own airports, itleases experiences. It earns not just from sandwiches, but frommanagement contracts, franchise fees, and loyalty partnershipswith card networks and airlines. ItsARAYA Lounge initiativetakes this global — with SSP Group managing lounges in Europe, North America, and Oceania, while TFSL holds the Asian throne.

Revenue mix FY25:54.37% from partner brands,45.63% from in-house brands, and a small3.38% from lounge management. In simple words: half from borrowed brands, half from homegrown genius, and a cherry of elite lounges on top.

4. Financials Overview

Annualised EPS = ₹7.27 × 4 = ₹29.1 →P/E ≈ 45.4

Commentary:Revenue may have dipped 29% YoY (probably fewer people buying overpriced muffins post-holiday season), but margins stayed