Travel Food Services (TRAVELFOOD) investor relations material

Executive summary

• Achieved double-digit growth in sales and profitability in Q1FY27 despite flat passenger traffic and disruptions from the Middle East conflict, driven by network expansion and operational excellence.

• System-wide sales grew 18% year-on-year to INR 8.4 billion; consolidated profit after tax rose 35.6% year-on-year to INR 1.3 billion.

• Expanded network to 21 airports, adding 87 Travel QSR outlets and two lounges in the last 12 months, and launched passenger services at Noida International Airport.

• Continued focus on productivity, ramp-up of new locations, customer experience, and scaling emerging service offerings.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, with results reviewed by statutory auditors.

Financial highlights

• Revenue from operations increased 20.6% year-on-year to INR 4.5 billion.

• Consolidated PAT increased 35.6% YoY to INR 1,288 million, with PAT margin rising to 28.5%.

• EBITDA rose 11% year-on-year to INR 1.6 billion; EBITDA margin moderated to 35.8% due to higher employee and operating costs.

• Gross profit margin improved to 85.7% (reported), 81% (adjusted after reclassification of lounge aggregation costs).

• Consolidated cash balance at INR 9.7 billion with a debt-free balance sheet as of June 30, 2026.

Outlook and guidance

• Over 50 outlets under development, expected to open within the fiscal year and mature over 12–18 months.

• Anticipates a strong H2 recovery in passenger traffic as international routes are restored and geopolitical uncertainties ease.

• Focused on expanding both domestically and internationally, especially in Asia, with new entities set up in Dubai and Indonesia.

• Highway F&B and wayside amenities identified as medium- to long-term growth opportunities.

• Management assessed the expiry of a key subsidiary's license agreement in September 2026 and concluded there is no material uncertainty at the group level due to strong liquidity and positive operating cash flows.