Travel Food Services (TRAVELFO IN) Buy: Foodies queue up

研报英文原文证据摘录

Travel Food Services (TRAVELFO IN) Buy: Foodies queue up

Equities ● Hotels Restaurants & Leisure

26 May 2026

Key takeaways from the call

Current trading and outlook: Management noted that conflict-driven international softness in

March continued in April (slightly worse than March), but May trends were improving

sequentially. For FY27, while the market indicates 5% passenger growth, group growth could

be higher than that.

Cost and pricing: The company expects some inflationary impact due to high energy cost

(LPG) but noted food inflation has been modest (c3-5% in April) and its model benefits from

airport operations being largely electric. Broadly, gross margin to remain at 80-83%.

Addition of QSRs, lounge, and pipeline: The group expanded to 20 airports with 550 travel

QSRs and lounges in total. TFS added premium international brands like Gordon Ramsay,

Nando’s, and Wagamama. Committed pipeline remains robust with 50+ outlets in pipeline and

upcoming airport including Noida (operations expected by June).

International expansion: TFS opened new subsidiaries in Dubai and is also looking at

Indonesia to pursue opportunities.

EATS platform: Growth levers include experience upgrade and monetisation. TFS plans to add

ancillary services onto the platform to deepen customer engagement like meet and greet and

porter services and unlock incremental revenue.

Lounge dynamics: Management noted while mass-market card lounge access is tightening,

premium cards are growing much faster (management cited 50% growth for premium cards vs

high-single/low-double digits for mass), and premium frequent flyers are more valuable due to

higher visit frequency supporting continued lounge strength even amid access rule changes.

Q4FY26 strong despite Middle East conflict impacting travel