Travel Food Services (TRAVELFO IN): Buy: Headwinds temporary, fundamentals intact

研报英文原文证据摘录

Travel Food Services (TRAVELFO IN): Buy: Headwinds temporary, fundamentals intact

25 June 2026

Travel Food Services EquitiesHotels Restaurants & Leisure

(TRAVELFO IN)

Buy: Headwinds temporary, fundamentals intact India

◆ Weakness in air traffic in 1QFY27 driven by travel disruptions

MAINTAIN BUY

and higher fares could be a drag on its Q1 earnings

◆ Resilient corporate travel and some revenge travel could boost TARGET PRICE (INR) PREVIOUS TARGET (INR)

demand in H2FY27; cost headwinds could be a pass through 1540.00 1540.00

◆ Maintain Buy, INR1,540 TP; pricing power, healthy balance SHARE PRICE (INR) UPSIDE/DOWNSIDE

sheet, attractive valuation, and growth potential are all plausible 1321.30 +16.6%

(as of 24 Jun 2026)

Soft pax traffic could drag Q1 earnings: Pax traffic in the quarter to June has been MARKET DATA

weak primarily because of travel disruptions and high fares. While international traffic Market cap (INRm) 173,988 Free float 14% Market cap (USDm) 1,836 BBG TRAVELFO

was down 12.5% (quarter to 20 June), domestic traffic was up only 1.2%. Though 3m ADTV (USDm) 1 RIC TAVE.NS

airport-wise traffic data are not available, we think the key metro airports – that cater

FINANCIALS AND RATIOS (INR)

to international traffic and where TFS has a bigger presence – would have been impacted Year to 03/2026a 03/2027e 03/2028e 03/2029e

more. Hence, we think this weakness could be a major drag on its Q1FY27 earnings. HSBC EPS 33.49 37.90 44.04 53.09

HSBC EPS (prev) 33.49 37.90 44.04 53.09

More importantly, the industry is cutting capacity for summer which means TFS’ Q2 Change (%) 0.0 0.0 0.0 0.0

earnings could face softness, though Q2 demand is difficult to estimate at this stage. Consensus EPS 31.95 36.50 42.11 47.69

PE (x) 39.5 34.9 30.0 24.9

Dividend yield (%) 0.8 0.9 1.0 1.2