Travel Food Services Limited has informed the Exchange about Transcript of Earnings Call
TRAVELFOOD · price
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Travel Food Services filed the transcript of its first-ever post-IPO earnings call held on August 11, 2025. Q1 FY26 system-wide sales rose 26.7% year-on-year to INR 7.15 billion, supported by 12.5% like-for-like growth and 10.1% net contract gains, despite temporary air traffic moderation from geopolitical events and the Air India crash. Consolidated sales grew 6.3% to INR 3.75 billion, while reported PAT jumped 59.5% and adjusted PAT grew 19.3% to INR 950 million. Gross margin expanded to 83% on lower food inflation, efficient procurement, and 150bps reduction in other expenses as a percentage of sales. Management highlighted a 94% contract retention rate since 2009, ~70 outlets under construction (including Navi Mumbai and Noida), and 50+ units to be mobilized this year, with EBITDA margin gains seen as sustainable and gross margin guided in an 80-82% range.
First post-listing earnings call reinforces strong growth momentum and margin expansion story, but the JV profit contribution of only INR 80 million (depressed by one-time deferred tax and pre-opening costs) signals that full earnings power from new airports is still ahead. Short-term air traffic softness is expected to normalise by H2, and sustainable margin guidance is positive for forward earnings estimates.