About Travel Food Services Limited
Travel Food Services Limited, commonly known as TFS, is one of India’s leading travel food and beverage companies. Founded in 2009, TFS operates a wide range of restaurants, food courts, cafes and airport lounges at major airports in India and abroad.
The company focuses on providing good and high quality food and hospitality services to passengers at airports, railway stations and highway outlets. Its business model combines both global food brands and its own in-house brands, offering a diverse menu for travelers from all walks of life.
As of June 30, 2024, TFS operates:
- 397 QSR (Quick Service Restaurant) outlets
- 31 airport lounges
- Also present at 14 airports in India, including major hubs like Mumbai, Delhi, Bengaluru, Chennai, Kolkata and Hyderabad
- Also present at 1 premium lounge in Hong Kong and 3 airports in Malaysia, marking its growing international footprint.
The company is promoted by the Kapur Family Trust, with key promoters being Varun Kapur and Karan Kapur.
Refer to Travel Food Services IPO DRHP for detailed information.
Travel Food Services IPO – Financial Growth and Performance
- TFS has delivered consistent financial growth over the years. For FY 2024, it reported revenue of ₹1,462.29 crore and a profit after tax (PAT) of ₹298.02 crore. Its EBITDA margin stood at 37.6%, highlighting strong operational efficiency. With a Return on Equity (ROE) of 36.57%, the company is among the top-performing peers in the hospitality and QSR segment.
- Even under its asset-light expansion model, TFS maintains low borrowing (Debt-to-equity ratio: 0.08x), which indicates a strong balance sheet and minimal financial risk. The company is well-positioned to scale further, especially as air traffic in India is expected to grow in double digits over the next decade.
Travel Food Services IPO – Risks Investors Should Consider
- Despite its strengths, TFS operates in a sector that is highly sensitive to global and domestic travel trends. Events like pandemics, geopolitical tensions, or airport policy changes can affect footfall and revenue. Additionally, raw material inflation, increasing labor costs, and intensifying competition in the food services space may impact its long-term profitability.
- Another concern is that the IPO is a 100% OFS, which means investors are not funding future expansion — they’re simply buying existing equity from promoters.
Travel Food Services IPO Details
| Aspect | Details |
|---|---|
| Issue Size | ₹2,000 crore |
| Face Value | ₹1 per equity share |
| Price Band | Yet to be announced |
| Lot Size | Not specified |
| Book-running Lead Managers | Kotak Mahindra Capital, HSBC Securities & Capital Markets India, ICICI Securities, Batlivala & Karani Securities |
| Registrar | MUFG Intime India Pvt. Ltd (formerly Link Intime) |
Travel Food Services IPO Lot Size
| Category | Lot Size (Shares) | Minimum Investment |
|---|---|---|
| Retail | 1-lot (13Shares) | ₹14,300 |
| Retail (Max) | 13-lot (169 Shares) | ₹1,85,900 |
| Small HNIs | 14 -lot (182 Shares) | ₹2,00,200 |
| Small HNIs (Max) | 69-lot (897 Shares) | ₹9,86,700 |
| Big HNIs | 70-lot (910 Shares) | ₹10,01,000 |
Travel Food Services IPO Revenue, PAT, and ROE FY25
| Period Ended | 31 Mar 2024 | 31 Mar 2025 |
|---|---|---|
| Assets | ₹1,623.39 crore | ₹1,771.16 crore |
| Revenue | ₹1,462.29 crore | ₹1,639.44 crore |
| Profit After Tax (PAT) | ₹298.02 crore | ₹238.16 crore |
| EBITDA | ₹549.89 crore | ₹531.56 crore |
| Net Worth | ₹814.88 crore | ₹869.29 crore |
| Total Borrowing | ₹63.78 crore | ₹66.97 crore |
Key Performance Indicator (KPI) – Travel Food Services IPO
| KPI | FY 2024 | FY 2025 (Annualized) |
|---|---|---|
| EBITDA Margin (%) | 37.6% | 32.4% |
| PAT Margin (%) | 20.4% | 14.5% |
| Return on Equity (ROE) | 36.57% | ~27.4%– approx |
| Return on Capital Employed (ROCE) | 29.1% | 24.3% |
| Debt-to-Equity Ratio | 0.08x → 8% | 0.07x → 7% |
Conclusion: Should You Invest in the TFS IPO?
- Travel Food Services (TFS) stands out as a profitable, asset-light player in the fast-growing Indian travel and hospitality sector. With a presence at high-traffic locations, strong brand collaborations, and healthy financials, the company is well-positioned for long-term growth.
- However, investors should note that this IPO is a 100% Offer for Sale, meaning the company won’t receive any fresh capital. Also, external factors like travel disruptions or competitive pricing pressure could impact performance.
- Still, with an impressive EBITDA margin of over 35%, low debt levels, and a strong return on equity, TFS looks like a stable business backed by solid fundamentals.
💡 Disclaimer: This is not financial advice. Always do your own research or consult with a financial advisor before investing in IPOs.
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