Is Travel Food Services IPO Good or Bad – Detailed Review

Travel Food Services Limited IPO is kicking off its initial public offering, which will be open from July 7, 2025, to July 9, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Travel Food Services IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Travel Food Services IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Travel Food Services IPO Review

Travel Food Services is gearing up for its Initial Public Offering (IPO), aiming to raise Rs 2,000 crore. The proceeds are primarily earmarked for offer for sale from the promoters, to achieve the benefits of being listed on the Stock exchange, as well as earn visibility and brand image. 

Travel Food Services has shown steady financial growth from FY23 to FY25, driven by its lounge services, travel QSR, and management verticals, with most revenue coming from domestic operations. Here, the EBITDA and PAT also improved, supported by disciplined cost management and stable finance expenses. A strong RoCE of 51.4% in FY25 highlights efficient capital utilization and operational strength.

Speaking of the company’s peers, in FY25, Travel Food Services reported revenue of Rs 1,687.74 crore, which was lower than Jubilant FoodWorks and Devyani International. However, it outperformed all listed peers in profitability with an EPS of Rs 27.58, significantly higher than Jubilant’s Rs 3.41 and Westlife Foodworld’s Rs 0.78. The company also demonstrated superior capital efficiency, with a Return on Net Worth of 34.64%, compared to 10.02% for Jubilant FoodWorks and negative 23.80% for Restaurant Brands Asia. 

By analysing this, we understand that the company is in a good position in terms of its profitability and return metrics. However, it carries certain risks like seasonality and revenue concentration risk, which need to be given attention. 

That said, potential investors are strongly advised to conduct their own independent analysis and consult financial advisors before making any investment decision. Keep reading to find out more about the company’s background, business model, and growth strategy.

Company Overview of Travel Food Services IPO

Travel Food Services (TFS) is a prominent player in India’s fast-growing airport travel quick service restaurant (QSR) and lounge sectors. In Fiscal 2025, the company held an estimated 26% share of the Indian airport travel QSR market and approximately 45% share of the Indian airport lounge market, based on revenue, including that of associates and joint ventures. 

Their Travel QSR portfolio spans a diverse range of curated food and beverage (F&B) offerings, encompassing multiple cuisines, formats, and brands, both in-house and partner-based. As of March 31, 2025, TFS operated 442 Travel QSRs across India and Malaysia, with the majority located in airports and a smaller presence at highway sites. 

The company’s 442 Travel QSR outlets include 384 at Indian airports, 29 at Malaysian airports, and 29 along Indian highways. Of these, 270 were operated directly by the company and its subsidiaries, while 172 were run by associates and joint ventures. The QSR formats span fast food, cafes, bakeries, food courts, and bars, all adapted for high-efficiency service in travel settings. TFS partners with well-known regional and international F&B brands, such as KFC, Pizza Hut, Wagamama, Subway, Third Wave Coffee, The Irish House, and Curry Kitchen, while also operating several proprietary brands developed in-house.

The company also operates a well-established lounge business, offering premium spaces within airport terminals. These lounges are primarily accessible to first and business-class passengers, airline loyalty program members, select credit and debit cardholders, and members of other loyalty networks. As of March 31, 2025, TFS had 37 lounges across India, Malaysia, and Hong Kong. 

In terms of lounges, TFS managed 37 as of March 31, 2025. These included 28 in 10 Indian airports, eight in Malaysian airports, and one in Hong Kong. Of the total, 13 lounges were directly operated by the company and its subsidiaries, while 24 were run through associates and joint ventures. TFS has collaborated with numerous domestic and international airlines, card networks, financial institutions, and lounge access programs to offer seamless entry to their lounges.

TFS maintains a strong presence in 14 airports in India, three in Malaysia, and one in Hong Kong. Notably, 13 of the Indian airports in which TFS operates ranked among the top 15 by passenger traffic in Fiscal 2025. These include major hubs such as Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai. Collectively, these 14 Indian airports accounted for 74% of the country’s total air passenger traffic that fiscal year. 

Industry Overview of Travel Food Services IPO 

India’s domestic and international air travel sectors are projected to experience robust growth over the coming years. Between Fiscal 2025 and 2034, domestic air passenger traffic is expected to grow at a compound annual growth rate (CAGR) of approximately 8% to 9%, while international passenger traffic is forecasted to expand at a CAGR of around 6% to 8%.

This upward trend in passenger movement is likely to drive significant demand in the airport-based Travel QSR and Lounge segments. Factors such as longer passenger dwell times, the continued expansion of low-cost airline services, and the increasing penetration of credit card and loyalty program benefits are expected to fuel this growth.

The Indian airport Travel QSR market is projected to grow at a CAGR of 17% to 19% over the same period, while the airport Lounge sector is anticipated to witness even faster growth, with a projected CAGR of 22% to 24% from Fiscal 2025 to 2034.

Financial Overview of Travel Food Services IPO

The company’s revenue from operations has demonstrated consistent growth, rising from Rs 1,067.15 crore in FY23 to Rs 1,396.32 crore in FY24, and further to Rs 1,687.74 crore in FY25. This growth has been primarily driven by its three core verticals: lounge services, travel QSR, and management & other services, with a dominant share of revenue generated from domestic operations.

EBITDA has maintained an upward phase, rising from Rs 458.05 crore in FY23 to Rs 676.35 crore in FY25. The EBITDA margin declined from 42.92% in FY23 to 39.39% in FY24, and it recovered slightly to 40.07% in FY25, as some of the operating expenses, like finance costs, were reduced. 

Coming to PAT, we can see the Year-on-Year profits being increased from Rs 251.30 crore in FY23 to Rs 298.12 crore in FY24, and further increased to Rs 379.66 crore in FY25. This is due to a combination of strong revenue growth, disciplined cost management in terms of employee and material costs, stable finance costs, and incremental contributions from other income. Furthermore, with a ROCE of 51.40% in FY25, the company demonstrates excellent efficiency in the utilization of its overall resources. 

Strengths and Risks of Travel Food Services IPO

Let’s dive into the strengths and weaknesses to assess if the Travel Food Services IPO is good or bad for investors.

Strengths 

• Market leadership:
  As of Fiscal 2025, the company held a leading position in India's airport-based Travel QSR and Lounge sectors, with a revenue-based market share of 26% and 45% respectively, operating the largest network of outlets across 14 major airports, accounting for 89% of passenger traffic in the top 20 airports.

• Operational expertise:
  With over 16 years of experience, the company has built strong capabilities to navigate the complex and regulated airport environment, managing 24/7 operations, stringent security, and multi-brand food services through central kitchens and specialized teams.

• Strong partnerships:
  The company has built long-standing relationships with major airport operators across India, securing strategic joint ventures and long-term concessions averaging over 8 years, with a presence in key airports like Delhi, Mumbai, and Bengaluru.

• Robust brand mix:
  The company operates a wide portfolio of 127 F&B brands with 90 partners and 37 in-house, enabling it to meet diverse passenger preferences and win major airport concessions by offering tailored food options across international, regional, and local cuisines.

• Customer-centric innovation:
  The company enhances traveler experiences through tech-enabled services, personalized menus, and regional offerings across its QSRs and Lounges, combining speed, personalization, convenience, and local flavor with elevated amenities like spa services and entertainment zones.

Risks

• Revenue concentration risk:
  A significant portion of the company’s revenue, 85.94% in FY25, comes from its Travel QSRs and Lounges at the top five airports, making it vulnerable to traffic declines or concession non-renewals at these key locations.

• Impact on operator model shift:
  Changes in airport operators’ business models requiring majority stakes in concession-holding entities have led the company to form joint ventures like Semolina and GHL, reducing its direct control and profit share in key airports like Mumbai and Hyderabad.

• Dependence on card access:
  The Lounge business, which contributed nearly 45% of revenue over the past three fiscal years, relies heavily on customers accessing services through credit and debit cards. A decline or surge in such users could negatively affect footfall, service quality, and customer experience.

• Udaan Café impact:
  Government-run Udaan Yatri Cafés offering low-cost food options at airports may divert customers from the company’s Travel QSR outlets, potentially affecting sales, brand perception, and financial performance.

• Airport pricing risk:
  Higher menu prices at the company’s airport QSR outlets compared to non-airport locations may lead to customer dissatisfaction, reduced sales, and potential legal or regulatory challenges.

• Dependency on lounge partners:
  The company’s Lounge revenue is highly reliant on free access programs offered by airline loyalty schemes and card issuers; any reduction or withdrawal of these benefits could significantly impact the business performance.

• Global growth risks:
  Expanding the Lounge business internationally involves high upfront costs and management effort, and exposes the company to risks like political uncertainty, regulatory challenges, and operational complexities across regions, along with currency volatility risks. 

• Impact of seasonality:
  The sales and cash flows fluctuate due to seasonal travel patterns, with higher footfall during holidays and festive seasons, and potential slowdowns during periods like the monsoon.

Strategies of Travel Food Services IPO

• Driving LFL growth:
  The company aims to boost like-for-like (LFL) sales by customizing offerings, streamlining menus, enhancing tech-enabled service, and optimizing outlet layouts to align with evolving traveler preferences and rising passenger volumes.

• Expansion strategy:
  The company plans to deepen its presence in existing airports, enter new domestic and international markets, and tap into the growing highway QSR segment through multi-brand food courts and enhanced travel amenities.

• Efficiency and scale:
  The company enhances profitability by optimizing margins, streamlining supply chains, improving labor productivity, and minimizing waste through data-driven strategies and scalable operations.

• Capital efficiency:
  The company ensures efficient capital use through strict investment reviews, modular outlet design, vendor standardization, automation, and cost-saving tools like reverse auctions and post-project audits.

• People-first culture:
  The company emphasizes employee growth, inclusion, training, safety, and well-being through structured development programs, diversity initiatives, and comprehensive support policies to foster a motivated and engaged workforce.

Travel Food Services IPO Vs Peers

Source: RHP of the company

In terms of scale, Travel Food Services Limited reported an operating revenue of Rs. 1,687.74 crore in Fiscal 2025. This is lower than the scale of Jubilant FoodWorks, Devyani International, Sapphire Foods India, Westlife Foodworld, and Restaurant Brands, with an operating revenue of Rs 8,141.72 crore, Rs 4,951.05 crore, Rs 2,881.86 crore, Rs 2,474.13 crore, and Rs 2,550.72 crore, respectively. 

However, the company’s Earnings Per Share for Fiscal 2025 stood at Rs. 27.58, which is significantly higher than all of its listed peers. For comparison, Jubilant FoodWorks reported an EPS of Rs. 3.41, Westlife Foodworld stood at Rs. 0.78, and Sapphire Foods at Rs. 0.60. Furthermore, Devyani International had a marginal EPS of Rs. 0.08, and Restaurant Brands Asia reported a negative EPS of Rs. 4.33, highlighting the strong earnings performance of Travel Food Services.

In terms of capital efficiency, the Return on Net Worth (RoNW) of Travel Food Services stood at 34.64 percent in Fiscal 2025, considerably outperforming its listed peers. This was higher than Jubilant FoodWorks at 10.02 percent, Devyani International at 0.87 percent, Sapphire Foods at 1.38 percent, and Westlife Foodworld at 1.98 percent. Restaurant Brands Asia reported a negative RoNW of 23.80 percent. 

Objectives of Travel Food Services IPO 

As this is an Offer for Sale, the entire proceeds will go to the selling shareholders. The company will receive any proceeds from the IPO. 

Travel Food Services IPO Details

IPO Dates

Travel Food Services IPO will be open for subscription from July 7, 2025, to July 9, 2025. The allotment of shares to investors will take place on July 10, 2025, and the company will be listed on the NSE and BSE on July 14, 2025.

IPO Issue Price

Travel Food Services is offering its shares in the price band of Rs 1,045 to Rs 1,100 per share. This means you would require an investment of Rs. 14,300 per lot (13 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Travel Food Services is issuing a total of 1,81,81,818 shares, which are worth Rs 2,000 crores, and are completely through offer for sale.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on July 10, 2025, through the registrar's website: MUFG Intime India Private Limited, BSE, NSE, or their stockbroker platform.

IPO Listing Date

The shares of Travel Food Services will be listed on the NSE and BSE on July 14, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Travel Food Services IPO