TFS Q2 Profit Jumps 50.5% as Airport Network Expands to 22 Locations
Consolidated profit rises 50.5% as network expansion, new contracts and premiumisation support growth amid aviation sector headwinds.
By SOH Edit Team
Travel Food Services Limited (TFS), one of India's leading airport food and beverage and lounge operators, reported an 18.8% year-on-year increase in system-wide sales to ₹865.4 crore for the second quarter of FY27, despite a 4.8% decline in passenger traffic across its operating network.
Consolidated profit after tax (PAT) rose 50.5% to ₹147.3 crore, compared with ₹97.9 crore in the corresponding quarter last year. Consolidated revenue increased 19.5% to ₹425.3 crore, reflecting continued network expansion, new contract additions and stronger spending across existing outlets.
For the first half of FY27, system-wide sales grew 18.4% to ₹1,709 crore, while consolidated PAT increased 43.2% to ₹276.1 crore.
Varun Kapur, Managing Director and CEO, TFS.
Expansion Drives Growth Amid Traffic Pressures
TFS expanded its system-wide presence from 18 to 22 airports over the past year, with operations commencing at Alluri Sitarama Raju International Airport, Bhogapuram. Its Travel QSR portfolio grew to 535 outlets, up from 464 a year earlier, following the addition of more than 70 units across key airport locations.
The company's brand portfolio also expanded to 156, including 21 new in-house, regional and international brands introduced over the past 12 months.
Despite passenger traffic declining 4.8% in Q2FY27 and 2.2% in H1FY27, system-wide like-for-like sales increased 3.5% and 2.2%, respectively. TFS attributed the resilience to menu optimisation, premiumisation and improved operating efficiencies.
Consolidated PAT rose 50.5% during the quarter, supported by revenue growth, higher other income and increased profit contributions from joint ventures. The reported profit also included approximately ₹46.8 crore in post-tax provision write-backs, making this an important factor in assessing underlying earnings growth.
TFS maintained a debt-free balance sheet, with cash reserves of ₹1,030.9 crore as of September 30, 2026.
Building Beyond the Core Airport Business
Beyond its existing food and beverage operations, TFS is expanding its passenger services ecosystem through Elite Assist Technology and Services (EATS), with a focus on broadening lounge access distribution beyond traditional banking and card-network partnerships.
The company is also evaluating opportunities across international lounges, expressways and upcoming greenfield airports.
Commenting on the performance, Varun Kapur, Managing Director and CEO, TFS, said: ‘It was one of the most challenging quarters for passenger traffic in recent periods, amid an unusually volatile operating environment. Despite these headwinds, TFS' system-wide sales grew 18.8% year-on-year and the business continued to deliver healthy underlying profitability, demonstrating the resilience of our portfolio and expanding network. This performance reinforces our confidence in the business and its ability to grow through periods of near-term volatility.”
He added that the company’s strategy remains focused on strengthening the core while building the next phase of growth for TFS. With a strong, debt-free balance sheet and an expanding network, TFS is well positioned to capture the long-term growth opportunities across the aviation and broader travel ecosystem.
For India's evolving airport hospitality sector, the performance underscores the growing role of network expansion, premiumisation and diversified passenger services in driving revenue growth—even when passenger volumes remain under pressure.
