💰 Financial Performance

Revenue Growth by Segment

System-wide sales grew 18.4% YoY to INR 728.4 Cr in Q2 FY26, while consolidated sales grew 4.1% to INR 355.9 Cr. For H1 FY26, system-wide sales reached INR 1,443.5 Cr, a 22.4% increase YoY. Like-for-Like (LFL) sales growth was 9.2% in Q2 FY26 and 10.4% in H1 FY26, driven by menu engineering and revenue enhancement initiatives.

Geographic Revenue Split

The company operates in 13 of the 15 largest airports in India, including Delhi, Mumbai, Bengaluru, Chennai, and Kolkata. International presence includes Malaysia (Kuching, Kota Kinabalu) and Hong Kong. While specific % splits by city are not disclosed, the company maintains a dominant 94% contract retention rate across these major hubs.

Profitability Margins

Gross Profit margin improved to 83.9% in Q2 FY26 from 81.1% in Q2 FY25 (up 288 bps). PAT margin increased to 27.5% in Q2 FY26 from 24.8% in Q2 FY25 (up 268 bps). FY25 annual ROE stood at 35.5% and ROCE at 51.4%, reflecting high capital efficiency.

EBITDA Margin

EBITDA margin for Q2 FY26 was 38.0%, up 244 bps from 35.6% in Q2 FY25. This was driven by a higher gross margin and cost optimization in employee and finance costs, despite a temporary moderation in passenger traffic.

Capital Expenditure

Not explicitly disclosed in INR Cr for future periods, but the company is actively mobilizing new sites including 50 Travel QSR outlets and 4 Lounges in the last 12 months. Future Capex is focused on upcoming Noida and Navi Mumbai International Airports.

Credit Rating & Borrowing

The company reports NIL consolidated debt as of September 30, 2025. It maintains a strong cash balance of INR 749 Cr, providing significant internal liquidity for expansion without external borrowing costs.

⚙️ Operational Drivers

Raw Materials

F&B products and ingredients (e.g., coffee beans, tea, burger ingredients, dairy) represent the primary procurement cost. While specific % per item is not disclosed, procurement costs are a major component of the 16.1% cost of goods sold.

Import Sources

Sourced primarily from India to cater to regional tastes, with international brand ingredients (like Gordon Ramsay Street Burger) potentially involving specialized supply chains. Specific countries are not listed beyond the Indian domestic market.

Key Suppliers

Not disclosed in available documents; however, the company leverages its partnership with SSP (Global Travel F&B operator) and K Hospitality for supply chain scale.

Capacity Expansion

Currently operates over 500 outlets across 135 brands. Planned expansion includes the commencement of operations at Noida and Navi Mumbai International Airports, which are expected to open soon.

Raw Material Costs

Raw material costs are managed through menu engineering and product mix optimization, contributing to a Gross Profit of INR 298.7 Cr in Q2 FY26. Procurement strategies focus on leveraging the scale of 500+ outlets to mitigate inflation.

Manufacturing Efficiency

Efficiency is measured by the 12-18 month stabilization period for new units to reach peak EBITDA levels. LFL growth of 9.2% despite a 1% traffic decline indicates high operational efficiency in driving per-passenger spend.

Logistics & Distribution

Not disclosed as a specific % of revenue.

📈 Strategic Growth

Expected Growth Rate

8-9%

Growth Strategy

Growth will be achieved through: 1) Expansion into new major airports (Noida, Navi Mumbai); 2) Increasing passenger penetration via new concepts like Gordon Ramsay Street Burger and Boba Chai; 3) Technology-enabled solutions like the 5-minute delivery menu; and 4) Strategic presence in international markets like Malaysia and Hong Kong.

Products & Services

Food and beverage services through Travel QSRs (Quick Service Restaurants), bars, cafes, food courts, and premium airport lounge services.

Brand Portfolio

Gordon Ramsay Street Burger, Boba Chai, Cold Filter Coffee, and a portfolio of 135 brands including 42 in-house brands and 93 franchised international/regional brands.

New Products/Services

Launched India's first Gordon Ramsay Street Burger at Delhi T1; introduced 'Quick Commerce' 5-minute menus; and new beverage lines like Boba Chai and Cold Filter Coffee.

Market Expansion

Targeting new airport concessions and highway food services. Upcoming major projects include Noida and Navi Mumbai International Airports.

Market Share & Ranking

Market leader in the Indian Travel F&B sector, operating in nearly all major domestic hubs with a 93.9% contract retention rate.

Strategic Alliances

Joint Venture with SSP (Global Travel F&B leader) and partnership with K Hospitality (Indian F&B player with 50+ years experience).

🌍 External Factors

Industry Trends

The Indian airport Travel QSR and Lounge industry is growing rapidly due to infrastructure investment and new aircraft orders. The company is positioning itself by shifting toward premium brands and tech-enabled 'Quick Commerce' to capture higher per-passenger spend.

Competitive Landscape

Competes with other global and local F&B operators, but maintains leadership through its partnership with SSP and extensive portfolio of 135 brands.

Competitive Moat

Durable moat built on: 1) Long-term concessions (8.81 years average); 2) High switching costs for airport operators (93.9% retention); 3) Exclusive partnerships with global brands like Gordon Ramsay; and 4) Deep operational expertise in high-pressure airport environments.

Macro Economic Sensitivity

Highly sensitive to aviation industry health and passenger traffic growth, which is expected to grow at 8-9% CAGR driven by rising disposable incomes.

Consumer Behavior

Increasing demand for premium experiences (lounges) and speed of service (5-minute delivery) among both leisure and business travelers.

Geopolitical Risks

Regional conflicts (e.g., India-Pakistan) and global geopolitical tensions can impact flight routes and passenger traffic volumes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to airport authority regulations, food safety standards (FSSAI), and aviation security norms. Operations are governed by long-term concession agreements with specific performance and quality standards.

Environmental Compliance

Not disclosed in INR values.

Taxation Policy Impact

Effective tax rate is reflected in the PAT margin of 27.5%. The company benefits from the share of profit from associates and JVs which are reported net of tax.

⚠️ Risk Analysis

Key Uncertainties

Passenger traffic volatility due to external shocks (accidents, conflicts) could impact revenue by 3-5% in the short term, as seen in Q2 FY26.

Geographic Concentration Risk

High concentration in India, specifically within major metro airports like Delhi and Mumbai, though expanding to regional hubs and international sites.

Third Party Dependencies

Dependency on airport operators for concession renewals and on franchised brand owners for maintaining brand appeal.

Technology Obsolescence Risk

Mitigated by the launch of a new technology platform for bank integration and digital ordering systems.

Credit & Counterparty Risk

Low risk as most Travel QSR sales are point-of-sale cash/digital transactions; lounge services involve receivables from banks/aggregators.