💰 Financial Performance

Revenue Growth by Segment

Consolidated operating revenue grew 35.3% YoY to INR 810.35 lakhs in Q1 FY26. Standalone revenue grew 21.7% YoY to INR 711.29 lakhs. Domestic ticketing was a major driver with sales of INR 10.7 Cr compared to INR 1.15 Cr in the previous year, representing a massive volume shift despite lower average ticket values.

Geographic Revenue Split

The company has a concentrated presence in North and West India, operating in cities like Jalandhar, Chandigarh, Lucknow, Ahmedabad, Jaipur, New Delhi, and Pune. While specific percentage splits per city are not disclosed, the company is ranked as a top 5 consolidator in North India for Air India.

Profitability Margins

Standalone PAT margin stood at 21.65% in Q1 FY26, a slight decrease from 23.13% in Q1 FY25. Consolidated PAT margin was 21.51%. The decline is attributed to a higher proportion of domestic ticketing and softening international ticket prices.

EBITDA Margin

Standalone EBITDA margin was 35.92% in Q1 FY26, down 117 bps from 37.09% in Q1 FY25. Consolidated EBITDA margin was 34.99%. Despite the margin percentage dip, absolute standalone EBITDA grew 17.9% YoY to INR 255.50 lakhs due to higher transaction volumes.

Capital Expenditure

The company committed INR 3 Crore (INR 299.05 lakhs valuation) for the 100% acquisition of GITHM Private Limited to integrate visa services into its portfolio. Historical Net Debt/Equity has improved from 2.80x in FY23 to 1.36x in FY25.

Credit Rating & Borrowing

Not disclosed in available documents, however, consolidated financial costs increased 48.5% YoY to INR 45.62 lakhs in Q1 FY26, indicating increased utilization of credit lines or higher borrowing costs.

⚙️ Operational Drivers

Raw Materials

As a service provider, the 'raw material' is airline inventory. Top 5 suppliers (Airlines) represent 52% of the Gross Transaction Value (GTV).

Import Sources

Sourced from 25 international airlines and the top 5 domestic airlines operating within India.

Key Suppliers

Authorized contract agent for Air India (Top 5 consolidator in North India) and 25 other international carriers.

Capacity Expansion

Total bookings increased 72.8% YoY from 35,513 to 61,357 in Q1 FY26. The company plans to expand its registered travel agent base from 2,996 to 10,000 within the next 2 years.

Raw Material Costs

Total standalone expenses rose 23.9% YoY to INR 455.79 lakhs, primarily driven by the cost of services and operational scaling to handle a 72.8% increase in booking volume.

Manufacturing Efficiency

Ticketing efficiency is high, with systems designed to process reissuances in under 60 seconds for over 2,996 registered B2B customers.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

The company targets a GTV of INR 1,25,000 lakhs in FY26 and INR 1,75,000 lakhs in FY27 (47% CAGR). This will be achieved by expanding the B2B agent network to 10,000, entering the high-margin visa processing segment via the GITHM acquisition, and expanding its geographical footprint beyond North and West India.

Products & Services

B2B air ticketing (domestic and international), travel management consulting, and visa services (newly added).

Brand Portfolio

TSC India Limited (formerly TSC Travel Services Private Limited).

New Products/Services

Visa services segment introduced through the acquisition of GITHM Private Limited, expected to provide a dedicated service line and enhance business development.

Market Expansion

Actively exploring new regions beyond its current strongholds in Punjab, Rajasthan, Gujarat, and Delhi to establish a pan-India presence.

Market Share & Ranking

Ranked among the top 20 travel players in India and top 5 consolidators in North India for Air India.

Strategic Alliances

Authorized contract agent for 25 international and 5 domestic airlines; acquisition of 100% stake in GITHM Private Limited.

🌍 External Factors

Industry Trends

The Indian air travel market is expected to reach 500 million passengers by FY30. The online travel market is growing at 7.8% CAGR, with 80% of bookings now occurring online, favoring TSC's digital B2B platform.

Competitive Landscape

Operates in a fragmented market but maintains a top 20 national ranking against other B2B consolidators and online travel agencies.

Competitive Moat

Competitive moat is built on a strong North India distribution network, 'Top 5' status with Air India, and superior technology allowing sub-1-minute ticketing turnaround times.

Macro Economic Sensitivity

Highly sensitive to the Indian economy and travel sector volatility; air passenger traffic in India is projected to grow at 9-10% CAGR, which is the primary tailwind for TSC.

Consumer Behavior

Increasing preference for digital payments and mobile bookings is driving the 7.8% CAGR in the online travel market.

Geopolitical Risks

Global geopolitical uncertainties are cited as factors that could impact international travel demand and ticket pricing.

⚖️ Regulatory & Governance

Industry Regulations

Subject to IATA regulations for air ticketing and SEBI (ICDR) Regulations for the issuance of preferential shares related to acquisitions.

Environmental Compliance

Not applicable for this service-sector company.

Taxation Policy Impact

Effective tax rate for Q1 FY26 was approximately 27.4% (INR 65.72 lakhs tax on INR 240.02 lakhs PBT).

Legal Contingencies

The company explicitly states there are no pending disputes with customers as of the Q1 FY26 investor presentation.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in airline commission structures (Take Rates) and the impact of international ticket price softening on overall GTV margins.

Geographic Concentration Risk

High concentration in North and West India; failure to successfully expand pan-India could limit the 35% revenue CAGR target.

Third Party Dependencies

52% dependency on the top 5 airline suppliers for inventory and revenue generation.

Technology Obsolescence Risk

The business relies on its proprietary B2B platform; any failure to match the sub-1-minute turnaround time of competitors would erode its moat.

Credit & Counterparty Risk

Exposure to 2,996+ travel agents; the quality of receivables is critical as the company scales to 10,000 agents.