Mumbai, India – July 7, 2025 – India’s largest airport-centric food and beverage (F&B) and lounge operator, Travel Food Services Limited (TFS), has opened its much-anticipated Initial Public Offering (IPO) for public subscription today, July 7, 2025. The ₹2,000 crore IPO is entirely an Offer For Sale (OFS) by the Kapur Family Trust, meaning the company itself will not receive any proceeds from the issue, with funds going to the selling shareholders.
The IPO, which closes on July 9, 2025, has set its price band at ₹1,045 to ₹1,100 per equity share. Investors can bid for a minimum of 13 shares, and in multiples thereafter. The offering includes a reservation for eligible employees. Let’s understand about the company and Travel Food Services IPO now:
Table of Contents
About Travel Food Services: A Dominant Player in Travel F&B
Established in 2009, Travel Food Services has carved out a dominant niche in India’s burgeoning travel retail sector. Promoted by the Kapur Family Trust (under the K Hospitality brand) and backed by the UK-based SSP Group plc (a FTSE 250 company), TFS operates a vast network of Quick Service Restaurants (QSRs) and lounges primarily in airports, with a growing presence in railway stations and highways.
Business Model & Reach: TFS boasts of:
- Extensive Network: As of March 31, 2025, TFS operates 442 Travel QSRs and 37 airport lounges.
- Unrivalled Airport Presence: Out of its 413 outlets, a significant 384 are located within airports. The company has a presence across 14 Indian airports, including major hubs like Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad, which collectively accounted for 89% of the total airport traffic in India’s 20 largest airports in FY25.
- International Footprint: Beyond India, TFS also operates in three overseas airports – two in Malaysia and one in Hong Kong.
- Diverse Brand Portfolio: Its Travel QSR business offers a wide range of curated F&B concepts, utilizing a portfolio of 127 partner and in-house brands. This includes well-known global brands like KFC, Domino’s, and Starbucks, alongside popular regional and proprietary in-house brands.
- Leading Lounge Operator: TFS operates 28 private airport lounges in India across 10 domestic airports, making it the country’s largest lounge network, catering to premium passengers, loyalty program members, and select cardholders.
- Concession-Based Model: The company operates on a concession-based model, securing long-term rights from airport operators, which provides a degree of stability and high entry barriers for new competitors.
Robust Financial Performance
Travel Food Services has demonstrated impressive financial growth, especially following the post-pandemic revival in travel.
- Revenue Growth: For the financial year ended March 31, 2025 (FY25), TFS reported a 20.9% year-on-year increase in revenue from operations to ₹1,687.7 crore, up from ₹1,396.32 crore in FY24.
- Profit Surge: Net profit climbed by a significant 27.34% to ₹379.65 crore in FY25, compared to ₹298.12 crore in the previous fiscal year.
- Healthy Margins: The company’s PAT margin stands at 21.54% and EBITDA margin at 40.07% for FY25, reflecting efficient operations in a high-traffic environment.
- Strong Balance Sheet: Assets have steadily grown from ₹1,332.32 crore in March 2023 to ₹1,902.73 crore in March 2025, while Net Worth increased from ₹651.12 crore to ₹1,048.45 crore in the same period.
Similar Listed Companies
While there’s no directly comparable listed entity solely focused on airport F&B services in India, TFS can be broadly compared to listed QSR chains and hospitality companies. Analysts often draw parallels with:
- Jubilant FoodWorks Ltd (Domino’s, Popeyes)
- Devyani International Ltd (KFC, Pizza Hut, Costa Coffee)
- Sapphire Foods India Ltd (KFC, Pizza Hut)
- Westlife Foodworld Ltd (McDonald’s)
- Restaurant Brands Asia Ltd (Burger King)
However, it’s crucial to note that TFS operates in a specialized, high-footfall, captive environment (airports), which differentiates its business model and revenue stability compared to standalone QSRs.
Anil Singhvi’s Recommendation: To Apply or Not?
Anil Singhvi has recommended people to apply for long term highlighting the positives and negatives:
Travel Food Services IPO – Positives:
- Strong market leadership
- Strong and experienced promoters
- PSR and Lounge segment good
- Good financial record
- Debt free company
- Strong cash flow
- Profitable company
Travel Food Services IPO – Negatives
- Complete offer for sale by promoters. Though promoter will still hold about 86% afterwards.
- 85% business coming from 5 major airports in India.
- Govt run Udaan yatri cafe offering Tea for Rs. 10 and snacks starting Rs. 20 might impact business.
Market Sentiment: The Grey Market Premium (GMP) for Travel Food Services IPO is currently hovering around ₹45 to ₹82 (as of July 6, 2025), suggesting a potential listing gain of approximately 4-7% over the upper issue price. While GMP is an unofficial indicator, it provides a pulse of market sentiment.
Investors considering the Travel Food Services IPO should conduct their own due diligence, review the Red Herring Prospectus (RHP), and consult with a financial advisor to align the investment with their risk appetite and financial goals. The IPO offers a unique opportunity to invest in a dominant player within India’s thriving travel F&B and lounge ecosystem.
Please note: We are just providing facts here and making no recommendations to subscribe or not.
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