Travel Food Services

Travel Food Services IPO

Travel Food Services IPO Price Range is ₹1045 - 1100, with a minimum investment of ₹14,300 for 13 shares.

₹14,300

/ 13 shares

Minimum Investment

View Travel Food Services IPO details including price range, minimum investment, lot size, financials, and IPO timeline. Get subscription updates, peer comparison, and key insights to help you make an informed decision.

IPO Status

Live

Price Band

₹1045 - 1100

Open Date

2025-07-07

Close Date

2025-07-09

IPO Size

₹2,000.00 Cr

Lot Size

13 shares

Min Investment

₹14,300

Listing Exchange

NSE

IPO Doc

RHP PDF Travel Food Services

Travel Food Services IPO Application Timeline

upcoming
Open Date7 Jul 2025
Close Date9 Jul 2025
Allotment Date10 Jul 2025
Listing Date14 Jul 2025

Watch: All You Need to Know About Travel Food Services IPO

Get a quick overview of the Travel Food Services IPO, with key insights like strengths and risks. This video breaks down everything investors should know before applying.

Objectives of IPO

1
Facilitating Offer for Sale: To allow the Promoter Selling Shareholder, Kapur Family Trust, to sell a portion of its equity shares. This includes the sale of Equity Shares aggregating up to ₹2,000 crore.
2
Benefits of Listing: To achieve the benefits of listing the Equity Shares on the Stock Exchanges (BSE Limited and National Stock Exchange of India Limited). This step is expected to enhance the company's visibility and brand image and provide liquidity and a public market for its Equity Shares in India.

Strengths and Risks

Strengths

Strengths

  • Leading Market Position: It holds a leading market share in Indian airport travel QSR (approximately 26%) and Lounge (approximately 45%) by FY25 revenue. It operates the largest network of Travel QSR outlets and private lounges in Indian airports as of March 31, 2025.

  • Strong Return and Earnings Performance: Travel Food Services reported a Return on Net Worth (RoNW) of 34.64% and an Earnings Per Share (EPS) of ₹27.58, far ahead of peers. In comparison, Jubilant FoodWorks had RoNW of 10.02% (EPS ₹3.41), Devyani 0.84% (₹0.08), Sapphire Foods 1.38% (₹0.60), Westlife Foodworld 2.01% (₹0.78), and Restaurant Brands Asia had negative RoNW and EPS (-23.80%, ₹-4.33). This shows the company is generating higher profits per rupee of capital and rewarding shareholders better than others in the industry.

  • Superior Profitability Margins: Travel Food Services achieved a PAT Margin of 21.54% and an EBITDA Margin of 40.07%, much higher than all listed peers. Jubilant FoodWorks had 2.64% PAT and 19.30% EBITDA margin; Devyani 0.57% and 20.31%; Sapphire 0.90% and 16.57%; Westlife 1.72% and 18.85%; and Restaurant Brands Asia had negative PAT margin (-9.02%) with 10.70% EBITDA. This reflects TFS’s superior efficiency and profitability.

  • Strong Financial Growth Trajectory: The company has demonstrated significant revenue and profit growth, with revenue from operations increasing at an annual rate of 26.4% and profit at 22.9% between FY23 to FY25.

  • Diverse Brand Portfolio: Its portfolio includes 127 F&B brands as of March 31, 2025, comprising 90 franchised partner brands and 37 in-house brands. This diversity allows it to cater to varied customer demands and effectively secure new concessions.

  • Proven Concession Retention Rate: Since opening its first travel food outlet in 2009, the company has kept about 99.45% of its airport contracts up to March 2025. This means airports trust them and keep renewing their agreements, showing strong performance and long-term relationships.

  • Experienced Management Team & Strategic Partnerships: It has a seasoned management team with an average of over 24 years of experience as of March 31, 2025. This is further bolstered by synergistic partnerships with SSP Group plc (a global F&B leader) and K Hospitality, providing extensive industry knowledge and operational best practices.


Risks

Risks

  • High Concession Dependence: In FY25, 95.55% of the company’s revenue came from airport contracts. This means the business depends heavily on getting and keeping these deals. If any airport doesn’t renew a contract or changes the terms, it could seriously hurt the company’s income.

  • Concentration on Top Airports: A significant portion of its revenue, 85.94% in FY25, was generated from its top 5 airports (Bengaluru, Delhi, Hyderabad, Chennai, and Mumbai). Termination of agreements or a decrease in passenger traffic at these few locations could have a substantial impact.

  • Shifting Operating Models of Airport Operators: Airport operators are now preferring to own majority stakes in companies that run airport food and lounge services. For example, in the Semolina joint venture with Adani Group, TFS’s stake was reduced to 24.99%. Because TFS no longer owns more than 50%, it cannot include the full revenue and profits from Semolina in its financial statements. It can only report its small share. This shift could lower TFS’s reported revenue and cash flows, even if the underlying business remains strong.

  • High Operating Costs and Rent: Rent costs, including occupancy costs, depreciation of right-of-use assets, and interest on lease liabilities, accounted for a significant 32.26% of total expenses in FY25. Increases in these fixed costs, compounded by potential pricing restrictions in concession agreements, could impact profitability.

  • Reliance on Franchise Agreements & Lounge Partners: Its business heavily relies on 90 franchised partner brands (contributing 54.37% of Travel QSR revenue in FY25) and long-term relationships with Lounge Partners. Failure to renew or attract new partners could adversely affect growth and financial stability.

  • Litigation and Regulatory Non-Compliance: As of the Red Herring Prospectus date, the company faces 41 direct tax claims and 4 civil proceedings against it, with an aggregate quantifiable amount involved of ₹104.77 crore. Adverse decisions in these matters or non-compliance with regulations could lead to significant liabilities and reputational damage.

  • Indebtedness and Restrictions: As of May 31, 2025, the company had debts of ₹274.13 crore, mostly in the form of bank guarantees. Its loan agreements come with certain rules, like limits on how much it can spend, borrow, or change its financial setup. If the company breaks these rules, it could hurt its financial health.

How to Apply for Travel Food Services IPO on INDmoney

1

Download the INDmoney app and complete your KYC to open an account.

2

Go to the INDstocks section and tap on IPO, or search for ‘IPO’.

3

Select Travel Food Services IPO from the list of live IPOs.

4

View key details like price band, lot size, and dates, then tap ‘Apply Now’.

5

Choose the number of lots and place your order via UPI.

6

Your funds will be blocked until the share allotment is finalized.

Financial Performance of Travel Food Services

*Value in ₹ crore
*Value in ₹ crore
*Value in ₹ crore
Details202320242025
Total Revenue1103.61462.41762.7
Total Assets1332.31696.41902.7
Total Profit1902.71332.3379.7

Listed Competitors of Travel Food Services

Jubilant FoodWorks

Jubilant FoodWorks

Operates quick-service restaurants (QSRs) like Domino’s Pizza, Dunkin’ and Popeyes in India. It runs company-owned outlets and uses a hub-and-spoke model for supply. Revenue comes from dine-in, delivery, and takeaway, supported by strong tech and app-based ordering.

Devyani International

Devyani International

Franchisee of Yum! Brands in India, operating KFC, Pizza Hut, and Costa Coffee. Runs mostly company-owned stores in high-traffic areas like malls and airports. Revenue is generated through QSR sales and delivery, with a focus on scaling via rapid store expansion.

Sapphire Foods India

Sapphire Foods India

One of the largest franchisees of KFC and Pizza Hut in India and South Asia. Operates company-owned restaurants across key urban areas. Focuses on operational efficiency, high-volume sales, and delivery through online platforms to drive profitability.

Westlife Foodworld

Westlife Foodworld

Master franchisee for McDonald’s in West and South India. Operates all restaurants itself, with a focus on convenience formats like drive-thrus and delivery. Earns through food sales, combos, and value meals, supported by a centralized supply chain and marketing.

Restaurant Brands Asia

Restaurant Brands Asia

Runs Burger King in India and operates food courts in Indonesia. Uses a mix of company-owned and franchised stores. Revenue comes from dine-in, takeaway, and delivery, with growth driven by aggressive store rollout and focus on affordability in Tier 2/3 cities.

Travel Food Services Shareholding Pattern

Promoters 100%
NameRoleStakeholding
SSP Asia Pacific Holdings LimitedPromoter49%
Kapur Family TrustPromoter51%

About Travel Food Services

Travel Food Services Limited, a public limited company established in 2007, is a prominent player in the travel food and beverage industry. It operates core Travel Quick Service Restaurants (QSR) and Lounge businesses. Its promoters include SSP Group plc, a global Travel F&B leader and FTSE 250 company, and Kapur Family Trust. The company's portfolio, as of March 31, 2025, comprises 127 F&B brands, with 90 franchised partner brands and 37 in-house brands tailored for travel environments.

The company serves customers across 18 airports in India, Malaysia, and Hong Kong, and at highway QSR sites in India. Lounge customers include premium travelers and cardholders. As of March 31, 2025, it manages 442 Travel QSR outlets and 37 Lounges. In FY25, revenue from operations reached ₹1,687.74 crore, with Travel QSR at 51.68% and Lounges at 44.94% of total sales. The company employed 5,331 on-roll personnel.

Travel Food Services Limited holds a leading market position in India's airport travel QSR (approx. 26% market share) and Lounge sectors (approx. 45% market share) by FY25 revenue. Its future strategy aims to increase like-for-like sales by optimizing offerings. It plans domestic and international expansion, leveraging SSP's network for its Lounge business under the ARAYA brand. Other priorities include retaining concessions and fostering talent.

Products & Services

ProductTravel Quick Service Restaurant (QSR) and Lounge businesses
Known ForTravel Food Services is known for running F&B outlets and lounges at airports.
Top ProductsTravel QSR Business: TFS operates 442 food outlets across airports and highways in India and Malaysia, featuring brands like KFC, Subway, Third Wave Coffee, and in-house names like idli.com and Caféccino.,Lounge Business: TFS manages 37 airport lounges in India, Malaysia, and Hong Kong, catering to premium flyers, cardholders, and walk-ins, with expansion planned under the “ARAYA” brand.

Frequently Asked Questions of Travel Food Services IPO

What is the size of the Travel Food Services IPO?

The size of the Travel Food Services IPO is ₹2,000 Cr.

What is the allotment date of the Travel Food Services IPO?

Travel Food Services IPO allotment date is Jul 10, 2025 (tentative).

What are the open and close dates of the Travel Food Services IPO?

The Travel Food Services IPO will open on Jul 7, 2025 and close on Jul 9, 2025

What is the lot size of Travel Food Services IPO?

The lot size for the Travel Food Services IPO is 13.

When will my Travel Food Services IPO order be placed?

Your Travel Food Services IPO order will be placed on Jul 7, 2025

Can we invest in Travel Food Services IPO?

Yes, once Travel Food Services IPO opens, you can invest in the shares of the company.

What would be the listing gains on the Travel Food Services IPO?

The potential listing gains on the Travel Food Services IPO will depend on various market factors and cannot be predicted with certainty.

What is 'pre-apply' for Travel Food Services IPO?

'Pre-apply' for Travel Food Services IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.

Who are the promoters of Travel Food Services?

The promoters of Travel Food Services include SSP Group plc, its affiliated entities (SSP Asia Pacific Holdings, SSP Holdings, SSP Financing), and the Kapur Family Trust. Varun Kapur and Karan Kapur, nominees of the Kapur Family Trust, also serve as directors. As per the RHP, these promoters collectively hold 100% of the pre-IPO equity.

Who are the competitors of Travel Food Services?

Key competitors of Travel Food Services in the travel QSR and airport lounge sectors include HMSHost Services India, Encalm Hospitality, and Saptagiri Restaurant Pvt. Ltd. In the broader high-street QSR space, peers include Jubilant FoodWorks, Devyani International, Sapphire Foods, Westlife Foodworld, and Restaurant Brands Asia.

How does Travel Food Services make money?

Travel Food Services earns revenue primarily from two segments:

  • Travel QSR (₹872.1 crore in FY25, 51.68% share)
  • Airport Lounges (₹758.4 crore, 44.94% share)

It also generates minor revenue from management services. The company operates across 18 airports in India, Malaysia, and Hong Kong.