Travel Food Services (TFS) gained 1.98% to Rs 1,287.10 on the stock exchanges following the announcement that it has been awarded the license to operate travel QSRs and lounge facilities at the Domestic Terminal (T1) of Cochin International Airport (CIAL). This latest development strengthens TFS’ position in India’s airport food and beverage sector and underscores its expertise in managing high-traffic, premium airport operations.
Contract Details
In an official statement filed with the stock exchanges, TFS said it has been granted the concession for setting up, operating, maintaining, and managing F&B outlets, lounges, and bars in the security hold area (SHA) of T1 at Cochin Airport. Under this contract:
- TFS will operate 11 travel QSR outlets and 1 lounge at the domestic terminal.
- The agreement makes TFS the primary concessionaire for T1 operations, allowing the company to expand its footprint in one of India’s busiest airports.
Cochin International Airport handled over 11 million passengers in FY2024-25, ranking as the 8th busiest airport in India. The airport serves 27 airlines, providing direct connectivity to multiple domestic destinations. Notably, CIAL is the first airport globally to achieve complete solar power neutrality, further enhancing its international stature.
Strategic Importance for TFS
Varun Kapur, Managing Director and CEO of TFS, said:
“We are proud to have been awarded the concession to operate the travel QSRs and lounge at Cochin Airport’s domestic terminal (T1), which is one of the busiest airports in India with strong growth potential.”
This win:
- Expands TFS’ presence to 14 of the 15 largest airports in India, consolidating its leadership in the domestic airport QSR and lounge sector.
- Demonstrates the company’s technical expertise, operational efficiency, and strong franchise model, which have been key to securing high-profile airport contracts.
- Aligns with TFS’ strategy to focus on high-footfall airport locations, leveraging its brand portfolio and operational experience.
TFS’ Industry Position
Travel Food Services operates at 18 airports across India, Malaysia, and Hong Kong, managing a diverse portfolio of 130 partner and in-house brands. As of 30 June 2025, TFS runs 454 travel QSR outlets across India and Malaysia, providing a wide range of fast-casual dining and lounge experiences to travelers.
The company’s consolidated financials for Q1 FY26 reflect resilience in a challenging environment:
- Net Profit: Rs 91.77 crore, up 65.59% YoY
- Revenue: Rs 375.05 crore, down 8.49% YoY
Despite the slight revenue decline, the robust profit growth highlights operational efficiency and strong cost management, essential in the competitive airport F&B sector.
Industry Context
The airport travel QSR and lounge segment in India is growing rapidly due to increasing domestic and international air traffic, rising disposable incomes, and a preference for branded, hygienic food options among travelers. With India expecting further passenger growth, airport concessions are a high-potential segment for operators like TFS.
Cochin Airport, with its sustainability credentials and high passenger traffic, represents a strategic location for TFS to showcase its capabilities in premium airport dining and lounge management. This expansion also positions the company to capture additional revenue streams from food, beverages, and lounge services in a thriving airport ecosystem.
Future Outlook
With the Cochin T1 concession, TFS strengthens its pan-India presence in the airport sector, complementing operations at other major hubs. The company is well-poised to leverage its proven business model, brand partnerships, and operational expertise to maximize footfall and revenue at high-traffic locations.
TFS’ continued expansion in the airport F&B and lounge segment, combined with its focus on operational excellence and customer experience, will likely drive long-term growth, higher profitability, and sustained market leadership.
Summary
- Contract: TFS awarded license for 11 QSRs and 1 lounge at Cochin Airport T1.
- Significance: Expands presence to 14 of India’s 15 largest airports; strengthens airport F&B portfolio.
- Passenger Traffic: Cochin Airport handled over 11 million passengers in FY24-25.
- Financial Performance: Q1 FY26 net profit rose 65.59% to Rs 91.77 crore despite 8.49% revenue dip.
- Strategic Impact: Enhances brand visibility, operational reach, and revenue potential in India’s fast-growing airport F&B sector.
Disclaimer:
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