IPO listed on 14 Jul'25
Travel Food Services Ltd
Minimum Investment
₹ 14,300 / 13 shares
Grey market premium
₹ 25 (2% premium)
Issue price
₹ 1100
Listing price
₹ 1,125
% since launch
Listing on
Jul 14, 2025
Our Verdict:
Subscribe
- Travel Food Services Ltd (TFSL) boasts a solid financial track record, supported by a strong balance sheet (zero debt) and exceptional capital efficiency (Return on Net Worth of ~35%).
- In terms of valuation, the IPO commands a P/E multiple of 40x based on FY25 earnings, which is significantly lower than its listed peers.
- With its strong track record, strategic locations and adaptable formats, TFSL is well-positioned to capitalize on the long-term growth of India's aviation sector. Given these factors, investors may consider subscribing to the IPO from a long-term perspective.
About the company
Founded in
20 Nov'07
Managing director
Varun Kapur
- TFSL is a leading player in India's fast-growing airport travel quick service restaurant (Travel QSR) and lounge (Lounge) sectors. Its Travel QSR business offers a diverse range of curated food and beverage (F&B) concepts across multiple cuisines, brands, and formats. The Lounge business provides exclusive areas in airport terminals, accessible to first and business class passengers, loyalty programme members, and select credit card holders.
- As of March 31, 2025, TFSL operates the largest network of Travel QSR outlets in India, with 384 of its 413 outlets at airports and the rest along highways. It also leads the country in private airport lounges, with 28 lounges across 10 airports.
STRENGTHS
- Market Leadership: TFSL is a dominant player in the Travel QSR and Lounge sectors at Indian airports. As of March 31, 2025, it operated the largest network of Travel QSR outlets and private lounges in India. The firm holds a ~26% market share in the Travel QSR sector by revenue and ~45% market share in the airport lounge sector in India in FY25.
- Long-Term Relationships: TFSL has built strong, long-term partnerships with airport operators including 15 years at Delhi, 16 years at Mumbai, 6 years at Bengaluru and 11 years at Chennai and Kolkata airports. Additionally, it has been the sole F&B concessionaire and lounge operator at Chennai and Kolkata Airports since 2014.
- Strong Financial Performance: TFSL has demonstrated impressive growth, achieving a compound annual growth rate (CAGR) of 26% in operating revenue, 22% in EBITDA and 23% in net profit from FY23 to FY25.
- Robust Return Ratios: TFSL boasts strong return metrics, with a Return on Equity (RoE) of 35.47% and Return on Capital Employed (RoCE) of 51.40% as of FY25.
- Margin Improvement: TFSL reported an EBITDA margin of 40.07% and a net profit margin of 21.54% in FY25, up from 39.39% and 20.39%, respectively—well above its listed peers.
RISK FACTORS
- Revenue Concentration: In FY25, ~95% of TFSL’s revenue from operations came from its Travel QSRs and Lounges located in airports. The firm’s business is heavily reliant on concession agreements. Any inability to renew existing agreements or failure to secure new concessions could negatively impact its business and operational results.
- Dependence on Key Airports: The top 5 airports accounted for ~86% of TFSL’s revenues in FY25. A decline in passenger traffic at these airports could significantly impact the company’s revenue.
- Lounge Business Exposure: TFSL’s business may face challenges if it is unable to retain its existing lounge partners or attract new ones, as the lounge business contributed 44.9% of the company's revenue in FY25.
- Legal Risks: TFSL is facing ongoing legal matters totalling Rs 114 crore and any unfavourable legal outcomes could negatively affect its financial position.
- Contingent Liabilities: As of March 31, 2025, TFSL reported contingent liabilities of Rs 273 crore, which, if materialized, could adversely affect its financial position.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 2,000 crore
Fresh Issue
₹ -
OFS
₹ 2,000 crore
Price range
₹ 1,045 - 1,100
Lot size
13 shares
Issue Objective
This issue is a pure Offer for Sale (OFS), meaning the company will not receive any proceeds from the issue. The proceeds will go directly to the selling shareholders.
Dates
Bidding open
7 Jul'25
Bidding close
9 Jul'25
Allotment date
10 Jul'25
Refund date
11 Jul'25
Listing
14 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.