Newsletter
Travel Food Services Ltd, a name you’ve probably walked past at every major Indian airport, is now heading to the stock market. As the country’s largest operator of travel food courts, lounges, and QSRs, it serves everything from Dilli Streat chaat to Domino’s pizza, all while catering to millions of flyers each year.
But this isn’t just another consumer IPO. Backed by global travel retail giant SSP Group and India’s K Hospitality Corp, Travel Food Services is testing public markets with a ₹2,000 crore offer for sale. The real question is: will this airport F&B specialist fly high after listing?
IPO details
About the company
Founded in 2007, Travel Food Services Ltd is India’s leading operator of food courts, quick service restaurants (QSRs), and premium airport lounges. As of June 30, 2024, it operated 397 Travel QSRs and multiple lounge formats across 14 Indian airports and 3 QSR outlets in Malaysian airports.
The company partners with global brands like Domino’s, Starbucks, KFC, and Krispy Kreme while also running its own formats such as Dilli Streat, Caféccino, and Travel Club lounges. It has a presence at six of the seven busiest Indian airports including Delhi, Mumbai, Bengaluru, and Chennai covering over 70% of India’s air passenger traffic.
Its operating model relies on long-term concessions with airport operators like GMR and GVK, and it follows an asset-light strategy with a mix of revenue-sharing and fixed-fee arrangements.
Financial performance
Travel Food Services has seen consistent revenue growth and margin expansion over the past three years, supported by post-Covid travel recovery and deeper airport penetration.
The company has also kept debt minimal, with total borrowings at just ₹63.8 crore as of FY24, helping preserve high return ratios.
Backers and buyers
The company is promoted by the Kapur family (K Hospitality Group) and UK-based SSP Group, a global travel food operator. Together, they own 100% of the company pre-IPO.
Other investors include Fairfax India Holdings (via FIH Mauritius), CX Partners, and Kotak Special Situations Fund. All of them are partially exiting via the OFS.
Since there’s no fresh issue, there’s no reservation for employees or existing shareholders. The issue follows standard SEBI allocation norms for OFS-only IPOs: at least 75% to QIBs, up to 15% to non-institutional investors (sNII + bNII), and just 10% for retail investors.
The IPO funds will be used for…
As a 100% offer for sale, the company will not receive any money from this IPO. The entire ₹2,000 crore will go to existing shareholders who are partially exiting their holdings.
That said, Travel Food Services already has strong cash flows and has funded most of its growth through internal accruals, reducing the need for fresh capital at this stage.
Risk factors
Travel Food Services operates in a highly concentrated environment; most of its revenue comes from just 5–6 airports. Any dip in passenger traffic due to geopolitical events, pandemics, or travel bans could sharply affect earnings.
Second, it depends on periodic renewal of long-term airport concessions. These are competitive and often linked to minimum guarantees, which can squeeze margins.
Third, valuation is steep: at the upper band, the IPO is priced at ~48.6x P/E and 18.2x P/B, making it vulnerable to post-listing corrections if sentiment weakens.
The pro factors
TFS holds a dominant 40%+ share of India’s top airport food courts and lounges. Its brand portfolio is deep, covering 117 in-house and partner brands. It also has 15+ years of operating history at Mumbai and Delhi airports, a clear entry barrier.
Margins are exceptional: over 40% EBITDA and 20% PAT in FY25 estimates, with minimal leverage. ROCE above 50% places it among the most efficient consumer-facing businesses in India.
It’s also well-placed to tap future airport expansions, highway travel plazas, and railway food hubs, making it a pure-play bet on India’s mobility economy.
Final take
The Travel Food Services IPO is a story of monetizing a niche market leadership in travel dining. With a strong brand ecosystem, long-standing partnerships, and consistent profitability, the fundamentals are sound.
However, the lack of fresh capital, high pricing, and dependency on a few airports are real concerns. For investors, the upside may depend less on hype and more on whether India’s airports and footfalls keep growing as expected.
FAQs
What is the Travel Food Services IPO all about?
The Travel Food Services IPO is a ₹2,000 crore offer for sale by existing shareholders, including SSP Group and the Kapur family. The company is India’s largest airport food and beverage operator, managing QSRs, food courts, and lounges across major airports.
When will the Travel Food Services IPO open for subscription?
The Travel Food Services IPO opens on July 7, 2025, and closes on July 9, 2025. The listing is expected on July 14, 2025, on both BSE and NSE.
What is the price band and lot size for Travel Food Services IPO?
The IPO price band is set at ₹1,045 to ₹1,100 per share. The minimum lot size is 13 shares, requiring a minimum retail investment of ₹13,585 at the lower band.
Is there a fresh issue in the Travel Food Services IPO?
No, the IPO is entirely an offer for sale (OFS). The company will not receive any proceeds from this issue. All funds raised will go to selling shareholders.
Who are the promoters of Travel Food Services Ltd?
Travel Food Services is promoted by the Kapur family’s K Hospitality Group and SSP Group plc, a UK-based global travel food services company. Both are partially exiting through the IPO.
How has Travel Food Services performed financially?
Travel Food Services reported revenue of ₹1,762.7 crore and a net profit of ₹379.7 crore in FY25. It has maintained over 40% EBITDA margins and strong return ratios, including ROCE of 51.4%.
What are the key strengths of Travel Food Services Ltd?
The company operates over 397 outlets, holds 40%+ market share at major Indian airports, and partners with brands like Domino’s, Starbucks, and Krispy Kreme. It runs an asset-light, high-margin business model.
What risks should investors consider before applying for the Travel Food Services IPO?
Key risks include high revenue concentration at a few airports, dependency on concession renewals, and steep IPO valuation at 48.6x P/E. Any dip in air travel could impact revenues.
Will retail investors have a reservation in the Travel Food Services IPO?
Yes, but limited. Since this is an OFS-only IPO, only 10% of the issue is reserved for retail investors, while 75% goes to QIBs and 15% to non-institutional investors.
Is Travel Food Services IPO a good investment?
The IPO offers exposure to a profitable niche player in India’s growing travel economy. While fundamentals are strong, investors should assess valuation, sector risks, and post-listing volatility before investing.
