Travel Food Services IPO: A Gateway to India’s Airport F&B Boom?
DSIJ Intelligence-11 / 05 Jul 2025/ Categories: IPO, IPO Analysis, Trending
With a commanding 26 per cent share in India’s airport Travel QSR segment and 45 per cent in the airport lounge segment by revenue in FY25, the company has firmly established itself as a market leader. Should this dominant player be your next big investment bet?
About the Issue:
Travel Food Services Ltd is preparing to launch its Initial Public Offering (IPO) for equity shares. See the issue details below.
| IPO Details | |
| IPO Opening Date | July 07, 2025 |
| IPO Closing Date | July 09, 2025 |
| Issue Type | Book Built Issue IPO |
| Face Value | Re 1 per equity share |
| IPO Price | Rs 1,045 to Rs 1,100 per equity share |
| Min Order Quantity | 13 shares |
| Listing At | BSE, NSE |
| Total Issue | 1,81,81,818 shares of FV Re 1* |
| (Aggregating up to Rs 2,000 Cr)* | |
| Offer for Sale | 1,81,81,818 shares of FV Re 1* |
| (Aggregating up to Rs 2,000 Cr)* | |
| QIB Shares Offered | 50% of the Offer |
| Retail Shares Offered | 35% of the Offer |
| NII (HNI) Shares Offered | 15% of the Offer |
| *At Upper Price Band | |
Objects of the Issue
Considering that the issue is exclusively an offer for sale, it is crucial to note that the company will not receive any offer proceeds. Instead, all offer proceeds will flow to the selling shareholders, distributed in accordance with the number of offered shares they sell as part of the offer.
Promoter holding
SSP Group plc, SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited and Kapur Family Trust, Varun Kapur and Karan Kapur are the promoters of the company. The promoters currently hold a pre-issue shareholding stake of 100 per cent in the company.
Company Profile
The company has established itself as a market leader in India’s rapidly expanding airport-centric food and hospitality space, specifically in the Travel Quick Service Restaurant (Travel QSR) and Lounge segments.
According to the CRISIL Report, it commanded approximately 26 per cent market share in the Indian airport Travel QSR segment and around 45 per cent in the airport Lounge segment by revenue in FY25, including contributions from Associates and Joint Ventures.
Its Travel QSR business features a diverse portfolio of 127 partner and in-house brands, offering curated food and beverage options tailored to meet travellers’ preferences for speed, variety, and convenience. As of March 31, 2025, it operated 442 Travel QSR outlets across airports in India and Malaysia.
In the Lounge segment, the company operates premium spaces within airport terminals, catering to business and first-class travellers, airline loyalty members, and select cardholders. It managed 37 lounges across India, Malaysia, and Hong Kong as of March 31, 2025.
With a presence across 14 major Indian airports, accounting for 74 per cent of total domestic air passenger traffic in FY25, the company has built a strong footprint in high-traffic travel hubs, positioning it well to benefit from the continued growth in air travel.
Financials
| Rs (in crore) | FY23 | FY24 | FY25 |
| Revenue | 1,104 | 1,462 | 1,763 |
| Profit Before Tax | 327 | 387 | 504 |
| Net Profit | 251 | 298 | 380 |
The company has consistently delivered strong topline and bottom-line growth in recent years, recording a 26 per cent CAGR in revenue and 24 per cent CAGR in net profit between FY23 and FY25. Additionally, it has strengthened its balance sheet by reducing debt and is now debt-free.
Valuation & Returns
| Company Name | P/E | P/B | RoE (%)* |
| Travel Food Services Ltd | 40 | 14 | 35 |
| Listed Peers | |||
| Jubilant FoodWorks Ltd | 220 | 22 | 19 |
| Devyani International Ltd | - | 14 | - |
| Sapphire Foods India Ltd | 578 | 8 | 4 |
| Westlife Foodworld Ltd | 996 | 20 | 12 |
| Restaurant Brands Asia Ltd | - | 5 | - |
*RoE: Based on FY25 data
The issue is priced with a P/BV ratio of 13.82 times, calculated using its Net Asset Value (NAV) of Rs 79.62 as of March 31, 2025. Considering the company's FY25 earnings and fully diluted equity capital, the price-to-earnings (P/E) ratio is calculated at around 40x.
In FY25, the company reported a strong financial performance, achieving a return on equity (RoE) of 35 per cent and a return on capital employed (RoCE) of 51 per cent, the highest among its listed peers.
Taking into account the current growth outlook, the issue offers an appealing valuation-to-return profile.
Risks
Certain risks merit attention. A substantial portion of the company’s FY25 revenue was concentrated in operations across its top five serviced airports. Any termination of concession agreements, inability to retain or onboard brand partners, or a decline in passenger traffic could adversely affect its business performance.
Outlook
India’s aviation sector is witnessing robust growth, driven by strong demand from rising domestic and international passenger traffic, alongside increased government and private sector focus on expanding airport infrastructure. In this backdrop, the company has emerged as a leading player in the Travel QSR and Lounge segments within Indian airports, holding significant market shares in both categories.
Its diversified portfolio, featuring a mix of high-quality franchised and in-house food and beverage brands, combined with a deep understanding of travellers’ preferences and strategic partnerships with renowned operators like SSP Group and K Hospitality, positions the company well for sustained long-term growth.
Given its leadership position, strong brand portfolio, consistent financial performance and favourable industry tailwinds, we recommend subscribing to this issue from a long-term investment perspective.