India’s airports are not just gateways to the skies anymore — they’re booming commercial zones where food, comfort, and convenience meet scale. Travel Food Services (TFS) is at the heart of this transformation. And on 3 July 2025, TFS IPO is opening, inviting public investors to buy into this behind-the-scenes airport giant
TFS isn’t a brand most flyers are directly familiar with, but chances are, you’ve eaten at one of its outlets or relaxed in one of its lounges before boarding a flight. Whether it’s sipping a latte from Caféccino at Delhi T3 or enjoying hot South Indian fare from Idli.com in Bengaluru, TFS is silently shaping the airport experience for millions.
But how Travel Food Services makes money? Let’s break down its business model, revenue streams, and what makes it a compelling story in India’s travel and hospitality ecosystem.
📌 Travel Food Services IPO Snapshot
- IPO Dates: 3–7 July 2025
- Listing Date: 10 July 2025
- Issue Type: Offer for Sale of INR 2,000 Cr
- Price Band & Lot Size: To be announced
- Retail Quota: 35%
- Market Share: 24% (Airport QSR), 45% (Lounges)
- Listing: NSE, BSE
🧩Travel Food Services Business Model Analysis
Travel Food Services business model relies on a simple yet scalable model — it acquires long-term concession rights from airports, sets up QSR outlets and premium lounges, and earns revenue from traveller spending or access fees.
Travel Food Services’ operations span:
- 397 Travel QSR outlets in India and Malaysia (airports + highways)
- 31 Lounges across 12 airports in India, Malaysia, and Hong Kong
- A mix of franchise partnerships, joint ventures, and in-house operations
These are not typical F&B locations — they’re mission-critical services in high-security, high-footfall areas with unique customer behaviour patterns. And TFS has built deep capabilities to serve them efficiently, 24/7.
💸 Revenue Streams: Where TFS Earns
#1. 🥪 Travel QSR (Quick Service Restaurants)
Contribution (FY2024): INR 732.8 Crore | 52.5% of total revenue
TFS earns direct revenue by selling food and beverages at its outlets, primarily located inside airport terminals and on select national highways. These are fast-moving, high-volume operations.
QSR Highlights:
- Present in 14 of India’s top 15 airports
- Partnered with 117 brands, including:
- 28 international brands (KFC, Subway, Pizza Hut, Wagamama)
- 50 regional Indian brands (Bikanervala, Wow Momo, Third Wave Coffee)
- 39 in-house brands (Caféccino, Curry Kitchen, Idli.com)
Revenue Breakdown FY2024:
| Source | Amount (INR Cr) | % of QSR Revenue |
|---|---|---|
| Partner Brands | 398.98 | 54.4% |
| In-House Brands | 333.86 | 45.6% |
➡️ In-house brands = higher margins
While partner brands bring footfall, the real profitability lies in in-house brands, where TFS controls pricing, operations, and sourcing without paying royalties.
Travel Food Services customises menus, packaging, and store formats for the fast-paced airport environment. For example:
- “Food@Gate” lets travellers order via QR and get food delivered to boarding gates
- Dosa is served in travel-friendly “pockets” to eat on the go
#2. 🛋️ Lounge Services
Contribution (FY2024): INR 623.5 Crore | 44.7% of total revenue
Travel Food Services operates India’s largest private airport lounge network, serving:
- Premium airline passengers (Emirates, etc.)
- Credit/debit cardholders with lounge access benefits
- Walk-in passengers (in some cases)
Revenue Model:
- Per-visitor fee paid by airline partners or card issuers
- Upselling of spa, cocktails, à la carte meals, and other premium services
TFS’s lounges combine business-class dining, work zones, and relaxation areas. Some lounges even offer live music, golf simulators, cocktail bars, and local food festivals.
In July 2024, the company launched a flagship lounge in Hong Kong, in partnership with global player Airport Lounge Development.
➡️ With lounge access included in many credit cards today, TFS’s usage-based lounge business benefits from a structural tailwind of rising card adoption and frequent flyer programs.
#3. 🧾 Management & Other Services
Contribution (FY2024): INR 39.0 crore | 2.8% of total revenue
TFS earns minor revenue through:
- Management fees from Associates/JVs
- Licensing and consulting
- International expansion support
These may be small now, but could grow as the company franchises its “ARAYA” lounge brand globally with SSP Group (its UK-based promoter).
🏗️ Concession-Based Model: Built for Long-Term Revenue
TFS’s business is based on winning airport concession contracts, where it gets the right to operate F&B or Lounge outlets for 5–20 years.
- Average concession term: 8.81 years
- Average remaining life: 6.35 years
- Renewal success rate: 92%
Airport operators prefer working with experienced players who can handle:
- High security clearance
- 24/7 operations
- Diverse brand portfolios
- Strict hygiene and food safety standards
TFS fits this bill perfectly — it has been at Mumbai Airport since 2009 and Delhi T3 since 2010. It’s also partnered with major airport operators like GMR, Adani, and SSP.
📈 Financial Highlights
📊 Travel Food Services – Key Financial Metrics
| Metric | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 389.61 | 1,067.15 | 1,396.32 |
| Expenses | 429.78 | 824.21 | 1,146.72 |
| Net Income | 5.03 | 251.30 | 298.02 |
| Net Margin (%) | 1.29% | 23.55% | 21.34% |
| EPS (INR) | 0.38 | 18.52 | 21.85 |
| RONW (%) | 1.25% | 37.45% | 36.14% |
| NAV (INR) | 30.87 | 49.45 | 60.45 |
| ROCE (%) | 13.52% | 53.87% | 49.97% |
| EBITDA Margin (%) | 36.00% | 42.92% | 39.38% |
Travel Food Services has shown strong financial improvement over the last three years:
- EPS growth has been substantial from FY22 to FY24, though expected to normalise post-IPO due to equity dilution.
- High profitability ratios like RONW (36.14% in FY24) and ROCE (49.97%) indicate efficient capital utilisation.
- Healthy EBITDA margins above 35% consistently reflect strong operational control.
- NAV growth from INR 30.87 to INR 60.45 shows a solid build-up of shareholder value.
The company’s financials reflect a well-managed and profitable business with strong fundamentals, making it an attractive IPO candidate from a valuation and margin perspective.
🌍 Growth Drivers: Why the Future Looks Bright
#1. India’s Air Travel Boom
According to a CRISIL report, India’s aviation-linked hospitality sector is expected to see robust, double-digit growth over the next decade, creating a long runway for TFS’s expansion.
- Domestic air traffic CAGR (2024–34): 8–9%
- Lounge industry CAGR (2024–34): 21–23%
- Airport QSR CAGR (2024–34): 17–19%
As India adds more airports (target: 300 by 2047) and low-cost airlines drive first-time fliers, TFS’s addressable market is expanding.
#2. Global Lounge Rollout Under ARAYA Brand
TFS is building a global lounge system with SSP Group. Under this:
- TFS operates lounges in India, Southeast Asia, and the Middle East
- SSP operates lounges in Europe, North America, and Australasia, and pays franchise fees to TFS
#3. Highway and Expressway QSR Expansion
With NHAI planning 1,000 wayside amenities, TFS is also expanding into multi-brand highway food courts — an INR 56,500–57,500 crore opportunity by 2034.
⚠️ Risks and Considerations
- Airport dependency: Revenue is highly linked to air travel volumes
- Contract risk: Loss of a major concession can impact earnings
- Operational intensity: 24/7 high-security environments need skilled labour, compliance
🧭 Final Words
Travel Food Services doesn’t just sell food or offer rest — it monetises every minute you spend at the airport. Whether through an INR 200 dosa or an INR 1,500 lounge visit, the company earns by turning idle dwell time into high-margin revenue.
Now, with India’s air travel story taking off, Travel Food Services’ well-anchored airport presence and global lounge ambitions could make this IPO an attractive opportunity for long-term investors.
📌 IPO Opens: 3 July 2025
📍 Core Business: Airport QSRs and Lounges
📈 Moat: Long-term concessions, brand portfolio, operational expertise
🌍 Optionality: Lounge franchising, highway expansion, global rollout
It’s not just a food company. It’s a gateway to India’s new aviation economy. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.