Established in 2007, Travel Food Services Limited engages in managing travel quick service restaurants (QSRs) and airport lounges. Today, on July 7, 2025, the bidding period for the Travel Food Services IPO begins.
The allotment procedure is anticipated to be completed by July 10, 2025, and the firm’s shares are provisionally scheduled to be listed on the BSE and NSE on July 14, 2025.
Travel Food Services IPO will involve a bookbuilding process of ₹2000 crores. The matter solely involves a sale offer of 1.82 crore shares. Investors can participate with a minimum lot size of 13, necessitating a minimum investment of ₹13,585. The price range for the issue is established at ₹1,045–₹1,100 per share.
This article presents a detailed review of the Travel Food Services IPO, examining its business operations and fundamental analysis to assist you in making a knowledgeable investment decision.
Travel Food Services IPO Review
Travel Food Services is preparing for its Initial Public Offering (IPO), with plans to secure Rs 2,000 crore. The funds are mainly designated for sale by the promoters, to secure the advantages of being listed on the Stock exchange, and to enhance visibility and brand reputation.
Travel Food Services has demonstrated consistent financial growth from FY23 to FY25, supported by its lounge services, travel QSR, and management sectors, with the majority of revenue originating from domestic operations. In this context, both EBITDA and PAT showed enhancement, driven by careful cost control and consistent finance expenses. A robust RoCE of 51.4% in FY25 underscores effective capital use and operational prowess.
Referring to the company’s competitors, in FY25, Travel Food Services recorded revenue of Rs 1,687.74 crore, which fell short of Jubilant FoodWorks and Devyani International. Nonetheless, it surpassed all stated competitors in profitability with an EPS of Rs 27.58, remarkably greater than Jubilant’s Rs 3.41 and Westlife Foodworld’s Rs 0.78. The business showcased better capital efficiency, achieving a Return on Net Worth of 34.64%, in contrast to Jubilant FoodWorks’ 10.02% and Restaurant Brands Asia’s negative 23.80%.
Analyzing this reveals that the company is well positioned regarding its profitability and return metrics. Nonetheless, it involves specific risks such as seasonality and revenue concentration risk, which require careful consideration.
With that in mind, prospective investors are highly encouraged to perform their own thorough analysis and seek advice from financial experts prior to making any investment choices. Continue reading to learn more about the company’s history, operational framework, and expansion strategy.
Let’s explore the advantages and disadvantages to determine whether the Travel Food Services IPO is beneficial or detrimental for investors.
Advantages
Market dominance:
By Fiscal 2025, the company maintained a prominent role in India’s airport-focused Travel QSR and Lounge markets, boasting a revenue-driven market share of 26% and 45%, respectively, managing the most extensive network of outlets across 14 key airports, which represented 89% of passenger flow in the leading 20 airports.
Operational proficiency:
With more than 16 years of experience, the company has developed robust abilities to operate successfully in the intricate and regulated airport setting, overseeing 24/7 operations, strict security, and diverse food services via central kitchens and expert teams.
Robust collaborations:
The firm has established enduring partnerships with leading airport operators throughout India, obtaining strategic joint ventures and long-term concessions averaging more than 8 years, with a footprint in major airports such as Delhi, Mumbai, and Bengaluru.
Strong brand combination:
The firm manages a broad range of 127 F&B brands with 90 collaborators and 37 internal, allowing it to cater to various passenger tastes and secure significant airport contracts by providing customized food choices spanning international, regional, and local cuisines.
Innovation focused on the customer:
The firm improves traveler experiences via technology-driven services, tailored menus, and local options in its QSRs and Lounges, merging quick service, customization, convenience, and regional tastes with upgraded amenities like spa treatment and entertainment areas.
Risks
Risk of revenue concentration:
A large share of the company’s earnings, 85.94% in FY25, is derived from its Travel QSRs and Lounges at the top five airports, which leaves it susceptible to decreases in traffic or non-renewal of concessions at these critical sites.
Effect on operator model transition:
Modifications in the business models of airport operators that necessitate majority ownership in concession-holding companies have prompted the firm to establish joint ventures such as Semolina and GHL, diminishing its direct oversight and profit share in major airports like Mumbai and Hyderabad.
Reliance on card access:
The Lounge sector, accounting for almost 45% of total revenue in the last three fiscal years, heavily depends on customers utilizing credit and debit cards for accessing services. A drop or increase in such users might adversely impact foot traffic, service standards, and overall customer experience.
Impact of Udaan Café:
Government-operated Udaan Yatri Cafés providing affordable food choices at airports might draw customers away from the firm’s Travel QSR locations, possibly influencing sales, brand image, and financial results.
Airport fare risk:
Elevated menu prices at the airport QSR locations of the company relative to non-airport sites could result in customer discontent, decreased sales, and possible legal or regulatory issues.
Reliance on lounge partners:
The company’s Lounge income heavily depends on complimentary access initiatives provided by airline loyalty programs and card issuers; any decrease or removal of these perks could greatly affect business results.
Risks to global growth:
Internationally expanding the Lounge business requires significant initial investments and management resources, while also subjecting the company to risks such as political instability, regulatory hurdles, and operational complications across different areas, in addition to currency fluctuation risks.
Influence of seasonal variations:
The cash flows and sales vary according to seasonal travel trends, experiencing increased visitor numbers during holidays and festive times, while potentially slowing down during seasons like the monsoon.
Travel Food Services GMP
As reported by Livemint, the Grey Market Premium (GMP) for Travel Food Services stood at ₹30 on July 7, 2025, at 10:15 a.m. Should the existing GMP trend persist, the company’s shares may be priced at ₹1130, reflecting a 2.73% premium over the upper price band upon listing.
Source: Livemint Media Report dated July 7, 2025
Disclaimer: The GMP (Grey Market Premium) price is an unauthenticated market related news and has no discernible basis. The same quoted above is as per news appeared in the media report and is for information purposes only. The investor shall do their own study/research before using the same for taking any decision to invest. We neither engage in, trade, or deal in the grey market nor we recommend or endorse trading in the grey market.
Travel Food Services Initial Public Offering Information
Dates of IPO
The IPO for Travel Food Services will be available for subscription starting July 7, 2025, and ending July 9, 2025. Shares will be allocated to investors on July 10, 2025, and the company is set to be listed on the NSE and BSE on July 14, 2025.
IPO Offer Price
Travel Food Services is providing its shares within a price range of Rs 1,045 to Rs 1,100 each. This indicates that you would need an investment of Rs. 14,300 for each lot (13 shares) if you are participating in the IPO at the maximum price band.
Initial Public Offering Size
Travel Food Services is releasing a total of 1,81,81,818 shares valued at Rs 2,000 crores, entirely via an offer for sale.
IPO Allocation Status
Investors that submitted applications for the IPO can verify their allotment status on July 10, 2025, via the registrar’s website: MUFG Intime India Private Limited, BSE, NSE, or through their stockbroker’s platform.
IPO Listing Date
The stocks of Travel Food Services will be traded on the NSE and BSE starting July 14, 2025.
Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.
