TFS posts strong Q1FY27 results; shares in red despite earnings beat

Travel Food Services Ltd (TFS) delivered impressive first-quarter results for the financial year 2027, with consolidated profit after tax surging 35.6% year-on-year to ₹128.8 crore and system-wide sales climbing 18% to ₹843.7 crore. However, the stock price declined on Friday as shares slipped 1.81% to ₹1,369 on the NSE, falling from an opening price of ₹1,362.20. Throughout the trading day, TFS reached a high of ₹1,385 and a low of ₹1,340.

Despite the earnings beat, sell orders outweighed buy orders, accounting for 57.7% of the order book. During the session, the stock traded around 0.60 lakh shares, generating a value of approximately ₹8.10 crore. TFS's consolidated sales rose 20.6% to ₹452.2 crore in Q1FY27, with EBITDA growing 11% year-on-year to ₹161.9 crore. PAT margin improved by 315 basis points to 28.5%, and earnings per share climbed 38.1% to ₹9.60.

The company remains debt-free, holding a cash reserve of ₹969.8 crore as of June 30, 2026. Like-for-like sales grew by a modest 0.8% at the system-wide level, impacted by disruptions due to the West Asia conflict and terminal migration at airports like Mumbai and Guwahati. Excluding these affected markets, LFL growth would have been around 7%.

EBITDA margins fell by 308 basis points to 35.8%, driven by increased employee and other costs from newly opened outlets. TFS expanded its network to 580 outlets and lounges across 21 airports by June 2026, adding 87 Travel QSR outlets and 2 lounges in the past year, bringing the total brand count to 153. The stock's 52-week high was reached at ₹1,470.90 a week ago on August 7, but it has since declined.

YTD, the stock has risen nearly 18%, outperforming the Nifty 500's negative return of 1.24% over the same period. The stock trades at a PE ratio of 37.77, with a market capitalization of approximately ₹18,003 crore.