Travel Food Services Shares Jump as ICICI Securities Initiates Coverage with a Strong ‘Buy’ Rating

Shares of Travel Food Services (TFS) surged nearly 6% on November 27 after ICICI Securities initiated coverage on the recently listed stock with a ‘Buy’ rating, fueling investor optimism around the company’s earnings potential and long-term growth prospects. The stock climbed to a fresh 52-week high of ₹1,445, before giving up gains and turning mildly negative in the afternoon session.

The rally underscores improving market sentiment around the company’s strategic positioning in India’s high-growth airport food & beverage segment, supported by strong contracts, global partnerships, and expanding passenger traffic across major airports.

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ICICI Securities Sees Strong Growth Visibility and Attractive Upside

ICICI Securities assigned a target price of ₹1,600 per share for Travel Food Services, implying over 17% upside from the previous closing price of ₹1,364.10. The brokerage highlighted TFS as India’s leading travel F&B operator, backed by highly experienced promoters and SSP Group, one of the world’s largest travel food service companies.

The report emphasised the company’s strong contract retention and win rate of more than 90%, positioning it favourably in an airport ecosystem known for high entry barriers. ICICI Securities expects TFS to record a 21% revenue CAGR between FY25 and FY28, supported by India’s rapidly growing airport infrastructure and surging passenger traffic.

The brokerage noted that strategic partnerships with Adani Group and GMR Airports provide long-term visibility, access, and scalability.

Brokerage Highlights TFS’ Asset-Light Model and Leadership in Airport F&B

ICICI Securities also pointed out that TFS benefits from an asset-light concession model, which supports strong margin generation and limits capital expenditure requirements. With the company’s dominance in airport QSRs, lounges, and 24×7 operational zones, TFS remains well-positioned to capture increasing demand for modern travel dining experiences.

The report forecasts:

• EBITDA margins of 37–38% over FY26–28

• Return on Capital Employed (RoCE) of 25%+, driven by operating leverage

• Incremental margin expansion supported by lounge mix, scale efficiencies, and disciplined cost controls

The brokerage further stated:

“With its favourable pricing, scale advantages, and asset-light model, TFS is expected to maintain robust profitability metrics and consistent cash generation.”

Travel Food Services Share Price: Strong Performance Despite Soft Listing

At 3 pm, TFS shares were trading around ₹1,355.60, down 0.62% from the previous close. Despite the intraday reversal, the stock has posted strong short-term and medium-term gains, rising:

• 4% in the last five days

• 26% in the past six months

Interestingly, the stock had made a muted market debut in July, listing at just 2% above its IPO price of ₹1,125 per share. The ₹2,000-crore IPO, open for subscription from July 7–9, was subscribed 2.88 times, reflecting steady but not euphoric listing-day interest.

Since then, investor sentiment has shifted sharply as markets reassessed the company’s growth potential in India’s booming aviation and travel ecosystem.

Why Travel Food Services Is Emerging as a High-Conviction Airport Play

Travel Food Services stands out in a segment dominated by regulatory hurdles, high concession barriers, and limited competition. This creates a favourable moat for established operators with strong relationships across airport operators, airlines, and concession authorities.

Key tailwinds boosting TFS’ long-term outlook include:

• Rapid expansion of Tier-1 and Tier-2 airports

• Growth in domestic and international passenger traffic

• Rising preference for modern QSR, café, and lounge experiences

• Consolidation of airport food contracts among large, trusted operators

• Increasing collaboration between private airport operators and leading F&B brands

TFS’ integrated business model, relationship with global leader SSP Group, and presence across major airports like Mumbai, Delhi, Bengaluru, and Hyderabad strengthen its competitive advantage.

Analysts Say Revenue Growth Will Accelerate as Airport Ecosystem Expands

The brokerage expects passenger traffic to rise significantly over the next three to five years, driven by India’s aviation boom, capacity additions, and new international routes. As airports upgrade lounges and F&B infrastructure, companies like TFS are likely to capture higher wallet share from travellers seeking premium experiences.

ICICI Securities believes TFS will benefit from:

• Growth in airport lounges, driven by credit card and fintech partnerships

• Increasing demand for high-quality airport dining

• Favourable concession terms at newly privatized airports

• Higher throughput and efficiency due to greater scale

Outlook: TFS Positioned for Strong Growth Despite Short-Term Volatility

While the stock showed volatility during the session, analysts say the long-term case for TFS remains intact. The company’s asset-light strategy, strong promoter backing, high-margin operations, and leadership in airport F&B position it as one of India’s most compelling travel retail plays.

With a favourable industry backdrop and ICICI Securities’ bullish initiation, Travel Food Services’ share price could continue drawing investor interest as the airport ecosystem expands.

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