Travel Food Services Ltd Management Discussions

Macro-Economic Environment

Global Economy Overview

The global economy grew by B.5%¹ in CY 2025, similar to the previous year, according to the International Monetary Fund (IMF). Growth was broad-based, driven by a recovery in real wages and household purchasing power as inflation moderated from post-pandemic highs. Additionally, accelerating technology investments, mainly in artificial intelligence and semiconductors, along with resilient capital expenditure across key industries contributed to growth.

Global GDP Growth Trend (%)

However, growth dynamics remained divergent across regions. Advanced economies averaged 1.9%¹ growth in CY 2025, led by the United States at 2.1%¹, while the Euro Area lagged at 1.4%¹ amid weak industrial output and structural headwinds. Emerging Market and Developing Economies (EMDEs) continued to outperform at 4.5%¹ growth, with China and India being the fastest growing economies.

Regional GDP Growth Trend (%)

Global private consumption strengthened in CY 2025, driven by easing inflation and improved income visibility, which helped stabilise household spending patterns. Central banks pivoted towards monetary easing, which, alongside resilient labour markets, high savings buffers and improving consumer confidence, supported demand across major economies. A short-term but meaningful boost also came from households and businesses front-loading purchases of goods, especially durables, ahead of anticipated tariff-driven price increases. Taken together, these factors increased private consumption globally, though the gains remained uneven across regions and income groups.

Global Economic Outlook: International agencies entered CY 2026 with relatively optimistic growth forecasts, but the outbreak of war in the Middle East disrupted this momentum. The closure of the Strait of Hormuz and severe damage to critical energy infrastructure have led to an increase in the prices of oil, gas, diesel and commodities.

The IMFs July 2026 World Economic Outlook update projects global growth of 3.0% for CY 2026 (P), observing that the global economy has held up better than feared following the war. A larger oil price spike was avoided through inventory drawdowns and an increase in oil production outside the Gulf region. Financial conditions tightened sharply in April 2026 but have since eased and remain supportive by historical standards. However, the inflation forecast has been revised upwards to 4.7% for CY 2026 (P) from 4.1% in CY 2025, mainly due to higher energy and food prices.

Global Inflation Trend (%)

Looking ahead, IMF expects global growth to rebound to 3.4% in CY 2027 (P). This recovery rests on a key assumption that traffic through the Strait of Hormuz returns fully to prewar conditions by March 2027. The balance of risks to the global growth outlook is skewed to the downside, given high uncertainty. A renewed escalation of the conflict could revive commodity price volatility and tighten financial conditions, thereby weighing on growth, mainly in low-income countries.

For central banks, price stability is expected to remain the priority, but there is no single prescription. The right course will differ from one country to another, shaped by the interplay of commodity prices, technology-led demand and the path of inflation expectations.

India remained the worlds fastest-growing major economy for the fifth straight year in FY 2025-26, with real GDP growth estimated at 7.7%² (up from 7.1%² in FY 2024-25 under the new 2022-23 base series). The performance stood out against a tough external backdrop of elevated global rates, softer merchandise export demand and geopolitical disruption from the Middle East conflict which started in the last quarter of the year.

India GDP Growth Trend (%)

Growth was broad-based across demand drivers. Private Final Consumption Expenditure (PFCE) rose 7.7%² to its highest GDP share in over 14 years, Gross Fixed Capital Formation (GFCF) grew 7.1%², while Government Final Consumption Expenditure (GFCE) rose about 6.6%², reflecting continued public spending support. On the external side, exports grew 6.5%², partly offsetting softer merchandise trade pressured by global demand moderation and evolving tariff dynamics. Indias per-capita GDP crossed USD 2,800 in FY 2025-26, up from around USD 2,675 a year earlier, reflecting rising household incomes and improving living standards. The Gross Goods and Services Tax (GST) collections grew 8.3%³ year-on- year, a reliable barometer of formalisation and consumption health of the economy.

Contribution of GDP Components (%)

FY 2025-26 was a landmark year for trade and diplomacy, with India expanding its Free-Trade Agreements (FTAs) to 38 countries⁴. The standout was the India·EU FTA, which is set to increase exports and open access to 144 EU services subsectors. A framework for an interim US-India trade agreement is expected to be finalised by 2026, reducing US tariffs on Indian goods ahead of a broader bilateral trade pact. Together, these deepen Indias integration into global value chains and reinforce its position as a preferred trading partner across Europe, the Gulf, Asia-Pacific and North America.

Indian Economic Outlook: Looking ahead, India is projected to sustain its position as one of the worlds fastest-growing major economies, with real GDP growth estimated at 6.6%² for FY 2026-27 (P) notwithstanding anticipated spillover effects of the Middle East conflict on commodity prices and global trade. The moderation from the previous year reflects a normalisation of post-reform momentum and global headwinds as Indias structural fundamentals remain strong.

India Inflation Trend (Consumer Price Index) (%)

On inflation, the Reserve Bank of India (RBI) now projects CPI to rise to 5.1%² in FY 2026-27 (P), as the Middle East conflict has pushed up LPG, base-metal and other commodity prices. Food inflation could also firm as the conflicts impact on fertiliser costs and shipping routes pushes prices above the base case and takes longer to wean off.

With risks now two-sided, the RBI is likely to hold its neutral stance and stay data-dependent, watching crude, the rupee and inflation expectations before resuming rate cuts. A sustained energy shock could delay further easing, while a contained outcome would preserve room to support growth.

Aviation Industry Overview

Travel Food Services Limited (TFS) primarily operates Travel QSR outlets and Lounges at domestic and international airports and select highway locations. As such, the evolving dynamics of passenger traffic, airport infrastructure and premium travel demand are important for the company. The following section examines the key structural trends shaping global and Indian aviation market, the emerging Travel QSR and Lounge sectors, and the tailwinds driving TFSs long-term growth opportunity.

Global Aviation Industry Overview

Air passenger traffic is a key indicator of economic development, and is closely linked to levels of economic activity and individual incomes. Post-COVID, global passenger traffic recovered steadily with the resumption of personal and business travel, reaching 9.4 billion⁶ passengers in CY 2024, the first year to surpass pre-pandemic levels. Traffic rose to 9.8 billion⁶ globally in CY 2025 and is projected to reach 10.2 billion⁶ in CY 2026 (P), reflecting continued but more measured expansion as the sector moves beyond the post-pandemic surge.

According to World Travel and Tourism Council (WTTC) estimates, the sector contributed USD 11.6 trillion⁷ to the global economy in CY 2025, accounting for 9.8%⁷ of global GDP, while supporting approximately 366 million⁷ jobs worldwide. Looking ahead, both global GDP and air passenger traffic are expected to record steady growth through CY 2030 (P), supported by increasing disposable incomes, expanding tourism activity, improving air connectivity and continued investments in aviation infrastructure. Rising travel demand across emerging markets and growing preference for air travel for both business and leisure purposes are expected to remain key growth drivers for the sector.

Global air passenger traffic trends and outlook (Billion)

India is the worlds third-largest aviation market and is growing at a fast pace. Air passenger traffic reached 420 million in FY 202526 and is projected to rise to 785-815 million by FY 2034-35 (P), growing 3.6%-5.7%⁸ in FY 2026-27 (P), then at a 7.6%-8.6%⁸ CAGR through FY 2030-31 (P) before moderating to 7.2%-7.6%⁸ CAGR by FY 2034-35 (P). Domestic passenger traffic continues to account for the majority of volumes, supported by strong intra-country connectivity and rising low-cost carrier penetration, while international traffic benefits from growing outbound travel, tourism and expanding global connectivity.

Domestic and International Air Passenger Traffic in India (Million)

Lower Penetration Rates for Air Passenger Traffic in India Vs Other Key Economies Reflects Strong Room for Growth

Total Passengers Divided by Total Population for CY 2025 (Air Trips Per Capita)

Despite being the worlds third-largest aviation market, Indias air travel penetration remains below that of major economies, providing substantial headroom. For India, the total passengers divided by total population (air travel per capita) was 0.29 as of calendar year 2025 compared to 1.08 in China and 5.59 in the US, which reflects significant untapped potential across Indias large population base. Rising incomes, an increasing middle class, urbanisation, better regional connectivity and continued airport investment are expected to increase adoption and support long-term traffic growth.

In FY 2025-26, Indian Air Travel Showed Resilience Amid Operational and Geopolitical Disruptions

In the current financial year, Indias air passenger traffic demonstrated strong resilience, consistently rebounding after operational and geopolitical disruptions. Traffic was impacted by airline-related and geopolitical disruptions during the year. However, traffic rebounded after each event, reflecting underlying strength and steadiness of passenger traffic demand in India. For example, October and November 2025 saw a year-on-year increase in traffic, underscoring the strength of demand despite disruptions.

Indias Favourable Demographics and Rising Incomes to Support Passenger Traffic Growth

Demand fundamentals remain robust, backed by favourable demographics, rising incomes and growing business and leisure travel.

Rising incomes

Steady income growth across corporate, rural and government sectors continues to drive domestic passenger traffic. Indias per capita income grew at a 6.6%⁹ Compound Annual Growth Rate (CAGR) between FY 2022-23 and FY 2025-26

Business and leisure travel

Personal travel (holidays, leisure, recreation) continues to rise, while Indias growing role as a business hub is increasing both domestic and international business travel

Rising urbanisation

Indias urban population is set to grow from 27.9%⁹ in 2001 to 37.2%⁹ by 2030 thereby expanding the base of air travel-ready consumers

Young population

India has the worlds largest young population, with a median age of 28.1 years against a global median of 30.4. This working- age majority, comprising those aged 25 to 54, makes up the bulk of the countrys airline passengers, a base widened further by the reach of low-cost carriers

Airport Infrastructure Investments and Growing Fleet Plans are Driving Supply-Side Expansion

Indias aviation sector has seen significant supply-side expansion, driven by rapid infrastructure development, a growing fleet and increasing route networks. Government initiatives and private investments have together built a strong foundation for sustained long-term traffic growth.

Airport Infrastructure and investments

• Number of airports in India have increased from 74¹⁰ in 2014 to 163¹⁰ in 2025, with a target to increase to 350-400¹⁰ by 2047

• Airport investment projected to surpass H 1,000-1,100 billion⁹ between fiscals 2026 and 2030, significantly higher than the H 750-810 billion⁹ estimated between fiscals 2021 and 2025

• Greenfield and brownfield projects are underway, and new airports at Navi Mumbai and Noida (Jewar) have commenced operations alongside expansion at existing airports including Bengaluru, Hyderabad, Chennai and Guwahati

Fleet Expansion

• Indias fleet has nearly doubled in the past decade reaching more than 800 aircraft as of 2026

• Indian airlines have placed orders for around 2,400 aircraft, which is about three times the current capacity

• Low-Cost Carriers (LCCs) are democratising air travel in India by making it accessible to a broader segment of the population. LCC share in domestic passenger traffic increased to 85%¹⁰ in 2026 compared to 71%¹⁰ in 2019

Ude Desh ka Aam Nagrik (UDAN) Scheme - Enabling Regional Aviation Growth

• UDAN has widened air access to underserved Tier-2 and Tier-3 cities. While earlier phase focused on opening these routes, the Modified UDAN scheme now turns to scaling infrastructure, last-mile connectivity and long-term route sustainability

• Launched for 10 years (fiscals 2027-2036) with a H 288.4 billion outlay, the scheme targets 100 new airports from unserved areas and 200 helipads for remote-region connectivity, advancing the Viksit Bharat 2047 vision of a globally competitive aviation ecosystem

Indian Airport Travel QSR Sector

Airport retail has become a fast-growing part of Indias nonaeronautical airport revenues, mainly comprising food & beverage, lounges, duty-free and convenience-led retail. The market is estimated at H 205-215 billion in FY 2025-26, with Travel QSR and Lounges together accounting for a 35% share, underscoring their growing importance within the airport ecosystem.

Within this ecosystem, Travel QSR (Quick Service Restaurants) comprises F&B outlets at airports and other travel hubs, such as fast-food restaurants, cafes, food courts, bars, takeaway formats and bakeries catering to travellers seeking quick, convenient and high-quality dining in transit.

Indian Airport Travel QSR Sector to Grow at Strong Pace

Airport food and beverage (F&B) consumption, driven by Travel QSR outlets based at airports, has evolved from a largely functional "grab a snack before boarding" category into an experience-led dining proposition. Airports in India are now positioning F&B as a core non-aeronautical revenue driver rather than a supporting amenity.

Indian Airport Travel QSR industry is estimated to grow at a 18-20%⁹ CAGR between FY 2025-26 and FY 2029-30 (P), and further at a 16.5%-18.5%⁹ CAGR between FY 2029-30 (P) and FY 2034-35 (P), reaching H 170-190 billion.

Airport operators, Airport Travel QSR operators, F&B brands and passengers are key participants in the airport F&B value chain. Airport Travel QSR operators serve as an important link in the airport ecosystem by delivering convenient, high-quality dining experiences that enhance passenger satisfaction and nonaeronautical revenue generation.

Indian Airport Travel QSR Sector Market Size (J Billion)

Premiumisation of Airport Travel QSR Offerings

The Indian airport Travel QSR sector is experiencing a shift characterised by the growing involvement of premium and global brands. International food and beverage brands generally choose to enter Indian airports by partnering with established Travel QSR operators. Strong brand reputation and the ability to consistently deliver differentiated experiences within the complexities of the airport ecosystem, make them choose well-established Travel QSR operators. This preference reflects the distinct operational complexities of airport environments, making organised operators the favoured choice for global brands aiming for an airport presence. Additionally, this trend is backed by the increasing privatisation of Indian airports through the Public-Private Partnership (PPP) model. This model results in improved infrastructure, increased passenger traffic and an elevated focus on non-aeronautical revenues.

Indian Airport Lounge Market

The Indian airport Lounge market has emerged as one of the fastest-growing vertical within airport retail. Traditionally reserved for business-class and premium travellers, Lounge access has broadened considerably through airline loyalty and frequent-flyer programmes, complimentary bank card offerings and lounge memberships.

The market is expected to grow to H 155 billion by FY 203435 (P), reflecting a CAGR of 20.5%-22.5% over the next ten years. Today, Lounges offer high-quality F&B, comfortable seating, room to relax or work, and added facilities such as showers, wellness services and entertainment.

Credit Card Ecosystem is one of the Key Growth Driver for Indian Airport Lounge Sector

The loyalty credit/debit card ecosystem has become the key driver of the Indian Lounge sector, with approximately 70-80% of lounge passenger traffic accessed through cards. Lounge access bundled with premium and mid-tier card offerings has transformed Lounge from niche premium services into scalable mass-premium formats, supporting higher utilisation, predictable traffic flows and stronger monetisation for operators. Despite this momentum, Indias credit card penetration remains low at 4.62% against a global average of 22.26%, indicating significant headroom for further Lounge sector expansion.

Key Growth Drivers for Airport Travel QSR and Lounge Sectors in India

Growth is underpinned by rising passenger traffic volumes, improving airport infrastructure, low-but-expanding credit card penetration, airline frequent-flyer and premium-cabin programmes, the increase in lounge membership programmes, Indias emerging potential as a transit hub, and the premiumisation of Indian travellers.

Rising Air Passenger Traffic: Strong growth in domestic and international passenger traffic is increasing airport footfall, driving higher demand across airport retail, Travel QSR and lounge sectors I

Expansion of Airport Infrastructure: Airport modernisation, terminal expansion and increasing operational airports are creating significant opportunities for retail, dining and lounge operators I

Growth in Non-Aeronautical Revenues: Airports are increasingly focusing on retail, F&B and Lounge businesses to enhance non-aeronautical revenue contribution and improve passenger monetisation I

Higher Passenger Dwell Time: Early arrivals, security procedures and operational delays are increasing passenger time spent within terminals, supporting higher retail and food consumption I

Premiumisation of Travel: Rising disposable incomes and evolving consumer preferences are increasing demand for premium dining, branded retail and lounge experiences within airports I

Credit Card-led Lounge Access Ecosystem: Expansion of premium and mid-tier credit cards bundled with lounge access is significantly increasing lounge penetration and passenger utilisation I

Semi-Captive Consumer Environment: Limited alternatives within airport terminals support higher spend per passenger across retail, food and lounge categories I

Growth in Organised and Branded Formats: Increasing preference for organised, branded and hygienic retail and dining formats is supporting higher penetration of organised airport operators I

Technology and Digital Integration: Digital ordering, contactless payments and technology-enabled passenger engagement are improving customer convenience and operational efficiency across airport retail ecosystems I

Global Airport Lounges Market

The global airport lounges market has evolved into a high- growth, premium-driven business vertical within airport non-aeronautical revenues. The global airport lounge market has recorded a steady 7%¹¹ CAGR by value between CY 2019 and CY 2025 despite a dip in revenue for operators during COVID-19 impacted years. In the future, driven by increasing global passenger traffic and accessibility through credit card programmes, airline alliances and passengers appetite for quality experience, the global lounge market is expected to clock around 7.0%¹¹ CAGR between CY 2025 and 2030 (medium term) and 6.5%-7.5%¹¹ CAGR between CY 2025 and CY 2035 (P) (long term).

Regional Growth Dynamics

Regional trends point to a clear shift towards emerging markets, with the Middle East & Africa and Asia-Pacific growing faster than the mature markets of North America and Europe.

According to the CRISIL Report 2026, Asia-Pacific (excluding China) has been the fastest-growing region in the global airport lounge market, with its share increasing from approximately 13.7% in CY 2019 to 16.5%-17.0% by CY 2025E. The Middle East & Africa region has also expanded its presence, with its share rising from around 4.5% to 4.8%-5.3% over the same period.

This growth is driven by the emergence of Asia-Pacific and the Middle East as key global aviation and transit hubs. Strong passenger traffic growth, significant investments in airport infrastructure, and increasing demand for premium travel experiences are accelerating international and connecting traffic flows, thereby supporting higher lounge usage and ongoing premiumisation across these regions.

Global Lounge Market Share for Asia Pacific and Middle East & Africa

Region	CY 2019	CY 2025E
Asia Pacific (excluding China)	13.7%	16.5%-17.0%
Middle East & Africa	4.5%	4.8%-5.3%

Note: E-Estimated

Indian Highway and Expressway QSR Industry

The Indian highway and expressway QSR industry is emerging as a significant long-term growth opportunity, supported by rapid expansion of road infrastructure, increasing intercity mobility and rising preference for organised roadside consumption formats. Indias national highway network has expanded from approximately 91,000 km in FY 2013-14 to over 146,000 km in FY 2024-25, improving connectivity across major economic corridors and driving higher vehicle movement.

The Expressway Travel QSR industry has grown from nearly H4 billion in FY 2018-19 to H 15 billion in FY 2023-24 and is projected to reach H 265-285 billion by FY 2034-35 (P), reflecting a strong around 30% CAGR over the long term. Growth is expected to be driven by the continued development of access- controlled expressways, increasing road travel for business and leisure purposes and rising demand for organised, hygienic and branded food and beverage offerings along highways.

As highways evolve into structured travel corridors, designated wayside amenities and roadside retail hubs are creating new opportunities for organised Travel QSR operators. Supported by expanding highway infrastructure, rising intercity travel and increasing consumer preference for branded roadside dining experiences, the sector is expected to witness robust growth over the coming decade. While currently a relatively small contributor to the Companys overall business, the expressway travel QSR represents an attractive long-term growth opportunity.

Company Overview

TFS is the leading player in Indias fast-growing airport Travel QSR and Lounge sectors by revenue in Fiscal 2026, with a System-wide market share of approximately 30% and 45% respectively, according to the CRISIL Report 2026.

The Company operates across 16 airports in India, 3 in Malaysia and 1 in Hong Kong, as of March 31, 2026. As Per the CRISIL Report 2026, 14 of its 16 Indian airports were among the countrys 15 largest airports by passenger traffic in FY 202526, including large airports like, Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai.

The Company benefits from the combined experience of its Promoters, SSP Group plc and K-Hospitality. SSP is a FTSE 250 company listed on the London Stock Exchange and is one of the leading operators in the Travel F&B sector globally. We have tailored SSPs corporate governance standards to our business and draw on SSPs relationships with global F&B brands in expanding our brand portfolio. K-Hospitality has over 50 years of experience in the Indian F&B industry and owns/ invests in various hospitality and food services companies. K-Hospitality has developed culinary and operational knowhow, an understanding of Indian consumers and industry knowledge that TFS is able to benefit from.

TFS operates long-term concessions for Travel QSR outlets and Lounges at key airports in India, spanning both Airports Authority of India (AAI) airports and those run by private operators. Alongside the long-term F&B concessions it operates directly, which form part of its standalone financials, the Company has grown its airport presence in India through strategic partnerships with Adani Airport Holdings Limited and GMR Airports Limited, held under subsidiary, joint venture and associate structures. These partnerships allow the Company to build its footprint at multiple airports while drawing on complementary strengths, operational expertise and established brand relationships. For its international operations in Malaysia and Hong Kong, the Company has partnered with SSP. System-wide presence refers to the combined network of TFS, its subsidiaries, associates and joint ventures across domestic and international markets.

Business Overview

Travel QSR Business

The Travel QSR business remains the largest contributor to the Companys operations and is centred around offering quick service formats tailored to the needs of travellers, mainly within airports as well as at select highway sites to serve travellers demands for speed and convenience. We work closely with regional and international brand partners to adapt their F&B concepts for the travel environment. Additionally, we have curated a portfolio of in-house brands like Idli.com & Cafeccino through close collaborations between our experienced culinary, marketing and operations teams.

As of March 31, 2026, we had a total of 518 Travel QSR outlets at a System-wide level comprising 466 outlets across sixteen airports in India, 29 outlets across two airports in Malaysia and 23 outlets across nine highway sites in India. We operated 295 Travel QSR outlets directly (including subsidiaries), while the remaining 223 outlets were operated by our Associates and Joint Ventures, as of March 31, 2026.

Our brand portfolio consisted of 145 brands as of March 31, 2026, comprising a mix of in-house brands, regional brands and international brands. Also, as per CRISIL Report 2026, our market share in the Indian airport Travel QSR sector increased to around 30% as of March 31, 2026 from 26% in the previous year, thereby highlighting our growing footprint across Indian airports.

Lounge Business

The Airport Lounge business represents the Companys premium hospitality services that are designed to provide comfort and convenience to travellers at the airport. Lounges focus on providing a wide range of high-quality food options along with a comfortable seating arrangement for customers. Lounge services can be broadly bundled into food and beverage, space to relax or work, and ancillary facilities such as shower, wellness services, entertainment, etc.

Our Lounge business comprised a total of 39 Lounges at a System-wide level, including 29 Lounges located in eleven airports in India, 8 Lounges located in three airports in Malaysia and 2 Lounges located in Hong Kong airport, as of March 31, 2026. As per CRISIL Report 2026, our market share in the Indian airport Lounge sector was around 45% as of March 31, 2026, reinforcing our leadership position within one of the fastest- growing sectors of airport hospitality.

On the technology front, we continue our progress towards becoming a tech-enabled travel hospitality company. FY 202526 was a landmark year, marked by the launch of Eliteassist Technology and Services Private Limited (EATS), our wholly owned subsidiary, which enables direct bank-to-lounge access as an integrated service. With end-to-end integration already deployed across multiple banks and card networks, the platform has stabilised well, and the early response has been encouraging. EATS remains a key enabler of customer access, convenience, engagement, and monetisation. Looking ahead, we are broadening the range of airport services offered through the platform and adding ancillary services to deepen customer engagement.

Performance Update

TFS delivered a strong performance during FY 2025-26, driven by network expansion, new concession wins, expansion of its brand portfolio and strong revenue and profit growth. The Companys performance during the year can be divided under two categories, namely operational performance and financial performance:

Key Operational Performance Highlights Airport Network Expansion

TFS operates at 20 airports at a System-wide level as of March 31, 2026 (compared to 18 airports a year ago), with the commencement of operations at Navi Mumbai International Airport and Cochin International Airport (Domestic Terminal 1)

New Concession Wins

Key contracts awarded during the year include:

• Contract to design, construct and operate 33 Travel QSR outlets at Terminal 1 of the Indira Gandhi International (IGI) Airport, New Delhi

• Contract to design, construct and operate 14 Travel QSR outlets at Terminal 2 of the IGI Airport, New Delhi

• Contract to design, construct and operate 11 Travel QSR outlets and 1 Lounge at Cochin International Airport (Domestic Terminal 1)

Travel QSR Outlets

Extended the Travel QSR outlet network to 518 outlets at a system-wide level as of 31 March 2026, with commissioning of 76 new outlets across airports including Mumbai, Delhi, Ahmedabad, Hyderabad and Cochin, as well as the newly opened Navi Mumbai International Airport

Lounge Network Expansion

Lounge network increased to 39 Lounges as of March 31, 2026 (up from 37 as of March 31, 2025) with opening of one Lounge at Cochin International Airport (Domestic Terminal 1) and opening of second Lounge at Hong Kong International Airport (operated in partnership with SSP Asia Pacific and Airport Dimensions).

Scale-up of Brand Portfolio

Brand portfolio expanded to 145 brands as of March 31, 2026, with addition of 18 brands in the year. The additions include new in-house concepts such as Lucknow Streat, alongside globally celebrated names including Nandos, and Gordon Ramsay, further strengthening TFS ability to cater to the evolving tastes and preferences of the modern traveller.

Direct Bank-to-Lounge access enabled

EATS deployed end-to-end integration with multiple banks and card networks to enable seamless Bank-to-Lounge access during the year.

Key Performance Indicators

Operating Metrics	FY 2025-26	FY 2024-25
Number of Airports	20	18
Number of Countries	3	3
Number of Travel QSR outlets	518	442
Number of Lounges	39	37
Number of Brand partners	98	90

Note: All the information is on a system-wide basis

Key Financial Performance Highlights

The Company delivered a strong financial performance in FY 2025-26, despite multiple sectoral headwinds seen during the year.

Key Financial Highlights

Particulars (J million, unless otherwise stated)	FY 2025-26 (Reported)	FY 2024-25 (Adjusted)2	FY 2024-25 (Reported)
System-wide Sales1	32,144.44	25,641.73	25,641.73
Consolidated Sales	16,477.96	14,469.52	16,877.39
Gross Profit	13,960.84	11,826.74	13,913.50
Gross Profit Margin	84.72%	81.74%	82.44%
Earnings Before Interest, Tax & Depreciation (EBITDA)3	6,485.28	5,344.92	5,541.03
EBITDA Margin3	39.36%	36.94%	32.83%
Profit before share of profit of associates and joint ventures and income taxes	5,290.60	4,387.59	4,570.62
PBT Margin	32.11%	30.32%	27.08%
Share of Profit/(Loss) from Associates	663.98	497.53	472.73
Profit After Tax (PAT)	4,523.17	3,722.15	3,796.59
PAT Margin	27.45%	25.72%	22.50%
Diluted Earnings Per Share (H per share)	33.42	27.01	27.58

Notes:

1. TFS system-wide numbers are based on TFS system-wide presence covering TFS, its , associates and joint ventures.

2. FY 2024-25 consolidated sales and consolidated PAT exclude the impact arising from the deconsolidation of the JV business Semolina Kitchens Limited (SKL). Adjusted consolidated sales excludes H2,407.87million of SKL sales. Similarly, adjusted consolidated PAT excludes profit of H99.24 million from SKL, but includes profit in proportion to TFS shareholding in the JV (i.e. H24.80 million).

3. EBITDA and EBITDA margin calculation exclude other income.

Financial Performance Analysis Revenue

Revenue growth was driven by a combination of Like-for-Like (LFL) sales growth and Net Contract Gains. System-wide sales grew 25.36% year-on-year (YoY) to R 32,144.44 million supported by LFL growth of 9.39% YoY and Net Contract Gains of 13.13% YoY. At a consolidated level, sales grew 13.88% YoY (on an adjusted basis) driven by LFL sales growth of 6.27% YoY and Net Contract Gains of 8.75% YoY. LFL performance was supported by higher passenger throughput, improved spend-per-passenger and premiumisation, while Net Contract Gains reflected new outlet additions and the commencement of operations at new airports.

This growth was achieved even though passenger traffic at TFS managed airports at a system-wide level remained broadly similar to the previous year. Passenger Traffic was affected by multiple disruptions during FY 2025-26. For the Company, the year demanded agility, responsiveness and disciplined execution. Leveraging its agile operating model, TFS maintained uninterrupted service across locations through 24x7 operations, rapid deployment of essential food and beverage services, proactive menu rationalisation, and dynamic supply chain coordination. TFS ensured continuity of service, minimised passenger inconvenience, supported by real-time operational monitoring and cross-location manpower mobilisation, and reinforced the trust placed in it by airport operators, brand partners, and travellers alike.

Revenue Mix (Consolidated Sales)

Particulars (J million, unless otherwise stated)	FY 2025-26	FY 2024-25
Revenue from Contract with Customer
Revenue from Lounge services	6,700.54	7,583.56
Revenue from Travel QSR	9,135.77	8,721.45
Revenue from Management and other services	641.65	570.5
Total of Sale of Products and Services	16,477.96	16,875.51
Revenue Mix (% to Sales)
Revenue from Lounge services	40.67%	44.94%
Revenue from Travel QSR	55.44%	51.68%
Revenue from Management and other services	3.89%	3.38%
Total	100.00%	100.00%

Notes:

1. The revenue mix computation for FY 2024-25 excludes income from miscellaneous services of R1.88 million, notwithstanding the total revenue from operations of R16,877.39 million reported for the year.

During the year, the Companys revenue mix saw a higher contribution from Travel QSR, which increased to 55.44% of total revenue from 51.68% in the previous year, primarily driven by the mobilisation of new Travel QSR outlets at airports. The contribution from Lounge services declined to 40.67% from 44.94%, mainly due to the de-consolidation of Semolina Kitchens Limited with effect from 15^th October 2024. In FY 2024-25, revenue from operations included the consolidated revenues of Semolina Kitchens Limited, which were skewed towards its Lounge services operations, with lower contribution from Travel QSR. Additionally, management and other services contributed 3.89% of total revenue in FY 2025-26.

Margins and Operating Performance

Gross margin increased to 84.72% in FY 2025-26 from 81.74% in FY 2024-25 (adjusted basis), driven by procurement efficiencies. EBITDA margin increased to 39.36% in FY 2025-26 from 36.94% in FY 2024-25 (adjusted basis), supported by the improvement in gross margin and benefit of operating leverage. Share of profit from associates and joint ventures grew to H 663.98 million (FY 2024-25: H 497.53 million). Profit after tax grew 21.52% to H 4,523.17 million, with PAT margin increasing to 27.45% in the current year from 25.72% in the previous year (on an adjusted basis).

Balance Sheet Strength and Capital Efficiency

The Company continues to be debt-free as at March 31, 2026, with a consolidated cash and investment balance of H 8,355.69 million providing significant liquidity and financial flexibility. Return on Capital Employed was 45.04% and Return on Equity was 30.90%, highlighting the strong profitability and efficient capital utilisation.

Recommendation of Dividend

For FY 2025-26, the Board of Directors has recommended a dividend of H 10.25 per equity share, aggregating to H 1,349.71 million. The Companys dividend distribution is governed by its Dividend Distribution Policy. The dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting. Further, the recommendation for FY 2025-26 is consistent with the Companys stated priorities for the uses of cash and after review of its medium-term investment and capex requirements.

Performance of Key Associates and Joint Ventures

The Companys associates and joint ventures delivered strong growth during FY 2025-26, reflecting increased passenger traffic, higher spend per passenger and the ongoing expansion of Airport Travel QSR and Lounge businesses.

• Semolina Kitchens Limited generated revenue of H 9,238.93 million, up 47.11% over the previous year, driven by strong operating momentum across its multi-airport network and mobilisation of units across the portfolio.

• GMR Hospitality Limited reported strong revenue growth of 70.13% with revenue from operations (including operating income from sub-lease) increasing to H 1,422.56 million, supported by mobilisation of Travel QSR outlets at Goa MOPA and Hyderabad airports.

• Select Service Partner Malaysia Sdn Bhd reported revenue from operations of H 4,183.97 million, registering growth of 32.55% year-on-year, reflecting healthy demand across its Travel QSR outlets and Lounge operations at key travel locations in Malaysia.

• SSP TFS HK Lounge Limited recorded revenue of H 821.00 million, representing a significant YoY increase of 163.14%, driven by the recovery and growth of airport lounge operations at Hong Kong International Airport.

Key Ratios

Ratio	Units	FY 2025-26	FY 2024-25
Debtors (Trade Receivables) Days	Days	41.01	22.84
Creditors (Trade Payables) Days	Days	170.57	130.69
Inventory Turnover	Times	15.53	12.61
Interest Coverage Ratio	Times	7.80	9.36
Return on Net Worth	%	30.90	34.64
Return on Capital Employed	%	45.04	51.40
Current Ratio	Times	1.91	1.58
Debt-Equity Ratio (x)	Times	Nil	Nil
Operating Profit Margin (%)	%	39.36	32.83
Net Profit Margin (%)	%	27.45	22.50

Other than Increase in Debtor (Trade Receivables) Days and Creditor (Trade Payables) Days, there are no significant changes (i.e. 25% or more) in key ratios.

Return on Net Worth (RoNW) stood at 30.90% in FY 2025-26 compared with 34.64% in FY 2024-25. During the year, profit attributable to owners increased by 21.44%; however, net worth increased by 36.14%, primarily driven by the accumulation of retained earnings in reserves. As a result, the Company generated a healthy return on a significantly expanded equity base.

Increase in Debtors (Trade Receivables) Days

The increase reflects the launch of the EATS business during FY 2025-26. With the business in its ramp-up phase, receivables from banks and network partners reflect the built up towards the year-end, raising average debtor days. This is expected to normalise as the business matures and collection cycles stabilise.

Increase in Creditors (Trade Payables) Days

The increase reflects lengthening of the average payment cycle during FY 2025-26, as the Company drew on extended credit terms with suppliers which was in line with the scaling of operations. This supported working capital over the year and partially offset the higher debtor days arising from the EATS ramp-up.

Business Outlook

The Company remains confident about the medium-to-long- term growth prospects of Indian aviation, driven by low air travel penetration, rising disposable incomes, expanding airport infrastructure and a continued shift towards premium, differentiated travel experiences. These drivers are expected to support a 7%-8% passenger traffic CAGR over the coming decade.

However, in the near term, the operating environment is expected to remain dynamic. The ongoing Middle East conflict has impacted international travel sentiment and traffic flows on select routes. Alongside this, airline capacity constraints, rising inflationary pressures in food commodities, packaging and labour, and potential constraints in the availability of raw materials remain factors that require close monitoring. These pressures have been felt more on international traffic demand, though domestic passenger traffic demand remained resilient in the first quarter of FY 2026-27.

For FY 2026-27 (P) the passenger traffic growth is skewed towards the second half of the year. International travel is expected to take time to recover, but a shift towards domestic travel should drive overall demand. The Company continues to navigate these near-term challenges supported by strong execution, disciplined procurement practices, operational efficiencies and a sustained focus on premiumisation.

Over the medium term, the Companys strategy is anchored on two fronts: strengthening its core by driving like-for-like sales growth through brand curation and menu innovation, while deepening its presence at existing airports and growing its network through new concession wins. Alongside this, the Company continues to scale its EATS technology platform, expand its international lounge footprint across Asia-Pacific and the Middle East, and evaluate the long-term expressway QSR opportunity.

Capital Allocation Approach

TFS adopts a prudent and strategic approach to capital allocation, ensuring that investment decisions are aligned with the Companys growth ambitions and business priorities. Capital is directed towards initiatives that improve operational resilience, expand market reach, strengthen digital capabilities, and build a skilled workforce capable of supporting the evolving needs of the business.

The Company is well-positioned to fund its medium to long term growth aspirations. It remains debt-free, with a strong consolidated cash balance and a healthy cash generation profile. This financial strength, combined with a disciplined approach to capital allocation and a clearly defined set of strategic priorities, enables the Company to pursue growth opportunities, while navigating near-term uncertainty.

Key Risks and Mitigation Framework

The Company operates in a dynamic business environment and is exposed to a range of strategic, operational, financial, regulatory and external risks that could affect its business performance and operational continuity. These risks arise from factors such as macroeconomic conditions, passenger traffic trends, evolving customer expectations, partner and stakeholder relationships, regulatory developments and the broader geopolitical environment. The Company recognises that effective identification, assessment and management of risks are critical to protecting stakeholder value and supporting sustainable long-term growth.

The Companys performance remains closely linked to traffic volumes and airport concession arrangements, exposing it to risks relating to aviation cyclicality, geopolitical events, airline capacity constraints and fuel cost inflation. Additional risks arise from concession renewals, revenue concentration across key airports, input cost inflation, and evolving regulatory requirements.

To effectively manage these risks, the Company has established an integrated Enterprise Risk Management (ERM) framework that enables the systematic identification, assessment, monitoring and mitigation of key business risks. The framework is overseen by the Risk Management Committee of the Board, with clearly defined risk ownership across business functions and regular review by senior management to ensure that emerging risks are identified and appropriate mitigation measures are implemented in a timely manner. The internal audit function conducted by an external specialist firm, provides objective assurance on the design and operating effectiveness of the Companys internal controls. Further details on the Companys governance framework, Enterprise Risk Management framework, internal financial controls and oversight mechanisms are provided in the Corporate Governance Report forming part of this annual report. These measures enable the Company to proactively respond to evolving business challenges, safeguard stakeholder interests and support sustainable long-term value creation.

Human Resources

The Company believes that its people are a key enabler of service excellence, operational consistency and sustainable growth. Given the customer-facing nature of the travel hospitality industry, the Company continues to invest in employee capability building, operational training and service quality enhancement to deliver consistent guest experiences across its businesses.

The Company promotes a performance-oriented and collaborative work culture, supported by structured learning, leadership development and employee engagement initiatives. Employee capability is built through the Companys proprietary training academies which, alongside structured role-readiness and compliance training develop a skilled and flexible workforce. Career growth is supported through initiatives such as RISE for frontline team members, internal job postings and promotions, and specialised courses designed for the employees to hone their skills for the leadership roles. This continuous focus on skill development and service excellence strengthens productivity and supports the Companys ability to mobilise new outlets, scale operations and maintain service standards across geographies.

Employee well-being, diversity and inclusion, workplace safety and regulatory compliance remain integral to the Companys human resource philosophy. The Company fosters a diverse and inclusive workplace through equitable, non-discriminatory practices, with female representation rising to 32.5% during the year (at a standalone entity level). We strongly follow "Safety First" culture, thereby embedding safety across the Companys people, processes and systems.

During the year, the Company was recognised as a Great Place to Work? Certified organisation for the second consecutive year. Additionally, TFS recorded a Gallup Engagement Score of 4.43 out of 5 in FY 2025-26 (FY 2024-25: 4.42), reflecting a year-on-year improvement, thereby showcasing our continued commitment to building a culture where people are heard, valued, and inspired to perform. The Company will continue to focus on attracting, developing and retaining talent, while building a future-ready workforce aligned with its long-term growth strategy.

Internal Control Systems and their Adequacy

The Company has in place adequate internal control systems commensurate with the size, scale and complexity of its operations. These systems are designed to provide reasonable assurance regarding the reliability of financial reporting, the effectiveness and efficiency of operations, the safeguarding of assets, the prevention and detection of frauds and errors, and compliance within applicable laws and regulations. The internal financial controls are supported by well-defined policies, standard operating procedures, and a clear delegation of authority, which are reviewed and updated periodically to keep pace with the evolving business and regulatory environment.

The internal control systems are supported by a Code of Conduct, an Anti-Bribery and Anti-Corruption Policy and a whistleblower mechanism through which employees and stakeholders can raise concerns. The Company has an independent internal audit function that operates on a risk-based annual audit plan, covering key processes, locations and functions. Internal audit reviews assess the adequacy and effectiveness of internal controls and recommend improvements, with management taking timely corrective actions. The Audit Committee of the Board reviews the internal audit findings, the adequacy and effectiveness of the internal control systems, and the status of implementation of corrective actions on a periodic basis.

The statutory auditors have also expressed an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting. The Company continues to review and strengthen its internal control framework on an ongoing basis to ensure it remains robust and aligned with best practices.

Cautionary Statement

Certain statements in the Management Discussion and Analysis section concerning prospects may be forward-looking statements which involve several underlying identified and unidentified risks and uncertainties that could cause actual results to differ materially. In addition to the foregoing changes in the macro-environment and geopolitical landscape may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s) to the Company and the environment in which it operates. The results of these assumptions made, relying on available internal and external information, are the basis for determining certain facts and figures stated in the Report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based are also subject to change accordingly. These forward-looking statements represent only the Companys current intentions, beliefs or expectations and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether because of new information, future events or otherwise.