Thomas Cook (India) Limited

Thomas Cook (India) Limited navigated a volatile Q1 FY26, marked by global and domestic disruptions including geopolitical tensions and an aviation mishap. Despite these challenges, the company delivered a consolidated top line of INR24,530 million (₹2453 crores), achieving a healthy 15% year-on-year growth. Profit before tax (excluding a one-time^📎 ex gratia payment of INR171 million) increased by 18% to INR1,284 million (₹128.4 crores), with PBT margins improving from 5.1% to 5.2% year-on-year, reflecting operational efficiency.

The financial services segment experienced a 7% year-on-year revenue decline, reporting INR842 million (₹84.2 crores), and a 12% degrowth in prepaid card volumes. This was primarily attributed to geopolitical events impacting travel-related forex flows, lower Hajj travel, a decline in the education segment, and the strategic exit from Delhi Airport which contributed to only 45 days of trading in the quarter. Despite these headwinds, the segment maintained a strong EBIT margin of 44%, and digital adoption for transactions reached 20.4%.

The travel and travel-related segments demonstrated strong resilience, growing by 18% year-on-year in Q1 FY26, with EBIT increasing by 25% and margins improving from 3.9% to 4.1%. International business grew by 19%, while corporate travel volumes increased by 2% and MICE business volumes by 12%. The company noted strong forward booking momentum for outbound travel (mid-teens growth) and domestic travel (recovering from negative growth) from July onwards, following a tapering in May and June due to external events.

Sterling Holiday Resorts delivered its best-ever Q1 performance, marking its 21st consecutive profitable quarter. Total revenue grew 8% year-on-year to INR1,357 million (₹135.7 crores), and EBITDA surged by 25% to INR528 million (₹52.8 crores), with EBITDA margins expanding to 38.9% from 33.6% in Q1 FY25. The company remains debt-free with cash reserves exceeding INR3,000 million (₹300 crores). Room revenue increased by 11%, and food and beverage revenue by 16%, despite a 21% increase in available inventory, achieving an occupancy of 62% at average rates of INR7,100.

Thomas Cook is actively leveraging AI and conversational interfaces to enhance customer experience and operational efficiency. New AI-powered assistants like Tacy (for TCIL) and Ezy (for SOTC) provide real-time support and personalized recommendations in leisure travel. For corporate travel, the GenAI advisor Dhruv simplifies complex requirements, offering intelligent itineraries. The company also integrated its prepaid card with Google Pay and Visa, making it the first in India to offer this functionality, and saw app bookings triple and WhatsApp transaction volumes increase sevenfold year-on-year.

The Destination Management Services (DMS) business saw overall sales grow by 29% year-on-year. The India DMS business turnover increased by 36% to INR597 million (₹59.7 crores), surpassing pre-pandemic levels, while the international DMS business grew 28% to INR7,220 million (₹722 crores). The Digital Imaging Solutions (DEI) segment maintained steady revenues at INR2,100 million (₹210 crores) but significantly improved its EBIT by 61%, with margins rising from 3.2% to 5.1%, driven by cost efficiencies and productivity gains from technology.