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    Thomas Cook (India) Q1 FY27 earnings call

    THOMASCOOK
    Consumer Services·10 Aug 2026
    Management Summary

    Thomas Cook (India) Limited reported a mixed Q1 FY27, with consolidated total income declining 12% and PBT down 21% due to geopolitical disruptions impacting Middle East operations and long-haul travel. However, core India businesses, including foreign exchange, MICE, corporate travel, and Sterling Holidays, demonstrated strong growth and resilience. The company is focusing on cost optimization and expects better performance in H2 FY27 if geopolitical situations stabilize.

    Highlights

    5

    • Foreign exchange business segment revenue grew by 6%, EBIT by 8%, and EBIT margins at 45.3%.

    • Education portfolio turnover grew by 36% year-on-year.

    • Corporate business portfolio recorded 9% growth in turnover.

    • Sterling Holidays' revenue from operations reached INR 1.7 billion, up 21% YoY, and EBITDA increased 21% to over INR 620 million (37% margin).

    • Sterling Holidays PBT grew 30% YoY, with PBT margins at 28%.

    Concerns

    6

    • Consolidated total income declined by 12% year-on-year to INR 21,530 million.

    • Profit before tax declined by 21% Y-o-Y to INR 885 million.

    • Travel business revenue declined by 14% year-on-year to INR 17,106 million.

    • Long-haul travel sales declined 28% year-on-year due to conflict in West Asia.

    • DEI EBIT moved from a positive INR 106 million in Q1 FY26 to a negative INR 152 million in Q1 FY27.

    • Total Travel segment EBIT declined by 50% year-on-year to INR 405 million.

    Key financials

    Single quarter

    09 metrics
    1. 01Consolidated Total Income21,530 Mn-12%YoY
    2. 02Profit Before Tax885 Mn-21%YoY
    3. 03Travel Business Revenue17,106 Mn-14.0%YoY
    4. 04Foreign Exchange Segment Revenue Growth6%
    5. 05Foreign Exchange Segment EBIT Margin45.3%

    Segment breakdown

    Foreign Exchange Business
    6% Segment Revenue Growth8% Segment EBIT Growth45.3% EBIT Margin
    Sterling Holidays
    1,700 Mn Revenue from Operations21% Revenue Growth620 Mn EBITDA21% EBITDA Growth37% EBITDA Margin30% PBT Growth28% PBT Margin
    Travel Segment (B2B)
    11,192 Mn Revenue5,420 Mn MICE Portfolio Turnover350 Mn Corporate Travel Revenue (Net)7,000 Mn Corporate Travel Gross Turnover5,422 Mn DMS Portfolio Revenue1,307 Mn DEI Revenue-152 Mn DEI EBIT
    Travel Segment (B2C)
    29.0% Domestic Segment Growth6% Short-haul Business Growth-28.0% Long-haul Sales Decline
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Cash ₹3.7 billion

    Sterling Holidays has cash reserves exceeding INR 3.7 billion.

    Guidance & targets

    4
    CategoryTargetPriority
    Profitability
    Travel Segment EBIT Margin
    4-5%
    		Medium
    Profitability
    Travel Segment Take Rates (B2B and B2C)
    14-15%
    		Medium
    Profitability
    DEI EBIT Margin on Sales (Normal Year)
    6-7%
    		Medium
    Profitability
    DEI Return on Equity (ROE)
    20%
    		Medium

    What to watch in Q2 FY27

    4

    DEI EBIT recovery

    Q2 FY27
    Current-INR 152 million in Q1 FY27
    TargetImproved EBIT, positive contribution

    Why it matters

    DEI's underperformance significantly impacted consolidated PBT in Q1; recovery is crucial for overall profitability.

    K.S. Ramakrishnan: "You will definitely see some difference in the Q2 for sure." Mahesh Iyer: "We expect some of those benefits to come in Q2 and Q3 of FY27."

    Risks & concerns

    3
    RiskSeverity

    Geopolitical disruptions impacting Middle East operations and long-haul travel

    Conflict in West Asia led to 89% revenue decline for Desert Adventures and significant EBIT loss for DEI, impacting consolidated results. — Management acknowledged

    high

    Lag in adjusting cost base to sudden volume drops

    For Desert Adventures, business volumes were immediately impacted by geopolitical situation, but the associated cost base could not be adjusted at the same pace, impacting profitability. — Management acknowledged

    medium

    Uncertainty in forward-looking statements due to external events

    Ongoing geopolitical issues make it difficult to provide precise guidance for FY27 outcomes, particularly for the travel segment. — Management acknowledged

    medium

    Q&A highlights

    8

    “What I can definitely confirm is that the desire to travel continues to be very, very strong and the Europe and the westbound market is always going to remain stronger in times to come also. At this point in time, what we have witnessed in July and some of the trends in August are reflecting a better outcome in terms of conversion as compared to what we saw in the period April to June.”

    Provides an early read on Q2 trends for the crucial outbound leisure segment, indicating some recovery post Q1 challenges.

    asked by Chetan Mahadik

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Consolidated total income for Q1 FY27 stood at INR 21,530 million, a 12% decline year-on-year, with profit before tax down 21% Y-o-Y to INR 885 million. This was primarily due to the underperformance of Desert Adventures and DEI, the Middle East operations, which were heavily impacted by geopolitical disruption🌐s. Excluding these impacted businesses, the group's consolidated results registered an 8% EBIT growth, highlighting the resilience of underlying businesses.

    02

    Foreign Exchange Business Strength

    The foreign exchange business delivered a positive performance, with segment revenue growing by 6%, EBIT by 8%, and healthy EBIT margins of 45.3%. The education portfolio was a key growth driver, with turnover increasing by 36% year-on-year, while the overall retail portfolio grew 8% Y-o-Y in turnover. Digital penetration in Forex improved to 23.5% from 20.4% last year, with transactions increasing by 38% and TCPay app bookings threefold.

    03

    Travel Segment Dynamics

    The overall travel business reported a revenue of INR 17,106 million, a 14% decline year-on-year, largely due to the conflict in West Asia. Domestic travel saw a 29% increase, and the short-haul business grew 6% (21% excluding the Middle East). However, long-haul sales declined 28% year-on-year. The B2B travel segment, accounting for 63% of reported travel numbers, declined 13% to INR 11,192 million.

    04

    MICE and Corporate Travel Growth

    Despite the overall travel segment decline, the MICE portfolio recorded a healthy 14% year-on-year growth, with turnover increasing to INR 5,420 million. Corporate travel, reported on a net basis, saw a 7% increase in revenue to INR 350 million, with gross turnover crossing INR 7 billion, up 15% Y-o-Y. These segments demonstrated sustained demand and successful client acquisitions.

    05

    Sterling Holidays' Record Quarter

    Sterling Holiday Resorts achieved its best quarter ever, marking 26 consecutive profitable quarters. Revenue from operations reached INR 1.7 billion, growing 21% year-on-year, with EBITDA increasing 21% to over INR 620 million, maintaining an industry-leading EBITDA margin of 37%. Profit before tax grew 30% year-on-year, with PBT margins expanding to 28%, driven by improved occupancy (77%) and a 10% increase in average room rates to INR 7,809.

    06

    Middle East Operations and Recovery Efforts

    The DMS portfolio declined 31% to INR 5,422 million, with international DMS revenues down 33%. Desert Adventures' revenue declined 89%, and DEI's EBIT shifted from a positive INR 106 million in Q1 FY26 to a negative INR 152 million in Q1 FY27. Management has implemented cost optimization measures, including closing non-profitable sites and renegotiating terms with Middle Eastern partners, with benefits expected in Q2 and Q3 FY27. Recovery in the Middle East market, which was sub-20% in Q1, is crucial, with July showing a slight improvement to 30-35%.

    This is an AI-generated summary of a publicly available earnings call transcript.