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    Thomas Cook (India) Limited

    THOMASCOOK
    Consumer Services·20 Nov 2025
    Management Summary

    Thomas Cook (India) Limited reported a resilient Q2 FY26 with a 3% YoY revenue growth to INR20,738 million, and H1 revenue up 9% to INR44,818 million, despite significant geopolitical and weather-related headwinds. While the Financial Services segment maintained strong EBIT margins, the Travel segment experienced margin compression due to external factors and increased marketing. Sterling Holiday Resorts continued its profitable streak with strong resort revenue growth, but its Q2 EBIT margin was impacted by weather and operational transitions. The DEI business saw a slight revenue and EBIT decline, attributed to geopolitical factors and ongoing technology migration costs.

    Highlights

    5

    • Revenue from operations stood at INR20,738 million, up 3% Y-o-Y, demonstrating resilience despite external pressures.

    • H1 Revenue reached INR44,818 million, a growth of 9%, indicating strong half-year performance.

    • Financial Services (Forex) EBIT for Q2 FY26 was INR411 million, maintaining healthy 49% margins.

    • Sterling Holiday Resorts delivered its 23rd consecutive profitable quarter, with Q2 resort revenue growing 13% and RevPAR up 11% Y-o-Y.

    • Launched innovative digital initiatives like Blinkit partnership for 10-minute forex card delivery and TCPay app, enhancing customer convenience.

    Concerns

    5

    • Q2 FY26 Profit before tax after exceptional items was INR1,098 million, flat compared to INR1,096 million in Q2 FY25.

    • Travel segment EBIT was lower by 16% in the quarter at INR651 million, with a margin of 4%, impacted by tepid demand and increased marketing efforts.

    • DEI (Digital Imaging Business) Q2 FY26 revenue was INR1,958 million, a slight decline from INR2,088 million in Q2 FY25, with EBIT dropping to INR23 million from INR65 million last year.

    • Sterling Holiday Resorts' Q2 EBIT margin was 16%, down from H1's 24.1%, primarily due to severe weather impacting 40% of rooms and sunsetting of membership acquisition.

    • One-time exceptional item in Q2 FY26 that will not repeat, potentially masking underlying performance.

    What Changed2

    vs Q3 FY26

    Guidance items5 → 3 (-2)Risks discussed4 → 7 (+3)
    Key financials

    Metrics

    4

    Periods

    2

    Headline

    3
    • Revenue from Operations
      20,738 Mn
      YoY+3%
    • H1 Revenue
      44,818 Mn
      YoY+9%
    • H1 PBT (after exceptional items)
      2,211 Mn
      YoY+1.1%

    Q2

    1
    • PBT (after exceptional items)
      1,098 Mn
      YoY+0.2%

    Segment breakdown

    Financial Services (Forex)
    845 Mn Q2 Revenue411 Mn Q2 EBIT49% Q2 EBIT Margin13% Retail Turnover Growth13% Holiday Sales Growth9% Education Segment Growth
    Travel and Travel-Related Services
    16,891 Mn Q2 Revenue36,675 Mn H1 Revenue651 Mn Q2 EBIT4% Q2 EBIT Margin
    B2B Businesses (Travel)
    12% H1 Revenue Growth5% Destination Management Growth (Q2)-10% India DMS Decline (Q2)16% Overseas Sales Growth (H1)402 Mn Corporate Travel Q2 Revenue4% Air Revenues Growth20% Non-Air Transactions Growth23% Hotel Bookings Growth9% Car Bookings Growth
    B2C Businesses (Travel)
    4,310 Mn Leisure Holiday Q2 Revenue7.0% Outbound Holidays Growth12% Domestic Holidays Growth
    Sterling Holiday Resorts
    13% Q2 Resort Revenue Growth11% RevPAR Growth2,400 Mn H1 Revenue24.1% H1 EBIT Margin32% H1 Standalone EBITDA1,044 Mn Q2 Revenue16% Q2 EBIT Margin
    DEI (Digital Imaging Business)
    1,958 Mn Q2 Revenue2,088 Mn Q2 Revenue (vs Q2 FY25)23 Mn Q2 EBIT65 Mn Q2 EBIT (vs Q2 FY25)4,055 Mn H1 Revenue4,162 Mn H1 Revenue (vs H1 FY25)129 Mn H1 EBIT131 Mn H1 EBIT (vs H1 FY25)
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Cash ₹3,080 million

    Sterling's cash reserves grew 51% year-on-year.

    Guidance & targets

    3
    CategoryTargetPriority
    Profitability
    Sterling H1 EBIT Margin
    32-35%
    		High
    Revenue
    DEI Revenue Growth
    growth opportunities
    		Medium
    Revenue
    Travel Segment H1 Top Line Growth
    15%
    		Low

    Sterling H2 performance and new resort contribution

    H2 FY26
    CurrentQ2 impacted by weather and membership sunsetting
    TargetImproved performance with weather headwinds behind and new resorts contributing

    Why it matters

    To assess the recovery and growth trajectory of the leisure hospitality segment after Q2 challenges.

    With weather conditions behind us, weather headwinds🌐 behind us, rather, I beg your pardon and a 30% increase in Saya dates with 14 of our jungle resorts having reopened and new revenue streams from recently opened resorts in Q2 and H1 and contribution from our new resorts and upgraded rooms, our business is well positioned for our renewed growth momentum and a successful closure of FY '26, consistent with the performance of the previous years and previous other 22 quarters.

    How to verify

    key_financials.segment_breakdown[name='Sterling Holiday Resorts'].metrics[label='Q2 Resort Revenue Growth']

    Risks & concerns

    7
    RiskSeverity

    Geopolitical flash points and global trade war

    Geopolitical flash points such as Operation Sindoor, Rising Lion, global trade war, and H1B visa escalations continued to shape global and regional risk sentiment, impacting travel demand. — Management acknowledged

    medium

    Weather disruptions in North India

    Weather disruptions across North India had a pronounced effect on domestic travel business and leisure hospitality, impacting Q2 recovery. — Management acknowledged

    high

    One-time exceptional item in Q2 FY26

    A one-time exceptional item in Q2 FY26 impacted profit before tax, but management stated it will not repeat. — Management acknowledged

    low

    Slower demand in education-related forex

    Limited expansion in the FX segment was driven by softer demand in specific subsegments, particularly education-related forex. — Management acknowledged

    medium

    Impact of Delhi Airport exit on airport segment

    The airport segment showed a sharp decline due to the exit from Delhi Airport in May 2025, making performance not comparable. — Management acknowledged

    low

    Geopolitical factors and venue closures impacting DEI

    DEI's Q2 was impacted by geopolitical factors in UAE (50% of market) and unplanned closures of key venues in Malaysia and Singapore. — Management acknowledged

    high

    Cost of new technology implementation for DEI

    DEI incurred double costs by running a new solution (WeC) alongside existing software during the transition, impacting profitability. — Management acknowledged

    medium

    Q&A highlights

    7

    “The statement I had made was that we had about 40% of our rooms impacted even on an expanded base this year in Q2 because our hotels in Himachal, Uttarakhand where we have a very strong presence was in a large portion of the months and any which ways is being a lean season, was typically cut off from traffic, Mussoorie, Nainital, Corbett, Manali, Kufri, etcetera.”

    Analyst questioned the discrepancy between increased capacity and flat occupancy versus declining revenue, highlighting the impact of weather and the sunsetting of membership income.

    asked by Anil Shah

    3 min read6 chapters

    Detailed Narrative

    01

    Overall Performance Amidst Headwinds

    Thomas Cook (India) Limited reported Q2 FY26 revenue from operations at INR20,738 million, marking a 3% year-on-year increase. For the first half of FY26, revenue reached INR44,818 million, growing 9%. Profit before tax after exceptional items📎 for Q2 FY26 was INR1,098 million, remaining largely flat compared to INR1,096 million in Q2 FY25. The company acknowledged a challenging quarter due to geopolitical flashpoints, global trade wars, and significant weather disruption🌐s in North India, which impacted domestic travel and leisure hospitality.

    02

    Financial Services Segment Highlights

    The Financial Services (Forex) segment demonstrated resilience, with Q2 FY26 revenue at INR845 million, a marginal 1% increase year-on-year from INR839 million. EBIT for this segment stood at INR411 million, maintaining healthy margins of 49%, broadly in line with the previous year. The retail segment turnover grew by 13%, driven by a 13% increase in holiday sales and a 9% year-on-year rise in the education segment. The company also highlighted its market share of 31-32% in prepaid cards and innovative partnerships like Blinkit for 10-minute forex card delivery.

    03

    Travel and Travel-Related Services Performance

    The travel segment recorded Q2 FY26 revenue of INR16,891 million, a 6% increase year-on-year from INR15,915 million. H1 revenue for this segment grew 12% to INR36,675 million. However, EBIT for the leisure segment was INR651 million, a 16% decline, resulting in a 4% margin. This was attributed to tepid demand, competitive pricing pressures, and increased marketing and sales initiatives. The B2B businesses, constituting 75% of the segment, saw a 12% H1 revenue increase, with corporate travel growing 27% to INR402 million in Q2.

    04

    Sterling Holiday Resorts Update

    Sterling Holiday Resorts delivered its 23rd consecutive profitable quarter. Q2 resort revenue grew 13%, and RevPAR increased 11% year-on-year. H1 FY26 revenue was INR2,400 million, with an EBIT margin of 24.1% and standalone EBITDA of 32%. However, Q2 revenue was INR1,044 million with a lower EBIT margin of 16%, primarily due to severe weather impact🌐ing 40% of its rooms and the sunsetting of membership acquisition. Sterling's cash reserves grew 51% year-on-year to INR3,080 million, and the company remains debt-free. They expanded their portfolio to 56 destinations and 65 resorts, adding 7 new resorts in Q2.

    05

    DEI Business and Technology Transition

    The Digital Imaging Business (DEI) reported Q2 FY26 revenue of INR1,958 million, a slight decrease from INR2,088 million in Q2 FY25. EBIT for Q2 was INR23 million, down from INR65 million in the previous year. H1 FY26 EBIT was INR129 million, compared to INR131 million in H1 FY25. The decline was attributed to geopolitical factors affecting the UAE market (50% of their business) and unplanned venue closures in Malaysia and Singapore. Management also noted increased costs due to running a new technology solution (WeC) in parallel with the existing system during the transition phase, with expectations for revenue growth from Q1 next financial year as the new system stabilizes.

    06

    Digital Initiatives and Customer Convenience

    Thomas Cook emphasized its focus on digital adoption, with WhatsApp engagement growing 108% and app bookings up 25%. Key innovations include a partnership with Blinkit for 10-minute forex card delivery, eliminating physical documentation. They also launched TCPay, a new integrated mobile app for forex needs, and enabled contactless cross-border payments through Google Pay in partnership with Visa and Mastercard. These initiatives aim to enhance customer convenience and streamline digital processes, with the Blinkit service already live in Delhi, Mumbai, and Bangalore, with phased Pan-India rollout plans.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.