Travel Food Services Ltd (TFS), a quick-service restaurant (QSR) and lounge operator, made its debut on the Indian stock exchanges today, July 14, 2025. The IPO, which closed on July 9, 2025, saw a subscription of 2.88 times. The IPO price was fixed at ₹1,100 per share.

Listing Performance

The shares of Travel Food Services listed with a premium, but soon slipped into the red. On the Bombay Stock Exchange (BSE), the scrip listed at ₹1,126.20, a 2.38% premium. The listing price on the National Stock Exchange (NSE) was ₹1,125, representing a 2.27% increase over the IPO price. Despite the initial gains, the stock's performance weakened, prompting discussions on whether investors should buy, hold, or sell.

Grey Market Premium (GMP)

Prior to the listing, the grey market premium (GMP) for Travel Food Services IPO indicated a modest listing gain. Market observers anticipated a listing price of around ₹1,125, slightly above the IPO price. However, the GMP trended downwards in the days leading up to the listing, reflecting subdued market enthusiasm.

Subscription Details

The Travel Food Services IPO witnessed varied levels of interest from different investor categories. The qualified institutional buyers (QIBs) segment was subscribed 8.10 times, indicating strong institutional demand. Non-institutional investors (NIIs) subscribed 1.67 times, while the retail segment saw a subscription of 0.73 times. The employee quota was subscribed 1.72 times. The IPO was entirely an offer for sale (OFS) of 1.82 crore equity shares.

Financial Performance

In fiscal year 2025, Travel Food Services demonstrated robust financial performance. The company's revenue from operations grew by 20.87% year-on-year to ₹1,687.74 crore, driven by strong like-for-like (LFL) sales and new contract wins. Net profit also saw a significant increase, jumping 27.35% to ₹379.66 crore from ₹298.12 crore in the previous fiscal year. The company reported revenue of ₹1,762.71 crores in 2025 against ₹1,462.29 crore in 2024. The company reported profit of ₹379.66 crores in 2025 against profit of ₹298.12 crores in 2024.

Company Overview

Travel Food Services, established in 2009, operates quick-service restaurants and lounges, primarily in airports and highways. As of June 30, 2024, the company had a presence in 14 airports across India and three airports in Malaysia. Travel Food Services boasts a diverse portfolio of food and beverage concepts, including fast food outlets, cafes, bakeries, food courts, and bars.

Analyst Recommendations

Given the mixed listing performance and subdued market enthusiasm, analysts suggest a cautious approach. Gaurav Goel, Founder & Director at Fynocrat Technologies, noted that the marginal listing gain reflects the 100% OFS structure, which doesn't infuse fresh capital into the company. Siddharth Tyagi, Senior Research Analyst, INVasset PMS, pointed out the strong institutional traction and market confidence in the company's growth and margin profile. Investors should consider their risk tolerance and investment horizon before making any decisions. For long-term investors, the company's strong financials and growth potential in the travel QSR segment may present an opportunity. However, short-term investors should closely monitor the stock's performance and market sentiment.