Thomas Cook India reports Q1 FY27 revenue of INR 21.5 Bn

For Sterling Holidays & Nature Trails, revenue from operations grew by 19% y-o-y, EBIT grew by 28% & maintained with EBIT margins at 32.4% for Q1 FY27.

The TCIL Group delivered a resilient performance for Q1 FY27 with Financial Services & Leisure Hospitality registering growth, while Travel Services held steady despite strong headwinds. Consolidated results were subdued largely due to the impact of the West Asia conflict on the Group’s GCC-based subsidiaries.

For financial services revenue from operations increased by 6% y-o-y, retail turnover grew by 8% y-o-y. EBIT grew by 8% y-o-y with EBIT margins at 45.3%. For Sterling Holidays & Nature Trails, revenue from operations grew by 19% y-o-y, EBIT grew by 28% & maintained with EBIT margins at 32.4% for Q1 FY27. 

Revenue from Operations from Thomas Cook, SOTC and TCI remained steady at 16% y-o-y. Corporate travel revenue from Operations grew at 7% y-o-y. Revenue recorded for from operations for India DMS at 0.2% growth and overseas DMS’s turnover (33%) y-o-y. MICE Growth in sales recorded 14% y-o-y for Q1 FY27. 

Consolidated Total Income for Q1 FY27 stood at INR 21,530 Mn, down by 12%. Consolidated PBT for Q1 FY27 stood at INR 885 Mn, down by 21%. Excluding the GCC-based subsidiaries (DEI & Desert Adventures), the consolidated results of the Group registered a growth of 8% in EBIT for Q1 FY27. 

Commenting on the results, Mahesh Iyer - Managing Director & CEO, Thomas Cook (India) Limited said, “The first quarter of FY27 was characterised by a highly volatile operating environment. The impact was particularly severe on our GCC-based subsidiaries - Digital Imaging (DEI) & Desert Adventures, that continue to be affected by the ongoing conflict in the region. The Group’s global operations remain strong, reflected by our EBIT growth of 8% excluding the specific GCC-based subsidiaries, impacted by the conflict. While the operating environment continues to remain dynamic, we are cautiously optimistic about the outlook for the remainder of the year. Our focus remains on prudent financial management, driving operational excellence through technology and innovation, and strengthening our customer focus to deliver sustainable growth and create long-term value for all our stakeholders.”

The group secured new corporate travel mandates across the financial services, automobile, IT, insurance and education sectors, adding seven new client accounts during Q1 FY27. Total Air and Non-Air volumes grew by 13.4% y-o-y in Q1 FY27, reflecting sustained momentum across corporate travel segments. Air volumes recorded growth of 14.4% y-o-y . Domestic Air volumes increased by 10.9% y-o-y, driven by continued growth in business travel demand across India

International Air volumes grew by 16.7% y-o-y, underlining strong demand for cross-border corporate travel. Hotel volumes increased by 33.7% y-o-y, making accommodation one of the fastest-growing segments within the Company's corporate travel portfolio. Hotel transactions grew by 16.2% y-o-y, reflecting increasing adoption of managed accommodation programs by corporate clients. Following its launch in Q4 FY26, Thomas Cook India's integrated hotel platform, Lodging One, continued to enhance hotel content, accommodation choice and booking capabilities for corporate travellers. Non-Air volumes and transactions recorded q-o-q growth of 5.2% and 3.7% respectively, demonstrating continued expansion of the Company's diversified travel services portfolio. Car rental volumes and transactions grew by 28.2% and 25.4% respectively q-o-q, reflecting growing demand for end-to-end travel management solutions beyond air travel

In the MICE sector the group managed over 110 groups ranging from 50 to 2400 delegates per group. Key international destinations: Australia, Cambodia, Canada, China, France, Hong Kong, Indonesia, Japan, Malaysia, Mexico, Netherlands, Norway, Singapore, South Africa, Spain, Sri Lanka, Switzerland, Thailand, United Kingdom, United States, Vietnam; Domestic: Delhi, Goa, Hyderabad, Shimla, Jaipur, Chandigarh, Kolkata and Amritsar

Despite geopolitical disruptions, short-haul destinations performed well, with travellers pivoting from long-haul west-bound markets to Japan, Vietnam and China. India and the Indian Subcontinent remained key travel choices, with Himachal Pradesh, the North East, Kashmir, Kailash Mansarovar, Sri Lanka and Bhutan continuing to attract travellers

For Asia Pacific – Asian Trails Revenue remained broadly stable, supported by strong growth in the China operations and improved contributions from Cambodia, Malaysia and Singapore, despite continued geopolitical uncertainties affecting certain regional markets. For USA – Allied T Pro, the performance was impacted by continued softness in U.S. inbound tourism amid weaker overseas visitor arrivals and geopolitical uncertainties, along with the absence of large one-off MICE movements in the current period. In Middle East the quarter's results continued to be materially impacted by geopolitical developments in the Middle East, exerting sustained pressure on travel demand. The business maintained a strong focus on cost optimization while preserving operational readiness to support the anticipated recovery in demand

In Southern Africa Revenue grew by 17% y-o-y, supported by resilient inbound travel demand and improved margins through strategic upselling initiatives and supplier negotiations, despite elevated airfares and airline capacity constraints. And in East Africa Revenue grew by 4% y-o-y, supported by sustained demand from key source markets, including the USA, Europe and India, while improved margins contributed to overall performance

The period turns out to be the best-ever quarter in Sterling's history, delivering record performance across revenue, profitability, occupancy, pricing and cash generation. Revenue from Operations reached a record Rs.1,614 Mn, driven by strong growth in room revenues, higher occupancy and sustained pricing power. EBITDA of Rs. 637 Mn with industry-leading 37% margins, while EBIT increased 28% with a margin expansion of 230 bps. Resort network expanded to 78 properties with 3,798 rooms, making Sterling one of the fastest-growing listed hospitality companies in India. ARR improved by 9% y-o-y in Q1 FY27 to Rs.7,809

Continued to strengthen the balance sheet with Rs. 3,737 Mn cash reserves, while remaining a zero-debt, net cash-positive company. Customer experience continued to rank among the best in the industry, with an NPS exceeding 81 and an improved TripAdvisor rating of 4.60. Further reinforcing its leadership, Sterling Kanha became the only resort in India to receive TripAdvisor's "Best of the Best" Award for four consecutive years. Relaunched Nature Trails Kundalika Retreat

Middle East operations (~ 50% of the portfolio) continued to be impacted by the ongoing geopolitical situation, with several attractions remaining closed and others witnessing subdued footfalls. Alongside a lower contribution from China, this resulted in a year-on-year decline in sales, partially offset by healthy growth across Hong Kong, Singapore and Saudi Arabia.

The business remains focused on preserving operational readiness while implementing targeted cost optimization initiatives. Site rationalization, including the closure of select non-profitable locations, together with optimization of commercial arrangements, personnel costs and operating overheads, strengthened operational efficiency and cost discipline.

Three new partnerships signed in Q1 FY27 are in Indonesia and China. Renewed 11 key partnerships across UAE, Singapore, Indonesia and Oman. Operational launch of 5 partnerships in India and Indonesia. The group also inaugurated 11 outlets across Thomas Cook India and SOTC in Q1 FY27 in Mumbai, Noida, Kolkata, Lucknow, Surat, Hyderabad, Jaipur, Bareilly and Visakhapatnam.