Everything You Need to Know About the Upcoming IPO of India’s Premier Airport Lounge and Dining Operator

Travel Food Services (TFS), a food and lounge operator based in Mumbai, is gearing up for an initial public offering (IPO) worth INR 20 billion ($233.5 million). This IPO will start on July 7 and wrap up on July 9. Shares are expected to trade from July 14. Important to note, this IPO is purely for existing shareholders to sell their stakes, meaning TFS to won’t raise new funds from this endeavor.

Though not a household name, TFS plays a vital role in Indian airports. If you’ve enjoyed a meal in Mumbai or relaxed in a lounge while waiting for your flight in Bengaluru, you’ve likely experienced their services. The company operates food courts, quick-service restaurants, and airport lounges, boasting the largest network of food outlets in Indian airports. As of March 31, TFS had 413 locations, with 384 situated in airports and the rest along highways.

TFS covers nearly all the major airports in India—Delhi, Mumbai, Bengaluru, and Hyderabad—which account for about 75% of the country’s air traffic. Beyond India, the company manages lounges in Malaysia and Hong Kong, expanding its international presence. It also has a strong diverse food portfolio, working with well-known brands like KFC and Starbucks, alongside its in-house concepts such as Dilli Streat.

In a recent press conference, Varun Kapur, TFS’s CEO, highlighted their “focused initiative” in the travel sector. “We have a significant leadership,” he said, emphasizing the company’s commitment to quality in the food and lounge experience.

Financially, things are looking good for TFS. In the year ending March 2025, revenue rose by 20% to INR 16.8 billion ($196 million), and profit after tax climbed 27% to INR 3.8 billion ($44 million). This growth comes from a mix of franchise fees, lounge access fees, and food sales. TFS benefits from high foot traffic in transit hubs, making it easier to attract customers willing to spend.

Looking ahead, TFS is not sitting still. The company is eyeing growth opportunities beyond India, partnering with SSP to license its Araya lounge brand in Europe, North America, and Australasia. According to Kapur, the rise in air traffic and investments in airport infrastructure are crucial factors driving this expansion.

The lounge sector in India is still developing; most airports offer fewer lounges compared to global standards. Research by CRISIL suggests the Indian lounge market could see sevenfold growth in the next decade, driven by increasing disposable incomes and evolving travel habits. Likewise, the airport food market, which has doubled in recent years, is expected to nearly triple by 2034.

However, TFS faces stiff competition. Rivals like Encalm Hospitality and Saptagiri Restaurant are active in the lounge space, while global players like HMSHost and Lite Bite Foods compete in the food service arena. Yet, TFS believes its unique combination of food and lounge services gives it an edge, making it more appealing to airport operators.

As India enhances its airport infrastructure and air travel surges, TFS is positioning itself as a key player to improve traveler experiences. But with increasing competition, maintaining its focus and scale will be vital. Kapur is confident that TFS is built for this kind of challenge.

For more insights, check out this report from CRISIL.

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