Travel Food Services Ltd IPO

Revenue from its Travel QSRs and Lounges situated in airports contributed 95.55%, 95.88% and 95.77% of the company revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company is highly dependent on its concession agreements for the company business operations and inability to renew existing concession agreements or any adverse changes in the terms therein, early termination, or any inability to obtain new concessions could adversely affect its business and results of operations.

The Travel QSRs and Lounges at the top 5 airports contributed 85.94%, 88.36% and 90.29% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. Termination of the company concession agreements in relation to or a decrease in passenger traffic in such airports could have a significant impact on its revenue.

The company depends on its relationship with our brand partners to franchise their brands, with revenue from brand partners accounting for 54.37%, 54.44% and 54.06% of its revenue from Travel QSR for Fiscals 2025, 2024 and 2023, respectively. Failures to attract new brand partners or maintain or develop existing ones could adversely affect its business, results of operations, financial condition and prospects.

The success of its Lounge business is dependent on the company long-term relationship with its Lounge Partners, comprising domestic and international airlines, card issuers and networks, loyalty partner programmes, Lounge access programmes and financial institutions. Revenue from Lounge services amounted to 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company business may be negatively impacted if the company is unable to retain its existing Lounge Partners or attract new ones.

Its business growth may be adversely affected by shifts in the operating models of its airport operators, which may reduce the company share of profit derived from the relevant concession agreements with such airport operators.

The company is subject to extensive regulations, particularly relating to airport and highway operations, security, food health and safety and environmental matters. Any non-compliance with or changes in regulations applicable to us may adversely affect its business, results of operations, cash flows and financial condition.

Lounge services contributed 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company Lounge business may be adversely affected if there is a decrease in the number of its Lounge Partners' customers, whether due to a decrease in the number of credit cards and debit cards offering free Lounge access or from cards offering such services becoming less popular, or, in the converse, if there is a disproportionate increase in the number of such customers.

Its concession agreements impose restrictions and requirements on its operations, such as restrictions on the types of F&B and/or services that the company is obliged to provide, pricing benchmarks, minimum levels of capital expenditure that the company is required to undertake and the right of airport operators to relocate or suspend its operations, which could adversely affect the company business operations and failures to comply could result in termination of the agreements or financial penalties.

The Udaan Yatri Café provides airport travellers with basic menu items at more affordable prices, which may draw away some customers from its Travel QSR outlets and reduce sales at such outlets thereby adversely affecting the company business and financial results.

There are outstanding legal matters against the Company, certain of its Promoters, one of the company Subsidiaries, certain of its Directors and one of the members of the company Senior Management. Any adverse decision in such legal matters may render it or them liable to liabilities or penalties, which may adversely affect its business, cash flows and reputation.