Thomas Cook India Group Reports 18 per cent PBT Growth in Q1 FY26

Thomas Cook (India) Ltd. has reported an 18 per cent year-on-year increase in profit before tax (PBT), reaching Rs 1,284 million for the first quarter of FY26. This strong financial results and performances came despite the ongoing impact of geopolitical issues on global travel. The PBT figure excludes a one-time ex gratia expense of Rs 171 million.

The Group’s consolidated total income from operations rose by 15 per cent year-on-year to Rs 24,530 million, and by 21 per cent on a sequential basis. This growth was powered by robust results across all its business verticals including travel services, leisure hospitality, and digital imaging.

Travel Services Lead the Charge

Travel Services reported a 25 per cent jump in earnings before interest and tax (EBIT) to Rs 811 million, driven by early holiday bookings and a strong turnaround in both India and international Destination Management Services (DMS). Leisure travel sales across Thomas Cook and SOTC rose by 15 per cent, while MICE (Meetings, Incentives, Conferences, and Exhibitions) sales grew by 12 per cent. The India DMS segment posted a 36 per cent increase in turnover and overseas DMS grew by 28 per cent.

Leisure Hospitality Shows Impressive Growth

Sterling Holidays and Nature Trails, part of the Thomas Cook hospitality arm, reported an EBIT growth of 25 per cent to Rs 409 million, with a 74 per cent rise compared to the previous quarter. Revenue from this segment increased by 8 per cent year-on-year to Rs 1,357 million. The network grew from 50 to 62 resorts with a total of 3,285 rooms. Despite the expansion, average room rates held steady at Rs 7,162.

Two new resorts were launched in Lansdowne and Rudraprayag during the quarter. Sterling also maintained a strong cash position and debt-free status, with food and beverage revenue climbing 16 per cent year-on-year. Notably, the share of non-member guests increased to 74 per cent.

Digital Imaging Sees Major Uplift

The Digital Imaging Solutions business (DEI) recorded a 61 per cent year-on-year rise in EBIT to Rs 106 million. The segment benefitted from improved operational efficiencies and several new partnerships in key tourism destinations including the UAE, Maldives, Hong Kong, and Malaysia. DEI also renewed seven major agreements and launched operations in India and China. DEI was recognised with the Image Award at the IAAPA Expo Asia 2025.

Forex Faces Headwinds, Yet Stays Resilient

The Forex business faced challenges due to global uncertainties, with revenue declining by 7 per cent year-on-year. However, retail and holiday sales grew by 4 and 6 per cent respectively. Card loads dipped by 12 per cent, while WhatsApp-based transactions grew sevenfold. The business maintained a healthy EBIT margin of 44 per cent and continues to focus on innovation, including app-based bookings and WhatsApp calling support.

Strong Ratings and Financial Health

CRISIL recently upgraded Thomas Cook India Group to ‘CRISIL AA/Stable’ and ‘CRISIL A1+’, marking it as the highest-rated travel and tourism company in India. The Group’s cash and bank balances increased to Rs 22,481 million as of June 30, 2025, compared to Rs 20,739 million at the end of March.

Future Outlook

Commenting on the results, Mahesh Iyer - Managing Director & CEO Thomas Cook (India) Limited said, “Despite the recent geopolitical events this quarter, that disrupted the travel ecosystem both in India and globally, I am happy to announce that the Thomas Cook India Group reported a PBT growth of 18 per cent for Q1 FY26 at Rs 1,284 Mn, excluding the effect of a one-time expense. Total Income from Operations grew by 15 per cent y-o-y and 21 per cent on a sequential basis. This was driven by strong performances across Travel Services, Hospitality (Sterling Holidays), our DMS companies and DEI. CRISIL’s recent upgraded rating to CRISIL AA/Stable/CRISIL A1+, the highest in India’s travel and tourism sector, is a reaffirmation of the Group’s leadership.”

Looking ahead, the Group continues to stay focussed on technology and improved customer experience. Given the unpredictable external environment, and its potential impact on travel sentiment, we remain cautiously optimistic as we move into the festive season ahead.

As India’s leading omnichannel travel company, Thomas Cook India Group operates in 28 countries across five continents, with a portfolio that spans foreign exchange, corporate travel, leisure holidays, MICE, visa services, and digital imaging.