Thomas Cook (India) Limited has released its earnings transcript for the second quarter and first half of FY27. The company highlights a consolidated total income of INR 20,030 million for Q2, a 5% decline year-on-year, with EBIT margins at 3.8%. Despite challenges, PBT remained stable at INR 848 million. The report details strong performance in the Financial Services and India outbound travel segments, with positive recovery signs in international operations.
Q2 and H1 FY27 Earnings Overview
Thomas Cook (India) Limited has disclosed its financial and operating performance for the second quarter (Q2) and the first half (H1) of FY27. The company reported a consolidated total income of INR 20,030 million for Q2, marking a 5% decline compared to the previous year. Despite this, EBIT margins were maintained at a healthy 3.8%. Profit Before Tax (PBT) for the quarter stood at INR 848 million, remaining broadly consistent with the prior year, demonstrating resilience amidst a challenging environment.
Segment Performance Highlights
The company’s performance was bolstered by strong growth in its Financial Services segment, which saw revenue increase by 21%. This growth was primarily driven by the retail segment (up 12%), particularly the education sector (up 33%) and corporate segment (up 10%). The India Travel segment also showed clear signs of recovery, ending the quarter just 6% below last year with healthy EBIT margins.
International operations faced headwinds due to geopolitical disruptions, impacting businesses like Desert Adventures and DEI. However, these businesses showed sequential improvement. The travel segment, on a consolidated basis, reported revenue of INR 15,683 million for Q2, a 7% year-on-year decline, but with encouraging signs of recovery in the India business and gradual improvement in international markets.
Sterling Holiday Resorts Performance
Sterling Holiday Resorts reported its highest Q2 revenue of approximately INR 1,272 million, a 17% year-on-year growth. The company opened 7 new resorts during the quarter, expanding its portfolio to 83 properties. Occupancy improved by 300 basis points, and average room rates increased by 12%, resulting in a total RevPAR growth of 12%.
For H1 FY27, Sterling’s revenues grew approximately 19% to INR 2,971 million. EBITDA increased 15% to approximately INR 910 million, and PBT grew 22% to approximately INR 623 million. The company maintained a debt-free status with net cash reserves of approximately INR 3,805 million.
Future Outlook
Thomas Cook (India) remains optimistic, particularly about the leisure travel business, with forward bookings trending at a healthy 30% growth. The company anticipates a steady recovery in international markets and expects the subsequent quarters to be positive, barring unforeseen events.
Source: BSE
