Thomas Cook (India) reported strong Q3 FY26 performance, with consolidated total income growing 5% for the quarter to INR21,866 million. Profit Before Tax (PBT) grew 20% (excluding a one-time Labour Code impact). The Foreign Exchange segment saw a 10% EBIT increase, while the Travel segment maintained margin resilience despite global headwinds. Sterling Holidays achieved a record quarter, and DEI saw revenue growth backed by key Dubai performance.
Consolidated Performance Highlights
For the third quarter of FY26, Thomas Cook (India) recorded a consolidated total income of INR21,866 million, marking a 5% growth year-over-year. Profit Before Tax (PBT) for Q3 stood at INR897 million, reflecting a 20% improvement when excluding the one-time impact related to the new Labour Code implementation. For the nine months ending December 2025, total income rose 8% to INR67,523 million.
Management specifically highlighted the improvement in ‘Other Income,’ which grew from INR22 crores to INR40 crores in the current quarter, attributed to efficient treasury operations and better yields on fixed deposits deployed from the Foreign Exchange float.
Segmental Review: Foreign Exchange (Forex)
The Forex segment demonstrated robust profitability, reporting a 10% increase in EBIT for Q3 FY26, reaching INR316 million. Consequently, EBIT margins expanded to 41.5% from 38.7% the previous year. Despite industry-wide headwinds in overall LRS travel decline, the Retail sales segment showed strength, growing 25% Y-o-Y, largely driven by a 39% increase in the Education category.
Digital adoption is progressing, with app engagement growing 2.7x to 835 transactions in the quarter, up from 300 the prior year. Furthermore, the collaboration with Blinkit for forex card services has expanded to 8 cities.
Travel and Travel-Related Segments
The Travel segment, split between B2B (80%) and B2C (20%), managed to expand EBIT margins to 3.1% in the quarter. The B2B international DMS portfolio grew 9% Y-o-Y, supported by strong performances in Asian Trails (14% growth) and Private Safaris (41% growth).
The Corporate Travel segment showed significant revenue improvement of 21% for the quarter, with air revenue growing over 12.4% Y-o-Y. On the B2C side, revenue declined 6% Y-o-Y, influenced by calendar shifts and customer preference moving toward shorter-haul, easier visa destinations, evidenced by a 23% growth in short haul sales over 9 months.
Sterling Holiday Resorts Performance
Vikram Lalvani, MD & CEO of Sterling Holiday Resorts, reported a record quarter, marking the 25th consecutive profitable quarter. Consolidated revenues grew 10% Y-o-Y to INR1,568 million. EBITDA grew 7% Y-o-Y to INR561 million, sustaining a healthy EBITDA margin of 36%.
Sterling is expanding its network, now standing at 77 hotels and resorts across 63 destinations, representing a 20% year-on-year supply growth. RevPAR grew 17% Y-o-Y on a consolidated basis.
DEI Segment Update
K.S. Ramakrishnan, MD & CEO for DEI, noted that Q3 was one of the best quarters historically. Revenue in Dubai hit a record high of over INR565 million. Overall, DEI saw a 5% growth quarter-on-quarter, with EBIT levels 42% better than Q3 2025, driven by cost structure improvements and top-line performance.
Q&A Insights: Cash Position and Outlook
In response to queries, Debasis Nandy confirmed the net cash position (excluding float) stood at approximately INR780 crores as of December 2025, up from INR405 crores in December 2024. Management expects the business to continue its strong profitability trajectory into FY27, targeting double-digit earnings growth, provided macroeconomic conditions remain stable (GDP growth around 7-7.5%).
Regarding the recent budget, management confirmed the mandatory shift to the lower tax regime effective FY ’27, which is expected to be positive for earnings per share, as they can utilize existing MAT credits before the transition.
Source: BSE
