CRISIL Ratings has reaffirmed Thomas Cook India Limited’s long-term credit rating at ‘CRISIL AA/Stable’ and its short-term rating at ‘CRISIL A1+’. The rating agency also withdrew the company’s corporate credit rating upon request. These ratings reflect the company’s strong support from its parent, Fairfax Financial Holdings Limited, and its robust business profile in the travel and forex segments.
CRISIL Reaffirms Ratings for Thomas Cook India
Thomas Cook (India) Limited has received a reaffirmation of its credit ratings from CRISIL Ratings. The company’s long-term rating has been reaffirmed at ‘CRISIL AA/Stable’, and its short-term rating at ‘CRISIL A1+’. This announcement was made on October 29, 2026.
Corporate Credit Rating Withdrawn
In addition to the reaffirmations, CRISIL Ratings has withdrawn Thomas Cook India Limited’s corporate credit rating. This withdrawal follows a request from the company and is in line with CRISIL’s policy on rating withdrawals. The specific rating that has been withdrawn is the ‘Corporate Credit Rating’.
Key Strengths Underpinning Ratings
The reaffirmation of ratings is supported by several key factors. Firstly, Thomas Cook India benefits from strong, strategic support from its parent, Fairfax Financial Holdings Limited. The company also possesses a strong business risk profile, characterized by a leadership position in the travel and foreign exchange segments, and a healthy presence in leisure hospitality and digital imaging solutions. Its diversified operations across various segments, including leisure travel, destination management services (DMS), MICE, corporate travel, forex, hospitality, and digital imaging, provide resilience against market volatility.
Financial Performance Overview
In the first quarter of fiscal 2027, consolidated revenue from operations saw a decline of approximately 13% year-on-year, reaching Rs 2,092 crore. This decline was primarily concentrated in high-margin businesses impacted by geopolitical instability in West Asia and disruptions in airspace and connectivity. However, consolidated operating income for fiscal 2026 grew by 3.4% to Rs 8,517 crore. Despite operational challenges, the company’s liquidity remains strong, with cash and short-term investments of around Rs 2,650 crore as of June 30, 2026.
Outlook and Sensitivities
CRISIL Ratings maintains a Stable outlook for Thomas Cook India, expecting the company to continue benefiting from demand for travel services and its strong market position. Support from Fairfax is anticipated to remain a key factor. Upward rating factors could include a significant scale-up of operations and improved operating margins. Downward factors might arise from a weakening credit risk profile of Fairfax, adverse changes in Fairfax’s shareholding, or a sustained decline in revenue and operating margins.
Source: BSE
