ICICI Securities has issued a buy rating on Travel Food Services with a target price of ₹1,600 in its research report dated August 17, 2026. According to the brokerage's analysis, the company is currently in an investment phase as it adds capacity despite a challenging traffic environment. The recommendation is based on the company's strong operational performance and expansion strategy.
Despite broadly flat passenger traffic, Travel Food Services delivered robust financial results with consolidated sales growing 20.6% year-on-year. As reported by ICICI Securities, this growth was driven by 20.2% net contract gains and 4.2% like-for-like growth. The company has successfully added 87 QSR outlets over the last 12 months, positioning itself for future earnings growth.
The expansion strategy has resulted in near-term margin pressure, with EBITDA margin contracting 308 basis points year-on-year to 35.8% due to increased employee and other expenses from mobilizing new units. According to ICICI Securities, this represents an investment phase where the key focus should be on how quickly new outlets ramp up and translate into operating leverage.
Recent market data shows significant investor interest in Travel Food Services, with the stock ranking among the top 10 most searched stocks on INDmoney platform during the period July 18, 2026 to August 17, 2026. The company recorded an 180% increase in search interest during this period, indicating heightened market attention and potential trading activity.
ICICI Securities projects strong growth momentum with consolidated revenue, EBITDA, and PAT CAGRs of 12% over FY26-28. The brokerage expects the next leg of earnings growth to be supported by maturing outlets alongside passenger traffic recovery and like-for-like growth improvement. The company maintains a debt-free balance sheet with ₹9.7 billion cash, providing sufficient funding headroom for its expansion pipeline.
