In a promising start to the fiscal year, Thomas Cook India Group has reported an 18% year-on-year increase in profit before tax (PBT) for the first quarter of FY26, reaching Rs. 1,284 million (excluding the impact of a one-time expense). The company’s performance stands out against a backdrop of continuing geopolitical uncertainty, underscoring its operational resilience and strategic agility.
The Group’s total consolidated income from operations surged by 15% year-on-year to Rs. 24,530 million, also marking a 21% sequential growth from the previous quarter. This uptick reflects sustained demand across travel, hospitality, and digital services, bolstered by strategic business improvements and a firm focus on technology-driven customer solutions.
Segmental Strength: Travel, Hospitality, and DEI Lead the Way
The Travel Services division posted a robust 25% EBIT growth to Rs. 811 million, driven by a strong early booking pipeline and a recovery in both domestic and international Destination Management Services (DMS). Meanwhile, the Leisure Hospitality segment, anchored by Sterling Holidays, recorded a 25% EBIT growth to Rs. 409 million, aided by its expansion from 50 to 62 resorts year-on-year and stable average room rates of Rs. 7,162.
Digital Imaging Solutions (DEI), one of the fastest-growing business units, achieved a 61% year-on-year EBIT jump to Rs. 106 million, credited to improved operational efficiencies and the forging of new partnerships in the UAE, Hong Kong, Maldives, and China.
While the Forex division faced headwinds—primarily due to subdued student travel and general uncertainty—the business maintained a strong 44% EBIT margin, generating Rs. 374 million.
The Group’s cash and bank balances rose to Rs. 22,481 million as of June 30, 2025, up from Rs. 20,739 million in March 2025, signalling strong liquidity. Additionally, CRISIL upgraded the Group’s credit rating to CRISIL AA/Stable and CRISIL A1+—the highest ever achieved by any Indian travel and tourism company.
Foreign Exchange: Digital Push and Strategic Partnerships
In the forex vertical, Thomas Cook India focused on aggressive digital and physical expansion. WhatsApp transactions grew sevenfold and app bookings tripled compared to the previous year. New franchise outlets were launched in Kerala and Bengaluru, and a strategic collaboration with the Muthoot Group helped enhance its forex card offerings. To strengthen brand visibility, actor Kartik Aaryan was appointed ambassador for the Borderless Prepaid Travel Card.
Corporate & MICE Travel: Expanding Internationally
The corporate travel segment added new clients in the entertainment and ITES sectors, achieving a 50% touchless transaction rate via its self-booking platform. A key milestone was the launch of TCI Euro in Cyprus, enabling the Group to expand its footprint into the European corporate travel market.
The MICE (Meetings, Incentives, Conferences and Exhibitions) division managed over 300 group movements, including events such as the International Solar Alliance Regional Programme in Sri Lanka. An in-house expense management app was also rolled out to streamline operations.
Leisure Travel: Innovation Meets Experience
Leisure travel continued to benefit from curated and experiential offerings, including Disney cruises, cherry blossom tours, and TravSure, a comprehensive travel support programme. Joint consumer campaigns with Disney Cruise Line and Shoppers Stop sustained strong engagement and momentum.
Destination Management Services (DMS): Global Diversification
The India DMS business posted a 36% year-on-year turnover growth, while overseas entities collectively grew by 28%. Noteworthy performances came from:
- Asian Trails (Asia Pacific): +42%
- Allied T Pro (USA): +31%
- Private Safaris (Southern Africa): +19%
Although the insolvency of a key partner impacted operations in East Africa, the Group remains committed to developing new channels and partnerships to future-proof its DMS strategy.
Hospitality: Asset-Light Growth with Sterling Holidays
Sterling Holidays added two new resorts in Lansdowne and Rudraprayag, growing its network to 59 properties and 3,194 rooms. Revenue from managed properties doubled year-on-year, without additional fixed costs—reinforcing the Group’s asset-light expansion model.
Significantly, 74% of guests were non-members, a five-point increase from the previous year. TripAdvisor ratings further validated service excellence, with 36 resorts earning 4.5 stars and 16 achieving a full 5-star rating.
DEI: Expanding Presence in Asia
Digital Imaging Solutions (DEI) signed five new partnerships and renewed seven existing ones, launching operations in India and China at marquee attractions including LEGOLAND Shanghai. DEI also earned the Image Award for Best Exhibit Booth at IAAPA Expo Asia 2025, bolstering its brand credibility in the theme park and entertainment space.
Digital Transformation: AI and Automation at the Core
Thomas Cook India’s transformation strategy continued with the rollout of multiple AI-powered tools, including:
- GenAI chatbots “Tacy” and “Ezy”
- An AI itinerary builder
- A post-booking customer engagement app
- A new AI-based quality control system for contact centres
These tools enhance customer service delivery and reinforce the Group’s long-term digital vision.
Recognition and Future Outlook
During the quarter, the Group added five new leisure travel outlets and two forex franchises. Among its recognitions were titles such as “MICE Powerhouse” for Thomas Cook India and “Disruptor of the Year” for SOTC Travel.
Commenting on the Group’s performance, Mahesh Iyer, Managing Director and CEO, stated:
“Despite recent global disruptions, our Group delivered solid performance across all key verticals. As we approach the festive season, we remain cautiously optimistic while staying focused on digital innovation and enhancing customer experience.”
Conclusion: A Resilient and Forward-Looking Leader
With a diversified business model, tech-first mindset, and expanding global footprint, Thomas Cook India Group continues to stand out as a resilient and future-ready leader in South Asia’s travel and tourism landscape. As the industry navigates shifting global currents, the Group’s focus on innovation and service excellence positions it well for sustainable long-term growth.
