Thomas Cook (I) Q2 FY27 Results (NSE: THOMASCOOK)
Signal: Revenue declined
The read
The quarter marks a second consecutive quarter of YoY revenue contraction after Q4FY26 and Q1FY27, but EBIT margin improved 7bps YoY to 10.5% on the segment basis because financial services growth and lower finance costs cushioned a 15.9% decline in travel segment result. PAT quality is weaker than the operating headline because ₹593.9 million of other income was nearly equal to ₹603.3 million of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹548.11 Cr | -6.6% | -33.7% |
| EBIT | ₹57.82 Cr | -5.9% | |
| Net profit | ₹45.1 Cr | -4.0% | |
| EPS | ₹0.97 | -4.0% | |
| EBIT margin | 10.5% |
P&L walk
Revenue declined 6.6% YoY to 5,481.1 ₹ million, driven by a 10.1% fall in travel revenue; EBIT fell 5.9% to 578.2 ₹ million, but the 10.5% EBIT margin was broadly stable as financial services grew 17.4% and finance costs fell 9.9%.
Segments
Financial services was the stabiliser, with revenue up 17.4% YoY to ₹868.3 million and segment result up 0.9% to ₹375.4 million, while travel revenue fell 10.1% to ₹4,588.1 million and travel result fell 15.9% to ₹206.0 million; leisure hospitality remained loss-making at ₹3.2 million.
Key positives
- Financial services revenue grew 17.4% YoY to ₹868.3 million and segment result rose 0.9% to ₹375.4 million, providing resilience while travel weakened.
- Segment EBIT margin was 10.5%, up 7bps YoY despite 6.6% revenue contraction, supported by the financial-services mix and finance costs declining 9.9% YoY to ₹82.5 million.
- Borrowings declined to ₹253.5 million at 30 September 2026 from ₹569.6 million at 31 March 2026, while EPS tracked PAT with both declining 4.0% YoY.
Key concerns
- Travel and related services revenue fell 10.1% YoY to ₹4,588.1 million and segment result fell 15.9% to ₹206.0 million, making the core travel trajectory the main pressure point.
- Employee benefits expense rose 7.8% YoY to ₹786.8 million while revenue declined 6.6%, increasing employee-cost intensity to 14.4% of revenue.
- Leisure hospitality remained loss-making, with a ₹3.2 million segment loss versus a ₹2.3 million loss in the year-ago quarter.
Research and educational content only. Not investment advice.