THOMASCOOK - Thomas Cook (I)
📢 Recent Corporate Announcements
Thomas Cook (India) Limited has expanded its prepaid forex card portfolio by adding 16 new global currencies, bringing the total to 28. This expansion targets the growing trend of Indian travelers visiting emerging international markets and aims to reduce costs associated with multiple currency conversions. The company is leveraging its omnichannel network and a strategic partnership with Blinkit to offer card delivery and loading in under 60 minutes. This move reinforces Thomas Cook's leadership in the foreign exchange segment and aligns with its digital-first strategy.
- Added 16 new global currencies including Chinese Yuan, Malaysian Ringgit, and Vietnamese Dong, totaling 28 currencies.
- Partnership with Blinkit enables customers to buy and load forex on prepaid cards in under 1 hour.
- The expanded suite is available across both Visa and Mastercard platforms with contactless payment support.
- Includes 24x7 forex assistance via WhatsApp for live rates and end-to-end transactions.
- Strategic focus on capturing high-growth travel demand in Asia, Southeast Asia, and Africa.
Thomas Cook (India) and SOTC Travel have introduced a pioneering 'Visa Rejection Cover' underwritten by ICICI Lombard to protect travelers from financial losses due to visa denials. The policy indemnifies customers for non-recoverable advance payments on hotels and flights, addressing a major pain point in the Indian travel industry. This service is available across all business segments including Leisure, MICE, and Corporate travel. The initiative strengthens the company's value proposition and competitive edge in the high-margin international travel sector.
- First-of-its-kind insurance cover in India for visa rejections, underwritten by ICICI Lombard.
- Covers non-recoverable advance payments for accommodation and travel including cancellation charges.
- Applicable across Group tours, FIT, MICE, and Corporate travel segments.
- Promoter Fairfax Financial Holdings Limited maintains a 63.83% stake in the company.
- Thomas Cook India maintains a strong credit rating of CRISIL AA/Stable for long-term facilities.
Thomas Cook (India) Limited has submitted its compliance certificate under Regulation 74(5) of SEBI Regulations for the quarter ended March 31, 2026. The document, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests were handled within the prescribed timelines. It ensures that physical share certificates were properly mutilated and cancelled after being converted to electronic form. This filing is a standard procedural requirement for listed companies in India to maintain accurate shareholding records.
- Compliance certificate for the quarter ended March 31, 2026, submitted to BSE and NSE.
- Registrar MUFG Intime India confirmed processing of dematerialization requests within prescribed timelines.
- Physical certificates were mutilated and cancelled after verification by the depository participant.
- Confirms that securities comprised in the certificates are listed on the stock exchanges.
Thomas Cook (India) Limited has announced the promotion of Deepti Sheth to President & Group Head – Human Resources, overseeing people strategy for the entire group. Sheth, who has over 20 years of experience, previously served as Senior Vice President at subsidiary SOTC Travel and has been with the group for a decade. The move is aimed at strengthening leadership development and digital transformation across the group's operations in 28 countries. The company continues to be backed by Fairfax Financial Holdings, which holds a 63.83% stake, and maintains a strong CRISIL AA/Stable credit rating.
- Deepti Sheth promoted to President & Group Head – HR after 10 years with the Thomas Cook India Group.
- Sheth brings over 20 years of expertise in talent management and organizational development.
- The Thomas Cook India Group operates across 28 countries and 5 continents.
- Promoter Fairfax Financial Holdings Limited maintains a 63.83% stake in the company.
- CRISIL has reaffirmed the company's credit ratings at AA/Stable and A1+.
CRISIL has reaffirmed Thomas Cook India’s long-term rating at ‘CRISIL AA/Stable’ and short-term rating at ‘CRISIL A1+’, marking the highest credit rating for a travel company in India. The group reported a 7.4% YoY revenue growth to ₹6,628 crore for the first nine months of FY26, primarily driven by its travel and forex segments. Financial stability is supported by a robust cash reserve of approximately ₹2,346 crore and a low gearing ratio of 0.34x as of February 2026. The rating also reflects the strategic importance and strong backing of its parent company, Fairfax Financial Holdings.
- CRISIL reaffirmed long-term rating at ‘CRISIL AA/Stable’ and short-term rating at ‘CRISIL A1+’
- Revenue grew 7.4% YoY to ₹6,628 crore in the first nine months of FY26
- Strong liquidity position with cash and bank balances of ₹2,346 crore as of February 2026
- Robust capital structure with low leverage indicated by a gearing ratio of 0.34x
- Travel segment remains the primary driver, accounting for over 75% of total group revenues
CRISIL has reaffirmed Thomas Cook India’s (TCIL) long-term rating at 'CRISIL AA/Stable' and short-term rating at 'CRISIL A1+', citing its leadership in the forex and travel segments. The company reported a 7.4% YoY revenue growth to ₹6,628 crore for 9M FY26, though operating margins slightly compressed to 6.8% due to geopolitical headwinds. TCIL maintains a robust financial profile with a low gearing of 0.34x and significant unencumbered cash of ₹771 crore. While the upcoming demerger of the resort business into Sterling Holiday Resorts will reduce consolidated EBIT by 20-30%, the credit profile remains supported by parent Fairfax Financial Holdings.
- CRISIL reaffirmed 'AA/Stable' long-term and 'A1+' short-term ratings for bank facilities and commercial paper.
- 9M FY26 revenue increased to ₹6,628 crore from ₹6,171 crore YoY, led by strong demand in travel services.
- Strong liquidity position with total cash and bank balances of ₹2,346 crore and unencumbered cash of ₹771 crore as of February 2026.
- Low adjusted gearing of 0.34x and interest coverage ratio of 6.6 times reflect a healthy capital structure.
- Demerger of the RRM business into Sterling Holiday Resorts is expected to impact consolidated EBIT by 20-30% post-restructuring.
Thomas Cook (India) Limited has informed the stock exchanges that its trading window for dealing in company securities will be closed starting April 1, 2026. This closure is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, preceding the announcement of financial results. The window will remain closed for designated persons and their relatives until 48 hours after the audited financial results for the quarter and year ending March 31, 2026, are declared. The date for the board meeting to approve these results is yet to be announced.
- Trading window closure effective from Wednesday, April 1, 2026.
- Closure is in relation to the audited financial results for the quarter and year ending March 31, 2026.
- The window will reopen 48 hours after the official declaration of the financial results.
- Applies to all designated persons and their immediate relatives as per the Company's Code of Conduct.
Thomas Cook (India) Limited has authorized a further investment of ₹2.50 crore in its joint venture, Indian Horizon Marketing Services Limited (IHMSL). The company is subscribing to 25,00,000 Class A Equity Shares at a face value of ₹10 each. The capital infusion is specifically earmarked for the co-development of a Travel AI Platform in partnership with Atirath Technologies. Although IHMSL currently reports zero turnover, this move highlights Thomas Cook's strategic intent to integrate advanced technology into its travel service offerings.
- Investment of ₹2.50 crore for 25,00,000 Class A Equity Shares at ₹10 per share
- Capital to be utilized for the development of a specialized Travel AI Platform
- Thomas Cook maintains 100% ownership of Class A Equity Shares in the JV post-allotment
- Target entity IHMSL is a Joint Venture with Atirath Technologies Private Limited
- Share allotment is scheduled to be completed by April 8, 2026
Thomas Cook (India) Limited (TCIL) has executed a supplemental agreement with Atirath Technologies to co-develop a specialized Travel AI Platform. The project will be executed through their joint venture, Indian Horizon Marketing Services Limited, where TCIL maintains a 50% equity stake. The JV entity has an authorized capital of INR 9.96 crores and aims to create proprietary intellectual property for the travel domain. This initiative is part of TCIL's broader growth strategy to leverage Artificial Intelligence for enhancing group operations and customer experience.
- TCIL maintains a 50:50 joint venture with Atirath Technologies for tech development.
- The JV entity, Indian Horizon Marketing Services, has an authorized capital of INR 9.96 crores.
- Investment proceeds will be specifically used for co-developing a proprietary Travel AI Platform.
- The agreement aims to build unique intellectual property (IP) for the travel domain to assist the Thomas Cook Group.
- The transaction is conducted at arm's length and follows the original JV framework established in September 2024.
Thomas Cook (India) Limited has approved the grant of 13,70,000 stock options to eligible employees under its ESOP 2024 - EXECOM scheme. Each option is convertible into one equity share of face value Re 1 at a highly discounted exercise price of Re 1 per share. This initiative is designed to align employee interests with shareholder value and retain key management personnel. The options come with a flexible exercise period of 20 years from the date of vesting.
- Grant of 13,70,000 stock options to eligible employees under the ESOP 2024 - EXECOM scheme
- Each option is convertible into one fully paid-up equity share with a face value of Re 1
- Exercise price is set at Re 1 per stock option, representing a significant discount to market price
- Options are exercisable within a period of 20 years from the date of vesting
- The scheme is compliant with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
Thomas Cook (India) Limited has approved the grant of 13,70,000 stock options to eligible employees under its ESOP 2024 - EXECOM scheme. Each option is convertible into one equity share of face value Re 1/- at a nominal exercise price of Re 1/- per share. The grant is intended to incentivize and retain key personnel within the organization. These options come with a long-term exercise window of 20 years from the date of vesting.
- Grant of 13,70,000 stock options to eligible employees under the ESOP 2024 - EXECOM scheme.
- Exercise price set at a nominal Re 1/- per option, equal to the face value of the shares.
- Each option entitles the holder to one fully paid-up equity share of Re 1/-.
- Options are exercisable within a period of 20 years from the date of vesting.
- The scheme complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Thomas Cook (India) Limited has approved the conversion of an inter-company loan provided to its non-material wholly-owned subsidiary, Thomas Cook Lanka (Private) Limited, into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS). This financial restructuring aims to optimize the subsidiary's capital structure. Additionally, the company announced two senior management appointments effective April 1, 2026: Mr. Deepesh Varma as Chief Business Officer - Foreign Exchange and Ms. Deepti Sheth as President and Group Head - Human Resources. Both appointees are internal veterans with over 11-13 years of experience within the group.
- Conversion of inter-company loan to Thomas Cook Lanka into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS)
- Appointment of Mr. Deepesh Varma as CBO - Foreign Exchange with 26+ years of total experience
- Appointment of Ms. Deepti Sheth as President and Group Head - HR with 20+ years of total experience
- Both management changes are effective from April 1, 2026, ensuring leadership continuity
- The Sri Lankan subsidiary involved in the loan conversion is classified as a non-material entity
Thomas Cook (India) has announced key leadership appointments and a financial restructuring of its Sri Lankan subsidiary's debt. Deepesh Varma, a 13-year veteran of the firm, will take over as Chief Business Officer for Foreign Exchange, while Deepti Sheth, with 11 years in the group, is appointed Group HR Head, both effective April 1, 2026. Additionally, the board approved converting an inter-company loan to Thomas Cook Lanka (Private) Limited into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS). These moves emphasize leadership continuity and internal balance sheet optimization.
- Mr. Deepesh Varma appointed as Chief Business Officer - Foreign Exchange effective April 1, 2026, bringing 26 years of total experience.
- Ms. Deepti Sheth appointed as President and Group Head - Human Resources effective April 1, 2026, with 20 years of HR experience.
- Board approved the conversion of inter-company loans to Thomas Cook Lanka (Private) Limited into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS).
- Both appointees are long-term internal leaders with over 10 years of tenure within the Thomas Cook and SOTC group.
- The leadership changes are designated as Senior Management Personnel (SMP) roles under SEBI regulations.
Thomas Cook (India) has announced the appointment of two internal veterans to its Senior Management Personnel team effective April 1, 2026. Mr. Deepesh Varma, with 26 years of experience, will lead the Foreign Exchange business, while Ms. Deepti Sheth, with 20 years of experience, will head Group Human Resources. Additionally, the board has granted in-principle approval to convert an inter-company loan given to its Sri Lankan subsidiary into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS). These moves reflect a focus on leadership continuity and balance sheet restructuring for its non-material subsidiaries.
- Mr. Deepesh Varma appointed as Chief Business Officer - Foreign Exchange with over 26 years of professional experience.
- Ms. Deepti Sheth appointed as President and Group Head - Human Resources with over 20 years of experience.
- Both appointees are long-term employees with 13 and 11 years of tenure respectively within the Thomas Cook group.
- In-principle approval granted for converting an inter-company loan to Thomas Cook Lanka (Private) Limited into OCCRPS.
- The appointments and structural changes are scheduled to take effect from April 1, 2026.
Thomas Cook (India) Limited has announced key leadership changes and a financial restructuring of its Sri Lankan subsidiary's debt. The company appointed Deepesh Varma, a 13-year veteran, as Chief Business Officer for Foreign Exchange and Deepti Sheth as Group HR Head, both effective April 1, 2026. Additionally, the Board approved converting an inter-company loan to its wholly-owned subsidiary, Thomas Cook Lanka (Private) Limited, into Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS). These moves indicate a focus on internal leadership continuity and balance sheet optimization for its international operations.
- Deepesh Varma appointed as Chief Business Officer - Foreign Exchange with 26 years of total experience.
- Deepti Sheth appointed as President and Group Head - Human Resources with 20 years of total experience.
- Board approved conversion of inter-company loan to Thomas Cook Lanka (Private) Ltd into OCCRPS.
- Both Senior Management Personnel (SMP) appointments are effective from April 1, 2026.
- Management changes involve internal promotions of executives with 11-13 years of tenure within the group.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for Q2 FY26 grew 3% YoY to INR 20,738 million. Segment-wise performance: Travel and Related Services grew 6% to INR 16,891 million; Financial Services grew 1% to INR 845 million; Leisure Hospitality & Resorts declined 13% to INR 1,044 million; and Digiphoto Imaging Services (DEI) declined 6% to INR 1,958 million. For H1 FY26, total revenue reached INR 44,818 million, a 9% YoY increase.
Geographic Revenue Split
The Travel segment, contributing over 75% of total revenue, is split between India and International operations. India DMS saw a 10% decline in sales for Q2 FY26 due to regional conflicts, while Asia Pacific (Asian Trails) reported 18% YoY growth. USA (Allied T Pro) turnover was subdued due to sentiment shifts, while East Africa and Southern Africa operations remained stable.
Profitability Margins
The group maintained an operating margin of 7.1% in fiscal 2025. Sterling Holidays (Leisure Hospitality) reported H1 FY26 margins of 32%, with a target range of 30-35%. Financial Services maintained healthy EBIT margins of 49% in Q2 FY26. However, consolidated EBITDA for Q2 FY26 fell 12% YoY to INR 1,470 million due to business mix shifts in overseas DMS and higher costs in the imaging segment.
EBITDA Margin
Consolidated EBITDA margin for Q2 FY26 was approximately 7.1%, down from 8.4% in Q2 FY25. This 130 bps compression was driven by a shift toward lower-margin business in the US market during its peak season and a 6% increase in employee benefit expenses to INR 2,797 million.
Capital Expenditure
The group estimates annual capex obligations (excluding leased assets) at INR 70-80 crore per annum over the medium term. Sterling Holidays is actively investing in resort expansion, having launched 7 new resorts in Q2 FY26 alone, contributing to a 28% YoY expansion in the resort portfolio.
Credit Rating & Borrowing
CRISIL has assigned a 'Positive' outlook with a rating of CRISIL AA-/A1+. Borrowing costs are reflected in an interest coverage ratio of 6.6 times for fiscal 2025, which is expected to sustain above 5 times. Consolidated external debt stood at INR 484 crore as of March 31, 2025, with repayments of over INR 100 crore planned over the next three fiscals.
Operational Drivers
Raw Materials
Cost of services (74% of revenue), Employee benefits (13.5% of revenue), and Other operating expenses (7.4% of revenue).
Import Sources
Not applicable as a service-oriented company; however, inventory is sourced globally for travel packages and digital imaging supplies across 15+ countries including USA, Thailand, and Indonesia.
Key Suppliers
Key partners include Mastercard and Visa for forex operations, and various global hotel chains and airlines for the travel segment.
Capacity Expansion
Sterling Holidays expanded its resort portfolio by 28% YoY in Q2 FY26, reaching a milestone of 7 new resort launches in a single quarter. The group also expanded its forex distribution by opening a new outlet in Varanasi in December 2025.
Raw Material Costs
Cost of services increased 4% YoY to INR 15,314 million in Q2 FY26, representing 73.8% of total revenue. Procurement strategies focus on cost optimization in high-volume markets like Thailand to offset margin dilution in the US.
Manufacturing Efficiency
Hospitality efficiency is measured by RevPAR, which grew 11% YoY in Q2 FY26. Occupancy was impacted by 40% of inventory being in weather-affected regions like Himachal and Uttarakhand during the quarter.
Logistics & Distribution
Distribution is driven by a mix of physical branches and digital platforms. Retail forex turnover grew 13% YoY, supported by paperless transfer technology and new physical outlets.
Strategic Growth
Expected Growth Rate
11%
Growth Strategy
Growth is driven by a 'transformative thrust' on the resort business (28% portfolio expansion), tapping into growing forex demand via new regional outlets (e.g., Varanasi), and a structural reduction in costs. The company is also transitioning its DEI segment toward a higher-margin software-led model despite short-term revenue flattishness.
Products & Services
Foreign exchange (Forex) cards and cash, corporate travel management, leisure holiday packages, visa and passport services, resort stays (Sterling), and digital photo imaging services (DEI).
Brand Portfolio
Thomas Cook India, SOTC Travel, Sterling Holidays, DEI (Digiphoto Entertainment Imaging), Asian Trails, Allied T Pro, Desert Adventures.
New Products/Services
Launched 7 new resorts in Q2 FY26. Expanding retail forex via paperless transfers and new physical distribution points to tap into the 'overseas education' and 'holidays' segments.
Market Expansion
Expanding forex footprint in Tier 2 cities (Varanasi) and growing the Asia Pacific DMS business, which saw 18% growth in Thailand, Indonesia, and Malaysia.
Market Share & Ranking
Leadership position in India's integrated travel and foreign exchange segments.
Strategic Alliances
Strong support from parent Fairfax Financial Holdings Ltd (77% stake). Partnerships with Mastercard and Visa for the prepaid forex card business.
External Factors
Industry Trends
The industry is seeing a shift toward digital/paperless forex transactions and a surge in domestic leisure travel. Thomas Cook is positioning itself by expanding its resort portfolio and automating branch processes to sustain a 7%+ operating margin.
Competitive Landscape
Competes with online travel aggregators (OTAs) and specialized forex players. Differentiates through an integrated 'one-stop-shop' model and physical presence.
Competitive Moat
Moat is built on a leadership position in Forex and Travel, a massive distribution network, and the financial backing of Fairfax. The diversified business model (Travel, Forex, Hospitality, Imaging) minimizes the impact of seasonality.
Macro Economic Sensitivity
Highly sensitive to global travel trends and domestic consumer discretionary spending. Fiscal 2025 revenue growth of 11% reflects positive macro tailwinds in the Indian travel market.
Consumer Behavior
Shift in sentiment in the US market led to weaker Q2 performance. In India, 35-40% of retail forex customers still prefer some cash, while the rest move to cards.
Geopolitical Risks
Protests in Nepal and India-Pakistan conflict advisories led to a 10% decline in India DMS sales. Ongoing Middle East tensions remain a monitorable risk for global travel sentiment.
Regulatory & Governance
Industry Regulations
Subject to SEBI (LODR) Regulations 2015 for disclosures and RBI guidelines for foreign exchange operations. Compliance with travel advisories and visa regulations across multiple jurisdictions.
Environmental Compliance
Not specifically disclosed in INR, but hospitality operations are subject to local environmental norms for resort management.
Taxation Policy Impact
Effective tax rate for Q2 FY26 was approximately 35.8% (INR 393 million tax on INR 1,098 million PBT).
Risk Analysis
Key Uncertainties
Geopolitical instability impacting travel (potential 5-10% revenue risk), severe weather impacting hospitality (13% segment drop in Q2), and slower-than-expected ramp-up of acquired businesses.
Geographic Concentration Risk
Over 75% of revenue is travel-related, with significant exposure to the Indian domestic market and key international hubs like the US and SE Asia.
Third Party Dependencies
High dependency on airline partners and global hotel inventory for the travel segment, and Mastercard/Visa for the forex segment.
Technology Obsolescence Risk
Risk in the DEI segment addressed by transitioning to new software and digital imaging platforms; retail forex is being digitized to prevent loss of market share to fintechs.
Credit & Counterparty Risk
Financial risk profile is 'comfortable' with a TOL/TNW ratio of 3.2x and strong liquid surpluses of INR 2,070 crore.