TCIL Financial Services Revenue Rises 21% on Education Sales

Thomas Cook (India) Limited, referred to as TCIL, reported 21% year-on-year growth in Financial Services revenue from operations in Q2 FY27, supported by 33% growth in education sales and 12% growth in retail sales. The result came despite a 6% decline in holiday sales and a 3% fall in card loads.

How did TCIL Financial Services perform in Q2 FY27?

TCIL Financial Services revenue from operations increased 21% year on year in Q2 FY27 and 14% year on year in H1 FY27. Earnings before interest and tax (EBIT) increased 10% in Q2 FY27 and 9% in H1 FY27, meaning reported revenue grew faster than EBIT in both periods.

The quarterly revenue growth rate of 21% was 7 percentage points above the 14% growth reported for H1 FY27. TCIL said education and corporate business contributed to Financial Services growth, while its detailed quarterly sales disclosure identified education as the driver of retail performance.

TCIL reported consolidated profit before tax, excluding exceptional items, of Rs 84.8 crore for Q2 FY27, compared with Rs 84.5 crore in Q2 FY26. Consolidated total income declined 5% year on year to Rs 2,003 crore in Q2 FY27 and declined 9% to Rs 4,156 crore in H1 FY27, contrasting with Financial Services revenue growth.

What drove TCIL Financial Services sales growth?

Education sales rose 33% year on year in Q2 FY27 and drove the 12% increase in Financial Services retail sales. TCIL said this growth occurred despite a national decline in the education segment, but did not provide a rupee value for education sales.

Overall Financial Services sales increased 7% year on year in Q2 FY27, below the 12% increase in retail sales. The difference reflects the mixed category outcome disclosed by TCIL: education expanded 33%, while holiday sales and card loads declined during the same quarter.

TCIL also cited corporate business as a contributor to Financial Services revenue growth in Q2 FY27 and H1 FY27. Separately, Corporate Travel within Travel Services recorded 11% revenue growth in Q2 FY27 and 18.15% growth in total air and non-air volumes; TCIL reported those measures for a different business segment, not Financial Services.

The release does not give revenue, transaction value or margin data for education, retail, holiday sales or card loads. It therefore does not quantify how much each category contributed to the 21% increase in Financial Services revenue from operations or the 10% rise in segment EBIT.

Which TCIL Financial Services categories declined?

TCIL reported a 6% year-on-year decline in holiday sales and a 3% decline in card loads in Q2 FY27. These two declines occurred alongside 7% growth in overall Financial Services sales and 12% growth in retail sales, showing that the quarter’s growth was concentrated in other categories, particularly education.

The holiday-sales decline should be distinguished from TCIL’s India leisure travel forward bookings, which management said were 30% higher year on year for Q3 FY27. Management described that booking trend as a positive demand signal despite elevated airfares and other input costs, but the release does not state whether those bookings will affect Financial Services holiday sales.

TCIL’s other travel operations reported divergent Q2 FY27 results. India destination management services revenue increased 16%, while Overseas destination management services turnover declined 7% amid geopolitical disruption, including pressure on Desert Adventures in the Gulf Cooperation Council region and Allied T Pro in the United States.

The mixed demand pattern also appeared in Travel Services sales measures. Leisure Travel revenue across Thomas Cook and SOTC declined 17% year on year in Q2 FY27, while Corporate Travel revenue grew 11% and meetings, incentives, conferences and exhibitions sales grew 1%.

How did TCIL change its Financial Services distribution?

TCIL operationalised retail counters at Angamaly, Cochin and Hubli in Q2 FY27, while closing branches in Thiruvananthapuram as part of retail-network optimisation. The company did not disclose the number of counters and branches in its network before or after these changes.

TCIL reported more than 798 WhatsApp forex transactions in Q2 FY27, compared with 774 in Q2 FY26. App bookings exceeded 939 transactions, compared with 236 in Q2 FY26, while website bookings were reported at more than 1,013 transactions versus 1,022 a year earlier; TCIL also described website bookings as up 99% year on year.

Video know-your-customer transactions exceeded 5,191 in Q2 FY27, compared with 186 in Q1 FY26, which TCIL described as an all-time high. Digital adoption across DFC and FX Mate was 22.4% in Q2 FY27, compared with 22.7% in Q2 FY26, a 0.3-percentage-point reduction.

TCIL signed five new partnerships during Q2 FY27 across Malaysia, Maldives, Singapore and India, renewed 20 partnerships across seven markets, and operationally launched three partnerships in Indonesia, China and Maldives. The filing does not assign revenue or transactions to any individual partnership.

How does TCIL Financial Services growth compare with the group?

TCIL Financial Services’ 21% Q2 FY27 revenue growth contrasted with the group’s 5% decline in consolidated total income to Rs 2,003 crore. Financial Services EBIT grew 10%, whereas group profit before tax excluding exceptional items was broadly unchanged at Rs 84.8 crore from Rs 84.5 crore a year earlier.

Other group businesses posted different outcomes in Q2 FY27. India Travel Businesses ended the quarter 6% below the prior year and reported an EBIT margin of 3.8%, while India destination management services grew 16% in a seasonally softer quarter.

Leisure Hospitality reported revenue from operations of Rs 125.9 crore, up 21% year on year, and EBIT of Rs 18.4 crore, up 1%. Digital Imaging Solutions narrowed its loss to Rs 7.6 crore in Q2 FY27 from Rs 20.8 crore, following cost-containment measures initiated in Q1 FY27.

Conclusion

TCIL’s Financial Services result in Q2 FY27 reflected a changed sales mix: 33% education-sales growth supported a 12% increase in retail sales and helped lift revenue from operations 21%, despite declines of 6% in holiday sales and 3% in card loads. EBIT rose 10%, below the revenue growth rate, while H1 FY27 revenue growth of 14% was lower than the quarterly rate.

The next disclosed indicator is TCIL’s 30% year-on-year growth in Q3 FY27 forward bookings for India leisure travel, which management said it was monitoring amid elevated airfares and other input costs. The effects of the three new retail counters, Thiruvananthapuram branch closures, five new partnerships and 22.4% digital adoption rate will remain unresolved until TCIL provides later segment data.